Kitchen renovations may quickly become prohibitively expensive, especially if you have grand plans for bespoke cabinets, granite countertops, and big islands.
According to Remodeling Magazine's 2018 Cost vs. Value Report, the average cost to renovate a 200-square-foot kitchen with wood cabinets, an island, laminate countertops, and a basic sink and faucet is just under $64,000. The pricing includes all new appliances, lighting, and flooring.
You can, however, pay a lot more or a lot less than that. For example, a gourmet kitchen with granite countertops, a custom range hood, bespoke cabinets, and a tile backsplash, as well as built-in and commercial-grade equipment, might cost more than $126,000.
A standard makeover, on the other hand, costs around $21,000 on average and involves replacing appliances, changing just cabinet fronts and hardware, picking new laminate worktops, and installing new flooring.
So, how much do the majority of individuals spend? Over 70% of those who finished a kitchen makeover in 2017 planned to spend between $5,000 and $50,000 on the project. Only one out of every ten homeowners spent more than $100,000.
What will the cost of your refurbishment be? It's all up to you and your financial situation!
How to Plan a Renovation Budget
If you want to renovate your kitchen successfully, you must first establish a budget.
What kind of budget do you have for cabinets? What about new equipment? Will you require new lighting? You'll need a well-thought-out strategy that outlines the tasks you want to undertake and how much money you want to spend. This will assist you in staying on track during the renovation.
Three Budgeting Suggestions
Decide to spend the majority of your money on items that you won't need to repair frequently, such as appliances and cabinets.
- Watch out for over improvement in your kitchen. If your upgrades make your house the most costly on the block, you won't be able to recoup your spending, no matter how lovely they are. If you're not sure what's usual in your area, speak with a knowledgeable real estate agent.
- Set aside 10%–15% of your budget for unforeseen costs. Renovations never come in under budget.
- You can make wise kitchen-remodeling decisions with confidence if you have a precise budget in place.
What Impact Will a Kitchen Renovation Have on the Value of Your Home?
In most circumstances, updating your kitchen will increase the value of your property. According to a recent poll, the kitchen was ranked as one of the top three most crucial places by 80% of purchasers.
In addition, 69 percent of purchasers who purchased houses without particular features said they would have paid more for new appliances, while 55 percent said they would have paid more for granite counters.
A redesigned kitchen may help your property stand out to potential buyers, resulting in a faster sale and a better price. This is good news if you're thinking about selling in the future. However, just because the value of your property improves doesn't mean you'll recoup the whole cost of upgrades when you sell.
The amount of money you can normally recoup from a renovation is highly dependent on the amount of money you invest and the type of upgrades you choose. A substantial premium kitchen renovation, for example, has a national average ROI of roughly 54 percent. You should be able to recoup around $68,000 after investing around $126,000.
Consider a relatively modest renovation job. A standard kitchen remodels costs $21,000 on average, with a $17,000 average return on investment. That's an investment return of 81 percent.
Where you reside might also have an impact on your return on investment. For example, although the national average ROI for a small redesign is 81 percent, if you live in the Pacific region of the country, the ratio jumps to 93 percent. Do you call North Dakota or Iowa home? Based on national statistics, you may only expect to repay 68 percent of your investment.
There is no such thing as a one-size-fits-all return on investment when it comes to kitchen renovation. Your return on investment is determined by the details of your local market, which is why we always advise speaking with a knowledgeable real estate agent. They'll be able to provide you with sound recommendations on which kitchen improvements will give you the most bang for your buck.
Is It Really Worth It?
The solution is contingent on you and your objectives. Consider the following scenario: If you want to sell your home in two months, investing $60,000 in a new kitchen may not be wise if your real estate agent estimates that you will only recoup $40,000. That's $20,000 squandered! In that instance, it makes more sense to invest $5,000 in a few clever upgrades. Before you put your house on the market, make the necessary modifications to increase its value and attract as many purchasers as possible.
What if you intend to cook in the kitchen? Having a kitchen that you enjoy may have a great influence on your daily life. After remodeling their kitchen in 2017, 33% of individuals who did so stated they live a healthier lifestyle. Nearly half of respondents claimed they spend more time with their families, and 41% said they cook more at home. It's difficult to argue with such advantages!
Even if you don't return the entire cost of your redesign when you sell, it's still a wise investment for you and your family to update your kitchen.