How much does a kitchen remodel increase home value 2020?
How Much Does a Kitchen Remodel Add to the Value of a Home?
To determine whether a kitchen remodel is worthwhile, you must first determine the cost and the return on investment. It can be difficult to estimate how much a kitchen remodel adds to the value of your home, but this article breaks down the costs of a minor, medium, and major renovation so you can decide when a renovation is right for you.
Minor kitchen remodels, defined as those costing less than $20,000, have an 81 percent national average ROI. The national average ROI for major kitchen remodels with midrange finishes is 59 percent. Major kitchen remodels with upscaled finishes have a national average ROI of around 54%.
-Minor Kitchen Renovations
If you plan to sell your home soon, a kitchen remodel may be a good way to make it more appealing to prospective buyers. If you don’t intend to sell your home anytime soon and are simply looking for ways to improve your living space, a kitchen remodel may not be the best investment.
-Kitchen Remodeling with Midrange Finishes
Midrange finishes, such as high-end countertops, cabinetry, and tile work, can be included in a kitchen remodel. You could also upgrade your appliances, cabinets, and flooring.
-Major Kitchen Renovations with High-End Finishes
The cost of materials and labor is usually a major factor in determining how much a kitchen upgrade will increase the value of the home.
For example, replacing all of the cabinets with new, higher-quality ones would almost certainly result in an increase in cost, which would be reflected in the home’s asking price. However, if you add high-end finishes like marble or granite counters, wood or tile flooring, and stainless appliances, your kitchen may only be worth 10% more than a similarly sized kitchen without upgraded finishes.
How Much Does a Kitchen Renovation Cost?
A kitchen remodel can be an excellent way to both updates and increase the value of your home. According to the National Association of Home Builders, a fully completed and updated kitchen remodel can increase the home’s value by up to 5%. Labor (professional installers, carpenters, plumbers, etc.), materials (countertops, cabinetry, flooring, painting), and permits/inspection fees are some of the typical costs associated with a kitchen remodel. Keep in mind that these costs will vary depending on the project’s size and scope.
However, because each kitchen is unique, it is critical to consult with a real estate agent or qualified contractor to obtain an accurate estimate of the cost of your specific project.
