Breaking Down the Investment and Potential ROI
If you’re like most Kansas City homeowners, then you’ve probably identified a couple potential improvements that you can make. No house is absolutely perfect. It’s always going to be a work in progress that is ongoing. Home improvement can apply to the landscaping, replacing that old water heater – and yes – remodeling your outdated kitchen.
For most people, the kitchen is generally at the top of their list when it comes time for remodeling for two reasons. The first is that it’s a highly trafficked area of the home. Just think about how often you and your family cook and snack throughout the day, especially now with working and learning from home being more common. The other reason is that the kitchen is just as much about fashion as it is function. Not only does a kitchen have to provide all the appliances and space to whip up great home-cooked meals, but families also want it to be aesthetically pleasing.
The Numbers Show People Value Their Kitchens
According to a recent study, 43% of people said that they choose to remodel their kitchen because they could no longer stand the look of it. In the same study, 40% of people admitted that they wanted to remodel their kitchen all along, but had to wait until they were financially ready to do so.
According to another report conducted by Zillow Group Consumer Housing Trends, 58% of buyers who purchased in the past year said having their preferred style of kitchen was extremely or very important to their home-buying decision.
Statistically, people place a higher value on their kitchen compared to most other areas of their home. If you have a budget to put towards a kitchen remodel or improvement, it’s a pretty safe bet that it’s going to be a good investment. This leads to a bigger question, and that’s how much your kitchen remodel will affect your home’s overall market value.
Types of Kitchen Remodel
The term “kitchen remodel” can mean a lot of things…or it can mean very little. Remodeling your kitchen doesn’t necessarily mean changing absolutely everything in sight. In fact, most families choose their top two or three priority items and leave the rest of the area as is for the time being. Some examples of commonly updated or improved kitchen items include the countertops, the cabinets, and the appliances. If there’s one thing you can count on, it’s this: the more you change, the pricier your remodel is going to get.
According to a report conducted by Remodeling Magazine, the average cost of a kitchen remodel falls in the $64,000 arena. That covers the cost of items such as new cabinets, kitchen island installation or refurbish, new countertops, and a sink/faucet upgrade. Keep in mind that the cost is highly subjective to what you get upgraded in the area in which you live. A kitchen remodeling job in California, for instance, is going to be way more expensive compared to a remodeling job in Kansas City.
For the most part, kitchen remodels fall into three categories: minor, midrange, and upscale. A minor kitchen remodel is going to be mostly cosmetic (touching up existing items rather than replacing). An upscale kitchen remodel will consist of making major changes, such as replacing all the large appliances, installing a brand-new kitchen island, and replacing the cabinets and floors. This could easily cost over $100,000 when it’s all said and done.
What is the ROI of a Kitchen Remodel?
It’s difficult to get an exact figure on the ROI of your kitchen remodel because it’s dependent on several factors. Your home’s market value, the region the home is in, the specific renovations made, and even the homes in the surrounding area all will affect how much your renovations are worth in dollars.
According to a cost vs. value report conducted by Remodeling Magazine, the ROI a homeowner can expect on a kitchen remodel steadily goes down as more money is put into the project. They offer the following breakdown.
National ROI on a minor kitchen remodel: 81.1%
Average cost: $21,198
National ROI on a midrange kitchen remodel: 59%
Average cost: $63,829
National ROI on a major kitchen remodel: 53.5%
Average cost: $125,721
Bear in mind, these are numbers based off of one study and are subject to fluctuation. The takeaway from this is that lower investments on kitchen remodels tend to yield higher percentage ROI’s, and that applies to the Kansas City market as well. Take this into consideration when determining your remodeling plans for resale purposes.
Kicking Off Your Kitchen Remodel
The team at NextGen Remodeling has the experience and know how to renovate your kitchen to align with your vision. We have over 60 years of combined experience in a full team of designers, cabinet manufacturers, and contractors. We can remodel your kitchen from top to bottom, adjusting your floor plan, adding walls, installing new countertops, and updating your materials. Nothing is outside the realm of possibility. We can even preview your kitchen remodel with a 3-D model so that you can see what we’re going to do before we do it.