May 8 2017
Increasing the value of your home is important whether you’re planning to sell or just want more equity. Remodeling part of your home is an excellent way to increase the value if the remodel is done right. This is especially true of the kitchen, which is central to so much of the activity in the home.
Remodeling a kitchen can increase home value. You likely won’t see an increase in value that’s equal to the amount you spent on the remodel; in fact, it’s possible to spend more on the remodel than you’d get back in the form of increased value. It’s best to stick to under 25 percent of your home’s current value when planning a budget for a kitchen remodel.
The more you spend on the remodel, the less you’re likely to see in return, too. Investopedia notes that a minor kitchen remodel could get you a return on investment of 75 to 83 percent, but a major kitchen remodel could get you an ROI of only 70 to 78 percent.
Be aware that if you install a new kitchen that is grossly out of step with the rest of the house, you could hurt your resale prospects instead. It’s fine to upgrade an old kitchen in an old home, but it’s better to stick with styles that seamlessly integrate with the rest of the style of the house. For example, Moneycrashers tells of a lovely old Craftsman home that had a major, deluxe upgrade to the kitchen. The new kitchen was huge and gorgeous, but it was out of step with the rest of the house, as well as the rest of the neighborhood.
Kitchen remodels take planning, and you’d benefit from speaking with a remodeling company that has samples of different kitchen styles, fixtures, and materials. A carefully planned kitchen remodel is one of the better changes you can make to the home.