Kitchen Remodeling Ranked Most Appealing to Home Buyers
In today's real estate market, your home must stand out to attract potential buyers. At the end of December, the National Association of Realtors and the National Association of the Remodeling Industry combined forces to create a first-ever Remodeling Impact Report. Real estate agents often advise sellers that focusing on kitchens and bathrooms is essential. The report confirms this common advice.
A kitchen remodeling tops the list of projects with the most appeal to home buyers. Some home sellers worry that while remodeling projects may attract buyers and help sell their home, they do not add enough value to be worth doing. The good news is that the report also shows that a complete kitchen renovation also tops the list of likely to add value to a home for resale.
The most common reasons for completing a kitchen are:
Of those who completed a home remodeling project:
- Upgrading work out surfaces, finished, and materials,
- The need to update and modernize, and
- Improve a kitchen's function and livability.
The National Association of Realtors recommends if you are considering selling your home, complete remodeling projects before placing your home on the market. However, what sellers really want to know is the cost-value ratio. How much value does a home remodeling project add?
NARI Remodelers estimated the average cost of a kitchen upgrade at $30,000. NAR Realtors estimated the value at $20,000. This is an impressive 67 percent of job cost. While there are some smaller projects, like attic insulation, that recoup over 90 percent, they add little to overall home value.
Remodel magazine's 2016 Cost vs. Value report had similar results. In fact, they showed remodeling projects have increased their impact on home value compared to their 2015 study. They state, "Bigger and more expensive projects, rising new-home prices, curb appeal, and energy efficiency all contributed to a slight gain in remodeling projects’ payback at resale." Of the 27 remodeling projects examined, the average return was 64 percent of job cost.
If you would like to talk more about kitchen remodeling, or need more information, please contact us.
- 82 percent stated they had a greater desire to be at home,
- 75 percent perceived greater enjoyment while at home, and
- 79 percent felt a major sense of accomplishment after it was completed.