Remodeling your kitchen is one of the smartest moves you can make as a homeowner.
In fact, according to Remodeling Magazine, when it comes to home projects, it delivers one of the biggest ROIs in the books.
The average homeowner recoups more than 81% of their costs on a minor kitchen remodel, adding about $17K to their home’s value as a result. The only projects that outdo kitchen remodels in terms of ROI? That’d be adding a wood deck or replacing the garage door.
But remember: not every kitchen remodel is created equal. Do you want to make sure you make back your investment? That your upgrades and changes will make your home more marketable down the line — not less? That you’re choosing the right things to renovate in the first place?
Here’s how to do it:
- Start small – Don’t go replacing everything and starting from scratch. According to the same Remodeling Magazine data, “major” kitchen remodels aren’t worth the financial investment, costing homeowners more than $63K to undertake and only delivering about $37K in value. Instead of reinventing the wheel, start small by replacing countertops, appliances, flooring, or fixtures. Little changes can make a surprisingly big impact.
- Study up on trends – If you want your renovations to add value and improve your home’s marketability, they need to be on trend and desirable to buyers. Browse design magazines, check out local showrooms and model homes for inspiration, or even tap a professional interior designer to help you ensure your project is on par with current expectations. You can even bring a designer with you as you pick out materials or consult with your contractor.
- Avoid unique or bold – Though you might be a fan of lime green walls or chalkboard countertops, these big, bold choices are going to limit who’s interested in your home down the line — and they may even lower your property value as a result. You want your renovations to be aesthetically pleasing — both to you and other future owners — so try not alienate anyone with far-out choices or materials.
- Use a pro – Even if you fancy yourself a great do-it-yourselfer, a kitchen remodel isn’t the place to take the reins. The kitchen is one of the most-used spaces in the home, so any mishap — any mistake or poor design choice —– is going to have a big impact on your life, as well as the property’s future value and marketability. Using a professional contractor to handle your project is the best way to ensure your remodel is done safely, properly, and per a future buyer’s expectations.
- Add usefulness – Your kitchen remodel should certainly add aesthetic appeal to your home, but if it can come with some practicality, too, that’s even better. Adding a butcher block island, for example, offers a great place for storage and prep work, while also enhancing the overall look of the room. Another great example? New stainless steel appliances. They not only boost the appeal of the space, but they also add more useful tools and solutions for the home cook.
- Don’t cut corners – Just like DIYing can hurt your final outcome, so can cutting corners when it comes to costs. If you don’t have a big budget to work with right now, tackle one small project at a time, as your finances allow. A remodel doesn’t have to be completed in a month, a week, or even a year. If you plan to be in the home a while, take your time and devote resources as you can. The wait and patience will be well worth it.
- Think eco-friendly – Energy efficiency is a big concern for today’s home buyers, so take this into consideration when remodeling your kitchen. Could you choose appliances that save on water or energy? What about tinted windows that reduce the need for costly AC in the summer? Work with your contractor and designer to find ways to incorporate green and smart home products into your space. It will make your property more marketable down the line and, as an added bonus, it could even cut down on your electric and utility bills in the meantime.
If you’re wondering how you’re going to pay for your kitchen renovations, remember you can leverage your home equity. A cashout refinance allows you to turn the equity you already own in the home in cold hard cash. Use it to pay for your contractors, designers, materials, and more. You can even put it toward hotel costs while you wait for your remodel to finish — whatever works for your household best.
Get Help Financing Your Kitchen Renovations
Do you want to learn more about how you can finance your upcoming kitchen renovations? Contact an Embrace home loan officer today. We’re here to help.