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Dave Ramsey: How Will A Kitchen Renovation Affect Your Home's Value?

How Will A Kitchen Renovation Affect Your Home's Value?
If you want to spice things up with a stylish showpiece in your home, the kitchen is the hottest place to be. Homebuyers are willing to spend thousands of extra dollars for an updated kitchen. If you've got the budget, why not enjoy those bonuses in your own home right now?
Imposing Price Tag
Kitchen renovations are notoriously expensive. Remodeling magazine's Cost vs. Value Report 2013 says the cost to renovate a 200-square-foot kitchen with wood cabinets, an island, laminate countertops and a standard sink and faucet is about $54,000. That price also includes new appliances, lighting and flooring.

A gourmet kitchen with granite countertops, custom cabinets and a tile backsplash, along with built-in and commercial-grade appliances can nearly double that price tag to $107,000.
Low-Cost Alternatives to Renovating
If your budget isn't quite that generous or you're just looking to refresh the look of your kitchen, consider these ideas:
  • Paint or refinish your kitchen cabinets for a low budget and big impact.
  • A new tile backsplash only costs a few hundred dollars in materials and is a potential do-it-yourself project.
  • If your appliances are still in good shape but the colors are dated, get them painted at a local body shop.
  • Vinyl flooring has come a long way. You can find styles that mimic wood or slate for a modern look.
Pays Off When It's Time to Sell
When you're ready to sell your home, your updated kitchen will boost your home's value. Remodeling magazine estimates you'll recover 60–70% of the cost of your kitchen remodel.

A new kitchen will also grab potential buyers' attention. Not only are homebuyers willing to pay more for a home with new appliances, granite countertops and a kitchen island, but 51% of men and 62% of women said they would fall in love with a home that has a gourmet kitchen.
Stick to the Budget
The budget is essential to a successful kitchen remodel. Here are three budgeting tips to help keep you on track.
  • Commit to spending the bulk of your money on things you don't want to replace often—such as appliances and cabinetry.
  • Make sure you're not over-improving your kitchen. You won't be able to recover the costs of your updates, no matter how nice they are, if they make your home the most expensive on the block.
  • Set aside 10–15% of your budget for unexpected expenses. Renovations never cost less than expected.
Consult a Real Estate Professional
An experienced real estate agent can help you determine how much to spend on your kitchen renovation without overdoing it. And, when it's time to sell your home, your agent will also make the most of your home's standout feature to attract buyers and get a great price.

14 Comments to Dave Ramsey: How Will A Kitchen Renovation Affect Your Home's Value?:

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nj siding contractors on Tuesday, October 29, 2013 3:16 AM
Yes Dave, I always agree with your statement that people want to expend lots of money to make a good looking kitchen because it's a vital part of entire home and that's why everybody should look forward to go a well known remodeling company. Thanks mate for your valuable post.
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