How much should I spend on a kitchen remodel?
A remodel is often exciting - and overwhelming. There's so many options to choose from between appliances, cabinetry, and countertops. However, it's important to define your budget at the start so that you can stay within your price range. But that brings up the question, how much should I spend on a new kitchen anyway?
According to Home Advisor, a homeowner should spend between 5-15% of their home's value on a kitchen remodel. Remember though: you get what you pay for. If a beautiful, functional kitchen is what you're looking for, then don't just go for the cheapest price you come across. Consider the following variables when defining the budget for your new kitchen.
How long will you stay in your home?
If you plan on staying in your home, it may be worth going for a quality remodel over a value remodel. However, if you plan on selling your house soon, odds are that you will only recoup 70 cents for every dollar that you spent. That adds up pretty quickly! For this situation, focusing on value may be a better option.
Most homeowners don't differentiate between quality and value. The difference between the two being whether the quality of the finished product or the cost/value that it brings to their home is the main focus.
The key to figuring out which needs to be your focus is to ask yourself who you are remodeling for. Your first thought might be "Me, of course!" but if you plan on selling your house within the next two years, you're actually remodeling for the next owner. Just remember that the longer you remain in your home, the more money from your remodel will be carried over into the overall value of your home.
What is the average home value in your neighborhood?
Do you know the average value of houses in your area? If you live in a $325K home and homes selling in your area are averaging prices of $325K, spending $75K on your kitchen will price you out of your own market.
On average, most homeowners report that a kitchen remodel costs $21,633. Smaller projects will run between $10K and $15K, which might include a fresh coat of paint, refaced cabinets, a new sink, and installing a tile backsplash. While a higher end remodel might cost more like $30K, which could include custom cabinets, hardwood floors, granite counters, and new appliances.
Here is an example of how the cost of a kitchen remodel break down:
Out of all remodel projects, kitchens can be the most complex and the most expensive. However, they will add the most worth to your home, whether you plan to sell or plan on living there for years to come.