Homeowners seeking a remodeling project just might be wise to tackle a kitchen renovation if they’re trying to find projects having the strongest buyer appeal and greater returns on their investment at resale.
Kitchen renovation provides massive paybacks at resale
Kitchen renovation or upgrading are amongst the top remodeling projects likely to provide value to a home at resale and most likely to catch the attention of home shoppers, as reported by the 2017 Remodeling Impact Report, conducted by the National Association of Realtors® (NAR). The report analyzes the expense of the most popular exterior and interior remodeling and replacement projects and gauges what amount of appeal they have to buyers at resale.
Fifty-four percent of Realtors surveyed reported suggesting to sellers that they accomplish a kitchen upgrade before trying to sell; 23 percent of real estate pros also said a kitchen renovation helped to close a sale.
The Remodeling Impact Report estimates that homeowners might recover 57 percent – or $20,000 – of the $35,000 or so of the cost to tackle a kitchen upgrade. The kitchen upgrade could include adding new energy-efficient appliances, sink, faucet and vinyl flooring; repainting the walls and ceiling; and refacing cabinets with cherry veneer and new hardware.
Kitchen upgrades don’t just provide the likelihood of some bang for your buck at resale but also have been found to make homeowners happier. Eighty-one percent of remodeling consumers surveyed said they had a greater desire to be at home since completing their kitchen upgrade project, and 81 percent felt a major feeling of accomplishment following the renovation.
These particular interior projects Realtors ranked highest to lowest as remodeling projects which will catch the attention of home buyers (listed together with project estimate costs as well as the potential return on investment at resale):
1. Complete kitchen renovation
Cost estimate: $65,000
Realtors estimated cost recovered: $40,000
Percent of value recovered from the project: 62%
2. Kitchen upgrade
Cost estimate: $35,000
Realtors estimated cost recovered: $20,000
Percent of value recovered from the project: 57%
3. Bathroom renovation
Cost estimate: $30,000
Realtors estimated cost recovered: $15,000
Percent of value recovered from the project: 50%
4. New wood flooring
Estimated cost: $5,500
Realtors estimated cost recovered: $5,000
Percent of value recovered from the project: 91%
5. Add new bathroom
Cost estimate of project: $59,000
Realtors estimated cost recovered: $29,750
Percent of value recovered from the project: 50%
6. Hardwood flooring refinish
Estimated cost: $3,000
Realtors estimated cost recovered: $3,000
Percent of value recovered from the project: 100%
7. New master suite/owners’ suite
Cost estimate: $125,000
Realtors estimated cost recovered: $65,000
Percent of value recovered from the project: 52%
8. HVAC replacement
Estimated cost: $7,475
Realtors estimated cost recovered: $5,000
Percent of value recovered from the project: 67%
9. Basement conversion to living area
Cost estimate: $40,000
Realtors estimated cost recovered: $25,000
Percent of value recovered from the project: 63%
10. Closet renovation
Estimated cost: $3,750
Realtors estimated cost recovered: $2,000
Percent of value recovered from the project: 53%
11. Insulation upgrade
Estimated cost: $2,100
Realtors estimated cost recovered: $1,600
Percent of value recovered from the project: 76%
12. Attic conversion to living area
Estimated cost: $75,000
Realtors estimated cost recovered: $40,000
Percent of value recovered from the project: 53%
Ready to sell your current home and find your new home? Nick & Cindy Davis with RE/MAX Premier Group are here to assist you. We are always a just a click here away or call 813-300-7116
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