With an improving economy the average remodeling project can expect to recoup between 80% and 85% of its cost. That’s a significant improvement from a few years back when we dove deeply into the numbers.
When thinking about kitchen remodeling strictly as an investment, start by evaluating the current value of your home. As a rule of thumb, you’ll maximize the return on a remodeling project if the cost stays around 10% of the home. For a $400,000 home, this suggests that you should spend about $40,000, if your primary goal is to immediately recover as much money as possible.
With budget in hand, you should focus on two variables to improve the return on your investment. These are the cost of the individual components and how others will value these items when it comes time to sell.
For example, you might fall in love with and purchase a $20,000 Le Cornue range, but don’t expect the majority of homeowners in the Jacksonville area to pay up when it comes time to sell. In our little part of the world, there’s a place for beautiful equipment like Le Cornue, but it’s usually in someone else’s home. Our clients believe in luxury, but the word value definitely enters into the equation.
There’s a reason that every new construction model home you’ve ever visited is staged with neutral colors and a décor that is less cutting edge and more comforting. Remodeling a kitchen for ROI means that you’re trying to appeal to the widest possible audience.
With that as the goal, you’ll need to give up the lime green Caeserstone countertop for something more timeless like Carrara marble or even Uba Tuba granite.
Unless your remodeling project is intended to flip your home, you should strike a balance between functionality, enjoyment and the recovery of the cost of remodeling. In North East Florida, it’s reasonable to assume that you’ll immediately recover between 80% and 85% of your remodeling costs. That return will improve over time if home prices continue to rise and you made smart choices when it came time to allocate your budget.
Unlike appliances, investing in cabinetry provides one of the highest returns on your investment, especially if you measure it over a five or ten year span. As most HGTV home-flipping shows suggest, the first thing replaced in a kitchen is worn, out-of-style cabinets. Home buyers focus on the kitchen and they value updated, sturdy cabinetry.
Unfortunately, the furniture board boxes that most home flippers put on the walls won’t last more than a few years, requiring them to be replaced again. If you’re going to stay in your home for any length of time, the investment in solid-wood cabinetry pays off. Not only will quality cabinetry perform well, it will hold its value.
Showroom and in-home Consultations also available.