Does your kitchen get crowded in the mornings? Is it making your home appear old and outdated? If you answered yes to either question, it might be time to consider remodeling your kitchen. We know that sounds like a huge, expensive undertaking, but there’s a possibility that it could increase your home value. Not to mention, you’ll gain many more benefits by having a more spacious and appealing kitchen.
How much does a kitchen remodel add to home value?
The truth is that it depends. Many factors influence the overall increase in your home’s resale value, including:
- The Types of Materials You Use
- The Changes You Make
- Where You Live
- The State of Your Kitchen Before the Remodel
Based on those considerations, you could see only a slight increase in your home value, or you may see a substantial increase. However, that doesn’t mean that you’re going to recoup the money you invested completely.
To see the true benefit of increasing your home’s value, you also need to consider your expenses. Comparing the costs versus the increase in home value gives you the return on investment (ROI). This number will help you determine if your kitchen remodel truly increases your home value. It’s not the only calculation to consider. In this article, we’ll go over cost, ROI, and the Joy Score so that you can decide if you should undergo a kitchen upgrade.
Average Cost of a Kitchen Remodel
Before you can answer, “how much does a kitchen remodel add to home value,” you must calculate costs. As we mentioned, the prices can vary greatly depending on whether you chose a minor or major kitchen remodel.
Fortunately, Remodeling magazine can give you a general idea of the costs you can expect. Every year, they release a Cost vs. Value Report that shows the average cost of different home improvements. The report breaks kitchen remodels down into three categories.
Minor Kitchen Remodel – Midrange
In order for a remodel to be classified as minor, the structure doesn’t change, and cabinets remain in place. You can simply reface them or add new hardware to give them a more upgraded appearance. Minor kitchen renovations also involve appliances, flooring, and countertop replacements. A new sink and faucet could also be part of this project.
As a midrange project, this type of home renovation typically involves moderately priced materials. These materials tend to offer more resiliency than economic alternatives, but they are not as luxurious as their upscale counterparts. For example, you may choose vinyl flooring, laminate countertops, or new cabinet fronts.
The national average cost of this type of renovation is $26,214. It’s important to note that this is a national average, and many factors can play into the cost of a kitchen remodel.
Major Kitchen Remodel – Midrange
When comparing a major, midrange renovation to a minor project, the biggest difference is the extent of work. Most major remodels involve changing the layout of the kitchen. It’s very common to add an island for increased counter space. Homeowners also replace the cabinets for a more functional and updated room.
As with the minor midrange projects, materials are typically moderately priced. For example, the new cabinetry tends to be semi-custom rather than completely custom. You could also add more appliances with this project. Dishwashers, built-in microwaves, and ventured range hoods are some of the more common choices.
A project of this scale costs an average of $75,751 based on Remodeling’s 2021 Cost vs. Value report, however, it’s important to keep in mind that this can vary depending on the remodeling group you hire.
Major Kitchen Remodel – Upscale
To make your major home renovation upscale, you need to invest in top-of-the-line materials. Rather than using semi-custom products, these projects involve custom-built cabinetry that features built-in accessories. Instead of installing a standard refrigerator, contractors customize panels to build it into the cabinetry.
All other appliances and materials are premium-quality or commercial-grade. Most upscale kitchen remodels also include replacing countertops with imported materials, such as granite and marble. Tile floors, under-cabinet light fixtures, and tile backsplash complete the look.
The average kitchen remodel cost for major, upscale projects is $149,079 but it can depend on the company you’re working with and the scope of work.
Typical Kitchen Remodel ROI
In order to calculate the ROI for your kitchen remodel, you need to divide the increase in value by your expenses. However, it can be challenging to determine the actual increase in value until you sell your home. Much like costs can vary based on different factors, so can your home’s value. In fact, the location is one of the biggest considerations.
If you plan on selling your home, a real estate agent can give you a better idea of your home value. Once your appraisal is complete, you can see the difference your renovation made. From there, you can calculate the ROI.
To give you a better idea of what you can expect your ROI to be, we can refer to Remodeling magazines Cost vs. Value Report again:
- The average added home value for a minor remodel with midrange materials is $18,927. That would make the ROI 72.2%.
- A major remodel with midrange materials increases home value by an average of $43,364. Comparing that to the cost, we can see that the ROI is only 57.4%.
- A major, upscale kitchen renovation increases home values by an average of $80,284. Therefore, ROI is even lower at 53.1%.
Is It Worth It?
As you can see, the majority of kitchen remodels won’t come close to recouping their cost. Fortunately, that’s not the only number you should look at when deciding to remodel your home. You should also consider the number referred to as the Joy Score.
What is the Joy Score?
It is a scoring system developed by the National Association of the Remodeling Industry (NARI) and the National Association of Realtors (NAR). It is used to express how happy homeowners are with their renovation. The score falls on a scale of 1-10, with 10 being the most joyful/happiest.
NAR uses this Joy Score to calculate homeowner satisfaction with a variety of home improvement projects. In their 2019 Remodeling Impact Report, NAR found that kitchen renovations ranked highest for interior projects. It is one out of only two projects to get a perfect Joy Score of 10.
Beyond that, 95% of the study’s surveyed participants said that a complete kitchen remodel gave them an increased sense of enjoyment while at home. 93% said that they have a greater desire to be in their home after the renovation.
Is It Worth It for You?
As you can see, these numbers show that money isn’t the only reason you should invest! A complete home renovation can have a positive impact on your overall satisfaction with your home.
A kitchen is often the focal point of the home. It’s a central location where families can come together often. Whether you’re making a large dinner, having a quick breakfast, or grabbing a little snack, your kitchen plays a big role in your daily life.
If you are currently unhappy with the way your current kitchen looks, a renovation could benefit you significantly. A remodel can even make your kitchen more livable and functional. If you’re tired of not having enough counter space or storage, you might find that a renovation is more than worth your time and money.
Consult a Professional
Getting back to the question of “how much does a kitchen remodel add to home value?” local professionals can give you a more accurate answer. When you consult with them, you can find out more information about the specific cost of your remodel. An honest and reliable contractor can provide you with a complimentary quote that breaks down the individual expenses of your kitchen remodel. Therefore, you can use the quote to get a better idea of the cost of your renovation.
If you plan to sell the home, a realtor can give you more information on the potential increase in your home value. They will know more about home values in your area and current trends. They can also give you insight into how much more attractive a remodel would make your home. Based on all of that information, you can get a rough estimate of your ROI.
Finding a Kitchen Remodeler Near You
To find out more about the cost of a kitchen remodel in NJ, reach out to Magnolia Home Remodeling Group Right. Our experienced home remodelers can provide you with an accurate and free quote using the details of your project. You can get in touch by calling us, or you can fill out our online form to schedule a consultation.