How much will a new kitchen increase the value of my house?
I know there are national figures for this, and the figure can also be very individual. We’re doing a low to middle end gut reno of the garden floor (kitchen, dining, laundry and small full bathroom, adding new efficient boiler, not high end appliances, but everything classic and tasteful). How much of our cost should…
I know there are national figures for this, and the figure can also be very individual. We’re doing a low to middle end gut reno of the garden floor (kitchen, dining, laundry and small full bathroom, adding new efficient boiler, not high end appliances, but everything classic and tasteful). How much of our cost should we expect to recover if were to immediately sell the house? Right now, the kitchen, etc. could not even be considered decent or showable.
The 80% figure that I used earlier was a low guestimate based on a report from Builder Magazine back a few years ago when I redid my Kitchen. The report back then reported that in the Northeastern US a Major Kitchen Remodel would return about 93%. My gut feeling with regard to the current state of the real estate market is that that figure is no longer as high- therefore 80%. A minor kitchen remodel was projected as returning much less – it was somewhere in the 60-70% range back then.
Hope this helps a bit.
There are so many variables it’s impossible to say how much a kitchen reno will ultimately affect the sale price. In general, you’ll rarely recover the full investment so if you’re gonna do it, do it for yourself.
E-mags like Remodeling Online endorse The Obvious: the less you spend on a kitchen remodel, the more you’ll recoup. What they mean though is that a minor remodel will return more of its value at sale than a Viking/Subzero/Smallbone cabinetry kitchen.
I think a more appropriate title would have been:
How much of our (kitchen, dining, BR, laundry) renovation cost should we expect to recover if we were to immediately sell our house?
And Senator St. has come up with the 80% figure. Any others?
Thanks all that helps!
If this is of use, current kitchen is main house kitchen not rental, needs serious plumbing and electrical updates. There are no cabinets, countertop, just shelves and 30 year old appliances. No DW. Flooring is old vinyl tile. Ceilingis ripped out and wires are dangling fromt he ceiling.
IMHO, the current kitchen would turn off buyers who were looking for at least the bones, or a basic kitchen, and then looking to make cosmetic changes according to their taste. I do not think this kitchen was touched for the last 50 or more years, except to bring in appliances.
Our plan is to have a simple white kitchen, IKEA cabinets, GE, Bosch appliances. I think the infrastructure will cost a lot though. (I have previously posted about this kitchen here.)
Keep it simple, as your taste may not be the same as others…
No one can answer this. It depends how bad the kitchen is currently, how nice your taste is, how much you spend renovating, and whether or not your contractor does a good job. There are plenty of poorly executed kitchen renovations in NYC.
if the garden floor is a rental unit, then it sounds like currently it can’t be rented or would fetch a very low rent, so the cost of a low/medium end reno would likely be mostly recoverable, whether in the form of rent or a higher purchase price reflecting anticipated rental income.
if it’s the main kitchen for the whole house, then it really depends on how the kitchen affects the overall aesthetic/feel/function of the building (and how good a job you do on the reno), so it’s hard to answer without knowing more.
If the plumbing and electric work are recently updated I wouldn’t do it, just spruce it up – lots of buyers do not mind doing cosmetic work.
Otherwise it deppends on what shape the rest of the house is in as well as very many other variables.
I think you can assume that you should be able to get back about 80% of the cost of the new kitchen.