When you are planning a renovation for your home, many people want to consider whether they will make the money when it comes time to sell it. In thinking about return on investment (ROI) it’s important to consider how long you intend on living in the house.
If you are renovating a “starter home” that you are going to live in for a few years before upgrading to a “forever home” you will get a better return on your investment (ROI) if you do a minor kitchen remodel rather than a major one. This holds true even if you are selling a home you have lived in for a long time and you want to update it before you put it on the market.
4 Reasons Why a Minor Kitchen Remodel Makes Sense for ROI
Here are the four main reasons why a minor kitchen remodel makes sense in terms of ROI.
- Cost-Effectiveness: Minor kitchen remodels typically involve less extensive work and lower material costs compared to major renovations. Instead of gutting the entire kitchen and starting from scratch, minor remodels focus on cosmetic updates and minor upgrades that can still significantly improve the kitchen’s appearance and functionality. As a result, the overall investment required for a minor remodel is usually lower, which means the ROI can be higher.
- Appeal to a Broader Audience: This is a big consideration when thinking about resale. Major kitchen renovations that involve customizations or trendy design choices may appeal to a narrower segment of potential buyers. When we renovated our kitchen, we chose a gorgeous Viking stove in burgundy. We made that choice because I knew that this was going to be the home we raised our kids in. That stove has given me joy every single day for many years, but now that our house is on the market, I can see that it has limited appeal to prospective buyers. If I had been thinking about resale value, rather than only my own enjoyment, I would have picked appliances with a more universal appeal, like stainless steel. Minor remodels that focus on timeless updates and neutral design appeal to a broader audience. By making simple yet impactful changes like updating cabinet hardware, replacing countertops, or installing new appliances, homeowners can enhance the kitchen’s appeal without alienating potential buyers with overly specific tastes.
- Quick Turnaround Time: Major kitchen renovations can be time-consuming and may require homeowners to temporarily relocate or make significant adjustments to their daily routines. In contrast, minor remodels can typically be completed more quickly and with less disruption to the homeowner’s life.This quick turnaround time allows sellers to list their homes sooner and capitalize on the refreshed kitchen’s appeal without having to wait for an extensive renovation to be completed.
- Perceived Value: Despite the lower cost of a minor kitchen remodel, the perceived value by potential buyers can be high. Even simple updates like fresh paint, new countertops, or modern appliances can make a kitchen feel updated and well-maintained, which can translate into a higher perceived value for the home. Buyers may be willing to pay more for a home with a recently remodeled kitchen, even if the changes were relatively minor. Perception is everything.
Final Thoughts on Kitchen Remodeling
Overall, a minor kitchen remodel offers a balance between cost, time, and impact, making it an attractive option for homeowners looking to increase their home’s value before selling. By focusing on cost-effective updates that appeal to a broad range of buyers, sellers can maximize their ROI and make their home more competitive in the real estate market.
If you want to talk over the pros and cons of different renovations before putting your home on the market, schedule a free consult with us. Click here to schedule.
