Do Kitchen Renovations Increase Your Home’s Value?
The kitchen has long been emerging as a focal point for the home, with the opportunity to enrich the experience of your family and social life.
In a post-pandemic world, more of us are looking for ways to enhance the time that we spend in our homes and how we can bring greater joy to our abodes.
Updating your kitchen can be a wonderful way to experience life at home in a new way. Will it increase your home’s value? Let’s explore.
Can you add value to your home with a kitchen remodel?
Before you look to increase your home’s value through a kitchen renovation, think about your primary motivations. If your sole driver is to make extra profit on a sale, then you may be in for a surprise.
Renovating without the intention to sell:
By adopting the mindset of creating a space that is enriching to you and your family and investing in remodelling, a kitchen can pay priceless dividends. If you’re planning to stay in your home for years, creating a kitchen that you love can play a huge role in your emotional well-being and the experience you have with your family and friends. Refurbishing a kitchen can be a rewarding experience that transforms how you experience your home, not only for yourself but also for your guests.
Alexander Gibson, a Buyers Agent based in the Eastern Suburbs of Sydney, asserts, “any kitchen renovation should stem from a need or want for the kitchen rather than any goal to increase the value of your home. Any increase in value would be the by-product of completing a kitchen renovation that meets your and your family’s needs.”
Renovating to sell:
Renovating to sell differs from simply wanting to bring more enjoyment to your home. Renovating to sell means you’re looking to impress buyers by renovating a home in its current state. It may seem like a straightforward process, but it involves a lot of careful planning to avoid dreaded overcapitalisation. Understanding your market will help you make the decisions needed to direct your resources. What kind of people are in the area? What areas of the home will they value most, and where will they spend most of their time?
The key is to have your potential buyers walk in feeling like they are getting a better deal by simply moving in over having to make significant changes to the home.
How much is it for a kitchen renovation? As a general rule, your kitchen upgrade costs should be approximately 3–8% of the value of your home. For example, if your home is worth $700,000, your spending could be between $23,000–$56,000 without fear of overcapitalising. In reality, you can spend as little as $1,000 for quick fixes to over $60,000 for a large-scale project. Consider the value of your property and be wise with your spending.
Gibson suggests that an appealing kitchen renovation can give the real estate agent a ‘positive talking point’ that may increase the sale price. “It presents the home in an aspirational and desirable manner that attracts buyers to the style of living rather than the thought of cooking”, he says. “This can lead to a higher sale price simply because it appeals to the emotional attachment that buyers may have attributed to the home.”‘
Think beyond the physical kitchen and what it emotionally represents to your potential buyer; ‘It could be a family, or it could be chic entertaining with friends’, Gibson suggests.
The key is to be strategic about your costs to get the best return on investment. Consider the point of view of your potential buyer. How much do they value the work you’re putting in? Will they want to spend the perceived value purchase you’ve made?
What is the return on investment in refurbishing a kitchen? Estimates vary, but you can look to recoup approximately 60–80% of your costs. This means that it may not be ideal to spend big on a kitchen when you’re looking to sell right away or in a locale where the perception of value is likely lower. If, however, you plan to spend time in the property and enjoy the results of your hard work before selling, then upgrading your kitchen can be a fantastic way to enhance your family and social life whilst adding value to your home.
With adequate foresight and planning, you can find a reasonable budget and stick to it to get the best results for your property.
Kitchen upgrade costs vary depending on your budget and the type of renovation you’re looking to undertake. Whether you’re looking to renovate to sell or not, here are our tips for minimising your spending and maximising your return:
Best Renovations to Increase Value
Quick and Easy Kitchen Upgrades
Refresh your cabinets:
A simple paint job and updating your hardware can overhaul the look of old cabinets to boost your kitchen’s value.
Outdated cabinetry handles can impact the look and feel of your kitchen. The good news is that they are easy to update and can bring a refreshed energy to any kitchen! Choose cabinet handles that suit the aesthetic of your kitchen and stand the test of time by exploring our full range of cabinetry handles.
Update your kitchen fixtures:
Upgrading your kitchen fixtures, including tapware, sinks, sink wastes and kitchen accessories, can be a simple way to give your kitchen an easy facelift. By improving the functionality and aesthetics of these commonly-used items, you can enhance your daily experience plus give potential buyers a pleasing impression of your kitchen.
With timeless styles and enduring quality, you can replace your fixtures and have them last for years. Explore the full range of ABI Interiors kitchen fixtures.
Change your lighting:
Lighting can make or break the atmosphere of a room. If your kitchen has outdated fittings, replacing these with newer styles can add an instant uplift to your space. You can consider lighting such as gooseneck sconces, pendants, and puck lighting to create warmth in your kitchen experience.
Decide on new paint:
Outdated paint colour can make your space feel uninspired. You can choose a colour that is on-trend, or, for a more timeless appeal, white never fails to disappoint. Bright white paint can enliven your space, create an open feeling and allow natural light to infuse your area on a deeper level.
When You Have a Larger budget
‘Positioning the kitchen is critical’, says Bernadette Janson, renovator of 35 years and founder of The School of Renovating. Working alongside Stephen Janson, Construction Project Manager of 40 years and David Janson, registered Architect, the team specialise in increasing your home value through renovation. Renovating the kitchen ‘to open it up to the adjacent living rooms’ will help you create the ideal layout. She refers to Bernard Salt, social observer and demographic expert, who describes a shift towards making the kitchen a centrepiece for social and familial life.
If you have the budget to undertake a larger renovation, a kitchen island is a desirable feature. “The island bench has become a symbol of prosperity around which guests and families mingle,” Janson says.
Update your appliances:
Depending on the location of your property, updating appliances can be a great way to add value to your home. Unreliable appliances are not only an annoyance but can be a turn-off to potential future buyers. This is an area where it’s easy to overstep your budget, so you must tread carefully. To save costs, consider purchases during times of the year when sales are likely so you can get the best deals on quality appliances.
If you’re renovating to sell, consider the target audience of your location. Gibson advises, ‘if your home is in an affluent area, specialty cooking appliances such as Gaggenau will appeal to those people. Don’t install Gaggenau in a one-bedroom apartment.’
When considering your kitchen upgrades that increase home value, remember to focus on the true ‘why’ behind your motivation. Your kitchen is the heart of your home, and spending time creating your dream design can add lasting sentimental value. Though renovating purely to sell can be tricky, the tips above will help you get the most out of your investment.