Will you get your money back?
Want to remodel your kitchen?
According to a survey by the National Association of House Buyers, kitchen remodels are the most common type of remodeling, followed by the bathroom, the entire house and room additions.
So you’re definitely not alone in wanting to remodel your kitchen.
But how much is it going to cost?
And just as importantly, how much can a homeowner expect to make back if they sell the home in the future?
We at Green Sur Properties, have been working in real estate in Los Angeles for quite some time. And we’ve learned a thing or two about remodeling costs and roi (that’s Return On Investment).
As for the cost of remodeling a kitchen, according to Harvard University’s Center for Joint Housing Studies, the median amount that homeowners spend on kitchen remodels is right around $12,000 (remember those are national figures, Los Angeles would be different).
Research by Homelight, however, indicates that kitchen remodels can cost anywhere from $10,000 to $50,000 depending on the depth of the project and the market.
From the best roi to the worst roi, here’s a good rule-of-thumb for prioritizing projects (from our experience):
- Fresh Paint
- Add Kitchen Island
- Add Walk-in Pantry
- Create an Open Floor Plan
Ultimately, do what you can afford.
But keep in mind that the average roi on a kitchen remodel is 54%. In other words, if $37,000 is spent on the project, then you’ll only make back about $20,000 when it’s time to sell.
So you should expect to lose 46% of the money you spend (or in this particular case, $17,000 you are not getting back), not only is the financial cost, but also think of the time spent and dealing with contractors, unless you are one of those DIY people ;-).
That might not be such a big deal if the plan is to enjoy the new kitchen for several years before selling, but if you’re remodeling only with the goal of increasing the value of the home, then it’s probably not such a good idea.
Hope that helps!
And if you’re looking to sell your house as-is, fast for cash, give us a call at (323) 990-3922 — we can close in as little as two weeks and we’ll pay all closing costs!