Kitchen Remodel, will it add value to my house in Toronto?
If you are looking for ways to spice up the things in your home, a kitchen remodel may be the right place, to begin with. It doesn’t come as a surprise when the potential home buyers consider a custom kitchen as the most important place while making a purchase. So, if you have got the budget, it would be the best idea to enjoy these bonuses in your own home as well. There are various reasons to go for a kitchen remodeling from wanting a contemporary kitchen to adding value to your home. One thing that needs to be considered is that the kitchen remodels don’t come cheap whether you are looking for some updates or a complete overhaul. So, we will tackle some important questions for you to help you with the kitchen remodeling in a smart way.
Facts and Figures about a Kitchen Remodel Cost
A kitchen remodeling tends to get expensive real quick, particularly if you dream to add some custom cabinets, spacious islands, and quartz counters. According to the Remodeling Magazine’s 2018 Cost vs. Value Report, the average cost of renovating a 200-square-foot kitchen that includes custom kitchen cabinets, laminate countertops, new appliances, flooring, lighting, an island, along with a sink and faucet is around $64,000.
However, it is also possible to spend a lot more or a lot less than that. For example, a gourmet kitchen with the commercial-grade appliances and custom cabinets will cost around $120,000. While on the other hand a simpler remodel including a few appliance replacements and updating the cabinet fronts along with new laminate counters and the floor will cost around $21,000.
So, how much should you spend? More than 70% of people spent from $5,000 and $50,000 on a kitchen remodel during last year and only 1 in 10 people tend to spend over $100,000. These facts and figures would give you an idea of how much you should be spending a modern kitchen remodel.
How a Kitchen Renovation Affects the Home Value?
Mostly, an updated kitchen to boost your home value can be counted on. The buyers are willing to pay for some thoughtful upgrades and superior finishes according to a recent study 80% of the homebuyers place kitchen on the top of their most important spaces in a home. In other words, an upgraded kitchen helps your home to stand out for the prospective buyers who can get you more money and that too faster. However, the house value does go up, but that doesn’t mean that you will be able to get the whole of the remodeling cost while making a sale.
The Average ROI of a Kitchen Remodel
So the question is how much one recoup on a kitchen remodel can typically? For instance, a major upscale kitchen remodel has a national average ROI of around 54% which means that you will recoup around $68,000 after spending $126,000 on remodeling.
However, the ROI of a smaller renovation project may be as high as 81% which means you can recoup around $17,000 on a remodel that cost you $21,000. Also, the area where you live might greatly influence the ROI on your contemporary kitchen remodel.
In short, there isn’t exactly a single ROI for kitchen remodeling as it depends on the specifics of the local market.
Bottom Line
The answer is dependent on your goals. For instance, if you plan to sell your home in two months, then it wouldn’t be a smart choice to go for a $60,000 remodel as it will only recoup you around $40,000 which means $20,000 goes down the drain. In such a case make minor renovations that wouldn’t cost you more than $5,000. The much-needed thoughtful upgrades will not only boost the value of your home but also help you attract potential buyers.
