A new kitchen can increase the value of a home. In general, value is expressed as the percentage of the money spent on remodeling that the landlord recovers after the sale of the home. Better Homes and Gardens says homeowners can expect a return of about 52% on their investment in a new kitchen if they sell their home. In the Midwest region (including North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Kansas, and Missouri), a minor kitchen remodel is only seventh in terms of ROI.
Adding mid-range fabricated stone veneer to the exterior of the house has the highest recovery of all improvements, at 82.8 percent, followed by the replacement of garage doors with 82.4 percent. In the Midwest region (which includes Texas, Oklahoma, Arkansas and Louisiana), the projects with the highest ROI are mid-range manufactured stone veneer (93.4 percent) and an addition of mid-range wood decking (82 percent). An exclusive garage door replacement is linked to a minor kitchen remodel at 80.8 percent. Minor renovations make limited changes and leave many features in place, while major remodeling can significantly alter a room.
Remodeling magazine classifies minor kitchen removals in the “mid-range” cost category, due to the limited scope of work. It also doesn't make sense to update your kitchen if your house is the only house in the neighborhood with only one bathroom. Well, if you're doing a modern kitchen remodel to put your property on the market, you're making a strategic decision, as buyers are more willing to buy when they see functional improvements to the property. In the most popular real estate markets, opting for a kitchen or bathroom remodel is a safe investment, often returning more than 100 percent of the cost.
An accessory housing unit (ADU) is an innovative and affordable housing solution in high-cost areas, as well as a way to house distant family members or add rental income to your property. In fact, many people choose to remodel rather than sell, due to the low inventory of homes in recent years. Popular TV shows about home remodeling have made open kitchens modern and fun, but they're not suitable for every home and can lead to higher upfront remodeling costs. More than 70 percent of buyers who purchased existing homes knew what they were going to remodel even before the deal was closed, according to the HanleyWood Housing Continuity Study, conducted in 2002 in conjunction with the Harvard Joint Center for Housing Studies.
In all regions of the report, a minor kitchen remodel offers the best return on investment of any type of kitchen remodel. That's not to say that granite countertops and steam showers don't pay off; kitchen and bathroom removals are still two of the best investments you can make in your home. If you don't want to go through the headache, time and expense of a minor or major kitchen remodel and there's nothing functionally wrong with your kitchen, selling without remodeling first might be your best option.