Does Kitchen Remodeling Add Value to Your Home?

How Kitchen Remodels Increase Home Value

Understanding ROI and Resale Value

On average, you can recover 50% to 80% of the cost when you sell. This is known as your return on investment (ROI). The exact ROI depends on the size of your remodel, the quality of materials, and the housing market in your area.

Minor remodels like painting cabinets, upgrading fixtures, or adding a new backsplash are low-cost but can still make a big impact. Major remodels often involve replacing cabinets, upgrading appliances, or installing new countertops. While they cost more, they can make your kitchen stand out in a competitive market.

Minor vs. Major Remodel: What’s Worth It?

Minor remodels typically cost less and give a higher ROI. For example, spending $15,000 on cabinet refacing, fresh paint, and new hardware could recover 80% of your cost.

Major remodels add more value to outdated or poorly designed kitchens. However, their ROI is usually lower. A $50,000 remodel might recover 60% to 70% of its cost. Choose a major remodel if your kitchen needs a full upgrade or if buyers in your area expect high-end finishes.

How Much Should You Spend on a Kitchen Remodel?

Setting a Realistic Budget

A good rule of thumb is to spend 5% to 15% of your home’s value on the remodel. For example, if your home is worth $300,000, aim to spend between $15,000 and $45,000. This range keeps your remodel cost in line with what buyers expect in your market.

Stick to the lower end of the range if you’re planning a minor update or if your home isn’t in a luxury market. Spend closer to the higher end if your kitchen needs major upgrades or if you’re in a high-value area where buyers expect premium finishes.

Cost Breakdown: Labor, Materials, and Design

Understanding how costs are distributed can help you plan better. Here’s a general breakdown:

• Labor: Around 30% to 40% of your budget. This includes contractors, electricians, and plumbers.
• Materials: Typically 40% to 50% of your budget. This covers cabinets, countertops, flooring, and appliances.
• Design and permits: About 10% to 20% of your budget. This includes professional design fees and any necessary building permits.

For example, in a $20,000 remodel, you might spend $8,000 on labor, $10,000 on materials, and $2,000 on design and permits.

Balancing Budget with Aspirations

It’s easy to get carried away when designing your dream kitchen, but it’s important to stay realistic. Start by listing your must-haves, like updated appliances or new countertops. Then, compare them to your budget.

If your budget is tight, consider affordable alternatives, like refacing cabinets instead of replacing them or choosing laminate countertops instead of quartz. Focus on upgrades that offer the best ROI, such as painting cabinets or installing new lighting.

Save the splurges for features that matter most to you, like a high-end stove or a custom backsplash.

Best Kitchen Upgrades for Adding Value

High-Impact Upgrades: Cabinets, Countertops, and Flooring

Some of the best upgrades to add value are changes to cabinets, countertops, and flooring. These features take up the most visual space and set the tone for your kitchen.

• Cabinets: Refacing or repainting cabinets is a cost-effective way to make your kitchen look modern and clean. If your cabinets are outdated or damaged, replacing them can make a huge difference.
• Countertops: Materials like quartz or granite add durability and a high-end look. If you’re on a budget, laminate countertops can still make your kitchen feel fresh without breaking the bank.
• Flooring: Durable options like vinyl or tile are attractive to buyers and easy to maintain. Hardwood flooring is another popular choice that can boost your kitchen’s overall appeal.

Kitchen Islands: Style Meets Functionality

A kitchen island is one of the most sought-after features for homeowners and buyers. It adds extra counter space, storage, and seating, making it both practical and stylish.

If you’re short on space, consider a smaller island with built-in storage. For larger kitchens, adding an island with bar seating or a prep sink can enhance functionality and appeal to modern buyers. An island with contrasting colors or materials, like a wood countertop paired with white cabinets, can also create a standout design element.

Energy-Efficient Appliances and Lighting

Today’s buyers look for energy efficiency as much as style. Upgrading to ENERGY STAR®-rated appliances not only lowers utility bills but also increases your home’s appeal. Consider these high-impact changes:



• Appliances: Replace old models with energy-efficient refrigerators, dishwashers, or ovens that use less electricity and water.
• Lighting: Install LED fixtures for long-lasting, energy-saving light. Under-cabinet lighting adds both style and functionality, while pendant lights over an island create a modern touch.

Is a Kitchen Remodel Worth It Before Selling?

Pros and Cons of Remodeling Before Listing

Remodeling your kitchen before selling can be a smart move, but it’s not always the right choice. Here’s a quick breakdown of the pros and cons:

Pros:

• Increases home value: A remodeled kitchen can make your home more appealing to buyers and help you sell for a higher price.
• Attracts more buyers: A modern, updated kitchen is a top feature buyers look for, making your home stand out in the market.
• Speeds up the sale: Homes with updated kitchens tend to sell faster, reducing the time your property sits on the market.

Cons:

• Upfront cost: A remodel requires an investment, and you may not recoup the full amount.
• Risk of over-improving: Spending too much on high-end features in a low-value area might not yield a good ROI.
• Time-consuming: Remodeling takes time, which could delay your plans to list your home.

If your kitchen is outdated or poorly designed, a remodel can make a big difference. However, if it’s already in good condition, smaller updates like fresh paint or new hardware might be enough.

Timing Your Remodel for Maximum ROI

Timing is everything when it comes to remodeling before selling. Start by researching  the local real estate market. If homes in your area are selling quickly, a full remodel might not be necessary. On the other hand, in a slower market, a remodeled kitchen could give your home an edge.

Aim to complete the remodel a few months before listing your home. This allows time for marketing and showing off the new upgrades. Avoid remodeling too far in advance, as trends can change, and the kitchen may no longer feel fresh.

Focus on upgrades that appeal to a broad audience. Neutral colors, durable materials, and energy-efficient appliances are safe bets. 

Start Your Kitchen Remodel Today

A kitchen remodel is an investment that pays off in value, functionality, and style. Whether you need a minor update or a complete overhaul, the right remodel can transform your space and make your home more appealing.

Ready to get started? Tubro Construction makes kitchen remodeling simple and stress-free. We serve homeowners in Maple Valley, Tacoma, Covington, Renton, Kent, and Auburn, delivering high-quality results every time.

Get in touch with us today to schedule a consultation or request an estimate. Let’s build the kitchen you’ve been dreaming of!