What Is The R.O.I On Remodeling
The cost for your
kitchen
remodeling project should be based on the value of your home. Investing
too much could lead to a poor return on investment or a home valued outside
the local market expectations. 15% of home value is a good rule of thumb for
a kitchen remodeling budget. Following 15% of home value, it is not
inconceivable to get 80% to 90% or more return on investment.
Usually you can expect a lower return on investment for more major
remodeling projects due to the increased cost involved in a major remodeling
project. If a kitchen has been neglected or is dilapidated you can expect a
lower return on investment because much of the cost is consumed by bringing
the kitchen to a livable standard rather than actual improvements.
A 100% return on investment is possible. But rather than working designing
towards that figure, consider livability as a major component in your
kitchen remodeling project budget. Especially if you plan on living at the
home for some time to come. You might even love your new kitchen so much
that you forget about any notion of selling and moving out.
New kitchen appliances can often be all that is needed in a kitchen remodel
project, and can be relatively inexpensive since there is no labor involved
other than delivery and installation. Plus, since new, good quality
appliances are pleasing to prospective buyers, they can have a favorable
return on investment.
Your homes size and your neighborhood should be considered too. If your
improvement or remodeling project
are extensive compared to the rest of the neighborhood or size of the home,
then a high expectation of return on investment may be unrealistic.
You can also consult a local real estate agent to get a good idea of how
extensive of a kitchen remodeling project to fund. A good real estate agent
with knowledge of your neighborhood should be able to give a good indication
of your remodeling project ideas effect on the value of your home. Even if
your remodel project is for your own satisfaction, and you have no intent on
selling and moving, a real estate agent will usually have a good idea of how
much previous clients spent on their kitchen remodels, and the resulting
increase in home value. Consider offering the agent a flat fee for their
opinion if you have no intent on selling.
To summarize, a kitchen remodeling project can greatly increase the value of
your home, and make it sell faster. Return on investment may, or may not be
important to you depending on if the project is for your own satisfaction or
for selling the home. But do be careful that your project does not price
your home out of the neighborhood.
Scott Hares writes for kitchen-remodeling-pictures.com/kitchen-remodel-improvment/kitchen-remodeling-roi.htm
Kitchen remodeling return on investment A free informational resource for
anyone considering a new kitchen remodeling project.
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