Does a Kitchen Remodel Provide a Return on Investment?

Does a Kitchen Remodel Provide a Return on Investment?
-Bill Forrest, Atlanta Realtor

The short answer is YES
But the bigger questions are what type of remodel and how much of a return...

As the home owner the actual cost of a remodel is dependent upon your own skill sets and how much of the labor you can complete yourself. A lot of these projects can be a sense of great pride in knowing "I did that."
A lot of our local Home Depots, Lowes, and Ace Hardwares provide free or low cost classes teaching and providing hands on training to expand these skill sets.

But first, CALL ME or another favorite REALTOR to evaluate your proposed project if the return on investment is a major goal or concern. We can help you maximize the return by providing helpful insight into what is a 'real trend' v. a 'fading fad' especially in countertops, finishes, flooring types, colors, etc. We can also make recommendations of subs and service providers that have a proven track record. But, most importantly, We can alert you to market conditions so you do not over-improve and diminish your return.

In a lot of cases a Kitchen Remodel can be defined as minor but impactful

There is a lot of talk about reuse, recycle, and sustainability these days and that can have the biggest impact on defining the scope and costs. In a lot of cases the current kitchen cabinets are very functional and just look dated. Replacing the entire cabinet box and exterior can be very costly and push the project into the "Major" category. Simply refacing the cabinets can be an effective technique to save a lot of money and time without losing the wow factor. Of course knocking out walls and complete reorientation of a kitchen design can in some cases eliminate the ability to reuse the current cabinetry.

Costs and Returns

Research for Atlanta, Georgia has provided some interesting results according to the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com). They studied minor vs. major kitchen remodels in the area
The findings are that a Minor Remodel has a higher return at 79.7% and a Major Remodel has a 74.9% return.  The average minor remodel had a cost of $18,889 and major tipped the scale at a average cost of $54,798. As you can see there is a big difference in costs.

The question of return is a market and marketability question that only your REALTOR can answer.  Give me a call at 404-353-9233 and I would be happy to help you evaluate your plan, possible options, and provide insightful suggestions.

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Other costs info and definitions:
MINOR KITCHEN REMODEL DEFINED: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware.Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.
MAJOR KITCHEN REMODEL Update outmoded 200-square-foot kitchen with 30 linear feet of top-of-the-line custom cherry cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic- or glasstile backsplash; built-in refrigerator, cooktop, and 36-inch commercial grade range and vent hood; built-in warming drawer, trash compactor, and built-in combination microwave and convection oven. Install
high-end undermount sink with designer faucets and built-in water filtration system. Add new general and task lighting including low-voltage undercabinet lights. Install cork flooring, cherry trim.