Remodel & Renovate in 94087>Question Details

Mw2595, Home Seller in 94087

what is the average ROI for upgrading a 1970 kitchen to 2010 expectations if in the 94087 zip code?

Asked by Mw2595, 94087 Thu Jul 22, 2010

It's a 1950s ranch. All electrical, plumbing and bathrooms were already upgraded. What limit should I put on the project cost to maintain a reasonable return on investment?

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As Cj stated, there are several factors to understand. Per the National Association of Realtors it states the average for California as; a Minor kitchen $23,210 remodel to be around 94.8% and Major $63,803 94.8%. I know there are contractors now that can do a complete kitchen face lift for much less. And I believe the % would be closer to 75% to 80% for today's market.

If you do a remodel now, and sell in a year vs 7 years, the ROI is going to be completely different. As market changes and buyers desires change as well.

I would suggest that if you are considering a remodel to talk with a trusted Realtor, explain that you are trying to make a decision and they will be very happy to assist you. They will walk around your home, review factors which you might not have considered in your remodel. You don't have to be in the mind set to list and sell today. You can also visit open houses in your neighborhood and see what types of upgrades they have and how much they are asking. This will give you visual perspective as well to determine a spending budget. The agent may also have great resources for your remodel as well.

Do keep in mind, that if you are doing a remodel for your enjoyment you will reap the benefit from that alone. Trying to remodel for another person's taste for an undetermined time frame may drive you crazy and hitting the mark difficult to project. You will be living with this kitchen and you should enjoy it.
Web Reference: http://terrivellios.com
1 vote Thank Flag Link Thu Jul 22, 2010
Mw -

It is great that you are considering a remodel for the kitchen and also contemplating ROI. ROI will be dependent on layout, material choices, time to sell, and your local real estate market.

There is no quick calculation that can really predict as so many factors weigh in. If the all is updated but home sits next to a busy street it may not have the same ROI as a home at then end of the cul de sac. It also will depend on what level of remodel is completed. Most ROI calculations try to estimate based on major or minor remodel. Here is a quick reference site that might help ; http://cgi.money.cnn.com/tools/renovation/renovation.html

In this market (next 3 years), I would believe a mid-range remodel would bring about a 70% ROI. To increase that return look at opening the floor plan as much as possible and using green materials. http://www.greenandsave.com/master_roi_table.html

Here is another link to help research http://www.remodeling.hw.net/2009/costvsvalue/division/pacif…

Hope this helps.
CJ
Web Reference: http://www.TalkToCJ.com
1 vote Thank Flag Link Thu Jul 22, 2010
Hello MW and thanks for your post.

First, when you are trying to sell, it's advisable not to necessarily look at a kitchen renovation as providing you with a higher sales price, but with selling your home faster. Thus, if you keep this goal in mind, a modest renovation will often work better than a huge, new cabinet, new counter, new appliances renovation to a kitchen.

For actual returns, however, construction calculators and those in the industry put the cost benefit at about 80 percent of the cost provided, of course, your kitchen renovation constitutes about 15 percent of the sales price of the home. A neglected or dilapidated kitchen may require an even higher contribution for repairs since much of the work will to be done to the "substructure" of the kitchen and not in the most visible portions of the room. Also, do keep in mind that a kitchen renovation, done correctly and with permits, will take approximately 4 weeks to complete AFTER the plans have been approved and the materials have been selected, so if you're planning to do these renovations to sell your home now, I might recommend not doing them in favor of listing sooner than later.

If you are interested in selling, I do have a couple looking to purchase in the 94087 section of Sunnyvale, and we do offer to complete private transactions between sellers and buyers for only 2 percent sales commission for the entire transaction.

Give me a call if you are interested in selling or need assistance with the home renovations.

Sincerely,
Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616
1 vote Thank Flag Link Thu Jul 22, 2010
At least $5000 for cabinets and atleast $5000 for appliance plus about a $1000 for flooring.

I am doing an Open House on Carroll Street today and tomorrow.

Do stop by.

Perry
0 votes Thank Flag Link Sat Nov 6, 2010
The most logical thing is to upgrade your kitchen to approximately the same level of grandeur as your bathrooms. If you do less, your kitchen be worse than your bathrooms and will be your limiting factor. If you do too much, then your bathrooms will be the ones holding back the value of your remodel.
0 votes Thank Flag Link Thu Jul 22, 2010
Hi Mw2595, Those are 2 excellent answers. In my former life as a working contractor I could not have answered it better. ;)

Props to CJ and Terri!

Michael
http://LosGatosHomesandRealEstateBlog.com
0 votes Thank Flag Link Thu Jul 22, 2010
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