My immediate answer to your question would be not to spend the estimated 40k to remodel the kitchen. Probably some inexpensive cosmetic upgrdes such as paint, new hardware, faucets and lighting may be enough to peek interest for buyers. Please keep in mind that many buyers want to come in and change a kitchen to their taste ,even with a brand new kitchen. My advise would be to either check out Open Houses in your neighborhood or ask your Realtor to preview homes in your area. A Realtor has access to Sold homes and can give you an up to date Market Analysis. Good luck!
Decrease the price of your home XXX dollars and market the home "as is"
Get 3 estimates (those are free) from local companies. You would then be able to place copies with paperwork about the home while selling and offer XXX dollars from your proceeds (the buyers money) be placed in escrow to be used for remodelling of the kitchen by the new owners.
Your agent would know how to word the listing to protect you from an extremely low offer.
Before doing anything other than getting some estimates, I suggest you either interview 3 local agents or have a not for refinance appraisal done on your home. It may be that the numbers you get will be in the 325K range. (just throwing out an extremely low figure) and it may be to your advantage not selling. Better to know in advance.