how much value will a new kitchen add?

Asked by J Lauver, New Jersey Tue Dec 2, 2008

Answers

18
David, , 07921
Tue Dec 2, 2008
BEST ANSWER
Itdepends a lot on the kitchen and the value of the house. Kitchens are very good investments and usually get somewhere from 80% to 90% of their value back. Tha means if you put $30k into the kitchen it will get you $24k to $27 k worth of added value. Of course if you put more you will get more. Hope this is helpful.

David M Sweeney
Broker of Record
Keller Wiliams Cornerstone Realty
908-963-0428 Cell (best #)
866-771-2300
david@dmsweeney.com
http://www.dmsweeney.com
1 vote
James Nickla…, Home Buyer, Elizabethtown, PA
Tue Apr 4, 2017
From a home owner point of view and who recently moved 3 x's in the last 2 years, my wife and I are very knowledgeable w/the housing markets we had to navigate. After reading a lot of the reply's to this question, I have to disagree w/most of them. The BLUF (military for bottom line up front) is that the over riding factor is the appraisal value. We have found that there are MAINLY only 4 factors that determine this number: # of BR's, # of baths, sq footage, comp values. Anything else is minor. Meaning that, in our opinion, you will only get a fraction return on upgraded kitchen and baths.
For example: if you have 2 houses in the same area and built at the same time w/the same parameters (sq footage, # baths, #BRs) and the one with the dated kitchen and bath and is selling for 200k. The other house has ploughed 50k + into the kitchen and bath. I would say that the updated house will sell for no more than 10k more (and this is being generous). It will definitely sell faster, no doubt, but the owner just took a 40k hit. Is it worth it? We would say, NO.
Our advice is, DO NOT ask this question to a real estate agent or bathroom/kitchen contractor. You must ask an appraiser. And trust me, the 4 points that I mentioned above are what it's all about.
What a seller can do is to put a face lift on what is there. New paint, toilet, counter top, floor and items that may cost some but are a fraction of a major gut job. A face lift of a kitchen/bath combined should be under 5k and then put you in a much better position to sell and you save 45k.
The only time we think a major gut job is worth it is if the areas are really shot and you will be living in the property for 20 + yrs in order to use and enjoy the update yourself. Then, because of inflation the property will naturally raise the value enough (hopefully) in order to eventually recoup the cost.
1 vote
I have to agree with you. We asked our appraiser what we could do to up the value of a house we had gutted and redone and he said, “Nothing. It is what it is. It’s a house and unless you’re adding sqft there isn’t much to be done.” We thought that was crazy. Kitchen needed redone anyway so we did that, changed the footprint of a few areas and created a bathroom and another’s bedroom and still the thing only came in with an FHA appraisal price of $115,000. That was $20,000 lower than what we were hoping for. Thankfully we did the work ourselves and still walked away from it with a little something but had we paid someone to do it we would have been out a TON of money.
Flag Thu Jan 18, 2018
Marc Pollak, Agent, Basking Ridge, NJ
Tue Dec 14, 2010
I agree with what most of the agents below are saying. A new kitchen will recover a large portion (80 - 90%) of what you put into it. I think the biggest savings you will see is that your home will sell faster with a new kitchen than it would with a dated one. Buyers today are looking for move in ready and if you have an updated kitchen they will tend to choose you over the competition with a lesser kitchen and a similar property. Market statistics show that the longer a house sits on the market, the further below the asking price it recieves. It is important that the home is clean, updated and priced right.

Updated kitchens and baths in a clean properly priced home should allow you to maximize your sale price.

Hope this helps,

Marc Pollak
Sales Associate
Keller Williams Towne Square Realty
908-507-8178
marcpollak@kw.com
http://www.marcpollak.com
http://www.blackbeltrealtor.com
1 vote
Caleb Hart, Renter, Orem, UT
Wed Mar 18, 2015
I guess a lot of it depends on the market and the buyer. Your best bet would be to talk to a realtor in your area. They know what the local market looks like, and what buyers are hunting for. Then you can make your decision of remodeling or not. http://www.renovations.rdinet.com/your-project/
0 votes
John Sacktig, Agent, New Jersey, NJ
Tue Apr 1, 2014
I guess this is a “timeless” question… but doesn’t anyone think that answering a question from 6 years ago like it was 6 minutes ago, just shows that you are someone that does not pay attention to details?
0 votes
Randy Stoker, Agent, Carmichael, CA
Tue Apr 1, 2014
A new or updated kitchen is very attractive to home buyers. One of the first questions a buyer will ask is "What condition is the kitchen" then they ask about bathrooms, master bedroom suite and the back yard. Improving a kitchen will increase the value of your house and increase chances of selling before other properties; especially those houses without updated kitchens.
0 votes
Joanie Brady, Agent, Basking Ridge, NJ
Sat Dec 7, 2013
New kitchens (and new baths) will not only add value but increase the probability that your home will sell more quickly, and in doing so, at a better net cost to you. Today's buyers prefer neutral tones, solid surfaces and stainless appliances. If your kitchen is too small for a table, bring in a portable center island or create a breakfast counter by removing half a wall. Opening the kitchen up to a family room is a good idea as well.
Always consult with your trusted real estate agent! A local expert always adds value!

Joanie Brady
Sales Associate
Prudential NJ Properties
Basking Ridge, NJ 07920
908-304-4331
0 votes
Charles D Va…, , Columbus, OH
Mon Jul 1, 2013
You would want to look at homes in your area that has new ktichens to determine the added value of the kitchen in your area.
0 votes
Tom Sommers, Agent, Lakeville, MN
Tue Dec 14, 2010
That depends on where you live and what you do to the kitchen. I can tell you from personal experience that granite counter tops and stainless steel appliances will add the most value. I would suggest before you do anything is to tour some model homes in your area that are twice the value of your home to see what they are doing. then try to figure out a way to incorporate some of what they are doing but at an affordable price. You want to give that buyer more than the competition does.
Good luck,
Tom
0 votes
Celia Szieber, , Toms River, NJ
Fri Oct 1, 2010
This is a timeless question and the following answer is a general guide that I use when determining value. When comparing comparable properties, an additional 6% adjustment is added to homes that have remodeled kitchens vs. homes with original/dated kitchens. This approach is not reliable when comparing non-comparable properties.(Example:Don't use a 3 brm,1 bath 1100sqft home if you have a 5 brm, 2.5 bath 2000 sqft home) Of course, this is not a specific indicator of contributory values. It is also necessary to consider the impact of improvements within functionality and their resulting impact upon marketability. Additionally, replacement cost is not a reliable indicator of value.
Best Wishes,
Celia Szieber
Crossroads Realty
732.597.0060
0 votes
Joshua, , Charlotte, NC
Sat Jun 27, 2009
Everyone has pretty much nailed this, if you remodel your kitchen with moderate taste then you could expect 80%+ return on investment.

It typically will take 9-24 weeks from design to order to install for a kitchen to be completed. That should be taken into account if you are planning on selling soon. And, several people already mentioned about pricing yourself out of a market.

New Kitchen Trends:
Storage, having a pre-design notion of where things should go. (ie: pots & pans in cooling area, knife block in prep area)
Maple & Cherry are still the most popular wood choices, and maple will have even more painted finish options.
Granite, is now a most have for everyone. With the economic downturn the cost of granite has fallen, and buyers are almost expecting homes to have slab granite now days.
0 votes
So basically if I remodel my extremely dated Kitchen and Bath, and make it tasteful I can raise my equity ? Even if I'm not trying to sell at this time ?
Thank you in advance, First Time Home Owner.
Flag Fri Mar 2, 2018
Kimo Stowell, Agent, Honolulu, HI
Mon Jun 15, 2009
If your going to put money into your home, Kitchens and Bathrooms traditionally, garner the best return for your money. Each market is different but typically the return can be 90% or higher for an updated Kitchen. Best of luck!
0 votes
John Sacktig, Agent, New Jersey, NJ
Sun Dec 7, 2008
It depends on when you are planning to sell.. If you are looking to sell now, well, price the house less then the value of the new kitchen and sell the house.

If you plan on living there for a few years, put the new kitchen in and enjoy it. When the time comes to sell, it will be done and I would expect you to recoupe most of your investment on the sale.

Big ticket items like Kitchens and Baths are prime selling points when listing your home for sale and getting it sold, less for the potential buyer to fuss about when making an offer.
0 votes
Bill Eckler, Agent, Venice, FL
Thu Dec 4, 2008
J.

We feel it depends on the kitchen, the home, and the location of the home. A desirable home in a great location should bring you a higher return on the money spent.

A new kitchen will improve the saleability of the home.

Here's a true sinerio....a local couple had decided to sell their home in Florida. Feeling they would be able to ask a higher price for the home with some updates, invested $60,000 in renovations that included the kitchen, bathrooms, etc. When the home finally sold the sellers did not realize the sale price they wanted...but the biggest blow to them was the new buyer deciding to gut the home and redo it to their taste. was the $60,000 well spent?

Our point is that you may be further ahead by lowering your price and not doing the renovations......a question you can best respond to.

Good luck
The Eckler Team
0 votes
JosephHW, Both Buyer And Seller, 97439
Thu Dec 4, 2008
The answer is: unless you’re getting specific negative feedback there is no way to know. Unless a potential buyer has hired a buyer’s agent, all realtors represent the seller. A problem is that many realtors do not behave that way. For reasons one can only speculate about, realtor to realtor communication is of little value today, if it occurs at all. Follow-up calls by a listing realtor elicit little actionable information.

Telling a seller that their kitchen is “dated” or “tired” does not help the seller know what to do.

The idea that you can use comps to assess your property’s value is “dated” and “tired.” Comparable house values work best in an active market with similar housing. If there is little turnover in your neighborhood then comps are of little value.

But to your question, find the open houses for properties that you think match your price or are a little more expensive. Bring a camera and take pictures of their kitchens; take lots of pictures. Sit down with your friends and review them for things that you all agree are worth adopting.

Lastly, beware of making your kitchen such a focus of change that buyers will view it as lipstick, a change made just to help sell the house. If the new kitchen is inconsistent with the rest of your house it will be money wasted. A buyer who sees all new appliances in the kitchen may think that you may not have maintained any of the other parts of the house that aren’t as visible.
0 votes
Lynn Dachisen, Agent, Montclair, NJ
Tue Dec 2, 2008
Mr. Lauver - the true value of a Kitchen (or any home for that matter) is what the buyer is willing to pay for it. One thing is for sure- if your kitchen is outdated, the buyer will take that into account NO MATTER what price it is listed for, and deduct what he/she wants to spend for a new kitchen. It is this REALTOR®'s opinion that if your kitchen is in bad shape, spend the money (if you have it) to at least update flooring, appliances, and countertops - remove ALL WALLPAPER. Many times cabinets can be refaced or passable. With these upgrades, a "new kitchen" can be advertised and may justify the asking price. You will know soon enough with the feedback that comes in from the buyers. Listen to that feedback very carefully, and don't take offense- it's simply the buyers' way of saying how well the home is priced. Please let me know if I can help you with any of your other real estate questions.

Good Luck!
Lynn Dachisen, REALTOR® Sales Associate, ABR, SRES, CRS member, CLHMS
Keller Williams Mid-Town Direct Realty
dachisen@optonline.net
Web Reference:  http://www.LynnDachisen.com
0 votes
Darlene White, , Mendham, NJ
Tue Dec 2, 2008
Hi J.

I'm a Realtor and a home stager. Kitchens typically bring the most return on investment when considering a remodel, you'll hear different figures anywhere from 80% to a dollar for dollar value but you need to be sure your market will support that investment. There are many factors that go into a sale and I agree with Paul that you have to look at the sold comps in the area to see how much value you can really get for improvments. For example, If your home is already the largest four bedroom in your town adding a new kitchen may not help you sell for more money, as you will already be priced at the top of your market. However, if there is room to improve, then a Realtor can help you determine how much room you have to build equity in the current market by doing a comparitive market analysis. Feel free to contact me with any additional questions about improving your home for a sale.

Best wishes,
Darlene White, Realtor & Accredited Staging Professional
http://www.crystalspringsbuilders.com
http://www.simplicityhomestaging.com
0 votes
Paul Howard, Agent, Cherry Hill, NJ
Tue Dec 2, 2008
It depends on the condition and how modern the old one was. If you are replacing a good kitchen because you didn't like the color of the old one it might add negative value if your taste sucks.

On the other hand, if your old kitchen was "dated", and you tastefully upgrade you will likely see a positive return.
No one will know without seeing your house and knowing something about comparable sales for your area.
Of course if you put a $40,000 kitchen in a house worth $180,000 your are doing it for your own benefit - not the return.

Paul Howard
0 votes

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