By Dan Fritschen

how much does it cost to remodel a kitchen

Photo by David Reaume

 

The payback, or the amount of the cost of a kitchen remodel you can expect to recoup in added home value when you sell, is down where housing prices are depressed but back to normal ranges for areas where home prices have recovered from the recession.

 

Ultimately it depends on the buyer what your home is worth and the value of your additions and remodels.  To sell your fast and for the highest price it is important to appeal to the largest group of buyers.  To do this your home should be a little above average for condition and features in the neighborhood.  An example if this is if homes in your neighborhood are on average 2,000 square feet in size and have 2 1/2 bathrooms your home could be 2,200 square feet and have 3 bathrooms and not be over improved for the neighborhood.  Compare this with a home that is 4,000 square feet with 4 bedrooms in the neighborhood. In this case it is probably overbuilt and would sell for less than if it were in a neighborhood full of 4,000 square foot houses.

 

So what will the payback be for YOUR kitchen?  It depends largely on what you are replacing, what the average is for your neighborhood and how much your kitchen cost to remodel.  Your payback will be substantial IF you are replacing a small dark kitchen built in the 60’s with a kitchen that is typical for your neighborhood and you work hard to minimize the cost of your kitchen remodel.  The payback may not be so great – and potentially zero if you are removing a perfectly functional kitchen that is newer and typical for the neighborhood and replacing it with something equivalent or a larger – gourmet – a kitchen that costs a lot more to remodel than the neighborhood can support.

 

Talking with a real estate agent is a good way to get an idea of how much of the cost of your kitchen remodel you can recoup by appreciation in the value of your home.