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How Much Does a Kitchen Remodel Increase Home Value? [GUIDE]

How Much Does a Kitchen Remodel Increase Home Value? - What is the Return on Invest? [Real Estate Agent Insights]

Upscale Kitchen Renovation increasing home Value

Worried about overspending on your dream kitchen without a proportional increase in home value? You are not alone! Many homeowners face this concern. They wonder if the investment in remodeling is worth it. To address these concerns, we have consulted with experienced real estate professionals. They share insights on the impact a kitchen remodel can have on a property's market value.


Summary | How Much Does a Kitchen Remodel Increase Home Value?

A kitchen remodel is not just about updating the look of a home; it's a strategic investment. It can significantly increase the value of a property. The luxury Real Estate Brokers Phoenix Goldstein (Douglas Elliman, NYC) and Zac Mostame (Carolwood Estates, LA) agree: "Investing in a kitchen is one of the best ways to increase a home's value and attract prospective buyers." Yet, to get a good return on investment, it's vital to grasp what affects it. Consider your renovation quality, design choices, property and market conditions.


Table of Contents:


Understanding Kitchen Remodel ROI

As we explore the impact of kitchen renovations on home value, we should start by covering the basics. To make informed decisions about kitchen projects we need to understand the ROI. When it comes to home improvement projects, ROI provides valuable insights. But what does the term "return on investment" (ROI) refer to?

ROI serves as a fundamental metric. Especially in home improvements, ROI sheds light on an investment's effectiveness. It considers the financial payoff of a kitchen overhaul relative to its costs. In other words, it reflects how much value is added to a home through upgrades in the kitchen space.

Kitchen Remodel ROI Overview by Renovation Type

Every kitchen remodeling project varies in scope and remodeling costs. If you are considering major renovations your average return might be lower. This is due to the higher costs of a complete kitchen renovation. But, if your kitchen is in poor condition, opting for a major kitchen remodel could be your best option. A minor remodel on the other hand updates your kitchen. Minor upgrades can sometimes help to attract potential home buyers. In general: A beautiful kitchen will help to increase your sale price. But how much money do you get back after investing in your kitchen? According to Mostame, a kitchen can show a solid return on investment. Ranging between 60% to 85% for upscale properties.

While it is difficult to determine an exact ROI we aim to provide you with a general overview:

Renovation Project Type

Percent ROI

Average Cost Example


Minor Kitchen Remodel

81- 87%


Often DIY projects. Involve minor kitchen upgrades. For example: Painting cabinet fronts, updating hardware and appliances. Focus: Aesthetic appeal without altering the layout

Major Remodel 

59% - 80%

Involves new appliances, flooring, kitchen cabinets, countertops, and possibly changing the room's structure and kitchen layout.

Upscale Kitchen Remodel

35.5% - 85%

Quality kitchen remodel with high-end materials, custom cabinetry, top-of-the-line appliances, and significant layout changes for a functional space.

Yet, there's no one-size-fits-all approach, each home and scenario varies significantly. Thus, calculating your own ROI becomes essential before making a decision. This personalized assessment helps identify which investments will deliver the best returns. Based on this you can make strategic decisions to boost your property's value.

Calculating ROI on Kitchen Remodels

Calculating a kitchen remodel's ROI involves two steps. First, review the renovation costs. Then, estimate the potential increase in home value. To determine ROI, you can follow these steps:

  1. Cost Analysis: Begin by itemizing all expenses related to the kitchen remodel. Such include materials, labor, permits, and any other costs involved in the process. For a comprehensive overview of potential costs read: Kitchen Remodel Costs. Also consider exploring our virtual kitchen showroom for ideas and kitchen costs.

  2. Estimate Home Value Increase: Examine similar properties nearby. This will help you to assess the added value of a renovated kitchen to your home. Consider factors like: Location, Neighborhood, Market Trends, Property Size, Age and Condition, Upgrades, Economy, Curb Appeal, Layout, Energy Efficiency, Landscaping, View/Privacy, Parking and History.

  3. ROI Calculation: Use the following formula to calculate ROI. The formula provides you with a percentage representing the return on your investment.


Expert Insights: Real Estate Professionals' Input

We consulted experts on the latest trends and what buyers look for in the real estate market. This sheds light on the crucial impact a kitchen has on a property's attractiveness and value.

Phoenix Goldstein, a luxury real estate agent at Douglas Elliman, points out: Kitchens are key to a property's charm and value. He says it is among the top three areas that affect a property's desirability. A kitchen missing functionality, comfort, or style can negatively impact the sale process. Buyers expect clean and well-maintained kitchens as a basic necessity. Properties with outdated, secluded kitchens tend to be less desirable. Phoenix has seen a big rise in demand and value for homes with updated modern kitchens and dining spaces. He says renovations can raise prices by up to 80% or more per square foot. This is especially true in prime locations.

In his daily work, he's observed other trends too. Kitchens become the main gathering area in homes, even for non-cooks. He adds that modern buyers favor kitchens with natural light and access to outdoor areas. He notes that properties with kitchens hidden away often perform poorly in the market. Zac Mostame highlights another trend in luxury homes. He mentions that a second kitchen is in high demand, especially in ultra-luxury and larger homes. Buyers want their main kitchen to look perfect while entertaining. This setup meets the demand for pristine main kitchens by moving cooking out of view.

How Much Does a Kitchen Remodel Increase Home Value - Home Viewing


Factors Impacting Kitchen Remodel Return on Investment (ROI)

According to real estate experts, three key factors influence ROI:

  1. Upgrade Quality: High-quality cabinet materials and modern, energy-efficient appliances boost ROI. They make the property seem more valuable.

  2. Design Choices: Smart designs that increase functionality and storage can raise ROI. They make the home more attractive to buyers.

  3. Market Conditions: Trends in the local real estate market, location, and buyers' expectations. They influence how much ROI a kitchen remodel can bring.

Understanding these factors helps you make choices that improve your home and investment. This can lead to significant returns when selling.



6 Expert Tips to Maximize Your Home Value Through Kitchen Renovations

Boosting your home's value can often hinge on modern kitchen remodels. Key areas matter, according to real estate expert advice. To make your renovation successful and increase home value, follow these tips:

Tip1: Focus on Quality Over Quantity:

Choose quality over quantity. High-quality materials and finishes make your kitchen look better and last longer. Go for top-notch countertops, cabinets, and appliances to boost your home's value. Using durable materials is key for both style and longevity. This makes your home more attractive to potential buyers. The quality of renovation work matters a lot. Details and precision show luxury and perfection. Hire skilled and reputable contractors to get the results you want.

Tip 2: Enhance Functionality & Flow

A kitchen lacking in function or style can slow down a home sale. Make your kitchen work better by improving the layout and storage. Add smart storage like pull-out shelves and pantry systems for better space use. Buyers want clever storage that makes kitchens spacious. Pantry spaces and areas for staff help meet family needs. They keep the main kitchen neat for entertaining. Kitchens are becoming the heart of the home, for more than just cooking. They're spaces for living and connecting with the outdoors. Think about making your kitchen more open. Place it where it can get a lot of natural light and connect to outdoor spaces, like gardens. This increases your home's value and makes the kitchen welcoming. Add a kitchen island with seating and common spaces. This makes the kitchen both more functional and appealing.

Tip 3: Upgrade Lighting

Good lighting changes your kitchen's feel, making it inviting. Use different light fixtures: task, ambient, and accent, for a bright and attractive space. This boost looks and usefulness. Bright lighting adds warmth to your kitchen. Aim for lots of natural light. Use large windows or glass walls. This makes the kitchen look better and function well. The correct lighting can showcase your kitchen's highlights, appealing to buyers. Think about getting a lighting designer. They can enhance the warmth and appeal with ambient light and suitable light temperatures.

Tip 4: Modernize outdated Appliances:

Switching to energy-efficient appliances boosts your kitchen's efficiency. It also attracts buyers who care about the environment. Stainless Steel Appliances with smart tech and energy-saving features, modernize your kitchen. This raises your home's value. Picking well-known brands signals quality and worth. Think about brands such as Sub-Zero, Wolf, Miele, and Gaggenau.

Tip 5: Refresh Fixtures and Hardware

For a kitchen in great shape, consider a minor kitchen renovation. Replace old fixtures, faucets, and cabinet handles. This won't cost much. Go for modern designs that fit your kitchen's look. They bring sophistication to your space.

Tip 6: Stick with Neutral Tones

A neutral color palette is classic and widely liked. Soft earth tones and light shades create a sense of cleanliness and spaciousness. Opt for cabinets in light wood and countertops in light stone or concrete. These choices give a natural vibe. They make the kitchen inviting and increase your home's value.

Using these insights in your renovation can improve your home's appeal and value. It matches current trends and what buyers want.

Need support?

Thinking of remodeling your kitchen? Need help to make sure it pays off? Kitchen Design NYC is here for you. Our expert Kitchen Designer will guide you. We'll make the right choices for your kitchen's makeover. You'll get a kitchen that works for you every day. And when it's time to sell, you'll see the value. We help pick the kitchen brand, cabinets, and accessories. All within your budget. Want to talk more about our kitchen design services? Contact us for a free chat today.


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