Remodeling a kitchen can add to the value of your home and make it easier to sell, especially if the space is populated with aging appliances and old counter-tops. That being said, if you are contemplating a kitchen remodeling project as part of the plan to sell your home, there are also several commonly made mistakes that can turn costly and potentially make your home harder to sell.
These mistakes include:
• Doing an “Architectural Digest” remodel – The value of your home and the return on investment for a high-end remodeling project will be limited by the comparable prices of homes in your neighborhood, also known as “comps”. Before starting a remodeling project, find out where your home currently stands in value versus other comps in the area. The discrepancy in prices can reveal a lot about how much your home will appreciate in value after a remodel; an older home that is deeply discounted from other comps might benefit from the addition of new appliances and other upgrades while one that is priced close to other comps probably won’t appreciate as much from a kitchen project.
• Trend-following – The nature of most trends is that they will be replaced by newer trends after a relatively short period of time. While kitchen trends can cover numerous design aspects, they are most commonly related to the selection of specific colors for cabinetry and appliances. Trying to sell a home with a kitchen style that has gone out of fashion can actually make for a tougher sale as the new buyers negotiate with an eye on getting rid of “old” appliances.
• Personalizing the kitchen – While you may love a kitchen that looks and feels like diner, not all of your prospective buyers will. Much like going with trendy appliance colors, a “themed” kitchen may not add a lot of value, unless you find home buyers that truly appreciate your vision.
The process of planning a kitchen remodeling project for a home sale is a different than one where owners plan on staying for the long term. For the most cost-efficient remodeling project, new appliances as well as the overall design should stay fairly basic to afford maximal appreciation while appealing to as wide an audience as possible.
The project’s budget should be based on two parameters; the appraised value of the home and the selling prices for similar homes in the neighborhood – The rule of thumb for setting your remodeling budget is that it should run between 5 and 10 percent of the home’s value. If your home’s value is approximately equal to other homes in the area, keep the budget closer to 5 percent. If its value is significantly less than other homes, the budget can be pushed toward 10 percent.
Appliances should be purchased with ruthless efficiency – While you definitely want to present an upgraded look, buying high-end appliances in this type of remodeling project will result in a lower return than going with base models.
Remodel for a broad market – To give your home the best chance of selling, you’ll want to go with neutral (white or stainless steel) appliances and basic cabinetry to appeal to a broader audience.
…and remodeling for love:
If the long term plan is to stay in your home, return on investment becomes a non-issue – While you don’t want be wasteful, the budget for new appliances and other features in the kitchen can be expanded to what you can afford.
Appliances can be purchased to deliver an optimal user experience – Again, you’ll want stay within your budget and buy only features that have utility in your kitchen. That being said, if you’re committed to cooking like a pro, for example, buy the appliances that will allow you to do what you want to do toward that end.
It’s your kitchen; show some personality – Designing the kitchen as an extension of your household’s collective personality can turn it into an exciting gathering area that also encourages culinary creativity.
While remodeling for money requires a more pragmatic approach to upgrades and buying appliances, a project that isn’t based on the sale of the home can be executed with creativity and flair. The key is to decide whether fiscal responsibility or wild creativity is in order before starting the project.