What Does It Cost to Remodel a Kitchen?
Before evaluating if a kitchen remodel is worth the price, it pays to compare apples to apples. Replacing yellowing wallpaper, adding a new coat of paint, and perhaps adding some light fixtures or window treatments is a lot cheaper than the average cost to remodel a kitchen that involves the replacement of cabinets and appliances.
Even the size of the room matters. A small kitchen remodel is a lot less labor-intensive and cheaper to furnish than a large model with perhaps enough room for a center island or two. For example, Remodeling.com, a site owned and operated by Hanley Wood, LLC., identifies a minor kitchen remodel as a job that costs only about $20,122.
Average Cost to Remodel a Kitchen vs. Return on Investment
Even though spending in excess of $20,000 sounds like a lot of money, it is spent surprisingly quickly in the kitchen. Appliances alone quickly appropriate a large chunk of the available funds. Add to this the potential need for plumbing, electric, and gas contractors’ services, and it stands to reason that labor and materials costs may quickly hit the budgetary ceiling. The return on this size investment is only about 83.1 percent or $16,716.
A major kitchen remodel
For the major kitchen remodel
Change in the Real Estate Market?
Could it be that a standard Home Depot kitchen remodel or DIY project is the way to go? Should the home owner avoid the costly granite, cork flooring, the spiffy warming drawer, built-in wine rack and the imported Italian tile? In a word: yes. As outlined by Hanley Wood, LLC., the prime year for recouping the cost of a major kitchen remodel would have been 2004 or even 2005.
At that time the cost and value were perhaps the closest. The drop occurred in 2006 when the cost of a major kitchen remodel skyrocketed above $105,000 but the value only caught up to about $80,000. As costs increased, value dropped.
Kitchen Remodel Cost: Worth the Price?
At this point, a minor kitchen remodel worth the price is the most cost-effective method to receive the greatest return on investment. The homeowner, who might have a bit of extra money left over, will do well to look to up and coming home improvements that offer more advantages, such as an entry door replacement with a steel door or the basement remodel.
As always, individual figures differ from the average cost to remodel a kitchen available on a national average. The home owner should discuss a kitchen remodel with a local realtor to get a feel for the local market and the preferences of home buyers in that state.