Typically, how much does a new kitchen get in return on your investment? I know there are many variables for this, but say you have a house in the upper price range for your neighborhood, would you expect to get 100% on your investment? More? Less? And say these homes typically range from 80-100 years of age, and that many do not have the typical modern kitchen set up.
We remodeled our kitchen in the last couple years. We put much more into it than we thought we would ever get back. The reason for investing so much is that we will be there for the next 20 years and we wanted what we wanted. A nice kitchen will help the house sell but I do not think it will give any return on a large investment. It may help the house sell faster but I do not think it increases value.
Unfortunately in my area, the real estate market is very dampered, and there are a multitude of homes on the market that 10 yrs ago would've sold for $250k that are selling in the $150k and under range. There is a 4000sq ft home in the neighborhood I grew up in, with golf course frontage, a 40x80 pole barn with a hoist set up for doing heavy machinery mechanic work, nicely updated within the last 8-10yrs, and it's on the market for $149,900!!! Nice place, newer vinyl siding, newer roof with 3 dimensional shingles, a large 16x40 or so attached deck that goes all the way across the back of the house with 2 sliding glass doors, and a huge from porch with the same dimensions only in concrete. If you're only doing it for return investment, you'd better plan on waiting a little while to see that return. If you're doing it because it needs done to make your home more comfortable/liveable, with the hope of a future return, in maybe 5 yrs if the economy makes a reasonable rebound, then you should be on the good side.
My area has not suffered from this economy, it has actually improved since 2008 due to a large natural gas boom. When we bought the house last year, and started remodeling, we thought we could/would be staying in the house for 20+ years, however, we have recently began thinking real hard about a move to Seattle. We are going there in June to check the area out. So now I'm hoping that if we do move, that I would be able to get my investment back 100%.
Stay at least 2 or 3 yrs, in the house, then when you sell it, if you make any profit, you don't have to pay taxes on the profit. Also how is your loan arranged??? Do you have an early buyout penalty??? I had an early buy out for the first 5 yrs of my loan, but I'm staying where I'm at until they drag my cold dead body out anyhow, so it wasn't too much of an issue, and the amount of interest I'm still able to claim helps offset my taxable income a little. Another 8 or so years, and I'm clear on this place and then it'll be time for a home-equity to make the changes the wife would like to do.... MAYBE... :D
New stuff really helps sell and you may get in excess of 100% if it is done well and is in line with the pricing in your neighborhood, but like everything, you quickly reach a point of diminishing returns if you go overboard. We re-did ours, concentrating on choosing colors and styling that don't go out of style. We chose conservative Kenmore stainless appliances and granite counter tops. A company from Atlanta installed the granite significantly cheaper than I could buy the material at Lowes or HD and they did it with no visible seams. I added lots of extra lighting fixtures and an instant hot water dispenser which I resisted but now I love it. Update with things like GFI plugs, new lighting and decorative covers that add a great touch without breaking the bank. I think we spent around $8,000, doing it 80% ourselves.
Normally (in a sable market) you will get about 125% return. Now there are a lot of variables in there. Design, layout, quality of work, quality of materials used, funtionality of the space. I have been in condstruction my whole life (carpenter/remodeling)except when I was in the army. I completely remodel every kitchen I have had and always gotten a great return except my last house which lost about $185,000 in value. be very selective of who you use and even the lower end cabinets can be made to look great with the right trim package and counter tops.
Why not get an appraiser in there. It will cost some dollars but you will have a realistic idea of what to expect and that may help when you go to Seattle. You will have some idea of what price ranges you are dealing in as you look around the area.
I'd rather just try to get the answer for free off the internet. We did 90% of the work ourselves. The only thing we hired out was the countertops (concrete). I'm pretty certain I can get back the money that I put into it, but what I'm really wanting is to get back what I might have put in if I had hired a contractor. And BTW, when I say "ourselves", I mean me and my Dad, who has been a cabinet maker for 30+ years.
Just make sure you don't try to sell it while wearing jean or cargo shorts and you'll do fine. Besides, you spent time with your dad and that is priceless!
Yeah, it was truly priceless when my Dad told me that my initial paint job of the cabinets was crap and that I needed to sand them down and start over.
