A huge topic in the kitchen renovation industry is how and why kitchen remodels increase your home value. Here at Cabinet IQ, located in Austin, Texas, this is a popular topic in our business. And specifically in our area. As many people may know, the Austin, Texas housing market is skyrocketing like the industry has never seen before. Which makes us experts on kitchen renovation for the purpose of a potential sale. This is a main reason why people come to see us, to simply update a space in their home they are about to sell or have just purchased. Whether you are selling your home soon, or plan on staying for decades, the value of the home will increase with a remodeled kitchen. Real estate agents often use the term, “kitchens sell houses.” We find this statement very true since kitchens are usually the heart and soul of the house. Many homebuyers make decisions based on kitchen aesthetics, size, layout, functionality, etc. Many homeowners are hesitant on starting the journey of a kitchen renovation. They’re unsure of how much they should spend and if it’s worth the investment. Cabinet IQ is here to help.
Lifestyle is huge in 2022. The kitchen is no longer just for cooking functionalities. The kitchen is a place where families gather, and core memories are made. So why not target this space specifically and make it the best it can be? From our experience here at Cabinet IQ, we know that while you will indeed accrue a cost during the journey, your overall value will outweigh it. Obviously the kitchen remodel cost will depend on a variety of factors. Size, quality, moving appliances etc. However, there are some guidelines that have been published on what an appropriate spend is according to your home’s value. According to Homeserve, Experts suggest that homeowners should spend 6 to 10% of the home’s value on a kitchen renovation. HomeAdvisor states homeowner’s should spend anywhere from 5 to 15%. According to Homeserve, “the percentage of money spent on the remodel the homeowner recovers after the sale of the home. Better Homes and Gardens says homeowners can expect a return of about 52% on their investment in a new kitchen if they sell their home.” If a homebuyer is looking at two different homes, and one has a gorgeous kitchen, and the other kitchen is dated and old, which one do you think they will choose? In 2022, according to a cost vs return study, an $80,000 kitchen remodel recouped an average of 56% of the cost upon the sale of the house. A smaller $28,000 remodel netted an average return of 71%. What does this mean for you as the homeowner? This is basically saying, “Yes, you will have to take money from your wallet. But whenever the time comes that you want to sell, you will gain the majority of the cost back.” The cost of each item in your kitchen is probably stressing you out the most. And that’s okay, we are here to help. Below is a breakdown of areas of kitchen remodel spend.
Lighting & Electrical: 6%
In order to prepare for unexpected expenses, we recommend setting aside 10-20% of your total budget. As you can see, the majority of the cost of a kitchen renovation is the cabinets and countertops. This makes sense since they are the centerpoint, and the “smile” of your kitchen. The kitchen is what guests see when they visit your home and where families commonly gather.
Depending on how custom you want to go, and what your budget is, purchasing cabinets and countertops can range anywhere from $10,000 to $100,000+ depending on what lines you choose, quality, finish, etc. We here at Cabinet IQ have created a budget calculator on our website that can give you an instant quote of what your price range could be. All you have to do is type your measurements of your kitchen and the calculator will generate what your cost would be depending on whether you want a good, better, or best cabinet option. Which comes down to quality, and how much your budget is. We have also written a blog that goes into more detail about how much a kitchen remodel costs and more descriptive knowledge on the topic.
Another important topic for your kitchen renovation is the actual scope of work. Are you just painting your cabinets? Are you doing a full gut and reconfiguration? Keep in mind, if the remodel is done as cheaply as possible, and the layout or size is not functional, then you aren’t giving your home’s value any favors. If you are going to undergo the process, it has to be done well to create value. It is also important that all key items of your kitchen renovation are updated and well-thought out. In most cases, a partial update probably won’t suffice. This means, every part needs to look cohesive. Such as: backsplash, updated appliances, flooring, lighting, cabinets, countertops, hardware, and other accessories. If one section is done without the other, it will look halfway completed. When buyers come to the showing, you want them to feel like they are getting a fantastic deal on their purchase. If the kitchen, which is the center of the home, is designed and made wonderfully, you will have no problem getting top dollar. Which gives you the ability to move onto your next step in life with a nice chunk of change in your bank, and having the knowledge to take on your next kitchen renovation.
It is important to note that many companies can produce a kitchen. However, you always must remember you get what you pay for when it comes to hiring contractors. In our industry experience, we know more than anyone that many people will sell you “nice looking” cabinets and countertops. The rendering might look great, and you might feel as if you are getting a steal. Most of the time, that situation would be too good to be true. The reason some companies are able to produce cheaper cabinets and countertops is because they use the lowest quality materials and cheapest labor possible. Such as some sort of particle board that is flimsy to the touch and will show wear quickly. Which in turn will not be good for you or your potential buyers. If the quality is not there, that is usually noticeable at the showing of the house. People tend to do a more in depth investigation of finishes if they are serious about purchasing. If your kitchen looks cheaply produced, what will the buyers think about the remainder of your home? That is why we recommend investing in a reliable brand of cabinets and countertops, and reliable contractors. Here at Cabinet IQ. We sell a large range of semi-custom cabinets and source them through notable brands such as: Kraftmaid, Bellmont Cabinet Company, Yorktowne, and more. As for countertops, we sell a variety of materials such as top of the line quartz, granite, and more. Carrying notable countertop brands such as Cambria, Arizona Tile, Metroquartz, and more. Our goal is to give people quality, for the best price possible. Any contractor you work with should hold the same standards.
If you go through the kitchen renovation process yourself, your future buyers might choose to buy your house over another. Why? Because they don’t want to do it themselves. If you are ever watching a home renovation show on HGTV, the buyers are often asked if they want a “turn-key home” or a “fixer upper.” A turn key home is essentially a home that is ready to be lived in with no renovation. A fixer upper is exactly that, a home that needs work. Not everyone is up for a big project. Some don’t have the time, while others just don’t have the lifestyle that permits a major renovation. With all of that being said, if you do the kitchen renovation ahead of time, an updated kitchen would only benefit you. The percentage of home buyers wanting a completed home is greater than those wanting to flip. According to Homeserve, 80% of buyers in the market consider a newly finished kitchen as one of their influencing factors of selecting and valuing a property.
We are happy to have an idea consultation phone call or showroom visit. Please feel free to call or visit us at one of our two Austin, Texas area locations. We have designers that are ready to help get your kitchen renovation process going, and have a smooth completion of your project. Our showroom showcases the different brands we carry along with all variations of colors, finishes, and other details you will want to see for yourself. All of this information can be overwhelming, but the first thing you can do is get started with a phone call, and we will lead you through the rest of the way. If you want to read stories of our previous customers, and how we helped them, check out our transformation stories on our website.
Cedar Park: 2419 S Bell Blvd, Cedar Park, TX 78613. (512) 994-7113
Austin: 8305 State Hwy 71 #110, Austin, TX 78735 (254) 275-5536