A remodeling specialist or custom renovation company will transform your dated kitchen into a modern, inviting family room. While a remodel can cost over 5 percent of the appraised value of your home, this is no guarantee that it will increase your home’s value by the same amount. Today we are going to be looking at how ‘Return On Investment’ (ROI) works, and which areas of your kitchen will yield the greatest return.
What Does ROI Mean?
In this article, we’re taking ROI as a way to compare the cost of the kitchen renovation with the value that the project will retain when you sell your home. In other words, how much does the renovation add to the appraised value of your home? For example, a $20,000 renovation project that increased a home’s appraised value by $14,000 would have an ROI of 70 percent. The sobering news is that this would be considered a good level of return. Here are five ways to get a high ROI on the work you do.
#1. Consider A Minor Remodel
In Canada, the average cost of a major remodel can run over $50,000 yet have a lower ROI than a minor remodel. A good example of ROI-busting mistakes would be to splurge on fabulous-looking marble countertops. Imagine how many buyers are put off by this high-maintenance, easily stained surface when cheaper granite would be harder wearing and less costly. A minor remodel would have used a formed laminated countertop with the appearance of granite. As this is a cheaper material yet still adds value by modernizing the kitchen, its ROI would have been higher.
#2. Reface Where Possible
Cabinet refacing is grossly misunderstood – it doesn’t mean putting a veneer over the cupboard doors, you actually get brand new doors. For 50 percent less than totally replacing your cabinetry, refacing leaves your frames in place and gets you brand new doors and drawer faces plus new hardware. Refacing is not an option if you cupboard interiors are damaged or if your kitchen layout is dated (as this can’t be changed) but it does allow you to modernize the style and get a serious amount of premium timber in your kitchen. As the cost savings are so high, the effect of updating the kitchen gives the project a higher ROI.
#3. Maximize Countertop Space
The two examples given above of using laminated countertops and refaced cabinets obviously aren’t right for every home. If you have an older or traditional home, using these techniques could actually devalue your property. The one thing that will never go out of space is style, so whether you use marble, epoxy resin or laminate, a remodel that maximizes countertop space will have a higher ROI. The easiest way to maximize usable space is to install deeper countertops that overhang the drawers by an extra inch or so. Percentage wise, this technique can give a noticeable 10 percent more space. If you need to relocate countertops to squeeze extra space out of your central island, a renovation firm with experience of home design in Calgary will be best placed to help you.