How to Add Value to Your Home with a Kitchen Renovation
If your kitchen is looking outdated, tired and past its use by date, it might be time to plan a kitchen renovation.
The kitchen is the heart of the home and needs to function well for daily life as well as for entertaining family and friends. In most homes these days, the kitchen is also part of an open plan living and dining area so it also needs to look good and be well-integrated into the space.
There's no doubt that a smart, fresh, functional modern kitchen adds value to your home and attracts buyers when the time comes to sell. Just how much a kitchen renovation will add to your home's value depends on getting your budgeting right.
If you are planning to stay in your current home for some years to come, then what you spend on your kitchen renovation is up to you. It's about improving your lifestyle more than resale value. If you are approaching time to sell, or renovating specifically for resale, then you need to be very careful about how much you spend on replacing or improving your kitchen.
When making improvements to a home specifically with the aim of maximising the sale price, the general rule of thumb is to spend no more than one to two per cent of the home's current market value on improvements. If your home is currently valued at $500,000 this means you can safely spend $5000 to $10,000 on improvements without over-capitalising.
To find out whether a kitchen renovation would be worth the cost and disruption in order to add value to your home, ask your local Century 21 agent for a free appraisal of the current market value of your home and speak with him or her about what improvements to your home could add value in the current local market without over-capitalising.
From this conversation, you can then work out your budget and determine whether you should do a full kitchen renovation or simply improve some aspects of your current kitchen.
According to Domain, the cost for a budget kitchen starts at $10,000 and can go up to $25,000. A mid-range kitchen will set you back $20,000 to $45,000 and a luxury kitchen from $45,000 to $100,000 or more.
If you're looking at the budget end of the scale, spend the bulk of your budget on quality construction of the cabinetry then compromise on finishes and fixtures such as tapware and cupboard handles and choose budget rather than high end electrical appliances. Keeping all the plumbing fixtures and electrical fittings in their current positions will also save money.
Use an online home renovation costs calculator to get a feel for prices before getting quotes for your new kitchen.
If you are renovating for resale, also be cautious about incorporating anything overly trendy. Keep the overall look fresh and timeless and limit trendy touches to easily replaceable items such as lighting.
If your budget won't stretch to a complete kitchen renovation, then look at ways you can spruce up your current kitchen inexpensively. Cupboard doors can be painted using specialist laminate paint or marine paint and new handles added. An outdated or damaged tiled splashback can be replaced with an inexpensive acrylic splashback. Lighting can be replaced for a more contemporary look. Simply replacing the stove and rangehood could be an option. A single sink could be replaced with a double sink and new tapware.
Whether you choose to do a full renovation or simply some strategic improvements, a kitchen update will be well worthwhile come the time your home goes on the market, as long as you use your budget wisely.
Come the time for photographing your home for the market and open for inspections, ensure your kitchen is scrupulously clean and uncluttered, let in maximum natural light and add a few attractive accessories such as a bowl of fruit, potted succulent or a beautiful new cookbook on a stand. You'll increase buyer interest and help ensure you get the best possible price for your home.
If you're looking to sell your home, speak with a Century 21 agent well ahead of time to get the best advice on whether a kitchen renovation will add value to your home and how much you should budget in order to maximise your sale price.