Remodeling is an idea spinning through the minds of alot of homeowners from time to time.  Updating the kitchen with new cabinet fronts, having a nice granite countertop, and new energy-efficient appliances, cork flooring are wonderful additions to a family life, both practically and esthetically.  But should you do that just to sell a home?  Will you recoup your dollars if you spent $50,000 plus on a more upscale kitchen?  Your expectation might be that you can just "add it on" to what your house may be worth to the market.  You want to get your money back out of your investment.  Fair enough, right?  Maybe not.  We've all learned that "the market" is not always fair.

 

According to the Remodeling 2010-2011 Cost vs. Value Report (www.costvsvalue.com) Report, you can estimate about 74% resale value on a major kitchen remodel.  For the Seattle market, they estimate about $64,000 cost, vs. $47,000 value when you sell it.  A minor kitchen remodel costs less, estimated around $24,000 but the return of 74% is about the same. 

 

Items that seem to mean the most as far as value to buyers and what you can retain the most in "resale" is a new front (steel) door, 107.7%;  new vinyl windows, 78%; garage door replacement, 78%.  The kitchen remodel is "up there" as far as resale value but it's probably not where you would expect it to be.

 

Think about how it will improve life for your family and for how long.  If you live in a nice $200,000 home and think you can spend $50,000 on a kitchen and get that all back, you might be disappointed.  Maybe a new ceramic backsplash,  newer countertops and new appliances would suffice. So you want to make sure you can afford your project, and enjoy it.

 

On the other hand if you have a $700,000 waterfront home with a 1970's kitchen, you may want to invest $30,000 on a kitchen to update the home to meet the expectations of the marketplace buyers.