We’ve all heard the old adage that kitchens (and bathrooms) sell homes. While this “rule” remains largely true, how your kitchen impacts the saleability of your home is a little more complex.
As a focal point of the modern home, the kitchen is one of the things potential buyers pay the most attention to. It’s seen as central to the overall design and often used to make a statement about the homeowner’s style. It’s also a key practical feature and is likely to be one of the most used parts of the property.
That being said, kitchens are also one of the main spaces new homeowners choose to renovate. Whether they have specific requirements, or just want to add their own touches, many buyers are open to doing a post-purchase kitchen update. While this will usually be factored into their offer, it does mean that a new kitchen is not necessarily a necessity.
So… can a new kitchen help you sell your home? And how much value does such an update add?
Getting a good return on investment
Most experts believe that a new kitchen could add anywhere from 5% to 15% to the value of your home. However, this really depends on a number of key factors:
- The location and type of property: Just like it impacts your home’s total value, what and where your property is will affect the kitchen’s perceived value. For example, a high-end kitchen will be expected in a large inner-city family home, but not an outer suburban townhouse.
- Comparable properties in the area: Recent sales of similar properties in your area provide great insight into your home’s value. While a new kitchen may move you up this price range, it generally won’t make you exceed it.
- The type of buyer your property will attract: Ultimately, your home’s value is determined by your potential buyers and how much they are willing to pay. As such, if a new kitchen is important to your target market, it will be more valuable come sale time.
- The quality of the renovation: While most kitchen updates should add value, the use of higher-end fixtures and finishes could add more. However, this will depend on the type of property and buyer expectations in your area.
With all of this in mind, a new kitchen will definitely help with the saleability of your home. So when planning a kitchen renovation, we recommend that homeowners not only focus on the return on investment but if the factors above are an issue, focus on how it will help both enhance your lifestyle and sell your home should you wish to sell. As part of this, we encourage our clients to think about why they want to update their kitchen. Are there functional issues they need to address or do they just want to improve the outdated space?
Tailoring your updates to your home
Given how varied the impact on value can be, renovation plans should always be tailored to the type of property and the target market who will be purchasing..
Generally speaking, most experts recommend a total renovation budget of between 5% and 10% of the property’s value. Setting such a budget will help you avoid overspending and should mean you can achieve a good return on investment. It should also help you align your renovation plans to your home’s value and guide your design decisions.
When working with a limited budget, focus on the main issues and the changes that will make the biggest difference. For example, addressing any major functional problems will make the space more usable – and more appealing to buyers. It’s also best to keep the design clean and simple, sticking to neutral colours and materials with broad appeal.
If you’re not sure if it’s worth updating your kitchen, contact the Zesta Kitchens team. We can help you work out which updates to make and how that could impact the value of your home. We also offer free in-home design consultations and can help you get the most from your renovation budget.