Nov. 11, 2019
Are you thinking of remodeling your home but don’t know where to begin? You’ve probably heard that kitchen and bath remodels will both bring a good return on investment, assuming they are done correctly. But if you only have the money for one right now, which do you choose?
Lucky for you, I have some tips about how to make a decision on whether you should start with a kitchen or bath renovation!
The answer is… Drum roll, please… IT DEPENDS! Here are four things to think about:
#1 Which Can You Most Live Without, Your Kitchen or Your Bathroom?
Choosing either a kitchen or bathroom renovation will add thousands of dollars in value to your home. When looking to sell, these two rooms get the most attention out of the whole house.
Making sure they are looking fresh and well-designed will impress your buyers.
Before finalizing your choice, it’s worth thinking about which room you can do without during the renovation process.
Setting up an improvised kitchen is easily done with a minimum of stress. If you happen to only have one bathroom, you will need to consider finding another place to live while work is being done.
As a side note, if you only have one bathroom, you should also consider having a second bathroom installed.
#2 Return on Investment
A kitchen renovation will be the more expensive option, but the return on investment can be almost 80% of the money spent.
In other words, if you spend $25,000 on a kitchen renovation, you can expect the value of your house to increase by about $20,000.
Keep in mind that if you are able to be the general contractor on your job and do it correctly, the return on investment could and should be much greater than the money you spent to renovate since your labor costs have been drastically reduced.
However, kitchen renovations can be a matter of taste, and while the value will go up, there’s no guarantee the next owner will like your dream kitchen.
Bathrooms, on the other hand, will cost less, but the ROI on bathroom remodeling is about 65% on the investment.
This means that a $15,000 remodel will net you around $10,000, assuming again that you are hiring people to do all the work. When it comes to bathrooms, people are less fussy. This means that the right renovations like a new countertop could be more valuable.
#3 How much should you spend if you are planning to sell soon?
The answer to that has to do with the value of your home. The National Kitchen and Bath Association (NKBA) says to spend 5% to 15% of the home's value on this project and no more than 10% if you plan to sell right away.
You could bring your costs down by considering refacing or refinishing your cabinets instead of replacing them to start.
Regarding bathrooms the NKBA says, you should expect to spend 5 to 10% of your home's value on a bathroom renovation. Try to keep it closer to the 5% end of the scale. Again, if you are willing to be the general contractor on the project and hire and coordinate the sub-contractors yourself, you should be able to regain the cost of your project and then some if you plan to sell quickly.
#4 Last but not least: Should I sell “as is” or remodel my kitchen or bath before selling?
I was just asked this question and again the answer is, it depends on many factors such as the overall value of the home and condition of the rest of the house.
If you are thinking of renovating your home and want to know how it will affect the value of your home give me a call and I would be happy to help!
Have a great home buying and selling day! If you’d rather listen to my blogs, make sure you’re subscribed to my YouTube channel.