It’s no wonder that HGTV recommends Kitchen and Bathroom remodels if you intend on increasing the value of your home, and no two rooms will increase the value of your home more. Why? “Ask any real estate expert what the No. 1 upgrade with the greatest return is, and the answer will be the kitchen.”
Kitchen Remodels Add Most Value
Kitchen remodeling has quickly become a mainstay for anyone in a developing or hot real estate market. In fact, kitchen projects yielded a higher return than bath projects, with a minor kitchen remodel adding 82.7 percent of the project’s cost back to the home’s value, according to Steven Aaron, owner of the Steve Aaron Realtor Group at Keller Williams Beverly Hills. Aaron published a home remodeling report and cost analysis containing 35 different project, and their estimated average return. Kitchens are important, Aaron says, because would-be buyers often overestimate how much they would cost to update.
However, it’s important to do the right kitchen remodel. Adding a $100,000 kitchen to a $150,000 house is unlikely to yield $100,000 in value, although it may make you happy to spend most of your time in the kitchen. As a general rule, look to spend about 25 percent of the home’s value for a new kitchen and 12 to 15 percent for an updated bathroom.
Bathroom Remodels and Re-purposing Seal the Deal
In Los Angeles, adding a half bath/powder room and then closing off a hall bathroom to make a bedroom suite is popular, is an effective bathroom remodel, and doesn’t require adding to the home. But an addition can pay – especially the right addition. Many older home (Pre-1970’s) may have only one bathroom, with larger bedrooms surrounding it. Reworking the plumbing and adding a master bathroom suite is likely to add more than the cost in value to your home, and promise a quicker sale.
Following these tips while remodeling your kitchen and bathrooms will likely add value to your home, and increase the chances of it selling quickly, which will save you money in the long run!