Hello World! Welcome Friends! Home improvements are made not only for the current homeowner’s enjoyment but also to add value to the property. But when it comes to home remodels intending to add to the resale value to the property, there are several other factors to consider. These factors are current home value, location, the market value of neighboring homes, and the total costs involved.
Kitchens and bathrooms surely top the list of home renovations homeowners are keen on tackling. It makes sense as these are the two most used, high-traffic areas in the home. However, the cost can be one of the biggest pain points that are stopping any home seller from going all-out on making this investment.
The National Kitchen and Bath Association (NKBA) recommends keeping remodeling budgets between 5% to 10% of your home value. So, for a $400,000 home, you may spend as much as $40,000 on your kitchen or bath home renovations. But costs don’t always reflect the added value of a remodeling project.
Which Renovation Adds the Higher Resale Value?
When deciding which project you should pursue, remember that adding value to your home doesn’t only mean boosting its resale value and calculating your return on investment (ROI). Remodeling the kitchen and bath should offer other valuable benefits for the homeowners to improve comfortability and enjoyment.
Renovating the Kitchen
The complexity of a kitchen remodel over a bath reno when it comes to wiring and additional appliances contribute to the higher average costs to remodel. On average, a minor kitchen remodel costs nearly USD$23,000. According to the 2019 Cost vs Value report, home vendors recouped as much as 80.5% of their investment with a minor kitchen upgrade using the national average.
While minor kitchen remodels won’t throw you off the recommended NKBA budget, a major kitchen remodel will. The same national report revealed that a major kitchen remodel can go anywhere between USD$66,196 to USD$131,510. Yet, high-end and luxury additions to the kitchen may not recoup as many costs. Major kitchen remodels tend to recoup at least 59.7% of their costs.
Generally, people love spending time in the kitchen, hence, an upgraded kitchen will be very appealing. This could signal more efficiency with storage and meal prep. Thus, more pleasurable time cooking, dining, and entertaining. The exterior of the kitchen also adds value to the home. If you’re planning on selling your house, then focusing on a remodel that increases curb appeal is important. If you live in Washington, for example, look up the top residential remodeling contractor in vancouver and see what they can do for you. Be sure to get a quote before you start any remodel.
Renovating the Bathroom
A mid-range bathroom remodel sits close at around USD$21,000. The highest average reported recouped costs for bathroom remodels is for mid-range bathroom remodels at 67.2%.
While the average upscale remodeling costs for bathrooms are not as high as that of upscale kitchen renovations, the average is still high at USD$64,743. For a bath remodel of this scale, the recouped costs of 60.2% are comparable to upscale kitchens. In this sense, a luxury bath remodel will boost your home value nearly as much as a high-end kitchen without spending as much.
Another option for those who wish to remodel their baths would be bathroom addition. The projected recouping of costs is roughly the same as a luxury bath remodel. Now, adding a full bathroom may give you a 5.7% boost in median home value. That’s nearly a 100% return if you followed the NBKA recommended budget range. In cities such as Atlanta, Sacramento, and Minneapolis, an additional full bath can boost resale value by around USD$25,000.
What is the appeal of an upgraded bathroom? An upgraded bathroom could mean more space to bathe kids, have a place in your home for a spa-like retreat, or make it a safer bath for older adults in your family.
Takeaway
When it comes to home repairs before selling, a functional kitchen and bath are known to appeal to buyers more significantly boosting the selling rate. However, when you are presented with the question ‘what adds more value between a kitchen or bathroom remodel?’, kitchen renos would stand out as the first place you should remodel considering cost factors alone.
However, an upgraded bathroom is also something you want to line up as your next project, once your budget permits.
When remodeling these two areas of your home, consider the functionality. First, check the obvious such as structural, plumbing, and electrical issues. These problems may show up during home inspection, where the buyer may attend. Moreover, think about adding storage, extra square footage, and eco-friendly appliances and fixtures. Studying remodeling trends for baths and kitchens may also help home sellers decide on what features to upgrade.
Finally, it is wise to study the average real estate market value prices in your area before making any home improvements. If you want to add value to your real estate, avoid home improvements that are well above average in your neighborhood. Bigger may not always be better for home remodeling projects.
Click the links below for any posts you have missed:
How Can you Enhance the Energy Efficiency of Solar Panels?
Smart Ways to Make Your Open Plan Living Room Look Stunning
New Years Eve Decoration Suggestions
Reasons to Invest in Property in Dubai
I’d love for you to join my email list! You’ll receive a notification straight to your inbox which will include links to my latest home project posts! Simply enter your address below.
Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
I prefer kitchen remodeling because when I did that it gave more value to my house.