If you are thinking of putting up your home for sale, you might think of renovations to attract potential buyers. But different realtors in Australia will tell you that not all renovations rank equally in terms of recouping the investments in higher value for a home. According to the National Association of Realtors in Australia, this is how different renovations rank from highest to lowest;
According to the list above, a kitchen does add the resale value of a home. For many families, the kitchen is the heart of a home. It is a powerful symbol of maternal nourishment even for older and adult children. One can have a quiet private moment with the materfamilias. The kitchen is also increasingly becoming a mixed space, where food is prepared as family members socialise and catch up. Contemporary kitchen designs have friendly seating and lighting arrangements that have made the kitchen a comfortable working and living space.
So, does renovating the kitchen add value to a home? Mr and Mrs Elias believes that most families looking to buy a home will hardly look favourably at a home where the kitchen is outdated or has a hint of disrepair. With the average kitchen remodelling job costing around $35,000, not many buyers will be willing to use this money to remodel the kitchen on top of the purchase value. But they would be willing to buy at a higher price if the kitchen is modern and attractive.
Admittedly, a kitchen renovation is a pricey affair. According to building experts at Houseace, the starting point for a kitchen renovation is $18,000 and $60,000+ for a large kitchen. The size of the kitchen is the biggest factor;
Looking at these figures, it would be important to ask how much does a kitchen renovation add to home value? Mr and Mrs Elias project that a standard kitchen upgrade will cost an average of $35,000, and add an average value increase of $20,000 to your home. That puts the ROI for the project at just 57%. The national average for a full kitchen remodelling comes in at $65,000 with an estimated $40,000 added to the home value, which gives an ROI of 62%.
Seeing that kitchen renovation does not come cheap; it makes financial sense to prioritise kitchen renovations that hold the highest potential. Our experts here at Mr and Mrs Elias opine that the top priorities should be;
The trick to adding value to the house through a kitchen renovation is maintaining a good balance between cost and returns. So, while a kitchen renovation will add $20,000-40,000 to your home’s value, avoid unnecessary expenditures while attracting buyers in droves.