Kitchen Cabinet Renovations Can Be a Smart Investment

Wondering if kitchen cabinet renovations pay off? That’s the question on the mind of every Minneapolis homeowner who’s thinking about undertaking a project to bolster their home’s resale value. And in today’s tight housing market, the answer to that question may even determine whether the house will sell.

Fortunately for homeowners, kitchen cabinet renovations offer the potential for a high return on investment (ROI). According to Remodeling magazine’s annual cost vs. value report, some of the best renovations are those done on the exterior of the home—siding, window, and door replacements—because they immediately improve a home’s curb appeal. In other words, if the paint on your front door is peeling or the sidewalk is badly cracked, you’re not making a good first impression—and that can make prospective buyers question how much you’ve put into maintaining the home’s interior.

Even simple fixes, like pulling weeds and trimming unkempt shrubbery, can make a home more inviting. Beyond curb appeal, certain projects will provide higher returns than others. U.S. News asked real estate agents and home contractors for their recommendations: Attic bedrooms. According to Remodeling, you’ll recoup 73 percent of your investment when turning the attic into a bedroom. However, this also ranks as one of the most expensive projects, averaging $50,148 nationally. But if you have the money, an attic bedroom is a desirable feature among homebuyers.

“Any time you add additional square footage like that can have a very positive effect on the selling price,” says Paul Wyman, a real estate agent with Wyman Group in Kokomo, Ind. Kitchens. Although a kitchen remodel returns only 66 percent, on average, Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis, says kitchens are one of the first things homebuyers look at.

“If you have a house that doesn’t have an updated kitchen but you have a remodeled attic, that’s not what people are looking for,” she says. The cost of a major kitchen remodel varies widely depending on the region. Nonetheless, it’s important not to go overboard, as you don’t want to price your home out of the local market. For example, if you’re in a neighborhood where the average home value is $200,000 and you put in a $50,000 kitchen, you’re out-pricing your house. A major kitchen redesign may not be a good decision if the space only requires a facelift. “You don’t have to completely gut your kitchen if it’s in good working shape,” says Adam Taffel, a real estate broker with Centre Realty Group in Newton, Mass. In many cases, less-drastic updates like refinishing surfaces, upgrading appliances, and installing new light fixtures will cut it.Read More