Top 5 Kitchen Upgrades With The Highest Return on Investment

When preparing to sell a home, owners sometimes do renovations to make the home more appealing to prospective buyers or increase their home’s value. The kitchen is one of the most important rooms in a home. Giving it extra special care now can help homeowners reap benefits in their home sale, sometimes as much as 50-70% return. However, with so many kitchen renovations and updates to choose from, tackling all of them can be expensive and time-consuming. Here are some of the most impressive kitchen updates homeowners can do before selling their home that have the most bang for the buck.

Why Focus on the Kitchen?

The kitchen is often described as the heart of the house. This room is not only the most visible one in any residence but also the area with the most traffic and the center of most social activities. Therefore, kitchens are the house’s most renovated rooms, whether to enhance kitchen functionality, increase storage space, or address daily wear and tear damages.

An upgraded kitchen can be an asset for homeowners planning to put their homes on the market, and they know it. According to the Zillow Consumer Housing Trends Report 2021, “most sellers (71%) said they completed at least one improvement project as part of selling their home,” and kitchen improvement is a top choice. 

Depending on how dated, damaged, or dysfunctional your kitchen currently is, you can choose to do a minor or major kitchen remodel. Any of those will undoubtedly play a part in your home-buying decision. 

Still, from a financial perspective, the best and most intelligent type of kitchen remodeling is one in which you can enjoy your renewed space for a while. After all, you won’t be able to recoup 100% of what you invested in the renovations.  

Kitchen Remodel National Average ROI

A kitchen remodel, whether it’s a major remodel or minor remodel, is one of the most valuable home improvements you can undertake, offering a solid return on investment (ROI). According to the 2024 Cost vs Value Report, homeowners can expect to recoup between 38% and 96% of their kitchen remodel costs, depending on the project’s scope and quality. You can learn more below: 

US Minor Kitchen Remodel ROI

• ROI: 96.1 percent
• Average cost: $27,492
• Return: $26,406

US Midrange Major Kitchen Remodel ROI

• ROI: 49.5 percent
• Average cost: $79,982
• Return: $39,587

US Upscale Major Kitchen Remodel ROI

• ROI: 38 percent
• Average cost: $158,530
• Return: $60,176

Factors That Influence Kitchen Remodel ROI

Planning a kitchen remodel? Several factors can influence the return on investment (ROI). These factors will help you maximize the value of your renovation while ensuring it appeals to potential buyers.

Key Factors Influencing Kitchen Remodel Return on Investment

• Quality of Materials and Workmanship
• Extent of the Remodel
• Energy-Efficient and High-End Appliances
• Functional Upgrades
• Local Real Estate Market Trends
• Kitchen Layout

Maximize Your Return: Best Kitchen Renovations for Selling Your Home

Mounting New Countertops

It’s amazing how new countertops in a kitchen can completely remake the space. They’re a major visual focal point, so a new color and texture can go a long way toward breathing new life into the room.

Choosing the right kitchen countertop in a home renovation can be challenging. There are many choices in material alone, from natural to synthetic. Among the most popular materials are stones, such as marble, granite, and quartz. These impressive materials give a kitchen an elegant look. They’re all incredibly durable and will last years with proper care. 

Ceramic tiles or laminate countertops are trusted options for homeowners looking for less expensive materials. Homeowners can also choose unique materials like wood, concrete, or quartz countertops for their kitchen. Each has advantages and drawbacks in care and maintenance, so research your choices to see what works with your style, budget, and expectations.

Installing New Cabinets

Along with countertops, new kitchen cupboards can attract prospective home buyers’ attention. Although overhauling kitchen cabinets can be expensive, brand-new cabinets provide a sizeable return on investment (ROI) because they are the backbone of a kitchen’s appearance and function.

Homeowners who don’t want to spend a lot of money on cabinet renovations can instead reface or refinish their cabinets. Refacing cabinets involves swapping out the cabinet doors and hardware or choosing a wood veneer. 

Refinishing is the least expensive option and simply involves sanding off the current finish and applying a new one to freshen up the appearance. It’s amazing what new hardware and stain can do for dated kitchen cabinets.

Upgrade The Kitchen Appliances

Kitchens have a lot of appliances. Between the refrigerator, oven, stove, and dishwasher, there is a lot that homeowners can do to upgrade their kitchen look. Appliances have a tendency to age quickly—especially for people who always need to have the latest models and the latest technology. 

If a kitchen appliance seems to be getting old or has been having difficulties, consider replacing it with a new version. It doesn’t even need to be the newest, most technologically advanced model, either. Replacing an old, broken dishwasher with a brand-new one can be a bonus for prospective home buyers.

If you’re installing a new layout and budgeting for new appliances, get the layout done first. Then select the appliances that fit, keeping in mind you may need to compromise if you have big plans for a chef-style kitchen renovation.

Installing a New Backsplash

Installing a backsplash on the wall directly behind a stove has become extremely popular in recent years for its impressive ROI without the need of major renovation. Backsplashes have two main jobs: first, they protect the wall from having food splattered onto it while cooking; second, they give kitchens a new sense of style. 

Backsplashes are made from various materials, but tile and stone are the most popular because they are easy to wipe down. Since the backsplash is in the splatter zone, homeowners want to choose an easy-to-clean material.

Backsplashes are also fairly easy to install, so homeowners can make it a do-it-yourself weekend project instead of hiring a contractor if they want to. The hardest part will be picking the look, considering that you want a pattern, color, and material that appeals to the most buyers. Pick something that fits the overall aesthetic of the kitchen and the home.

Upgrade Kitchen Flooring

Changing the flooring is another excellent option to recoup costs when remodeling a kitchen. Your kitchen floors are one of the areas subject to the most deterioration due to the high foot traffic in this room. And there are also spills, grime, and accumulated dirt. 

When re-flooring the kitchen, some options include hardwood, tile, concrete, modern laminate, and quality vinyl flooring. Hardwood floors offer timeless beauty and warmth. They require maintenance to avoid water damage, but they can be refinished multiple times to extend their lifespan.

Tile is a durable and water-resistant material and comes in various designs and finishes, making it versatile for any style. Concrete has a modern touch, is low-maintenance, and can be customized with multiple finishes or stains. 

Laminate flooring is a popular and budget-friendly option that mimics the look of wood or stone. It’s known to be easy to install and requires low maintenance. Finally, vinyl is water-resistant and durable. It is also affordable. 

FAQs Kitchen Remodel Return on Investment

What room has the highest ROI?

Are you a home seller rushing to put your property on the market? Focus your renovation efforts or remodeling needs on the house’s rooms with the maximum return on investment. 

Across the Internet, you will find many articles about this topic. Most of those articles agree that remodeling or refreshing the bathroom, basement, master bedroom, and kitchen will provide the highest ROI. 

Does adding a dishwasher increase home value?

New, modern appliances boost the value of your home tremendously, it can be used by your real estate professional as a key selling point that can help justify an increase in the asking price. Therefore, investing in a new dishwasher is a good idea. Homebuyers are attracted to updated kitchens with appliances that are energy-efficient and stylish. 

What is the biggest expense in a kitchen remodel?

Replacing existing cabinets with new cabinets is considered the biggest expense in the kitchen remodel. It can consume up to 40% of the entire budget.

What not to do when renovating a kitchen?

No matter how ambitious or humble, a kitchen remodeling project is an exciting time for any home seller. It is also a rather complex process that involves many steps and components. Keep reading for a list of some of the things you should not do when renovating a kitchen if you want to obtain the maximum return on investment:

• Not planning: Any kitchen revamp project requires clear direction and vision.
• Failing to put together a realistic budget: Don’t underestimate the importance of budgeting effectively. Kitchen renovations involve many elements, so make sure to save at least an additional 10% to 20% as a contingency.
• Looking for online bargains on key items: Plumbing equipment and appliances are critical parts of your kitchen renovation, and you need the highest quality possible without unanticipated damage or last-minute shipping delays. 
• Choosing the floor incorrectly: Kitchens are high-traffic areas in any home. Choose a material that is durable, resistant to stains and water damage, and has traction to avoid slipping. The chosen material should also be aesthetically pleasing and durable, and you should consider whether professional installation is needed. 

What is the best kitchen color for resale?

Experts recommend choosing modern and neutral colors for the kitchen. It’s a good idea to have a timeless look if you don’t want to hurt the resale value of your home. Over the years, some favorites include white, beige, and gray. Worried that it may look boring? You can add personality and contrast, accessorizing with colorful details, artwork, and even kitchen utensils. 

Renovating Your Kitchen

Investing time and energy in enhancing a kitchen’s appeal not only adds value to the property but also serves as a strategic move to secure a more successful sale in the near future. When renovating your dream kitchen, focus on these four areas to maximize your return on the investment.

Updated October 2024