A kitchen is typically the heart of a home. It’s where everyone gathers to discuss their day or share a meal. That’s why many potential home buyers are typically very interested in a bright, updated kitchen. If you’re considering a Home Equity Loan for a kitchen remodel, you’ll want to get the best kitchen remodel ROI (Return On Investment). When you’re looking to increase the value of your home, this is always a good place to start. According to Remodeling Magazine’s 2020 Cost VS Value Report, a minor kitchen remodel could recoup 77.6% of its cost.
Goals for Remodeling Your Kitchen
When planning for a kitchen remodel you should always consider getting the best kitchen remodel ROI as one of your top priorities. Your personal goal may be increasing the value of your home, to update an older kitchen, or add dining space for a growing family. Perhaps after years in your home, you may simply want to remodel your existing kitchen into the kitchen of your dreams. Whatever your goal, you need to put a plan on paper of what specific items will help you achieve your remodeling goals. Read below to see the kitchen upgrades that will provide you with the best return on your investment. If you’re tapping into the equity in your home with a Home Equity Loan, you’ll want to know the money you spend is going to increase the value of your home.
Upgrades for the Best Kitchen Remodel ROI
- Cabinet upgrades. From painting or refacing cabinets to adding completely new cabinets, it’s a great way to update the look of your kitchen.
- Upgrade appliances. Many realtors believe that new kitchen appliances are a great selling point for a home. You’ll want to look for a quality brand appliance with a finish that fits the look of your kitchen. Consider replacing those older appliances with new more energy-efficient models.
- A fresh coat of paint is the perfect way to breathe new life into an aging kitchen.
- Very popular to add an element of design to your kitchen, a backsplash can even be a DIY project.
- You can easily enhance the look and value of your kitchen with new flooring. Refinishing wood floors, laying new tile or vinyl can all enhance the look of a kitchen.
- New lighting. Lighting can greatly enhance the look and feel of your entire space and give a great kitchen remodel ROI.
- Add an island. A kitchen island not only gives you more counter workspace, but can also be a great gathering place when entertaining or for informal family meals; as well an island with cabinets can add extra storage.
- Create extra storage space. A customized pantry is a great way to add additional storage space.
- Brighten with windows. Everyone loves a bright kitchen.
- Remove walls to open your space. Open concepts have become very popular and enhance kitchen remodel ROI.
Set a Kitchen Remodel Budget
Once you have an idea of what you’d like your kitchen remodel to entail, it’s time to set a budget. Your budget will give you a better idea of what you can and can’t afford to do. Prioritize the list of what you’d like to accomplish. This should include items that really need to be done, such as replacing aging appliances or plumbing. You may have to take some items off of your list or lower your remodeling expectations in certain areas. Perhaps settle for cabinet refacing or refinishing your existing hardwood floors. Keep in mind that it’s a minor kitchen remodel that gives you the greatest return on your investment, not a major remodel. You may not need a huge budget to get the biggest ROI. Commit to spending the bulk of your budget on items you don’t want to replace often, such as appliances and countertops.
Homeguide.com reports that on average, a kitchen remodel costs between $100 to $250 per square foot. Most homeowners spend between $12,800 and $21,200 on a kitchen remodel. A mid-range remodel can cost between $29,000-$64,000 and an upscale remodel can cost up to $126,000. The National Kitchen & Bath Association (NKBA) recommends budgeting 15-20% of the value of your home for a kitchen remodel. Other experts feel that you should keep your kitchen renovation budget a bit lower.
Tapping into Your Home’s Equity
If your budget is going to be determined by a Home Equity Loan, remember that the loan amount you qualify for is based on the amount of equity in your home. Click to learn the specifics about Benchmark Federal Credit Union’s Fixed Home Equity Loan and their Ultimate Home Equity Line of Credit (HELOC). Finally, when setting your budget, remember that everything you do regarding your kitchen remodel is an investment in your home.
Apply for a Home Equity Loan or HELOC
A newly remodeled kitchen will add value to your home and catch the attention of prospective buyers if you plan to sell. Home buyers are quick to notice an outdated kitchen, so even the slightest improvement can help. Your kitchen remodel ROI will also depend on the value of your home; as well as the value of homes in your neighborhood. When remodeling, you’ll want to get the biggest bang for your buck.
Learn about Home Equity Loans and HELOCs by reading more Benchmark Federal Credit Union Blogs.