Page 1 of 5 12345 LastLast
Results 1 to 15 of 61

Thread: How to know how much kitchen renovation adds to home value

  1. #1
    Join Date
    Aug 2017
    Location
    Nashville, TN
    Posts
    165
    Blog Entries
    1

    How to know how much kitchen renovation adds to home value

    We bought a rehab.
    the kitchen was old and awful.
    building a new kitchen myself, total costs come to ~$6,500 (not including appliance cost)

    when I got quoted (for fun) by cabinet shops in town - they were between $70,000 and $110,000.

    since I did it myself, how do I know what value is added to my home?

  2. #2
    Join Date
    Jun 2007
    Location
    Clinton Township, MI, United States
    Posts
    1,554
    Have the house appraised by a professional appraiser who works for a bank or mortgage company.
    Be aware that you may not want to know, as the location of the property is most important and a functioning kitchen is a functioning kitchen.
    Mike
    From the workshop under the staircase, Clinton Township, MI
    Semper Audere!

  3. #3
    Join Date
    Aug 2017
    Location
    Nashville, TN
    Posts
    165
    Blog Entries
    1
    Quote Originally Posted by mike holden View Post
    Have the house appraised by a professional appraiser who works for a bank or mortgage company.
    Be aware that you may not want to know, as the location of the property is most important and a functioning kitchen is a functioning kitchen.
    Mike

    Very stellar area. House was 6 figures, but got 40% off asking price.

    i just was not sure if they ask to see ‘bills’ of work that was done or not

  4. #4
    It's hard to believe you could do for $6500 in costs an outcome equivalent in scope to what others quoted you $70,000-$110,000. Congratulations if you accomplished a feat like that.

    Yes, an appraiser should be able to give you an idea of the differential you added to your house value (if any) if you can show him/her some before and after photos. I often hear that kitchen and bath remodels are the most impactful on overall house value versus other improvements.
    Last edited by Edwin Santos; 11-30-2017 at 3:55 PM.

  5. #5
    Join Date
    May 2013
    Location
    Northern Virginia
    Posts
    1,370
    Blog Entries
    3
    Could be zero in additional value up to anything. Also I would expect 6500 in material to be a factor of between 3 and 6 of the estimated kitchen. I'm amazed at the discrepancy.

    6 figures? Did you mean 7 @1mil+.
    Last edited by Jared Sankovich; 11-30-2017 at 3:54 PM.

  6. #6
    Join Date
    Nov 2008
    Location
    Northern Oregon
    Posts
    1,820
    Quote Originally Posted by mike waters View Post
    Very stellar area. House was 6 figures, but got 40% off asking price.

    i just was not sure if they ask to see ‘bills’ of work that was done or not
    Since real estate is a market, prices are established by the marketplace. The only way to tell if you added value is to sell it immediately after the kitchen was changed.

    Appraisers and real estate sales people may give you some numbers, but the marketplace has the final say. That may sound cynical, but I've seen many people buy "newly remodeled" houses and gut them. Peoples tastes vary.
    Last edited by Andrew Joiner; 11-30-2017 at 4:30 PM.
    "Whether you think you can, or you think you can’t - you’re right."
    - Henry Ford

  7. #7
    Join Date
    Sep 2014
    Location
    Atlanta, GA
    Posts
    421
    I believe it's hard to put a value to any reno project. You can list your house for whatever price you want but it comes down to the buyers and what they're willing to pay as well as how hot the market is in that area at that time. I listed my last house $50k higher than that of my neighbor 2 doors down, and he has the identical floor plan. He sold a year ahead of me and got full ask, I also got full ask but at a much higher price. As soon as my house went live on the market, I had a full ask offer within the first hour. At the same time, another neighbor listed her house for $35k higher than mine since she had an extra bedroom and extra full bath, her house sat on the market for 11 months and after dropping her price by $60k, she finally sold.

    I'd like to believe the things I did to my house "helped" make it more appealing to buyers and aided in the quick sell. I did a full walk-in closet built-ins, built-ins for the family room, stones from ground to ceiling at the fireplace and finished my basement (400 sq. ft.). Honestly, I think I just got lucky. The lady that bought my house was a young single mom and she spent 75% of her time in my closet while looking at the house. During the closing, she told my wife she was popping champagne in the closet with her friends. If it were not for the closet built-ins (closet me $2k to build) it may have been a tougher sell.

  8. #8
    The genius of kitchen scientists is that no matter how well equipped it is and expensive it was....the next owner will hate it! It's like dog houses ....original owner loves it! Subsequent owner won't use it and think it smells funny.

  9. #9
    Join Date
    Aug 2017
    Location
    Nashville, TN
    Posts
    165
    Blog Entries
    1
    Quote Originally Posted by Edwin Santos View Post
    It's hard to believe you could do for $6500 in costs an outcome equivalent in scope to what others quoted you $70,000-$110,000. Congratulations if you accomplished a feat like that.

    Yes, an appraiser should be able to give you an idea of the differential you added to your house value (if any) if you can show him/her some before and after photos. I often hear that kitchen and bath remodels are the most impactful on overall house value versus other improvements.

    Well, I was getting quoted (not kidding) 8-$1,200/linear foot of cabinetry.
    if we lived 2 exits down the interstate they would’ve quoted me $300


    All of my contractors have been ripping me off we’re trying to rip me off which has resulted in me doing most of my work except for Electrical I have a friend who is an electrician

    Even the tile setters are trying to charge me $23 a square foot.. totally absurd

    The home we purchased is in a seven figure neighborhood but our home was 40% off the asking price because of all the problems at hand.. so automatically the quotes jump
    Last edited by mike waters; 11-30-2017 at 5:40 PM.

  10. #10
    Join Date
    Aug 2017
    Location
    Nashville, TN
    Posts
    165
    Blog Entries
    1
    Quote Originally Posted by Jared Sankovich View Post
    Could be zero in additional value up to anything. Also I would expect 6500 in material to be a factor of between 3 and 6 of the estimated kitchen. I'm amazed at the discrepancy.

    6 figures? Did you mean 7 @1mil+.
    yes 7.

    We have friends that live across town from us in Nolensville Tennessee and he referred a cabinet maker that they used to me to charge them $320 per foot he came over our house and automatically wanted to charge me 800..
    I still remember them saying oh if you just want to did you painted cabinetry the price would be half but since you want to do teak I have to charge you more for that

    Just ordered all of my material today from certainly would and and having superior veneer in Indiana land up on some MDF for me and total cost is 4300 for the material alone.

  11. #11
    Join Date
    Aug 2017
    Location
    Nashville, TN
    Posts
    165
    Blog Entries
    1
    Quote Originally Posted by Mel Fulks View Post
    The genius of kitchen scientists is that no matter how well equipped it is and expensive it was....the next owner will hate it! It's like dog houses ....original owner loves it! Subsequent owner won't use it and think it smells funny.
    Hahahaha nice point

  12. #12
    Join Date
    Oct 2016
    Location
    Ogden, UT
    Posts
    1,659
    Blog Entries
    1
    6k in cash and how many hours of your time?

    Houses are a form of an investment, sure. But as soon as you start to customize it for your own likes, then you are spending money on a 'nice to have' and no longer spending money on an 'investment'. Rental investors keep houses plain and maintained, which is how you treat an actual investment.

    I've heard something along the lines of $.50 per $1 spent on a kitchen or bath and almost nothing on the other rooms (I think?). Whatever the average pro is charging is probably what it actually costs in time and labor. Not counting your labor with money doesn't mean you didn't spend it.

    Anyway, just my free internet opinion. I plan on buying my 2nd house (rental) soon and am currently renting out the other half of my duplex that I live in. I try to think of my houses as realistically as possible. Have fun remodeling! It's fun to live inside your design vs someone else's.

  13. #13
    Join Date
    Aug 2017
    Location
    Nashville, TN
    Posts
    165
    Blog Entries
    1
    Quote Originally Posted by andrew whicker View Post
    6k in cash and how many hours of your time?

    Houses are a form of an investment, sure. But as soon as you start to customize it for your own likes, then you are spending money on a 'nice to have' and no longer spending money on an 'investment'. Rental investors keep houses plain and maintained, which is how you treat an actual investment.

    I've heard something along the lines of $.50 per $1 spent on a kitchen or bath and almost nothing on the other rooms (I think?). Whatever the average pro is charging is probably what it actually costs in time and labor. Not counting your labor with money doesn't mean you didn't spend it.

    Anyway, just my free internet opinion. I plan on buying my 2nd house (rental) soon and am currently renting out the other half of my duplex that I live in. I try to think of my houses as realistically as possible. Have fun remodeling! It's fun to live inside your design vs someone else's.

    Many many many hours of my time LOL

  14. #14
    Join Date
    Sep 2006
    Location
    Deep South
    Posts
    3,970
    I have to question the idea that $6,500 in materials is an appropriate amount of money to spend rehabilitating the kitchen of even a $300,000 house.

  15. #15
    Mike,....so hard to gauge the value to someone else. We all have so many options. Been quite a while since someone said "this ice box doesn't need ice ...it MAKES ice!! My advice is the best way to enjoy your work is to ignore "new trends"

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •