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Kitchen Remodel Return on Investment (ROI)

By on Dec 15, 2014
Kitchen Remodel Return on Investment (ROI)

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Remodeling projects always bring up a certain question: is this going to increase the value of the home? No one wants to jeopardize the value of their home, especially when the potential for resale is in the air. On a list of remodeling projects that bring a high return on investment, kitchens come in near the top.

Why are kitchen remodels so popular? Because life happens there. Newer model homes incorporate the kitchen and living space with one as an extension of the other. Kitchen nooks with tables and overhang counters with enough space to eat a meal are popular as new kitchen formats bring the cook back into the party. Instead of being relegated to another part of the house and separated by a wall, the cook gets the chance to interact with people while preparing meals. Having enough space so that the party never has to leave the kitchen is what people are interested in when looking at new home designs. Many people are capitalizing on that trend and creating a similar space in their existing homes.

Kitchen ROI

Given the size and scope of any given kitchen, remodeling can be a costly affair. Countertops, appliances, flooring — all these things add up, especially when considering any additions that might be included, such as an island. While the cost to renovate the kitchen is higher than some other rooms in the house, the potential to recover it as part of the sale is high too.

Below are a few aspects to consider when thinking about a kitchen remodeling project.

What Do People Want?

There's no point in spending money to remodel something that potential buyers don't care about. Real estate agents say that kitchens are one of the first rooms people look at, and when they do, they want to see if the countertops and appliances are updated. A more modern look shows well with potential buyers, so upgrading for both functionality and aesthetics is a viable consideration.

Modern Kitchen

Comparative Costs

When thinking about remodeling anywhere in the house, one has to be careful not to spend so much that the price of the house skyrockets. Potential buyers will love the kitchen, but may not make an offer if the house is priced way over the others in the area. Make sure you keep renovation costs moderate so that the house can remain at a competitive price.

Don't Go Overboard

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Sometimes less is more; not everything in the space needs to be replaced. Some things qualify — if the kitchen has older appliances, replacing them is a smart decision. Likewise, if the countertops show wear and should be replaced, do so. But if the kitchen is in good working order, nothing else really needs to be done aside from changing the lighting or paint for a new look. A little bit goes a long way. 


There are some remodeling touches that a homeowner can do themselves for a fresh design. Try these and see the difference the changes make:

  • Replace the knobs on the cabinets
  • Paint the cabinets
  • Add a backsplash
  • Change the wall paint
  • Install lights under the cabinets
  • Add an island

Remodeled Kitchen

A minor kitchen remodeling effort, which includes refacing cabinets and hardware, replacing older laminate countertops with newer laminate styles and adding energy-efficient technology will cost about $20,000. The return on investment hovers at around 70%. These numbers make kitchens the best room to remodel in the entire house from a return on investment perspective. 


People like the look of new things; potential buyers don't necessarily want flashy, but sleek and streamlined is always a good aesthetic to shoot for. Model homes are full of fancy kitchens, so a resale kitchen has to be appealing, or else the home might be passed over. Upgrading the kitchen is a great way to give the whole home a lift.

Did you recently remodel your kitchen? We want to hear about it. Share your story in the comments section below.

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