Renovating a Kitchen Part II: Resale
Last week, we went over the basics of kitchen renovation that were relevant to anyone whether they’re a homeowner looking to remodel or an investor looking to substantially improve the value of their property. As we continue, we’re going to focus a bit more on remodeling a kitchen as it pertains to property value, and the kitchen is something most real estate investors place a high priority on because, quite simply, the same goes for potential homebuyers.
Using our most recent property as an example (which you can view here), we’re going to look at the ins and outs of what makes an appealing kitchen and how to practically apply those principles without breaking the bank. As we discussed in last week’s blog, you should have your budget squared away, a plan that you’re committed to, and estimates from contractors. For us, our decisions were based on a combination of aesthetics, statistical data on current consumer trends, and local feedback on what consumers in the same location as our property currently preferred. All of these things should influence your thought process. When deciding on fixtures and appliances, there are a few considerations that are worth your time and thought.
Budget
We mentioned this in our last blog, but it bears repeating now: stick to your budget! Don’t be tempted by last-minute additions or changes. We’re going to explore a bit more in detail as to how much of the budget each component of the kitchen should comprise, but remember to set aside 20 percent of your budget for unplanned eventualities. Trust us, you’ll be glad you did.
Keep The Overall Look and Layout In Mind
Regarding aesthetics, you need to have a clear picture of how your plan will look, and this includes keeping in mind color schemes, design, and layout even as you consider additions like cabinets, flooring, appliances, and fixtures. Take how the intended color scheme, in particular, will fit with them into account. Don’t, for example, install a granite countertop and expect that it will fit with dark floor tiles and light wall paint. Hire a professional if you have to, but all the expensive additions in the world won’t mean anything if the final product is hideous to behold. You would actually be surprised at the number of poorly considered yet expensive kitchen remodels we’ve seen – and how sad we were to change out the original high-quality adornments because of the previous owner’s lack of attention to aesthetics.
Cabinets
If you look at our most recent property, you’ll notice that in the before-and-after pictures, the cabinets are largely the same overall structure with the exception of needed repairs, new hinges and adornments, longevity-extending finishes, and of course a fresh coat of paint. With some properties, you may need to completely rip out and install new cabinets, but if you don’t need to, it’s worth considering working with what you already have. As we said last week, you generally want to keep the same layout one way or another, meaning that if you do build or install new cabinets, you’ll probably end up putting them in the same place as the ones they replace. It’s worth noting here that cabinets are generally – but not always – the fixtures that tend to take up the most of the budget in typical kitchen renovations. In other words, if you can save costs here, you can probably do so without sacrificing durability or function. Whether you install new cabinets or redo existing ones, there are several things you can add to contribute to the “wow” factor of the kitchen without getting too complicated. A pullout pantry, for example, is a desirable addition to any kitchen. Further, a pullout trash and recycling lower cabinet can be added regardless of whether you’re building new cabinets or renovating old ones. Less complicated are slam-free cabinet door hinges, which can be installed on just about any cabinet, as are decorative handles, knobs, or trim.
Flooring
Like cabinets, flooring is where you’re likely to incur a larger share of the overall cost of the kitchen than most other aspects of it. If there’s linoleum flooring, tear it out. Now. It costs more to install tile, but the benefits in terms of consumer preference, and by extension increased home value, are well worth the expense. Remember to choose soft, light, muted tile tones as a general rule, and only go with darker tile if it A.) fits with the rest of the home, and B.) fits with your plan for how the kitchen will look as a final product. In other words, don’t do slate-grey tile and then put in a Tennessee marble countertop. Again, the final product and how good it looks is a huge factor here. Speaking of fitting with the rest of the home, if you intend to install hardwood floors, it may not be a bad idea to extend it to the kitchen. Naturally, that should inform how the rest of your remodel goes, but it’s classy, understated, and much cheaper to add a few dozen more square feet of hardwood flooring than it is to tile and grout and entire kitchen.
Appliances
Contrary to popular belief, you’re likely to spend about as much on appliances as you are on labor, and both together are barely more than the percentage taken up by cabinets alone. In other words, while costs are a lot more variable with flooring and cabinets, appliances are fairly standard. Focus on convenience, appearance as well as function, and uniformity. For example, if you want a stainless steel sink and steel-front refrigerator, make sure the oven, dishwasher, and microwave are similar in appearance. It costs more to ensure this uniformity than it does to mix and match, but it’s worth it. If there’s no dishwasher, go ahead and sacrifice the cabinet space – and the labor cost to install one – for the sake of having it. No one likes washing dishes, and if you can present that convenience to a potential buyer, they’re more likely to consider your property with a dishwasher than one without. If you’ve got the space, consider an oversized refrigerator with a lower freezer. Again, this is convenient and desirable to consumers, not to mention trendy. However, if you’re working with a cabinet inset for a standard size refrigerator, go with the standard size and choose one that’s both appealing and has the lower freezer if possible. If there’s an electric stove, consider recessed flattop burners.
Fixtures
As you may have noticed in our example, we chose simple, elegant, and fashionable fixtures. Swooping faucets, convenient lighting, stainless steel sinks, and proper countertops are the way to go. If you can work a granite countertop into your kitchen renovation, do it. Statistically, it’s the feature most mentioned by potential homebuyers when it comes to desirability. Remember, a kitchen is a utility as much as it is a showpiece, so lights above the stove and underneath cabinets above counters, and durable fixtures are likely to entice buyers to feel comfortable in spending at least a few hours each day in that room doing something of profound importance: feeding themselves and/or their families. If you have or add a center island, hanging lights above it makes the addition less superfluous and more utilitarian, which effectively doubles its value.
Most real estate experts suggest that a kitchen and all its accouterments should last at least twenty years, so be mindful of that when remodeling. Not only do you want to make sure the kitchen is durable as a utility, but you also want to ensure that its design and elegance won’t go out of style. As we said just a moment ago, it represents an integral part of family life and human nature, second only to perhaps a bedroom. To that end, you want to be sure that you offer potential buyers a kitchen they can live in for the long haul, because homebuyers typically think in those terms and rightly so. For more on our properties and renovation process, be sure so check out our properties section and sign up for our email list, and don’t forget to follow us on Facebook and Twitter!
– Get It Right Solutions LLC