Payback on Your Kitchen Makeover
Payback on Your Kitchen Makeover
Sometimes when you are deciding to upgrade your kitchen, you will need to consider the financial payback on your project. The obvious need to do this would be a near-term sale of the home. Other situations would include an anticipated sale in a few years, or making a decision as to which room to remodel among several choices.
In order to give this decision some initial structure, it is helpful to zero in on the extent of the kitchen makeover that you are planning. Here is one possible list of your choices:
A. High Impact, Low Cost
New Sink & Faucet
New Cabinet Hardware
Paint Cabinets - If DIY
Curtains
Lighting Fixtures
Paint Walls
B. Medium Cost
New Appliances - Standard
Paint Cabinets (Professional) and New Hardware
Wallpaper
New Backsplash
Under-cabinet Lighting
C. High Cost
New Appliances - Premium
New Cabinets
Countertops
Floors
Designer Accessories
If your current kitchen is a bit dated, the financial payback will generally be higher than
if the kitchen is of current design, but you have now chosen a different look. The A list above will have a high short-term payback in most cases. You could do the A list for just a few thousand dollars and expect to get close to 100% payback if the changes move the kitchen appearance toward modern standards.
The B list will cost somewhere in the range of another ten thousand dollars. Again, the return depends on how much the remodeling updates the appearance of the kitchen. If the B list items do bring the kitchen up to more modern standards, expect an 80 % + payback on these in addition to the A list items.
The C list high cost items can have a high payback if they really modernize the kitchen. If they primarily change the style of an appropriately designed kitchen, you will expect a lower payback on your money spent, likely in the 60% to 70% range. The great benefit, of course, is that you have one of your most important rooms updated to your exact desires.
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