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Why Should Homeowners Consider Remodeling?
Replacing old home pieces and parts such as doors, windows and siding yields a better financial return than bigger remodeling projects, such as additions. However, most real estate agents and remodelers agree that updated kitchens and baths still bring a significant payoff, especially at resale time. A report found that kitchen projects yielded a higher return than bath projects, with a kitchen remodels adding 82.7 percent of the project’s cost back to the home’s value. Kitchens are important because buyers often overestimate how it costs to update them. If you have a dated kitchen and you're wanting to sell your home, many potential buyers think that in order to redo that kitchen, they’re going to have to spend $30,000 or $40,000. But the average cost of a minor kitchen remodel – new cabinet doors, appliances, countertops, sink, faucet, paint and hardware – is approximately $22,856 nationwide, according to a Cost vs. Value report.
But, like the front door, it’s important to do the right kitchen remodel. Adding a $50,000 kitchen to a $120,000 house is unlikely to yield $50,000 in value. Although it may make you a happy chef, as a general rule, look to spend about 25 percent of the home’s value for a new kitchen, and about 15 percent for an updated bathroom.
Renovations and the average percentage of return on investment: