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What should I spend on a remodeled kitchen?

By
Home Inspector with 203kOnLine.com, covering the USA S0289

What should I spend on a remodeled kitchen?

Who knows. I do know that was the guest speaker at a round table discussion on remodeling some time ago in San Jose. I got there a few minutes behind schedule and a San Jose Contractor was on stage talking at the time I arrived. He had videos and photos of some beautiful kitchens without a doubt. 

Then he dropped the bomb on everyone when he started showing us photos of this kitchen and that and telling us the cost to do that remodel, was $70,000, and this other one at $65,000, and yet another at $80,000.

This is not to say he isn't or wasn't right but do we need these kitchens in a $300,000 or a $500,000 house... I don't think so.

This is a kitchen we put in for about $8,400.00 at retail price. the price the home owner would pay for this kitchen.                                                                                                               $8,400.00 kitchen                                                                  This isn't a $70,000 kitchen but it is a great kitchen for the house we put it into.

 

All Solid Wood Maple Cabinets with granite counter tops.

 

Does every home need a $70,000 kitchen, I don't think so. This kitchen made the cook in this home extremely happy.                 

When someone calls me to hire us and asks "What is your fee?" I cringe. How many consultants would just take the contractor bid and input it into the paperwork. We actually consult with our client. See what it is they are trying to accomplish with their renovation loan and then work to get that into their budget. It isn't about what our fee is, it is about getting you want you want at a price you might not otherwise be able to afford. We earn our fee by saving YOU money. We typically save our clients 4-5 X our FEE so you want us to give you the highest fee possible. I would think. Actually we are very competitive.

A client called the other day and asked my fee. I told her $800.00 based on her construction budget. She said another consultant told her only $350.00, I told her that I'm sure she won't be charged that. I was right. She called me back in a month and apologized. Her other consultant charged $350.00 for showing up at the inspection and then charged her $800.00 for the consultation. She actually paid $350 more thinking she was going to save money. Had we done that job she would have received better service, no bait "n" switch tactic, and we would have found a contractor that fit her needs better, providing more bang for her buck. What you pay isn't always what it costs you. You would be better to ask, "What do I get for your fee?"

We can assist you with construction from the ground up as well - Click here to learn more

 

 

 

middletown

 

 

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

To learn more about the FHA 203k loan program go to www.203kOnLine.comWhat is your fee? 

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Comments(6)

Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

In a properly priced home, a kitchen renovation should equal the quality of the home.  The seller has a chance to recover maybe 75% of their cost if done properly

Nov 01, 2015 07:10 AM
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

Ed, thanks for the comment. As an appraiser for many years bathroom and kitchen updating quite often returned nearly 100% of the money invested and sometimes more. 

Nov 01, 2015 08:12 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

I completely agree, Mike, that the remodel needs to fit the home and the neighborhood. Crazy as it sounds, $60,000-$80,000 in a Silicon Valley home might not be excessive at all.

Nov 01, 2015 12:47 PM
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

Hey Lottie, good to hear from you. Thanks for stopping by.

 

Nov 02, 2015 12:04 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Mike. When it comes to kitchen remodeling, the cost can add up in a hurry, as you well know.

You commented regarding doing an FHA 203 K loan for my clients that is the direction we were going, until the renovation costs were over $100,000 to make the property work. They couldn't afford that kind of payment.

Nov 19, 2015 06:39 PM
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

Joe, they may be paying too much for the property?

We quite often do a "feasibility report" which sometimes brings the seller back to the reality that under it's current condition the asking price is too high. So many sellers see homes selling in their area for a higher price but fail to realize those homes were in much better condition. 

This report is primarily to identify the cost to bring a home to the HUD Minimum Property Standards, those type issues are the seller's responsibility. You can ignore health and safety issues and wear n tear for ever then expect to get top dollar for the home.

Nov 20, 2015 01:12 AM