Do Kitchens Sell Houses?

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149
http://activerain.com/droplet/4YnF

 

My wife and I re-modeled our kitchen about 2 years ago.  We remodeled for two reasons:

  • We will most likely be selling our home within the next 5-10 years and want to be able to enjoy the new kitchen before we do.
  • Resale value.

In my opinion kitchens are the focal point of a home, and play a major role in the re-sale and value of a property.  So for me the answer to the question "Do Kitchens Sell Homes?" is simple.  The answers is clearly yes. 

When I walk into a house, the kitchen is the room which catches my attention the most, followed by the bathrooms, and walk-in closets. However, homeowners need to be careful when re-modeling a kitchen or any other room in the house, and should not spend beyond what they will be able to sell the property for later. Meaning the kitchen should reflect the price range of the house.  Homeowners should not go out and put $50,000 into a kitchen, if the houses in a neighborhood are selling for $100,000.

In re-modeling a kitchen particular attention needs to be given to what Buyers are looking for in a kitchen these days, such as:

  • Granite counter tops
  • Stainless steel appliances and,
  • Cabinets
  • Flooring

In re-modeling a kitchen these are the items homeowners should invest in for maximum return. But as I stated above, when re-modeling a kitchen or any other room in the house, a homeowner needs to not only look at re-sale value, but also make sure they stay within what is appropriate for the style of the house and price range of the neighborhood.

Do Kitchens Sell Houses?   Yes they do.  But whatever a homeowner does they need to be focused on the return value and what is appropriate for their area, as well as meeting their own needs at the same time.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Ginger Harper 12/28/2016 07:41 AM
Topic:
Real Estate Best Practices
Location:
Connecticut
Groups:
Realtors®
1st Time Buyers
Real Estate Rookie
Be The Best In Your Field
Tags:
remodeling

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Rainmaker
2,642,853
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

  We invested a bit in what started out to be " a new refrigerator" and turned into knocking out a wall, punching in a window, all new...everything....for us....for now...for the way we choose to live...is it worth more Yes....what we put into it ? Maybe and maybe not...it's not why we did it...we love enjoying it !

Dec 28, 2016 05:09 PM #41
Rainmaker
311,312
John Wiley
Jones & Co. Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

I find this post very interesting as I have long believed that the Kitchen was the clincher for a sale.

However, when I show a home, seldom, is much time spent looking at the kitchen. They look and move on. I will say that if it is obviously outdated they comment on that.

Maybe here in Florida, they are more interested in the lanai, pool and outdoor kitchen.

I will start asking clients about the kitchens value to them.

Dec 28, 2016 05:11 PM #42
Rainer
426,537
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

More importantly than ROI is the timeline for remaining in a home. If it's going beyond 10 years, the ROI isn't important as much as the style, efficacy, and attractiveness of the kitchen.  Investing $75k in a spectacular kitchen remodel that's amortized beyond 10 years or more isn't IMO going to lower the ROI. I'm certain, nobody would invest that amount in a kitchen where the area or neighborhood wouldn't justify the investment. Kitchens with sizzle sell and when it's in a home, that means SOLD, doesn't it?

Dec 28, 2016 05:29 PM #43
Rainmaker
1,549,481
Carla Muss-Jacobs, Principal Broker (503) 810-7192
BuyersAgentPortland.com | Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time - Portland, OR
Buyer Focused ~ Buyer Results

That's right they sure do!  A savvy home owner can save a little on cabinets if the current ones are in good shape.  Painting them a nice color, update the hardware, and they can POP.  A friend of mine did this, and they saved a lot.  The cabinets looked brand new.  The contractor did a wonderful job.

Dec 28, 2016 06:00 PM #44
Rainer
341,602
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

I totally agree with you on all points.  A kitchen is the heart of the home.

Dec 28, 2016 06:31 PM #45
Rainer
388,148
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear George,

If that is your kitchen, it looks like a nice work triangle, which should be popular with most buyers, even in the future. Stainless may not be necessary, unless you like it too. Otherwise, the appliances will be approaching the end of their life in 10 years anyhow. At least, if you want to keep up with energy-efficiency.

Dec 28, 2016 07:09 PM #46
Rainmaker
2,559,230
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George, I would love to re-do our kitchen, but there are priorities, 1.update small bathroom (aka guest/endre's bathroom) 2. fence in front yard  and re imagine front yard (diane wants it) 3. redesign back patio (diane wants it)  now after that maybe my kitchen? probably there will be other projects...now seriously I agree a Kitchen is more important but I am not the boss, Endre

Dec 28, 2016 10:15 PM #47
Rainer
254,616
Kim Gaston
FRONT PORCH TEAM REAL ESTATE & PROPERTY STYLING - Brokerage, Colorado Real Estate Advisers LLC - Colorado Springs, CO
Colorado Springs REALTOR®, CNE (719)661-6987

Love that you wisely made this improvement while you could enjoy it. Smart.

I'd also recommend homeowners ask their neighborhood REALTOR® for advice. Its so simple for us to look at recent sold comps to better understand which kitchen upgrades are a good investment and which are not,  i.e. can I paint my short, builder-grade cabinets or do I need to buy new?  If you're in a starter home, painting the existing ones could be a great option, but a higher-end neighborhood might warrant a more custom, taller 42" version.

Dec 29, 2016 01:28 AM #48
Rainer
375,608
Anna Hatridge
Goodson Realty - Bonne Terre, MO
Missouri Realtor with Goodson Realty

You are so right about the remodel should be appropriate for the price of the home.  I often recommend to future sellers they should tour homes currently on the market in their neighborhood before starting the project.  This will help them see what their competition will be in the near future.

Dec 29, 2016 05:50 AM #49
Rainmaker
1,926,531
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

It's smart to make the updates while you can enjoy them. I hear all the time from my clients they wish they had made the improvements for themselves instead of for the new owners.

Dec 29, 2016 09:28 AM #50
Rainer
35,147
John Oman
Newington, CT

Hey George,  Great points.   Especially doing it in a time frame you can enjoy the remodelling and then benefit later when you sell.  

Dec 29, 2016 10:58 AM #51
Rainmaker
327,829
Diana Dahlberg
1 MONTH REALTY - Kenosha, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

As Realtors, we must all agree that the Kitchen is one of the deciding points when buying a home.  If the kitchen is the number one item, I can't say, because sometimes the buyer is really only interested in room sizes and updatedness is second.  But overall, Kitchen and Bathrooms are big factors in home buying.

Dec 29, 2016 11:41 AM #52
Ambassador
3,156,609
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

George- I wish that more homeowners would read this and understand how important it is.  Why not update or remodel your kitchen while you can enjoy it.  And, yes, don't overdo it either!

Dec 29, 2016 04:42 PM #53
Rainmaker
292,230
Melissa Jackson
Riverside Homebuilders - Sales Consultant - Springtown, TX
Your New Home Sales Consultant in Parker County

George, I spend so much time in our kitchen!  Yes, it's one of the most important rooms when working with buyers.  Taking the time to complete your update plus enjoy all your hard work before selling is a great idea.  

Dec 29, 2016 08:30 PM #54
Ambassador
1,238,647
Joni Bailey
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

I'm not even a cook, but I love a great kitchen! It's always been the heart of the home for me. 

Dec 29, 2016 08:38 PM #55
Rainmaker
2,224,931
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

A bad kitchen by contrast can play havoc with a sale. A good one just works...

Dec 30, 2016 08:58 AM #56
Rainmaker
1,351,694
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Of course it depends on the buyer. When my son was searching for a home, his priorities were plenty of outbuildings/ garage and shop spaces and an extra room where he could keep all of his fishing equipment. Since the purchase he's remodeled much of the shop and house - and the kitchen is still on the list.

I've been amazed lately to view tours of new homes that have "clunky" kitchen designs. In addition to the materials, the ease and convenience of use would be top priority for me. Builders and remodelers should always consider the importance of the "work triangle."

Dec 30, 2016 10:22 AM #57
Ambassador
3,717,127
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I know some owners remodel kitchen half-heartedly, George Souto - with just one goal - to maximize the return on investment.

Had met a potential seller who spent just couple of thousand dollars for the granite counter top on small kitchen and wanted $15K more than the market value! 

Dec 30, 2016 01:02 PM #58
Rainmaker
103,348
Eva B. Liland with Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service

Personally, I spend most of my time in the kitchen, dying to have that new stainless stove etc. But I keep reminding myself, what kind of mansion do I want, comparing myself ttill debating...

Dec 31, 2016 01:45 AM #59
Rainmaker
856,578
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very good post!  Of course kitchens sell homes and they are most always the highest ROI for improvements, second being the master bathroom.  Very smart of you to enjoy your remodel and then have your home show as upgraded for the sale.  

Jan 01, 2017 04:37 PM #60
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