A kitchen update creates value for your house. Don't make the mistake of overlooking it!
There are a lot of videos and articles on how to update your kitchen, but many people miss the fact that updating your kitchen can add a lot of value to your house, which adds up too much more money in your pocket when you sell.
Did you know that if you have to choose between redoing outdated floor and redoing your kitchen, the kitchen wins, hands down? That's because while redoing your floors makes your house more salable, it doesn't really add much value to your house.
A kitchen update, on the other hand creates real value. A recent survey showed that women see the kitchen as their best way to express themselves to guests. What that means is, when you go to sell your home, your kitchen is going to be a critical deciding point on what kind of offers you will get.
According to an article in U.S.News, if a potential buyer walks into an outdated kitchen, the first thing that goes through their head is that they're going to have to spend $40,000 to $50,000 to remodel the kitchen.
The reality is that if you spend about $19,000 on your kitchen that will increase the value of your house by about $16,000. That includes replacing cupboard and cabinet doors, appliances, sink, faucets, counter tops, hardware, lights and paint.
At first glance, this might look like a net cost of negative $3,000, but in reality, it has added a huge amount of value to your house when you compare it to what kind of offers you will get from potential buyers.
For $19,000 in expense, you update your kitchen to 21st century modern, and when the potential buyer walks through, they mentally knock a kitchen reno off their list, which instantly raises the amount they are willing to pay by $40,000 to $50,000. That means that your $19,000 kitchen updated has created an actual value of – let's go low - $40,000 minus $19,000 equals $21,000! Your $19K investment in a minor kitchen updates just created $21K EXTRA value in your home. That translates to $21K more in your pocket when you sell your home than if you just left your tired old kitchen as it is.