Question:
“How much value will I add if I remodel my kitchen?”
Answer:
I know of a woman in Pacific Beach who had her kitchen remodeled. When it was done, though it was nice, she didn’t like it and remodeled it again. …Then she did it one more time for good measure.
Assuming her kitchen was not great before remodel #1, she probably got a 50% to 150% return. Remodel #2 fetched her a 0% return. Ditto for #3.
Obvious point: The worse your kitchen is now, the higher your return.
2. What’ll it be like when you’re done?
…Refaced veneer cabinets, formica counters, and off-brand appliances?
…Or teak, granite, and Viking?
Obvious point: Better quality done well raises value more than low quality done poorly. Of course, that doesn’t mean your % return will be higher.
3. Where do you live?
If you’re in Rancho Santa Fe, you’ll get a much higher return for your nice new kitchen than if you live in the boonies.
….STILL want an easy round answer?
OK, then if you do it right and don’t overpay, as a rule of thumb figure roughly a dollar-for-dollar return.
