We’ve all seen them in magazines and on TV shows, and many of us have them in our homes. What are we talking about? Newly renovated kitchens with a fresh, modern look! They’re all the rage and for a long list of good reasons. Many people are still not convinced that they should be putting that sort of money into a project as large as renovating a kitchen. It’s a scary prospect for some people, as they might believe that this is wasted money.
However, you should understand that kitchen renovations are not wasting your money. They’re actually helping you to get more money. Here are some of the ways that a new kitchen can add value.
How an Updated Kitchen Can Add Real Value
Equity You Can Draw Upon
Home equity can be quite difficult to understand, especially if you’re dealing with a mortgage broker and getting the information from them. To simplify this, think of your home equity as money you have as part of your net worth. If ever you need to draw upon this net worth, you can receive all sorts of different loans against your property’s value. So if you’re putting the value into your home with a new renovation, you can get your home appraised for a higher amount and have equity to draw upon as part of your overall worth.
Resell Value
Perhaps the biggest way on the list that new kitchen renovations will pay off is if and when you decide to put your home on the market. Most experts suggest that you can earn as much as 50% back on your renovations to start. For instance, if you put $10,000 into a kitchen remodel, that will add $15,000 in value as a starting point. This number can get much higher, but getting that type of return on your investment is huge, particularly if you’re selling your home for a lot. It’s that new, shiny kitchen that’s really likely to convince someone to pay the larger price tag for the purchase. This is going to help you make some money.
Reduced Energy Costs
Another great way that a new kitchen will add a lot of monetary value to your home is by saving on energy costs. Let’s face it: Nobody is going to remodel that kitchen and put those old appliances back into the space. The vast majority of people who are renovating are also getting new lighting, new stoves, and new refrigerators and dishwashers. Many are also going to get new faucets and more. These appliances now are all low-flow and energy-efficient, so you’re going to end up saving money. Realistically, a new kitchen can pay for itself over the course of your life while using the kitchen. You will be paying far less on your monthly expenses with a new kitchen.
Aesthetics and Sentiment
When we think of the term “value,” we typically tend to attach a monetary figure to that. Blame it on our consumerist, materialist societies if you will, but the fact is that most of us are picturing a price tag when someone mentions value. Though we age and have families, we find that the true value in life is our families and friends and loved ones. It’s those things that cannot be replaced, like memories, which are more precious than any amount of money you could ever make. Creating a larger, open, functional kitchen means making more memories with your kids when cooking, your friends with dinner parties, and big holidays like Christmas. So, yes, your renovated kitchen adds immense value to your life and your family by the most important standard.
The bottom line is that renovating your kitchen space and going with a new look and feel will add value in many different ways. From being able to draw on your home equity for what it’s worth to selling it for a higher price and making those priceless memories, a better functioning kitchen with a more modern aesthetic is definitely a way to boost its value.
