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Kitchen Remodel for Resale

5 years ago

Hello,

I am remodeling my kitchen and replacing everything except for the natural oak kitchen floors. My new appliances will be stainless steel with touches of black.

I am considering white quartz countertops, white upper shaker cabinets, and a neutral color for the bottom cabinets that will stand out and appeal to potential buyers.

The kitchen is open, medium in size, and has a deck sliding door that brings in natural sunlight.

Comments (37)

  • 5 years ago
    last modified: 5 years ago

    Do you have a question?

    If you intend to sell very soon, I wouldn’t bother doing anything. The kitchen is neat and clean, and the new owners will want to put their own stamp on the kitchen.

  • 5 years ago

    Yes, what color should I choose for the bottom cabinets should I do? Do you think grey is a good color?

  • 5 years ago

    When do you plan on selling? It's a seller's market is you are doing it now. In that case, don't do anything.

  • 5 years ago

    If this is for resale I’d ask if you’ve carefully considered the costs associated with a remodel vs selling as is? If the entire home isn’t renovated it’s usually best to sell as is at the right price…if the other spaces have been renovated then we would need to see pictures including the exterior to best comment on specific kitchen finishes.

  • 5 years ago

    I was advised to renovate the kitchen because the remaining parts of the home are somewhat renovated.

    I’m trying to decide what color I should select for the bottom cabinets if the top cabinets will be white.

  • 5 years ago

    Thank you Thomas for the compliment. The cabinets are not conductive to a family of 4 because they lack adequate storage for large cookware and the bottom drawers contain pull out trays. Also, the doors are not soft close.

    Thanks for providing me with your input because I will definitely keep in mind the cheap effect when selecting white shaker cabinets and quartz

  • 5 years ago

    As someone who’s searching for another home, I’d consider not doing anything. I know your Realtor said to, but if I were buying your home I would think it’s nice enough. Not perfect for me (no insult intended), but certainly nice, and workable until I could renovate at my leisure. I just can’t take another “updated”, Shaker, grey tone kitchen that I would tear out anyway. Just my thoughts and experience after owning several homes. I wish you the best in your decision.

  • 5 years ago

    As someone who regularly renovates homes to sell, it is difficult to give you meaningful advice without more context. What does "somewhat renovated" mean exactly? If you simply want validation for your plan, then gray is great... Go for it. If you really want meaningful advice on a remodel then post a picture of the best bathroom and the master bedroom and let's see what the rest of the house looks like.


    I have heard so many realtors talk about the importance of kitchens in home sales and it is simply not true. Kitchens are certainly the most important single room in the home for most buyers, but they are also the most expensive. Take the amount of money you spend renovating the kitchen and put into the rest of the house and you will likely see a better return. I can replace every baseboard and all the window and door trim, refinish hardwoods, paint the entire house, and still save money over a basic kitchen remodel.

  • PRO
    5 years ago

    Whatever amount you are planning on spending, offer that as a credit to remodel.

    I do not like different color cabinets, quartz countertops, and know I'd want to change kitchen layout (don't like fridge next to stove).

  • 5 years ago

    So, you didn't ask a question in your post. Did you want feedback?


    How big of a remodeling project are you thinking? In your earlier comment you said, "The cabinets are not conductive to a family of 4 because they lack adequate storage for large cookware and the bottom drawers contain pull out trays." This makes me think you're expanding the kitchen and that could get pricey, especially considering the seller's market right now.


    To me, I think updating backsplash and stove would be enough. The refrigerator location might be a deal breaker for me unless I loved everything else about the house. I really like to open and fully clean the fridge. Personally, I wouldn't reuse the layout, I'd at least get the fridge moved a few inches from the wall, even if it is only separated by a slim pull-out pantry.


    I'd rethink two-tone cabinetry as that is a bit taste specific. If this isn't for you to enjoy, I'd select choices which appeal to the majority. But does your realtor really think the kitchen remodel will fully pay for itself? I'd worry that the market conditions might change during the remodel (since remodels tend to take longer than expected and go over budget).

  • 5 years ago

    It is a waste of time and money to renovate this kitchen. New owners will want to redo your redo. Spend your energy planning for your new house. Price your house fairly for its condition. The extra money you might get if you remodel might be a break-even amount so there is potentially little to be gained. There is a recent trend for real estate agents to insist clients spend money to raise the price of the house, but we seldom see any true gain. If you spend $10000 and sell the house for $11000 more, what have you truly gained? Move on.

  • 5 years ago

    We sold our house in October. We did many repairs to prepare it and it sold in 24 hours for considerably more than asking price. People were literally fighting over it. I feel that we were misled by our realtor and that the house would have sold just as quickly for the same price had we done nothing. Most realtors just trying to make their jobs as easy as possible. Don't waste your money remodeling the kitchen. Let the new owners decide what they want. I would list as is.

  • 5 years ago

    In some parts of the country, a renovated kitchen will absolutely help you sell your house for more money. Even in a sellers market. This is probably only the case if the rest of the house is in good superficial shape. To me, that means absolutely no clutter, most of the bathrooms were renovated in the last 15 years, not-ugly floors (no old carpet or offensive tile), and whole house fresh paint in a modern color within the last few years (a griege or white). If you can’t commit to those four things, don’t bother doing the kitchen because it will just look like lipstick on a pig. The other stuff doesn't have to be new and expensive upgrades - it just needs to avoid standing out as ”bad”.


    Thus forum is obsessed with saying that you wont get your money back on a kitchen reno, and that homebuyers will always want to renovate kitchens to their own liking. Not my experience at all, for the five homes Ive sold in high cost of living areas. If youre selling a house to the typical age 30-50 in those regions for $800k-$1.5m, it’s a dual working couple who have decent incomes but zero time. They’re not going to renovate. That’s literally why all these hGtv shows exist, that show cheaply flipped houses - because people want it done for them before they move in. Maybe it’s different in other lower cost of living areas of the country. And I’m sure it’s not true for this very small segment of the population that spends time on this forum - a self selected group that obviously loves home improvement projects so will rather renovate than pay extra for something not to their liking. But this forum does not reflect 99% of the population.


    In any event, just my two cents. If you go forward with the renovation, keep in simple and neutral. Cream shaker cabinets, neutral countertop and backsplash. And for the love of god, avoid grey and any two-toned cabinets. That rarely looks good on a cheap reno, and usually makes things look cheaper.


  • 5 years ago

    leave the kit as is

  • 5 years ago

    I am considering white quartz countertops, white upper shaker cabinets, and a neutral color for the bottom cabinets that will stand out and appeal to potential buyers.


    Has your realtor shown you this type of remodel reaps the most ROI in your real estate market? As others pointed out, two-tone cabinets are very taste specific. If you're planning on selling in 5 years and want to remodel this kitchen for your family to enjoy in the meantime, then, yes, go for the remodel. Otherwise, think twice about the time and resources you need to sink into this kitchen for the house to sell. Know your market well. There's a fair amount of planning, materials and resources that go into a new kitchen. I can be altruistic but I wouldn't go to all that trouble building a new kitchen for strangers. Especially not with current pandemic shortages (labour and materials).


    @H202 brings up very good points about showing a house well. I frequently peruse our local real listings and am discouraged by all the lipstick on a pig kitchen remodels. They stick out like a sore thumb. Granted, I'm part of this forum so perhaps I am in that 1%.

  • 5 years ago

    Based on the photos I'm guessing it's a townhouse kitchen? The window is to the right side, and the opening in the wall on the left is into the dining area with the living area at the back. Townhouse kitchens often have that awkward fridge placement against the wall.


    If I'm correct, then the scope for expansion (to add more cabinets) is likely limited, as is reconfiguration. Whether it's financially worthwhile to replace the existing kitchen with a new kitchen in the same layout and new appliances is a bit dubious. You can do it to make yourself happy, but I would not be thinking about resale. This is not, I suspect, in the category of high end properties where an expensive remodel can pay for itself. The current kitchen is aesthetically pleasant enough and I imagine for most buyers, does the job well enough. Perhaps a new backsplash and countertops is all that needs to be done.

  • 5 years ago
    last modified: 5 years ago

    Realtors will always tell you to add costly renovations. After all, it's no cost to them. If you are selling soon, in this hot market, I'd not change the kitchen. In my area, homes are selling fast with kitchens that have not been touched since the '80s.

    For you, it's not only the cost of the kitchen renovation but the stress, aggravation and time. So many things have long lead times, and everyone is so busy and backlogged. You might miss your window of this hot seller's market by having to wait until your kitchen reno is completed. Better for you just to price your home with the current kitchen figured in the price, get it sold fast, and no stress for you, and you're out from under the home's overhead cost of mortgage, utilities, taxes, etc. faster too.

  • 5 years ago
    last modified: 5 years ago

    So just some additional thoughts on this thread.

    This idea that kitchen remodels don't have a positive return is not really true. Some kitchen remodels have a great return. The question really is about whether or not you are selling a starter home. In starter homes remodels often pay off, because of the nature of levered money.

    There are few mechanisms for sellers to hand buyers a sum of money or "credit" inside the loan in order to make necessary repairs or renovations. That was largely removed after the subprime collapse. Instead houses are discounted, while that may seem like the same thing, it really isn't. Because when price increases (for renovations) are included inside the loan the buyer only needs a small percentage down. However, the buyer may not have the ability to pay for that renovation outside the loan even if it is cheaper.

    E.g. a buyer is interested in two otherwise identical properties. One is selling for $260,000 and has no kitchen remodel, the other is selling for $300,000 but has a $30,000 kitchen remodel. Suppose the buyer is putting down 10% and will pay PMI. They will need $56,000 for the first house ($26,000 down and $30,000 for the remodel). While they will only need $30,000 down for the second house.

    This largely goes away when you move out of starter homes. You likely have equity in the home you are selling that provides more access to cash by simply putting less money down.

    -----

    Having said all of that... House prices are anchored by their weakest link. Even a decluttered kitchen in good condition will hinder a sale if the rest of the house has been upgraded well past the condition/quality of the kitchen. However, the reverse is also true, any room upgraded well past the general quality of the house will see little if any benefit. Additionally, the entire house is anchored by the comps and so upgrades past the general condition/quality of the neighborhood rarely pay off.

    Some hints: You don't have to replace your kitchen or your counters to appeal to buyers. People want to be wowed by your kitchen and an aesthetically pleasing kitchen can do that, but so can other wow factors. If this were my remodel I would spend money on drawer organizers and pull out trays or in cabinet drawers. Opening a cabinet and finding unexpected organizers is like opening a present on Christmas morning, buyers will love it.

    Next, I would get rid of the black eye (range) and put a nice stainless pro range. Something like this...



    If you can't afford that much grab a decent Frigidaire induction for half that price. Then redo the backsplash and profit.

    Good luck

  • 5 years ago

    Waste of $ to do anything other than having it spotlessly clean ( its already decluttered ).

  • 5 years ago

    Realtors just looove for you to make their jobs easier. Plus, the reno ups the asking, and then they get a cut of the upcharge back in commission. Been there. Unless you live in a very unusual area, you are just adding expense, stress, and inconvenience to ypur life by renovating that perfectly fine kitchen. IMHO. Good luck.

  • 5 years ago

    Leave it. I am buying now and have seen homes of 1800 square feet, everything original from the 70s, with cockroaches literally falling around us as we tour going for near 300k in the Atlanta perimeter. The kitchen won't matter. Price it well and you will still likely get over your offer.

  • 5 years ago

    "The cabinets are not conductive to a family of 4 because they lack adequate storage for large cookware and the bottom drawers contain pull out trays. Also, the doors are not soft close."


    What?!? All those cabinets and not enough storage for large cookware? Who put that idea in your head? Adjust the height of the shelves. Problem solved.


    I have pull-out trays now and my kitchen is relatively newly remodeled (not by me). They work just fine. As do non-soft close doors, which my previous kitchen didn't have. Nor did it have the amount of cabinets and pull-out lowers yours does, and I did just fine in it. For 17 years.


    Methinks the agent is just trying to get you to do the renos to increase the asking price = more money in their pocket. If you want to fix it up for yourself to enjoy for a year or a few then have at it. But if you think you NEED to renovate for some fictitious family of 4 buyer, you're wrong. Price it accordingly and it will sell. (although seriously -- there's nothing "wrong" with your kitchen, heck of a lot nicer than plenty of kitchens I've seen and a couple I've owned).

  • PRO
    5 years ago

    soft close for $2/cabinet


  • 5 years ago

    I'm no pro but I'd say save yourself the time, money and headaches of renovating and just list it now.

  • 5 years ago

    Someone is blowing smoke up your skirt. Probably your realtor. I'm a retired appraiser. You don't need to renovate. The best thing that you can do is get it on the market asap before there are changes in the market environment. It's a seller's market.

    You will need to splurge on a professional cleaner to do a deep clean of grout and a wipe down of the cabinets. You should clean out the closets. Throw away everything you can, get rid of extra furniture, declutter and clean again. Make certain all appliances and mechanical elements of the house are in good working order. If there is a yard, pruning, cutting back, cleaning up the yard and pressure washing the house will get you more money. Leave that kitchen alone. It is fine and looks to be appropriate to your price range. A bowl of bright fruit or some flowers is all that is needed.

  • PRO
    5 years ago

    Remodeling Magazine publishes a Cost vs. Value Report which provides cost information on the cost of and return on a variety of remodeling projects. You can drill down to get cost data for your region and your local market area.


    https://www.remodeling.hw.net/cost-vs-value/2021/

    Kitchens in my market area return between 48 cents to 74 cents on the dollar.


    Remodeling your kitchen will take net money out of your pocket, but it will make your home easier to sell. That will enable your Realtor pocket your commission sooner and move on to their next "deal."

  • 5 years ago

    Here’s what Motle Fool says you’ll get back for the top 10 updates. https://www.millionacres.com/real-estate-market/home-renovations/best-roi-home-improvements/

    Kitchen remodels have about a 70% ROI. New garage doors is #1. Great article if you are getting ready to sell..

  • PRO
    5 years ago

    The Motley Fool article references the Remodeling Magazine Cost Vs. Value Report. If you'll click on the link above you can get data applicable to your specific market.

  • 5 years ago
    last modified: 5 years ago

    The Cost vs. Value report is useless in this situation and shouldn't be relied on. They don't adjust their assumption to this situation... Nor should they as that is not the intent.

    The Cost vs. Value report assumes that a remodel for sale is substantially the same as the average kitchen remodel. It isn't even close. When you are remodeling a kitchen in a home you intend to sell, you make substantially different value and quality decisions. I occasionally flip houses, usually it is one of those times when I was looking for rental properties and it just happens to work better as a flip. In most of the houses I am replacing kitchens and I always get a decent ROI for it even after I pay half the profit in taxes.

    There is no top secret way I get that profit. I start with what I am going to sell it for. I then think of all the things to do that will help me get to that amount and attempt to minimize the cost to accomplish it. That list almost always includes: (1) new paint, (2) new door, window and floor moldings, (3) new or refinished flooring, and (4) new light fixtures and knobs. After those four things kitchen and baths are next and my goal is always to bring them up to the level of the rest of the house.

    I am not moving walls or trying to wow people with kitchens, I am just making sure that the kitchen doesn't destroy the value I created other places. Which is substantially different than kitchen remodels for homes I am actually living in (which is most kitchen remodels and largely the subject of the survey above).

    ETA: BTW for the last 15 years there has been a blueprint for flips (1) dark floors, (2) gray walls, (3) new white molding, (4) white shaker cabinets, (5) red or black front door. I hate gray but I paint every rental and flip gray because people shovel out money for it.

    ETA2: Please note I didn't suggest the OP remodel their kitchen, in fact, I suggested other things to increase the value without remodeling because of the current remodeling situation.

  • 5 years ago

    No way would I take a chance on possibly missing the hot seller's market. In my area, I am seeing an increase in inventory as some landlords are taking the opportunity to cash out. The share of homes that sit long enough for a price reduction is increasing. With the current price increases and supply chain issues, even a limited remodel might end up keeping the house off the market for 2 or 3 months and cost more than you expect.
    Remodeling is time consuming and stressful--and that is when everything goes well. Add in a couple minor disasters and a hidden damage repair or two, and all thoughts of the fabulous result and great sales price will fade away

  • PRO
    5 years ago

    The Cost Vs. Value Report is not intended as a guide for house flipping nor will it be accurate in each situation. Indeed, here's what the authors of the Cost Vs. Value Report say about it:


    "The Cost vs. Value Report provides an accurate snapshot of the national housing market but it cannot be applied accurately to an individual remodeling project for a particular address. Resale value is one factor among many that a homeowner must take into account when making the decision to remodel. At the local level, the best course of action is to obtain construction cost estimates from reputable local remodelers and to talk with an experienced real-state professional about home prices in the neighborhood."


    In the context of a homeowner getting their home ready for sale, the report suggests that projects are not likely to return dollar for dollar. The seller will be well served to carefully consider whether a recommendation to remodel serves their Realtor's interest more than their own.

  • 5 years ago
    last modified: 5 years ago

    The report has a selection bias that a middle schooler can spot. It is a textbook example of a selection bias. So using the report for the OP's question or anyone in the OP's situation is simply fallacious.

    For the report to be useful it would need to separate out people who were remodeling for themselves from people who are remodeling to sell.

    This is actually what I research. I calculate ROI's for projects. Then research why required rates exceed WACC. If I presented a bias like this in my research I wouldn't even have a job. A magazine doesn't have to be free of bias because they are not any type of peer reviewed journal. I am happy to provide you more details on how a selection bias can wildly taint results, or more evidence as to why it has a selection bias.

    ETA: There really isn't this wide chasm between flippers and homeowners. That is just a created fiction that some find useful. The average flipper is a realtor who finds a diamond in the rough every year or two. He doesn't have super special access to trades and isn't getting any volume discount.

    His profit comes from realizing that the average home buyer can't tell the difference between Wood-Mode with a nice countertop and Diamond Now with a nice coutertop. So his decisions are different than the average person hiring a contractor who himself might respond to a survey from a trade magazine.

    ETA 2: since I am on a full blown academic roll here, let's throw a little perverted Modigliani-Miller at this thing and explain why every person thinking of remodeling to sell is a flipper.

    There is really no difference between a homeowner asking the OP's question and a flipper. Your decision not to sell a house until remodeled is fundamentally the same thing as deciding to buy a house to remodel. The decision not to sell your house for $100,000 is the same thing as deciding to buy a house for $100,000. You are $100,000 poorer than you would have been and you have a house. The decision then whether or not to remodel is the same for each. The only difference is taxes.

  • PRO
    5 years ago

    @bry911,

    I can only speak from my personal experience. I've found the Cost Vs. Value Report to provide some useful cost benchmarks for prospective kitchen and bath remodeling clients in my local market over the past five years or so. The fact that a Remodeling Magazine would publish data showing fractional ROIs-- which is not particularly favorable to their readership's business interests-- suggests a reasonable level of credibility.


    If you'd like to dive into the exciting world of statistics and selection bias, I'm sure the folks at Remodeling Magazine can put you in touch with someone who will be glad to accommodate your interest.

  • 5 years ago

    It's been 2 weeks since the OP has visited the thread. I wonder what he/she decided to do?

  • 5 years ago
    last modified: 5 years ago

    "If you'd like to dive into the exciting world of statistics and selection bias, I'm sure the folks at Remodeling Magazine can put you in touch with someone who will be glad to accommodate your interest."

    That is quite literally what I spend most of my time doing. I am not really interested in working for a trade magazine, but if they pay, I'll play.