If you are keeping the white appliances, I would go with white cabinets, gray countertop and small subway backsplash, and extend the wood floor to the kitchen If the space allows for stools, then go for the breakfast bar. Also, I'd keep the colors lighter since it's a smallish kitchen.

I would replace the white appliances with black or stainless steel. You can then sell the existing appliances and increase your budget by the amount you receive. Nothing too fancy on the appliances, you can normally get a package deal from a big box store for a decent price ($3000). Then if you can, replace the countertop (I am sure solid surface/granite) is what most people would prefer, but a high-def laminate would work too, replace the sink and faucet (more of a higher gooseneck style), the cabinet hardware, and if any funds are still available, update the flooring. Most people prefer tile (if you install will reduce the cost) but at least a darker vinyl that has the look of tile. Good luck and make sure you post pictures of the finished product!

Oh, and if there is enough room above the oven (check what your building code says) I would try and add a built-in microwave.

The counter seating idea is a good one. Very popular now. I'm an interior decorator, and when I look at your photo, the first thing I would change is the fridge and stove. Shop for something affordable in stainless steel, the darling of the moment. Buyers are looking for this. Update your faucet to a newer pullout style, maybe in a nickel finish.
It isn't necessary to match your cabinets to the wood of your floors. Your kitchen needs drama. It is too safe, not memorable.
Cabinets are very pricey, but paint is relatively cheap.
Consider having your doors professionally spray painted,unless you have a sprayer, and experience using it. You could carefully paint the cabinet frame yourself. Off white would brighten the area. New cabinet hardware, like jewellery, adds sparkle. Ikea has very reasonably priced pulls and knobs.
Add a glass or ceramic backsplash. Mosaictraders.com
has good prices on mesh-mounted glass tiles. Very 'in'.
Black is really up and coming now.
The counter can really eat up your budget. There are nice new laminates which can give you a dramatic look.
You can keep the wall color flowing from the kitchen into the adjoining room, but make sure it is freshened up.
Update your ceiling fixture.
Finally, accessorize sparingly, but dramatically. No row of appliances and knicknacks on the counter. You want your room to appear large, not cluttered. And good luck!

I think stainless appliances would make a huge difference. Especially if you plan to sell soon. Buyers want stainless.

I wouldn't paint the cabinets. Instead I would degrease and polish them til they shine. Add some color to the walls and a beautiful backsplash. Perhaps stainless appliances for resale, although I have to admit I don't care for them. A new buyer might, tho.

I just want to reiterate putting in wood floors into the kitchen, continuing from the connecting family room. I think that would also make a huge difference. Given your budget, I would change the floor to wood, and see how much $$ is left over. I doubt you will have enough to change the appliances to stainless if you do the floors. I'd change the floors, not the appliances, if I had to choose between the two. Just my 2 cents. :)

The wooden floors in the rest of the house are beautiful. To get a "match" you will be spending well over your budget. You would have to find a "plank width" match as well as a species match. Then you would have to have them treated (stained/clear coated) to the same sheen level as your other floors. This is a "never will you get them to match method" but it is the least costly.

To achieve a real match, you would need to sand down the old finish of your existing wood floors, install the new matching wood floors and then refinish them all with the same product. This is where you will eat up your $5000 budget.

An updated floor is needed - I'll grant you that. I would say you can update your cabinetry first (paint/resurface) and see what you have left over. A floor is easy to add/subtract. The "worth" is in the kitchen itself.

A cork floating floor = $2.17 - $3.99/sf for any colour from "ground up cork" to white planked flooring. A floating floor can be installed right overtop the lino/vinyl you have. If it is truly a laminate floor, I would pull the floor (should be easy enough) and reinstall a cork floor in it's place. Cork is considered a "luxury" floor covering and the resale value in a home is quite high/very good.

How about painting the bottom cabs a dark gray and either leaving the uppers stained wood, or paint them white?
Like the cork floor idea above....that way you could match the color to your existing wooden floors without having to match them exactly. It would just be another texture. Or you can always just use ceramic tile in the kitchen. It's usually not terribly expensive, but looks good.
If you can get stainless steel appliances that would be a good upsale investment.
Also some pendant lighting above the sink area would look nice.

Mpoulsom's got a great idea!
[houzz=]

example of dark gray on bottom and white on top.....backsplash is simple but nice and generic in color for future owners.
And you could replace some of the upper cab doors with glass. :)

nice charleeeeeeeee! ;)

If you don't want HW, that's fine, but if you do, I wouldn't rule HW out just yet. There are many ways to install HW floors that match, without having to go through the process Cancork described above, as I have done it in my own house without going through that trouble, in a much larger area, and for less than 5k. And I don't live in a low cost of living area either.

The best way to know if it's a viable option is to go to a local flooring store or two and talk to them about pricing and products that would "match". Nothing will be a perfect match given the wear on your other floors unless you sand and restain the current wood, but you can probably still get a very close HW in your kitchen if that's what you'd like.

Is "eventually" in five or more years? Or in less than a year or two? There's a difference between making changes you will enjoy for several years and changes you make when your house will go on the market soon.

@ apple..ideally our home will be listed within two years.

Don't put a lot of money into it. Talk to several realtors and/or stagers to see where you can get the most bang for your buck.

I think that what you do with the kitchen will have a lot to do with your asking price for the home, your target buyer and what other work needs to be done in your house, if any. Your agent should be able to give you some good pointers. And, look at comparable listings in your area to see what you are up against. When people come into your home, they have to be able to imagine themselves living there. Anything too dramatic and you could end up alienating potential buyers.

My personal recommendation would be to paint the cupboards white, do a solid surface counter with an undermounted sink, tile backsplash, do the pendants and new fixture (great idea!) and perhaps offer an appliance credit. And update the floors.

I've attached a cream coloured kitchen as a suggested colour for the cabinets. I like the monochromatic colours in the room. @ Julia - I really like the idea of adding pendant lighting and under mount sink. Would I go with a lighter or darker colour on the floor? and would the backsplash follow the same tone as the floor?

Thanks again everyone for all the suggestions. I will post pictures of my progress along the way.

I think the color of the floor depends on the type of material you use. As for the back splash, you'll want to make sure it complements the countertop. The photo of the kitchen you posted is a great example of a simple and neutral kitchen that would appeal to a lot of people. However, it looks like the colors in your home are cooler (white & gray), so I recommend choosing similar colors for the kitchen.

Grab some samples, bring them home and see how they look in your light. And, post for us, too! We are happy to provide input. Good luck!

We recently bought a used stove on craigslist. I was surprised when I saw how much used ones were both there and at the used appliance stores. So I think you could sell the white appliances and get enough that changing to stainless would be really inexpensive. Think I priced stainless stove and refrigerator at Lowes for just about above a thousand, so with the money for the used appliances, it wouldn't cost much. For the most part once you get stainless, you don't have to get expensive ones, especially if it's not a high end house (then Viking and Sub-zero would probably make the grade). Think painting the cabinets white/off white would be great, granite countertops have really come down a lot. In Florida, strong preference for stone (granite, travertine) or porcelain tiles for kitchens floors. I find the ubiquitous preference for stainless appliances and granite to be a bit annoying (almost universally given heads up on HGTV's House Hunters), but that is the marketplace. Can't imagine costing more than 5000 especially if you do some of the work-it is a fairly small space.

a color similar to the hardwood would be an excellent choice for tile, laminate or vinyl, depending on your area and price point for resale. in the lower price range, a purchaser will often 'gut' the kitchen and the wood will need to be repaired/replaced to suit a new floorplan anyhow.

the similar color choice also says "i chose" the function of this finish over the hardwood.

you have great ideas: lowering the ponywall to below counter height and extending the counter outward will give you huge 'bang for the buck' and pull the kitchen out of the 80s.

granite is a less expensive yet very desirable choice for counters and the reflected light will make the space appear much larger. use a subtle pattern so as not to overwhelm the open area and create future design dilemmas.

if you are considering new STAINLESS appliances: varathane offers a varnish/stain in ebony that works beautifully on these older, dated cabinets. i would suggest using it for the lower cabinets as it covers bangs and chips from wear better than a painted finish, if well prepped. have your upper doors factory sprayed in white. this gives you the option of leaving white appliances behind or taking them with you, depending on your negotiations. the stainless gives 'bling' to the kitchen which is currently missing as does a new granite counter.

from experience: narrow your backsplash choices BEFORE starting the finishes selection, unless you are going with a basic white subway. the splash is a vertical surface that can visually add way more impact than any other finish. and if you fall in love with one after you've ordered the counters.....uh-oh.

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