Updating your kitchen is one of the best ways to increase the value of your home. To make it the wisest investment possible, it’s important start with a realistic budget. The National Kitchen and Bath Association has done some of the mathematical legwork for you. Here is their advice for determining how much money you should invest in a kitchen remodel to get the most out of it for both your family’s enjoyment and for resale value in the future.
Begin with the 5% to 15% Rule
This rule is widely acknowledged in the industry, and is based on the value of your home. You should spend no less than 5% of your home’s value, and no more than 15% on a kitchen renovation. If you spend less than 5%, you risk devaluing your home. If you spend more than 15%, it’s a good bet you won’t fully recoup your investment.
Another factor to consider is just how much prominence your kitchen plays in your home. For instance, if it’s a large space that is a focal point of an open floor plan, you’ll want to spend more on design accents and other extras than if you have a galley-style kitchen.
Budget for each element
Once you have a handle on what you can afford, and what your top and bottom dollar should be based on your home’s value, you’ll want to determine how much you should spend on each individual element of your renovation. According to the National Kitchen and Bath Association, here are some estimated figures on how homeowners normally allocate their budget when using professional services:
Cabinetry – 30%
Appliances – 14%
Countertops – 10%
Lighting and plumbing – 9%
Flooring – 7%
Tiles and paint – 6%
The rest of your budget will go towards labor – from demolition, to installation and disposal of old materials. Your kitchen remodeling company can be of great help as you develop your budget, as well as the kitchen layout and visualization tools they offer.
Your budget is set – now comes the fun part! Dreaming up your ideal, updated kitchen!