Remodeling a kitchen or bathroom isn't exactly known for being budget-friendly projects. Costs add up quickly, and your home life is interrupted for weeks or months. The good news is it’s worth it if you carefully plan your budget like the pros.
Calculate the ROI
The return of investment (ROI) of your project can help shape your budget goals and keep your expenses in check. The good news is a kitchen remodel can increase the value of your home. For example, a minor kitchen remodel that runs $23,452 will bring $18,206 in resale value, or a 77.6% cost recoup. Depending on whether you want midrange or upscale, your cost recouped will vary.
Don't Go Overboard
You may decide your dream kitchen is worth spending more than 15% of your home's value. There’s nothing wrong with a splurge. However, sparing no expense isn't necessarily the best strategy if you want to recoup your investment. Focus on the upgrades you feel most passionate about, whether new appliances or changing up the layout. The smaller items can wait or may disappear off your list altogether.
Think About the Competition
What are your neighbors and community working on? You don't need to keep up with the Joneses, but if everyone else is upgrading their countertops or appliances, your home won't hold its value against the competition if you're hoping to sell in a few years.
A kitchen remodel or a bathroom upgrade are usually great investments. They can also improve your day-to-day life and increase the value of your home. You'll end up with a dazzling new space that makes you fall in love with your house all over again.