How much to spend on your kitchen remodel

Cash can flow like the Niagara Falls when you are thinking about a kitchen remodel.

It may be an age-old adage, but the saying “Kitchens and baths will sell your home” has never rang truer than it does today. 

These areas of the home can be a big undertaking and they can also be very expensive, but they also offer the potential for the greatest return on investment when it comes time to sell your home. Follow the guidelines below to strike the perfect balance of investment – in terms of both your money and your time!

Know your “end-user”.
If you are planning on selling your house within a short period of time, you can and should look at your renovation as a real estate investment. If you’re remodeling to sell, you’ll need to carefully analyze trends and styles that would appeal to your desired buyer. If, on the other hand, you will be living in your home for another 5-10 years, the remodel becomes more personal and should be undertaken to suit your unique lifestyle.

Spy on your neighbors.
Not literally of course, but know your market. If your home is already at the top of the market in your neighborhood, then you should not put top-dollar into the remodel as a large investment will likely be lost at resale. If there is, however, room for improvements because your home is at the low end of the real estate market near you, you can make significant improvements (and investments) and be confident that you’ll re-gain most of what you spend and often times, more.

Watch the listings near you.
One great thing about the internet is you can take a tour of most homes without ever stepping foot in them--through pictures. If other homeowners in your area haven’t splurged on quartz or granite, follow their lead.

Set your budget
Once you’ve accomplished the first three tips, set your budget!

Most experts agree that you should spend 5-15% of your home’s value on your kitchen remodel. Take into account what you’ve learned from the above, and then be sure to add a 20% financial “buffer” for unanticipated challenges.

Save some cash
You’ve set your budget and chosen your style. If you’re remodeling for resale, there are ways to save while getting the look of a pricier remodel. From doing your own demolition to substituting affordable materials for more expensive versions, there are many ways to spend less on your remodel.