An updated kitchen or bathroom can make a huge difference in everyday life. When the layout of the kitchen is functionally efficient, the finishes are aesthetically pleasing and the overall space is inviting - the entire feeling of a home can change. When renovating, we usually hear that kitchens and bathrooms are worth the investment to update as well. We asked 3 local real estate experts to explain how those renovations can impact a home’s value and are excited to share their thoughts here.
Nikki Peterselli - Baird & Warner: I can't speak to the added amount or percentage that these renovations give - there are always individual circumstances with each listing (location being top, but also neighborhood and current comps + market)-- but I wholeheartedly agree that they're the biggest two renovations that homeowners should consider. And really for two reasons: these renovations or additions will add tremendous value to them as the current owners and enable them to fully enjoy their space, which is what homeownership should be all about. And two, when it is time to list, buyers want those two big ticket items already done and it's oftentimes the kitchen photos that buyers fall in love with prior to even stepping foot in the listing.
Farrell Turner - Griffin Harvey Group of Compass Real Estate: Typically clad in glossy tile and shiny metal, kitchens and baths can be the literal shining stars of a home. These two areas showcase modern functionality and convey a sense of what it will be like to live in the home. Most importantly in terms of investment, the market is typically willing to pay more for "turn-key" homes to save the time and hassle of having to do the work themselves. That said, while kitchen and bath renovations can have a great return on investment (ROI), I would caution anyone looking primarily at ROI as justification for doing an upscale renovation. Honestly, this is where your designer, architect, builder, and real estate agent can help you the most. If a strong ROI is a high priority, I urge you to have your real estate agent run a comparative analysis for you so that you can assess the value of other homes in the neighborhood based on their updates and finishes. Again, the numbers may not make or break the decision to renovate, but I am always going to advise my clients to get all the information they can and go in with their eyes wide open. As my grandmother always said - get all the opinions you can and then do what you want!
Steph Neiss - McCarthy Schwager Group: I would agree! Think about where you spend your time with family and friends. It does not matter the size of the kitchen, but that is where the action is and that is where people always congregate.
Renovating these rooms can also be an inconvenience the homeowner due to displacement for sometimes several months, and can carry a higher price tag which deters homeowners from updating or waiting to complete the updates. To have those specific rooms modernized and in no need of update is very helpful is selling a home quickly.
See more on our series asking realtors our most commonly heard questions HERE.
For other real estate questions, please feel free to reach out to Farrell, Steph, Nikki or your preferred realtor.