Should we upgrade our kitchen?

[LisaR]

Our house is 6 years old in a subdivision with 200 other homes. There are only three styles of homes in our neighborhood. The people that built our house put in the cheapest cabinets and Formica countertops. It just doesn't look like something you would find in a newer home. I have been in at least a dozen homes in our neighborhood and they all have much nicer kitchens.

BIL could redo our kitchen and both bathrooms for about $8000 with custom cabinets and granite countertops. We had a real estate agent over who said she wouldn't waste the money. When we sell, we can just reduce the house $10,000 or so to make up for the kitchen. Do you agree?

I know about the other important things when selling a house. Our house is far from cluttered, it is very clean and has great curp appeal. I make sure the paint is touched up before we list our home. Also, this house will end up with a new roof and exterior paint job in the next year or two. We are not anticipating getting transferred for another three years. So, would the kitchen make a big difference to you?

 

[Lisa loves Pooh]

Upgrade the kitchen if that is what you want. However, if you know the exterior will needs sprucing up---make sure you have the money for that before worrying about the upgrade though.

Noone will buy a home where the roof needs replacing off the bat unless an allowance (not a reduced price) is included in the home sale. At least we wouldn't--we wouldn't have the $$$$$ to do that on top of paying all the costs with acquiring the home. Curb appeal is the first draw--and then for me....size of the living space--and the magical kitchen are tied for me for second draw.

As long as the kitchen is nice and sizable--the home will still sell. The only thing that could make it difficult to sell is if the list price is not to different from a home with a kitchen with all the bells and whistles. If the difference isn't too great for two very similar homes--I'd be drawn to the dream kitchen home--b/c then that is a remodel that I do not have to worry about.

If you have all your finances covered and can swing it--an upgraded kitchen might make it easier to sell your home. So I kind of disagree with the realtor. It is one of the higher rates of return. Heck---based on what the realtor said--you are already making $2K on the refurb--but I suspect the real ROR would be higher.

 

[Lisa loves Pooh]

Project Job Cost Resale Value Cost Recouped National Average
Major kitchen remodel $42,118 $46,667 111% 67%
Upscale kitchen remodel 69,139 93,333 135% 80%
Minor kitchen remodel 14,643 17,500 120% 88%
Bathroom addition 14,039 23,333 166% 94%
Upscale bathroom addition 37,687 46,667 124% 81%
Bathroom remodel 8,976 8,667 97% 88%
Upscale bathroom remodel 21,650 28,333 131% 91%
Two-story addition 65,660 116,667 177% 94%
Family-room addition 47,884 65,000 136% 79%
Master suite 64,467 80,000 124% 75%
Upscale master suite 127,064 158,333 125% 77%
Basement remodel 40,133 47,667 119% 79%
Attic bedroom 30,122 32,500 108% 74%
Window replacement 9,018 8,000 89% 74%
Upscale window replacement 15,109 14,667 97% 77%
Siding replacement 6,238 6,000 96% 79%
Roof replacement 10,560 7,667 73% 67%
Deck addition 5,879 6,500 111% 77%
Home office 10,284 9,375 91% 55%

And according to an article I found--your kitchen remodel would be much more valuable than a roof replacement.

http://www.washingtonian.com/etc/shopping/homeremodeling_costvalue.html

First percent is Washington DC and second percent is the national average.

 

[golfgal]

Kitchens and bathrooms sell a house no matter where you live. If you can get custom kitchen and bath cabinets for $8000 with granite, DO IT. That is an UNBELIEVABLY low price. Most kitchen remodels will run $25,000+. You will come out WAY ahead if you do the work now for that price. Heck, even just using your Realtors numbers, you will come out $2000 ahead of the game. If I could get someone in to do my kitchen alone for new cabinets and granite for $8000 I would have them in tomorrow to start.

 

[Barb D]

So you're going to be in this house for 3 more years? If you really don't like your kitchen, you'd get three years of enjoyment out of a new one. That's got to be worth something. And it's not like you're going to wear out granite countertops in three years. But formica countertops could get really cruddy looking in that time.

 

[Mishetta]

Your house is 6 years old & you need to replace your roof already? How long is the warranty on the roof?

Our home is 10 years old & we just added granite to our kitchen, powder room & master bedroom bath. We spent $5000 on that alone. So if you're getting a whole new kitchen for $8000, seems like a really good deal! I would say, if you're doing the upgrading for you to enjoy & for some hopeful good return, then go for it. If you're just doing it for selling purposes, I wouldn't go thru all the aggravation affiliated with a remodel. Especially when it's the kitchen (the brain of the house as I call it!) Just having our kitchen counters replaced with granite was quite stressful for us due to all the problems we encountered.

I would rather take a slight loss on the house than live thru a remodel just for selling purposes. Of course, that's just my 2 cents. Of course, my answer would be quite different if the house was very outdated but at 6 years old, it can't be outdated looking.

Good luck on whatever you decide & happy house selling!

 

[LisaR]

Your house is 6 years old & you need to replace your roof already? How long is the warranty on the roof?

Thanks for all of the responses. We did a major remodel of our kitchen at our last house. It was so beautiful and within months we were transferred. I never got to really enjoy it and then we moved into a newer house with an ugly kitchen. I think we will easily recoup the money plus I want a nice kitchen! I just didn't believe the real estate agent and she was highly recommended by quite a few people.

Mishetta,
I should have stated that we will need to re-shingle, not re-roof.
I lived in MI for 38 years so I understand your questioning of the new roof. They apparently last much longer up north then they do in FL. Again, the guy that built this house used the cheapest materials he could get so the shingles are not the greatest. The sun, wind, rain and hurricanes have really faded the shingles and the paint. We may get away with not re-shingling before we move but we will need to paint for sure.

I should add that BIL owns a cabinet company plus we will get the granite for jis cost. In our last house, we had a small kitchen but it looked beautiful when it was done. It cost $3000! This house has a huge kitchen plus the two bathrooms that we would do as well.

 

[Lisa loves Pooh]

Yep--those 25 year warranty roofs are meaningless in Florida. We had our's reshingled (down to the plywood as two layers were already on) in 1999 after Floyd. Amazing--that sucker didn't hit and we lose shingles--then we lose some on some 'cane that took a detour and came through and I had no idea. All of a sudden--we need a new roof (shingles only). Fast foward to 2004--not a single shingle lost despite two direct hits....but the shingles are showing their wear and tear and they are only 7 years old.


LisaR--I would definitely do it. For $8K and you get granite....in Florida--people like the luxury kitchens and it is pretty swanky to have granite.

now--if your brother could just swing over to Melbourne and hook me up .

 

[LisaR]

now--if your brother could just swing over to Melbourne and hook me up .

We live in Melbourne too but my BIL is only nice to us! Years ago, my DH helped BIL gut and remodel his barn and historic home. He still owes us!

 

[Mercy]

You don't say how long you plan to stay in this house, or maybe you don't know due to the possibility of being transferred again. However, I would definitely do the upgrade for what you're talking ($8,000). First, it would certainly help you to sell your house if that time comes. Your house would stand out above the others in your neighborhood.

Second, you will be able to enjoy the kitchen now while you are living there. We just remodeled our kitchen last year, and I know if I had to move to a house that had a less then desireable kitchen I would be very disappointed.

If you can do the kitchen/bath for around $8,000, I think it's a win/win situation.

 

[dg39]

We're in the final stages of our kitchen remodel. Besides the expense, aggrivation and stress, it was all worthwhile. That being said, if we had to move I would never in a million years buy a house where I had to do a kitchen remodel. Too much work and stress. I would rather buy a house where a roof is needed to be re-done then a kitchen. Its much, much cheaper to replace a roof.

 

[mrsltg]

I'm a big fan of a remodeling the kitchen, BUT - the kitchen is the first thing I notice in someone's home. It's also the room that gets the most "action" in my house. When we bought our home the kitchen was my splurge. I don't have granite countertops - YET! From everything I've heard you get your money back on a kitchen remodel on the resell. The $8k pricetag is phenomeonal! What a great bil you have!

 

[golfgal]

Another thing, even if you get transferred the day after the kitchen is done, at that price you are going to MAKE money on the deal. I wish my BIL owned a cabinet store!

 

[sajetto]

I say what you were quoted was a steal and you should jump on it. If you're going to be there the next three years you should get some enjoyment out of that kitchen while also adding resale value to the home.

 

[bananiem]

We had a real estate agent over who said she wouldn't waste the money. When we sell, we can just reduce the house $10,000 or so to make up for the kitchen. Do you agree?

I don't know what the market is like in your area but perhaps the realtor sees what we see up here. One house in a neighborhood will have the upgrads and ends up sitting on the market for months because it is priced much higher and "worth" so much more than other houses in the neighborhood. If others in the neighborhood are also doing upgrades then it evens out.
Around here there are plenty of houses on the market so people tend to go for a less expensive house in a higher priced neighborhood, rather than the highest priced house in a lower-priced neighborhood. Could that be what the realtor meant?

 

[golfgal]

I don't know what the market is like in your area but perhaps the realtor sees what we see up here. One house in a neighborhood will have the upgrads and ends up sitting on the market for months because it is priced much higher and "worth" so much more than other houses in the neighborhood. If others in the neighborhood are also doing upgrades then it evens out.
Around here there are plenty of houses on the market so people tend to go for a less expensive house in a higher priced neighborhood, rather than the highest priced house in a lower-priced neighborhood. Could that be what the realtor meant?

That is very true but with the price she is paying for her kitchen, she could still price the house less then those with similar upgrades and come out ahead. Does your realtor know how little you are paying for your kitchen upgrade? I wonder if she gave her advice based on the assumption that your upgrade would cost you $30,000 or more.

 

[Am_I_There_Yet]

To me it depends on how long you plan to be in the house and where you live.

We upgraded mine to compete with other homes in my neighborhood. (I'm a realtor.) When it comes time to sell, I need it to sell fast. Plus that, I knew that best case, we were going to be here another two years; I want to enjoy my kitchen while I'm here.

We are in a huge buyer's market and the competition is fierce. Here, you have to compete, or the potential buyer will go down the street to buy the other one.

For the most part, people don't want to move in and do major remodeling if they don't have to. And they don't have to, when there are 20 homes in each subdivision for them to choose from.

 

[diznygirl]

I agree that when people are looking to buy a home, they want it to be as "done" as possible. Even if you give a discount for the kitchen, buyers still might not want the house cuz they don't want to actually have to do the work.

Plus, if you get it now you can enjoy it for awhile. And what if there is no transfer in three years? Do it!!!

 

[C.Ann]

I'm inclined to say do it too - but I have to ask, how are you going to finance it? That would be a big deciding factor if it were me..