Property location and home size may play the largest role in determining the value of a house, but consider additional factors that may come into play. Using a free home valuation tool, such as Purplebricks’ “How Much is My House Worth” feature, you can see that particular interior features can enhance a home’s value.
A good example is with kitchen renovations. The aesthetic and functional wants and needs of households are in a state of constant change. Updating a kitchen to meet today’s expectations of style of function can provide a further lift in the valuation of your home.
That said, keep in mind that, much like other improvements to a home, this can be a bit of a double-edged sword. While high-quality renovations can add value, a poorly-executed kitchen renovation can actually decrease your home’s resale sale.
Why Modern Kitchens are in High Demand
For a growing number of households, the kitchen is no longer a place for the preparation of meals, but the heart of the home. This is especially true, for homes featuring modern kitchens. These are homes whose kitchens feature an open layout design, have ample storage and cooking space, and feature up-to-date and high-quality integrated appliances.
In recent years, demand for such modern kitchens has skyrocketed. In fact, many prospective homebuyers would prefer to purchase a house already featuring a modern, updated kitchen. Hence, having such kitchens already built can lead to a relatively-high increase in the value of your home.
Per data compiled by a major purveyor of kitchen design services in the UK, a recently renovated kitchen can add on average an extra 5%-6% to a home’s value. For homes in luxury markets within the UK, the impact of a kitchen renovation can be even more substantial, with a £5,000 to £15,000 kitchen renovation in areas such as Kensington & Chelsea adding upwards of £80,000 in value to a home’s selling price.
The Importance of Not Cutting Corners
Even as luxury kitchen renovations can of course add the highest amount of value to luxury properties, budget renovations for properties in more affordable markets can make a strong impact as well. For homes in regions across the UK, renovations at the lower end, or around £5,000, can add tens of thousands of pounds worth of additional value.
That said, keep in mind that going the budget route has its limits. In other words, cutting corners can cost you on the back end. While there’s nothing wrong with individuals with the necessary knowledge and skills to go the “do it yourself” or “DIY” route with a kitchen renovation, poor craftsmanship and planning can not only fail to result in a renovation that adds value.
Rather, it can lead to a reduction in your home’s resale value. Don’t get us wrong: you can spend too little on a kitchen renovation, spend too much and you risk putting in changes/features that fail to generate even a modest return on investment.
The Bottom Line on Value-Add Kitchen Renovations
For those considering a kitchen renovation prior to a home sale, but lack the upfront capital to make substantial upgrades, consider focusing on superficial upgrades of cabinets and worktops. Such efforts can add value, while at the same time remain cost-effective.
Circling back to the importance of aesthetics, choosing the right colour for your updated kitchen can play a big role in how much your renovation pays off in terms of increased demand and increased selling price. This suggests choosing a neutral colour scheme, in line with current interior design tastes.
For those with the ability to complete a standard or even a luxury renovation, the payoff could be significant relative to the amount of upfront capital required. A renovation in the high four-figure/low five-figure range can add as much as £80,000 in value, depending on your home’s location and the extent of the upgrades/redesign.
