Kitchen Renovations by Budget: How to Get Your Money’s Worth
The kitchen is one of the most popular rooms people choose to remodel, and it can be a costly endeavor. In terms of dollars and cents, the average kitchen remodel runs about $18,500, making it important to know what you’ll be getting for your money. Before you start picking out cabinets and tiles, the first thing you need to consider is budget.
Many people suggest that you use your home’s current value to help determine the budget for your new kitchen. Based on that, you want to try and keep the kitchen within 15 percent of the market value of your house. Viola Park, a kitchen design company, explains how this works. The guideline given, which many remodelers use, is the 5 to 15 percent rule. If the entire project is less than 5 percent of your home’s value, you run the risk of devaluing your kitchen; anything over 15 percent could result in you overspending, and not gaining any return on investment when you sell your home later. Nationally, the average budget is about 8 percent of the home’s market value.
During the budget setting process, another factor to consider is how that budget will breakdown. HGTV outlined the National Kitchen Bath Association’s summary of how people spend their money during a kitchen renovation when professionals are involved. About one-third, 29 percent, is spent on cabinetry, and 17 percent goes toward installation. Appliances and ventilation take up 14 percent, while another 10 percent of the budget is for countertops. Flooring comes in around 7 percent, while lighting and walls and ceiling costs are 5 percent, respectively. Design fees, faucets and plumbing, and doors and windows all took up 4 percent.