Remodeling your kitchen can make planning and cooking meals in your home much easier and enjoyable. Of course, it can also increase the value of your home. If you are like most people, you do have a budget and it must be considered when remodeling your kitchen. So, how much is too much money to spend on a kitchen remodel? There are two major issues pertaining to this question. First, what do your finances look like? Second, how much will it add to the value and comfort of your home?
Setting the Budget
You certainly need to set a budget and stick to it. The number you come up with will, again, have to do with what you can afford. However, it helps to have a few guidelines. There are many guidelines out there, and they generally are based upon a percentage of the value of the home. The most common answer you will find is to spend 10 percent of the value of your home on remodeling your kitchen. There is also the consideration of how long you plan to stay in your current home. If intend to stay more than 5 years, you are making the renovations more for the usage and enjoyment; if less than 5 years, the renovations are an investment toward selling your home. This may affect how much you decide to spend.
Adding Value to Your Home
If you aren’t already set on the idea of remodeling your kitchen, then consider the value it can add to your home. Of course, each situation is different, but the average rate of return on the money spent to remodel a kitchen is about 86 percent. This means for every dollar you spend to remodel, you’ll get 86 cents back when you sell your home. Add to that the usage and enjoyment you get out of it over the years and it more than pays for itself. Also, while adding value it can also be a selling point for those house hunters, making it much easier to sell your home when the time comes.
Compare to Prices in Your Area
To decide on how much to spend, you will need to do a fairly simple calculation of relative value. Divide the cost of the kitchen remodel by the square footage of the kitchen. Then compare that number to price per square foot of the recently sold, comparable homes in your neighborhood. For example, if you are thinking of spending $50,000 to remodel your 350 square foot kitchen, you get $142.86 per square foot. If comparable homes in your neighborhood have recently sold for a similar price per square foot, then you have numbers backing up your decision.
How to Spend the Money
When remodeling your kitchen there are tons of choices to be made about how to proceed, and what items to spend the most money on. When should you go for quality and when go for affordability? It is a good idea to spend more on higher quality for the items you have no desire to have to replace again—the big items. Countertops, appliances, flooring and cabinets are where you want to focus your money. On the smaller items such as interior fittings and moldings, you can go cheaper as they are not as essential and are often times hidden. The small items, especially in a large kitchen can quickly add up, so there does exist an opportunity to save.
Don’t Forget About Your Comfort
It is easy to get caught up in the finances of remodeling your kitchen. If you start to feel the stress and can’t decide on exactly what to do, think about how you will feel in your new kitchen. There is much to be said for the comfort and enjoyment you will get out of your kitchen remodel. While it is not something you can put a price tag on, it should carry considerable weight in your decision. If you feel you will be living in your home for at least another 5 years, think about the enjoyment you will get out of your newly renovated kitchen in that time period. Have fun with it, but be cost-conscious at the same time. You will have the kitchen you want and not be saddled with too much debt.