Home Prices Rise and Kitchen Remodeling Becomes a Smart Investment Again

1. Central air conditioning
2. New kitchen appliances
3. A Walk-in Closet in the Master Bedroom
4. Granite Countertops
5. Hardwood Floors
6. Ensuite master bathroom
7. Kitchen Island
8. Stainless Steel Appliances
9. Eat-in Kitchen
10. One or more fireplaces

Many homeowners were understandably reluctant to invest in home remodeling during the recent economic crisis. However, as the demand for existing homes rebounds and prices increase due to low inventory, the investment in home remodeling begins to make far more sense. In fact, remodeling increased by 12 percent in April alone. Of those remodeling in April, 54 percent said their reason for remodeling was to increase the value of their homes. With half of the top features buyers want in homes related to kitchen amenities and features, the first room of the house to consider remodeling must be the kitchen. According to Forbes, the average cost of kitchen remodeling is: Low budget remodel $7,133 Mid-range remodel $22,390 High-end remodel $54,942
A more important question for many homeowners is how a kitchen remodel will affect the price of the home at resale. According to the remodeling industry, the cost vs. value assessment looks like this: Major kitchen remodel Cost: $53,931 Resale Value: $37,139 Recouping 69% of cost Minor kitchen remodel Cost: $18,527 Resale Value: $13,977 Recouping 75% of costHGTV estimates the impact on resale value of the home slightly higher at 80 – 105 percent of cost.
In terms of remodeling an existing space, the kitchen is typically the most expensive room of the house to upgrade. Enlarging the space adds further cost. What makes kitchen remodeling so expensive? In most cases, cabinetry and appliances account for more than half of the cost. Kitchen remodeling costs (on average) break down this way:

• 35% Cabinets
• 20% Labor
• 20% Appliances
• 10% Windows
• 5% Fixtures
• 3% Fittings
• 7% Other
  

Cabinets, as the largest portion of the kitchen remodel cost, are significant: High-end Kitchen Remodel cost $54,942 (average) x 35% = $19,229.70
Mid-range kitchen remodel cost $22,390 (average) x 35% = $ 7,836.50
Low budget kitchen remodel cost $ 7,133 (average) x 35% = $ 2,396.55
There are, of course, several grades of materials and workmanship in kitchen cabinets. There are also several ways to buy kitchen cabinets, including the pre-manufactured modular units now offered by some companies. Your choices will be limited, and units will come in “standard” sizes.
There is another way to buy high quality cabinets, get exactly what you want, and get custom sizes and features. What is more, they can be installed in your kitchen, with granite countertops, for as much as 60 percent less than the cost of the custom cabinets you might want. The process, called customization, takes high quality cabinets in standard sizes and a cabinetmaker resizes them to specification. They can also be fitted with organizational inserts, customized for refrigerated drawers, and used to create unique units for special items.
Home prices are rising, making kitchen remodeling a very smart investment for those thinking about selling in a year or two. With cabinet customization, you can have kitchen cabinets of higher value for lower cost, thus increasing the percentage of your investment you can recoup when you sell your home. You can increase the value of your home and increase the amount of the remodeling cost you will recoup when you sell your home.