When is Over Spending NOT Overspending?
When is overspending on a kitchen, NOT overspending? Okay, let’s say you have an older home you love, that has lots of land, but your outdated kitchen is a very small U-shape which just isn’t cutting it for you and your significant other when you’re both trying to wield your culinary talents in your tiny kitchen. Let’s face it: butting butts may be fun on the dance floor, but it doesn’t cut it while cooking at dinner hour!
So, you’ve looked at the brand new nearby carriage homes, and oohed and aaahed at their open floor plans and spacious kitchens. But the $450,000 price tag and postage stamp yards kind of kill their appeal. So, you decide to stay put and upgrade your kitchen. Stats from Zillow.com show that a $20,000 investment in your Pennsylvania U-shaped kitchen will yield a $23,000 return on the sale of your house. But a $20,000 investment won’t change the floorplan of your Lilliputian-sized cooking area.
Also, that supposed $23,000 return on your investment presupposes that you are selling in today’s market, whereas, you’ve decided to stay for the next 8-10 years.
Enter Kitchen Solvers with a gorgeous plan to knock out a wall and expand your kitchen into the current dining room space to create an open floor plan that accommodates both cooking and entertaining. You’ll be increasing your countertop and cabinet space by 30% or more and taking full advantage of that view through the sliding doors onto your land.
But, you’re balking at the estimated price tag of $25,000 to $33,000 because you won’t recoup that if you were to resell your house in the current market. But you’re not looking to sell in the current market, are you?! You’re looking to live in and love your home for the next 10 years, by which time your kitchen investment will likely have paid off ten times over in your use and enjoyment of the space.
So, let’s do the math. You sell your home with its significant acreage, currently valued at about $275,000. And you buy a new, open floor plan carriage home for $450,000 … leaving you house poor again with a hefty mortgage, although you swore you’d never find yourself in that position again. Ouch! Oh, and by the way, the view from your new carriage home window is your next door neighbor’s garage, not your lovely slice of land.
Or you could invest $33,000 to transform your U-shaped kitchen and cramped dining room into a beautiful open space, ideal for long, languorous dinners and entertaining. You’re spending roughly $15,000 more than you had planned (easily financed, by the way) as compared to spending a $175,000 more on that nearby carriage home. You do the math!
By the way, Kitchen Solvers’ proprietary kitchen calculator, which relies on statistics from the National Kitchen and Bath Association, indicates that a reasonable budget for a kitchen remodel is 10%-25% of the value of your home. Thus, a reasonable kitchen investment for a home valued at $275,000 would be $27,500 – $68,750. Your estimated $33,000 do-over is well within that investment range.
So, some things to consider when you think you might be overspending. First, do you plan to move or stay put? Second, what was your initial budget for a kitchen remodel, and how does that compare to spending for a new, dramatically different floorplan? Third, what will be your net increase is work area, storage space, and square footage?
All things considered, you might want to spend more to “buy” your old home anew by tweaking it to showcase the kitchen and dining area of your dreams. Rest assured, you will reap your rewards many times over in your personal use and enjoyment and in your re-sale value ten years down the road. Otherwise stated, when it comes to your kitchen, don’t sell yourself short! Instead, invest in your needs, wants, and life style and worry about re-sale value many years down the road.
Please feel free to give us a call if we can give you a hand with your kitchen remodeling plans, 610-647-4439, and please Like! our Facebook page. Kitchen Solvers of West Chester would love to bring you our Pleasant Remodeling Experience!