Whipping Up Resale Value with a Kitchen Remodel

To maximize the resale value of your home, choose wisely where to invest in luxury upgrades in the kitchen. This luxe design by Studio Steidley uses high-quality finishes and appliances, but still feels approachable for the average homebuyer.

By Scott Wilkinson

Scott Wilkinson is a licensed real estate professional and the owner of Uptown Dallas Properties, a leasing and property management firm founded in 2013. Studio Steidley is excited to have Scott write for us as a guest blogger. Visit www.UptownDallasProperties.com for more information.

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There’s a rumor going around Dallas that remodeling your kitchen will raise your home’s resale value.

As a real estate expert, I can confirm that the rumor is true. As we say at Uptown Dallas Properties, it often ranks high on most buyers' wish lists and offers a lucrative cost-to-value ratio for the owner. When you couple it with revamps on other household hotspots like bathrooms, windows or roofs, your ROI will likely rise.

But there isn’t a guarantee that remodeling will boost your value — especially if you do it yourself. Kitchen renovations are expensive and splurging on the wrong things can mean you’ll lose money. Unless you hire an interior designer, who knows where to invest your renovation dollars, a few innocent DIY mistakes can turn your flip into a flop.

How to Increase Your Home's Value through Kitchen Remodeling

Here are my top tips, from a realtor’s perspective, to avoid these reno no-no’s and ensure your kitchen remodeling project is a moneymaker.

AVOIDING RAISING THE HOME VALUE TOO MUCH

It’s exciting to think that a remodel could boost the resale value of your home, but you have to be thoughtful about the design. There’s no guarantee that you’ll get your investment back when you sell the house. To ensure you do, I say: keep it simple.

As designers like Staci Steidley will tell you, you may not have the same taste as the buyers. Keeping paint colors neutral and choosing durable finishes that will hold up against any family’s wear and tear are two ways to embody simplicity.

The more you remodel, the more you can resell your home for. But it has to align with other home values in your neighborhood. When that happens, it’s difficult to attract potential buyers and eventually your massive investment may become less rewarding.

This kitchen remodel by Studio Steidley is the perfect example of simple-yet-chic design. The pale countertops and stainless-steel appliances immediately tell buyers that this kitchen has been updated recently and leaves plenty of room for the new owner to add their personality.

SET ASIDE RESERVES

Budgeting can be a daunting task — especially because kitchen renovation costs are not always constant. As you prepare your budget, you have to ensure there’s some cash set aside for unexpected or miscellaneous expenses.

Failure to establish a reserve fund exposes you to two unfortunate scenarios: you'll either have to dig deeper into your pocket to cover the extra costs or abandon the project mid-way. Neither option is a winner. And, if you choose the latter, it’ll likely have a negative effect on your home's overall value.

REMODELING WITHIN REASON

Everyone wants to live like the “other half” amongst luxury and with exquisite taste, but many buyers don’t want to pay for that luxury. Unless you live in a high-end neighborhood, lavish upgrades won’t impress your buyers as much as they impress you.

Buyers looking for homes in low- or mid-range neighborhoods often have specific wants and are convinced they’ll find a home that falls within their price range. A luxuriously remodeled kitchen won’t necessarily mean that they’ll be willing to accept a price directly proportionate to your investment.

If you live in a high-end neighborhood, like many here in Dallas, I have the opposite advice: don’t be afraid to add in more luxurious finishes and materials to your kitchen renovation. This is exactly what buyers are looking for in some of the more upscale neighborhoods such as Preston Hollow, Highland Park and other Park Cities. In fact, buyers will expect luxury in these neighborhoods and if you don’t pay for higher-end finishes that match the neighboring homes, that could turn away potential buyers.

This ultra-luxe kitchen has all of the bells and whistles any high-end homebuyer would expect, like a hand-laid tile backsplash, custom cabinetry, and professional-grade appliances. Design by Studio Steidley.

SYNC YOUR UPGRADES THROUGHOUT THE HOME

A beautiful kitchen may be on a buyer’s wish list, but that’s not where it ends. Other rooms will also contribute to its value, and buyers will want to see updates throughout the home.

I caution you against remodeling just one room because it takes away the aspect of uniformity.

For example, a remodeled kitchen in a house with 20-year-old bathroom tiles and rusty faucets can portray an inconsistent image. Instead of seeing your kitchen as a gem, this will likely draw your buyer’s attention to the eyesores of the home. This affects value, too.

As a result, I recommend remodeling your kitchen in conjunction with other spaces — even if your budget for other rooms is limited to swapping fixtures and new paint. If you’re looking to upgrade your entire home’s interiors, you may want to hire a designer who can help you create a beautiful and consistent look throughout and help you stay in budget. For example, Studio Steidley specializes in full home design and remodel projects and can help transform your space in a way that will attract a host of prospective home buyers.

When updating your home, make sure the kitchen isn’t the only room getting a makeover. It’s wise to update the master bathroom and the kitchen at the same time because both projects involve the same craftspeople, and both can drastically impact the resale value of your home. Design by Studio Steidley.

GET PROFESSIONAL HELP

As a real estate pro, I see so many kitchen renovation flops and it pains me to know they could have been avoided with a little professional help. Whether you seek out design help from an interior design firm like Studio Steidely, or ask for advice from a leasing and property manager like myself, seeking out professional assistance with a kitchen reno will ensure your investment is well-spent.