Maximizing Return on Kitchen Renovations

Aligning your Timeline + Vision!

As your trusted real estate advisor, my desire is to support you throughout your entire homeownership journey, not just during the buying and selling phases. When considering renovations, I recommend making periodic updates as needed or as your budget allows. The best scenario is one that enables you to enjoy your refreshed space now and in the coming years, rather than rushing to renovate just before selling. With people staying in their homes longer, it makes sense to savor those beautiful new kitchen countertops and appliances while also setting yourself up for a financial reward when it's time to sell.

I enjoy discovering and sharing resources that inspire homeowners. A recent Wall Street Journal article caught my attention with its captivating graphics and valuable insights. The author states, "We dive into three kitchen-renovation budgets, exploring what homeowners get for their money and how the savings and splurges factor in." The WSJ's tech-savvy before-and-after sliding screens vividly illustrate how design decisions can transform a space from its original state to a stunning modern solution. It highlights an important point: a mid-range kitchen renovation costing around $27,000, which includes updating cabinet fronts, appliances like the range and fridge, and flooring, can recoup about 96% of its cost when selling—a nearly dollar-for-dollar return. However, a major upscale remodel averaging $159,000 might only return about 38% of that investment, which could very well be acceptable if personal or family enjoyment of the transformed space is a priority.

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Capitalizing on Appreciation-Generated Home Equity

Recent analysis by CoreLogic reveals that U.S. homeowners with mortgages have experienced an 8.0% year-over-year increase in equity, raising total net homeowner equity to over $17.6 trillion in the second quarter of 2024. Expanding the timeline to include those who purchased homes before the COVID-19 pandemic, the appreciation in equity is truly impressive. Take Nashville, TN, for example, where home prices have surged by 57.1% since 2019 according to Realtor.com (metro ranking below). Williamson County - which includes Franklin, Brentwood, Thompson's Station and part of Spring Hill - grew by 61.6%. This remarkable growth provides homeowners in Middle TN with the opportunity and financial means to invest in home improvements. By making smart decisions on necessary and even luxurious updates, you can keep your home competitive in the market. You'll not only enjoy living in your enhanced space but also position your home to be priced at a premium when you decide to sell.

Resources

At The Sell Nashville Group, my colleagues and I partner with exceptional, trustworthy vendors who excel in planning and home refurbishment. These professionals would be pleased to learn about your goals and timelines, and we're happy to facilitate a consultative discussion to help realize your vision.