The current real estate market is effecting many things, including the types and amount of remodeling homeowners are doing. According to the Wall Street Journal, homeowners spent $53.4 billion on kitchen renovations costing more than $20,000 between August 2006 and August 2007. That’s a 40 percent drop from the year before. Yet about 7.6 million kitchens were remodeled, 200,000 than the previous year. Homeowners understand that it’s important to update to preserve resale value.
Kitchen renovations remain the strongest remodel return on investment. Depending on the total cost, you may expect anywhere from an 80% to 95% return on a kitchen remodel. Less drastic renovations, such as replacing countertops and refinishing cabinets generally provide a better return.
When it’s time to sell, the house with the remodeled kitchen will see faster and for more than a similar house without the updated kitchen.