What is the Return on Investment for a Luxury Kitchen Remodel?

The return on investment for remodeling a luxury kitchen varies widely, but according to the National Association of Realtors Remodeling Impact Report for 2022, the average  ROI is as much as 75%. Your ROI will also vary on the particulars of your local market, design components, and appliances employed, as well as the overall scope of your luxury kitchen remodel.

 

We always advise consulting with a knowledgeable kitchen remodel specialist. Their expertise in advising how to incorporate design components such a s counter tops, flooring, ventilation, lighting and high end appliances will be invaluable.  You should also consult with a local REALTOR® to better understand the best enhancements to make to maximize your resale value.  

 

Start your kitchen remodel with the understanding that there will be inconveniences associated with the process. If possible, leave the home while construction and renovation is underway or at the very least when demolition or other actions can pose a hazard. If you are going to occupy the property during renovation you will need to make alternative arrangements for food storage preparation and a place to serve meals. Remodels are sometimes loud, dusty, and may employ dangerous chemicals and tools. Establish safe boundaries for children and pets and strictly enforce them.  

A kitchen should be functional, somewhere that everyone in the family enjoys, and a place of beauty that you love walking into. Make use of a triangular layout for the sink, stove, and refrigerator to ensure practical and functional space while reducing the number of steps between them. To maximize the kitchen's functionality the layout should provide enough counter space for the number of people in the home, food prep, and for quick meals at the kitchen counter. Consider an additional place for family engagement such as a kitchen table and chairs.

 

There are four basic steps to a luxury dream kitchen remodel.

1. Establishing a budget and contingency fund
2. Determining layout, design components, and appliance selection
3. Hiring a kitchen designer and a contractor

Be realistic about the budget as you plan to renovate your kitchen. It's a good idea to aim for a conservative budget that is below the maximum you want to invest into your project.  This will ensure there are contingency funds to cover any unforeseen construction issues,  and any cost for offsite housing should you need to leave your home during construction. You should budget an additional 10% to 20% of your total budget to fund any unplanned expenses. The more financial breathing room you have the better.  

The HGTV Budget Planning Template is a tool that you can use to start planning your luxurious kitchen remodel. This is a starting point only and should be incorporated in discussions with your professional remodeling consultants, contractors, and decorators to make sure nothing is overlooked.

A professional kitchen designer can save you time and money by preventing potential issues before they arise. Moreover, kitchen designers may know and work with the best local contractors for the job. They can share tips on maximizing storage and making clever substitutions for expensive materials.

 

To make your meeting with a kitchen designer productive as possible they will need a few things from you first.

 

 

1. A to-scale drawing, blueprints, or the architectural rendering of your current kitchen that displays the locations of the windows, doors, heating ducts, plumbing pipes, and electrical outlets.
2. A wish list outlining your remodeling objectives in order of priority
   1. Added storage capacity, modernization styling, etc.
   2. The type and number of ovens (convection, steam, food warmers, etc.) and stovetops (gas, electric, or induction)
   3. Refrigeration for food, wine, and beverages storage
   4. Type of counters, backsplashes, lighting, and kitchen cabinets
3. Make an idea folder:
   1. Include photos of spaces, home decor, materials, and architectural features that you find appealing.
   2. Take from your observations of your other people’s kitchens
4. Be mindful of trends that may not fit your lifestyle. For example,  glass-front cabinets may be a desirable design element, but if you need to keep clutter out of view, you might prefer cabinets with solid painted doors.

The real struggle begins here. All the planning in the world will not matter if the plan is not completed to the highest standards.  This means it’s imperative that your hire the best kitchen remodeling contractor for your kitchen remodeling project.  The best place to start your search for a qualified contractor is with recommendations from friends and established kitchen designers that have worked with specific contractors on previous remodels.  If ever there was a place to perform extensive due diligence, it’s with hiring a contractor. 

1. Check and validate the contractor’s and sub-contractor’s licenses and credentials.
2. Validate the contractor’s liability and workman’s comp insurance to protect against any injuries that occur on your property. Without it, you the homeowner will be liable.
3. Consider a work performance bond to protect you against unscrupulous contractors. The cost is typically 2%-3% of the total contract price for the project.
4. Confirm that permits will be obtained and validate that the proper inspections will be completed in compliance with local building code requirements
5. Ask for references and pictures of previously completed projects. Try to visit several completed renovation projects as well as projects that are in progress. Observing how the site is kept and how work is being done may indicate a contractor's dedication to quality and safety.

Generally, people choose contractors based on their market reputation and past projects, believing that their forthcoming work will be as consistent as their last job. Take care and don’t make this assumption without validating the work being done at the start and throughout your project’s completion.  

• Spend time considering the style and features you want for your kitchen before discussing your remodeling ideas with your designer.
• Take time to study the reviews posted by consumers that have purchased products from the manufacturers you have under consideration.
• Obtain the specifications from product brochures, showrooms, and websites. This will be invaluable when space planning and determining power and plumbing requirements for your project.

Consider the color schemes, worktop materials, and other important features that will help the space come to life. Alternately, go to showrooms and physically familiarize yourself with the materials being used. This is especially important for countertop and backsplash selections. There is an abundance of countertop materials such as granite, ceramic tile, quartz, and other man-made materials. Each has specific care requirements and appearances. Speak with a showroom consultant to determine which will be best suited for the appearance you want, maintenance, and long term value that you want in your kitchen.  

 

Every household will be different so before you start designing your space  take into account what you will be storing.   Consider ergonomic storage options like pull-out shelves and  drawers for plates.

Kitchens are one of the most important spaces in the home and can offer one of the best opportunities to maximize an 75% return on your remodeling investment. Take care to make your design, layout and component selections carefully. Remember, kitchens should be remodeled for the long term. Avoid drastic design and decorator fads that may affect value for potential buyers should you decide  to sell your home.   

 

 

Kitchens are one of the most important spaces in the home and can offer one of the best opportunities to maximize an 75% return on your remodeling investment. Take care to make your design, layout and component selections carefully. Remember, kitchens should be remodeled for the long term. Avoid drastic design and decorator fads that may affect value for potential buyers should you decide  to sell your home.