Does a Kitchen or Bath Remodel Pay Off?

Does a Kitchen or Bath Remodel Pay Off?

Most people would agree that the kitchen and bath are the true heart of any home. For many, the most time is spent in either of these two spaces, and as open-format kitchens become more popular in homes built in recent years, this is only becoming more true. Already, we’ve listed two strong reasons to consider remodeling your kitchen or bath. But there is another great reason to consider if you’re in the Greater Philadelphia Area, and that is the possible return on investment.

The Return on Investment for Kitchen Remodels in Philadelphia

While the actual cost of the remodel can vary widely depending on the size, scope and materials selection of the project at hand, an average kitchen remodel with dRemodeling can run anywhere between $25K to $80K. According to the National Kitchen & Bath Association, kitchen remodeling costs break down as follows:

• Design fees: 4%
• Installation: 17%
• Appliances and ventilation: 14%
• Cabinetry and hardware: 29%
• Countertops: 10%
• Lighting: 5%
• Flooring: 7%
• Doors and windows: 4%
• Walls and ceilings: 5%
• Faucets and plumbing: 4%
• Other: 1%

Bearing these costs in mind, the 2018 Cost vs. Value report lists that a typical mid-range kitchen remodel in the Philadelphia area will net you a jaw-dropping 58% return on your investment, nearly tying the national average. For those looking for a bit more luxury in their everyday lives, that same report lists an amazing 59.3% return on an upscale kitchen remodel, which actually crushes the national average of 53%. So where does your upcoming kitchen remodel fall in this? Well, some of that will depend on your personal budget and unique materials taste. As anyone will tell you, material pricing can vary widely and therefore will have a huge effect on your budget. The home values are soaring and the market is hot in Philadelphia and the surrounding areas, meaning the extra effort you put into beautifying your home will go that much further in impressing prospective buyers someday. But at the same time, you need to keep your respective neighborhood in mind when selecting materials and a price range for your upcoming kitchen remodel. It is in the best interest of your home’s future resale value to neither undercut nor over do it in your kitchen when it comes to budget, to ensure the highest return on investment. Your kitchen should certainly be remodeled according to your taste and unique style (otherwise, what is the point?), but the materials costs should also fit in with the overall price of the home. The general rule of thumb is to invest no less than 5% of your home’s total value, and no more than 15%. However, many homes in popular Greater Philadelphia areas are on a major upwards trajectory in home value, so it might even be worth it to consider investing more than that general 15% in an upcoming remodel if it means added luxury and comfort for you to enjoy now.

The Return on Investment for Bathroom Remodels in Philadelphia

The first thing you should ask yourself when remodeling your bathroom is whether you want a shower, tub or both. Space permitting, it is always great to have both but when space is an issue, many choose to do away with the tub altogether in favor of a walk-in shower. Regardless of your decision, the costs to remodel your bathroom will depend on this greatly. While the actual cost of the remodel can vary widely depending on the size, scope and materials selection of the project at hand, an average bathroom remodel with dRemodeling can run anywhere between $17K to $35K. Referring to the 2018 Cost vs. Value report, it lists that a typical midrange bathroom remodel in the Philadelphia area can net you a 60.8% ROI, and an upscale remodel 54.2%. But particularly in older or historic homes where the number of bathrooms is limited, the biggest return on investments is usually adding a new bathroom altogether. In fact, many clients approach dRemodeling looking to add an additional bathroom into their older home. We even have the occasional kitchen remodel also looking for a small half-bath to be incorporated into the overall design/build. This can make a lot of financial sense, as not only are you improving the home’s value with the kitchen upgrade, but adding the additional bathroom with minimal labor costs as well.

The Biggest Return on Investment for Your Remodel Should be Your Happiness

At the end of the day, the biggest return on investment you’ll get on a kitchen or bath remodel is the daily comfort and overall ‘bump’ in your quality of life. And isn’t that truly worth it? For a stress-free one-stop-shop kitchen and bath remodeling experience in the Greater Philadelphia Area, simply call dRemodeling and our design + build team will take care of the rest.