Home Prices Rise and Kitchen Remodeling Becomes a Smart Investment Again

By Scott Dostal

There is no denying that when home prices rise, kitchen remodeling becomes a smart investment again. During the last week, you might have heard that demand for existing homes is up about 22 percent (on average) from a year ago. Inventory of available existing homes is up only 17 percent. What is more, home prices in U.S. markets are up about eight percent (on average).

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customized cabinetry offers the beauty and practicality of custom cabinets and a fraction of the cost

In many markets, exiting homes that offer the most desirable features become the object of bidding wars, even bidding up the price of a home by as much as 10 percent over the listing price. Not only is it a good time to sell, it is also a good time to remodel in anticipation of selling in the future. According to HGTV, the top ten features homebuyers want in 2013 are:

  1.  Central air conditioning
  2.  New kitchen appliances
  3.  A Walk-in Closet in the Master Bedroom
  4.  Granite Countertops
  5.  Hardwood Floors
  6.  Ensuite master bathroom
  7.  Kitchen Island
  8.  Stainless Steel Appliances
  9.  Eat-in Kitchen
  10.  One or more fireplaces

Many homeowners were understandably reluctant to invest in home remodeling during the recent economic crisis. However, as the demand for existing homes rebounds and prices increase due to low inventory, the investment in home remodeling begins to make far more sense. In fact, remodeling increased by 12 percent in April alone. Of those remodeling in April, 54 percent said their reason for remodeling was to increase the value of their homes.

With half of the top features buyers want in homes related to kitchen amenities and features, the first room of the house to consider remodeling must be the kitchen. According to Forbes, the average cost of kitchen remodeling is:

                Low budget remodel                      $7,133

                Mid-range remodel                        $22,390

                High-end remodel                           $54,942

A more important question for many homeowners is how a kitchen remodel will affect the price of the home at resale. According to the remodeling industry, the cost vs. value assessment looks like this:

                Major kitchen remodel                 Cost: $53,931     Resale Value: $37,139    Recouping 69% of cost

                Minor kitchen remodel                 Cost: $18,527     Resale Value: $13,977    Recouping 75% of cost

HGTV estimates the impact on resale value of the home slightly higher at 80 – 105 percent of cost.

In terms of remodeling an existing space, the kitchen is typically the most expensive room of the house to upgrade. Enlarging the space adds further cost. What makes kitchen remodeling so expensive? In most cases, cabinetry and appliances account for more than half of the cost. Kitchen remodeling costs (on average) break down this way:

  •   35% Cabinets
  •   20% Labor
  •   20% Appliances
  •   10% Windows
  •    5% Fixtures
  •    3% Fittings
  •    7% Other

Cabinets, as the largest portion of the kitchen remodel cost, are significant:

                High-end Kitchen Remodel cost                                $54,942 (average)   x  35%  =  $19,229.70
                Mid-range kitchen remodel cost                               $22,390 (average)   x  35%  =  $  7,836.50
                Low budget kitchen remodel cost            $  7,133 (average)    x  35%  =  $ 2,396.55

There are, of course, several grades of materials and workmanship in kitchen cabinets. There are also several ways to buy kitchen cabinets, including the pre-manufactured modular units now offered by some companies. Your choices will be limited, and units will come in “standard” sizes.

There is another way to buy high quality cabinets, get exactly what you want, and get custom sizes and features. What is more, they can be installed in your kitchen, with granite countertops, for as much as 60 percent less than the cost of the custom cabinets you might want. The process, called customization, takes high quality cabinets in standard sizes and a cabinetmaker resizes them to specification. They can also be fitted with organizational inserts, customized for refrigerated drawers, and used to create unique units for special items.

Home prices are rising, making kitchen remodeling a very smart investment for those thinking about selling in a year or two. With cabinet customization, you can have kitchen cabinets of higher value for lower cost, thus increasing the percentage of your investment you can recoup when you sell your home. You can increase the value of your home and increase the amount of the remodeling cost you will recoup when you sell your home.

 

How to Estimate Kitchen Storage Needs

Many homeowners believe there never can be too much storage space in a kitchen. Others might say extra storage space is simply an incentive to fill the space with unnecessary items. The decision to install new kitchen cabinets or to remodel a kitchen should begin with an honest assessment of how the kitchen space will be used by your family.

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One of many kitchen storage solutions

The challenge for many people is how to estimate kitchen storage needs.

The first step in the estimation of storage needs is to determine how you will use the space. For many families, the kitchen is no longer a discrete room or space. Today, in many homes, the kitchen is combined with a family room, a breakfast room, or a work area. In other homes, the kitchen is the place where guests and extended family are entertained. For the most part, the kitchen has become the center of a family’s activities (whatever they enjoy).

The second step in estimating kitchen storage needs is to determine what kind of storage space in needed or desired. If the family will eat most meals in the extended kitchen, it might make sense to store dishes and flatware, near the table. It might also make sense to put a dishwasher in that area. If there will be a work area (perhaps a place for children to do homework or for bill paying, etc.), there might be a need for a desk or bookshelves or computer connections.

The third step is to determine the types of storage required in the kitchen. Do you want glass door cabinets to display china, glassware, or food containers? Where will you keep small appliances when not in use? Do you want to organize your kitchen around the type of cooking or other food preparation most commonly used? For example, if you have children, you might want a snack area that is readily accessible to them with storage for cold water or other drinks, storage for microwaveable snack items (popcorn, for example).

Fourth, determine how much cabinet and surface area you have now. There is a simple formula for this. Measure the width and depth of your existing cabinets or other storage areas and counters, as well as the number of shelves in each cabinet: cabinet/shelf/drawer width x number of shelves/drawers x cabinet/shelf/drawer depth = storage space.

Fifth, estimate the additional space needed and the amount of space you would prefer to use differently. For example, if you plan to create a snack area or zone, you might want a refrigerated drawer for drinks or a small under-counter refrigerator. If you do a lot of baking and you want to create a baking area separate from the usual cooking zone, you might want a second oven, and dedicated storage spaces for ingredients, bake ware, etc. Decide where it is most convenient to store each type of item you use frequently.

On the other hand, if you do not do much cooking, you might want to save the trouble of calculating the storage needs of a kitchen, you can follow the guidelines available from the National Kitchen and Bath Association.  http://www.bhg.com/home-improvement/kitchen/planning/kitchen-planning-guidelines/?page=1

A final note: When you estimate kitchen storage needs it is wise to tailor your remodel less to personal tastes and more to recommendations if you are planning to sell your home in the next few years. You might do only minimal cooking and need minimal storage, but the next owner might have different needs.

What is the Smartest Way to Buy Kitchen Cabinets?

Nobody wants to spend more than necessary when building or remodeling. The kitchen is typically the most expensive room of the house (or one of the most expensive). Cabinetry is one of the largest costs in most kitchens. Whether you want to save time, save money or find a way to add specialized cabinets and organizational devices without going over budget, it is important to explore your options. This is why so many homeowners ask, “What is the smartest way to buy kitchen cabinets?”

There are five ways to buy kitchen cabinets. Your decision about buying cabinets for your home will factor in installation and assembly time and cost, prices, availability of what you want, your ability to work with standard cabinet sizes only, and the number of specialty cabinets or cabinets with organizational devices you need.

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1. Knock-down cabinets –You can usually take these least expensive cabinets home from the store on the day you purchase them. You will probably need to assemble them. They are available only in standard sizes and will have little, if any, customization and typically do not include organizers.

2. Stock cabinets – The next step in price, stock cabinets are mass-produced in a factory. Choices will be limited to a few styles and finishes (usually the most popular at the time). They are also available in standard sizes only.

3. Semi-custom cabinets – Semi-custom cabinetry is also available only in standard sizes. However, you will find more varieties in styles and finishes. This is a good option if you want a specific style in a particular finish.

4. Custom cabinets – Custom cabinets have been the traditional way to get exactly what you want in your kitchen cabinetry. As the name implies, you can have anything you want in your cabinets – any wood or material, any finish, any style, any accessories, and any sizes. This is the most expensive way to purchase cabinets, but the result will be unique.

5. Customized cabinets – By choosing the semi-custom or stock cabinets you want and engaging a good cabinetmaker to customize them, you can create the kitchen you want without paying the price of custom cabinets. In this case, you buy the cabinets in the style and finish you want. The cabinetmaker then modifies the cabinets (invisibly) to the custom sizes you need and adds the accessories, organizers, and specialty cabinets and drawers you want. This option gives you the best of both worlds – a custom kitchen at a much lower price.

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Kitchen Cabinets

When renovating or remodeling a kitchen your choice of kitchen cabinets might be the most important selection you make. Kitchen cabinet selection is so important for two reasons.

First, the cabinets you choose for your new kitchen will be the items having the greatest visual impact. In the average kitchen cabinets are mounted on or against at least two walls (or the equivalent), and perhaps more. Cabinets will also create the base for an island, whether designed for cooking or for casual dining. The cabinets you select will establish the design of your kitchen.

Second, the kitchen cabinets you select will account for about half of the total cost of your kitchen renovation or remodel. Although you can find and purchase kitchen cabinets in a wide range of price categories, this is an almost universally applicable rule of thumb. Good cabinetry in not inexpensive. Most contractors and kitchen designers will agree that kitchen cabinets are not the place to scrimp when designing a new kitchen. Your cabinets will outlast your kitchen floor, your appliances, and possibly your counter tops (depending upon the material you choose).

Characteristics of good kitchen cabinet construction:

  • Avoid drawers held together with glue, nails or staples.
  • Avoid drawers made with thin particleboard.
  • Test the drawers before you buy to be sure they will support about 75 pounds when open.
  • The case or cabinet box should be made of wood that is ½ inch thick or more on all sides.
  • All surfaces of the cabinet should be finished, even the back and the interior sides.
  • Kitchen cabinets should have adjustable shelves (this is a clear indication of construction quality).
  • All shelves in kitchen cabinets should be 5/8 inch thick or more, otherwise they will bow.
  • Check the quality of the hinges (most should be invisible from the front, no squeaks and no metals that will rust easily) and ensure that doors open completely.
  • The very best kitchen cabinets are made entirely of solid wood.
  • A plywood box or case with solid wood frames and doors can still be a good quality product.
  • Some reliable kitchen cabinets are available at lower cost because they are built with plywood supports and use medium-to high-density particleboard for door and drawer fronts. Others use laminate over the particleboard.

Cabinet design installs the cabinet doors in one of two ways. Frame-less construction was a very popular adoption from European design in the 60s. The style continues to be very popular in contemporary kitchens. In this style, the kitchen cabinet door covers the entire box or case of the cabinet. Alternatively, in framed construction, the doors are installed in a way that leaves a frame around the outside of the door. Framed construction for kitchen cabinets is the norm in traditional, country, cottage, and many eclectic kitchen styles.

Ways to purchase kitchen cabinets:

  1. Knock-down kitchen cabinets can be purchased and taken home the same day. Many homeowners can install these units themselves. These are the least expensive types of cabinets and can be the perfect choice if you are on a tight budget.
  2. Stock kitchen cabinets are available only in standard sizes and limited styles and finishes because they are mass produced by the manufacturer. These are also a good option when the budget is tight.
  3. Semi-custom cabinets are also available only in standard sizes. There is a larger selection of styles, finishes, accessories and options. These provide somewhat more flexibility in designing your kitchen.
  4. Custom kitchen cabinets, although available from some cabinet companies, are most often purchased from local cabinetmakers. These cabinets are made to order and are thus built to the exact specifications of your needs. They are more expensive, but they offer the largest variety in wood, finish, style, size and special and unique details.
  5. Hybrid approaches are also very popular. By working with a cabinetmaker to select the kitchen cabinets you like from a manufacturer. The cabinetmaker then installs the standard size cabinets and customizes others for special sizes and needs, as well as adding personal touches and special features.

Standard Cabinet Sizes (All Dimensions in Inches):


Kitchen Cabinet Dimensions

Many inserts and built-in features are also available to provide for organization and ease of access to items stored within your kitchen cabinets. From pull-out work surfaces, to drawer fronts for refrigerated drawers, to door covers for nooks for small appliances to wine racks, you can customize your cabinetry in a variety of ways to meet your needs. It is possible to create an appropriately designed cabinet or work surface for every need.

There are also a number of features available or customizable to meet the needs of persons with disabilities. These include lower work surfaces that pull out or that are stationary and leave open space beneath. Pull-out organizers, Lazy Susans and other enhancements to kitchen cabinets to make items readily accessible.

This basic information should help you begin to make decisions about your new kitchen cabinets. Keep in mind when shopping that the appearance of your kitchen renovation will be established to a very large extent by the kitchen cabinets you choose. Your cabinetmaker will be able to help you consider the vast range of ways you can customize your cabinets and create a unique kitchen design.

 

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