Should You Upgrade Your Kitchen Before Selling a Home?

A home that has been updated with new appliances, fixtures, cabinets and countertops will have an increased value over the same home without the upgrade. The question to be examined, however, is how much of an increased value? If you don't get the money you put into the upgrade back, it is certainly not worth it. Even if you break even, it is probably not worth the trouble. So how do you know if you will get more out of an upgrade than you put in?

The easiest answer to this question is to ask your real estate agent what he or she thinks. Your real estate agent will have experience in local market trends and the effects various upgrades have on final sale price.

However, here are some general guidelines, to assist you as you ponder the dilemma.

Generally speaking, if a home is 20 years old or younger, it does not make financial sense to redo your kitchen. If you spend $20,000.00 on kitchen and appliance improvements, you may only make a portion of that back in increased value, or at best break even. However, if the loss is nominal, it might make sense to you if you need to sell quickly. Modern appliances and kitchen fixtures will decrease the time a home is on the market. If it is important to you that the sale be completed as quickly as possible, and you don't mind taking a bit of a loss in the process, an upgrade may be in your best interest.

The argument in favor of upgrading is much stronger with older homes containing outdated or antiquated appliances and decor. The effect of an outdated kitchen can dramatically reduce the selling price of a property when compared to what it might otherwise command. In such a case, a major upgrade will almost certainly be worth every penny you put into it, not to mention accelerating the time it takes to sell the home. Not only could you expect to recover all of the money you put into the upgrade, you will likely make a profit on the sale in the form of a value increase greater than the amount expended on the upgrade.

Low cost, cosmetic upgrades, however, may be worth the cost even in newer homes. Replacing countertops, painting cabinets, and the like will make your home more "showable", and the nominal amount of money spent on the project can usually be recouped. However, be sure to avoid unecessary expenditures for which there is little or no hope of recovering your costs. An example would be the replacement of an older yet functional garbage disposal with a newer, more powerful one. This type of an expenditure will do absolutely nothing to increase your home's value.

Remember, if it isn't broken, don't fix it!

About the Author:
Catherine Nguyen was born and raised in Dallas, Texas and is a licensed real estate agent. Ms. Nguyen specializes in Dallas real estateand has a career with Renowned Realty Group – Dallas/Ft. Worth RE/MAX. For more information, please visit www.dallasrr.com.
Catherine Nguyen was born and raised in Dallas, Texas and is a licensed real estate agent. Ms. Nguyen specializes in Dallas real estate and has a career with Renowned Realty Group – Dallas/Ft. Worth RE/MAX. For more information, please visit www.dallasrr.com.