How Kitchen Remodeling Boosts a Fix & Flip Home’s Value
In the real estate industry, investors have different business strategies to create revenue. If you’re a property owner who specializes in selling fix and flip homes, you understand how crucial kitchen remodeling is in elevating a home’s worth. Potential homebuyers usually mention the kitchen’s condition as one of the biggest deciders on whether to buy or not.
According to a 2017 study by Houzz, 40% of homeowners said that they longed to do a kitchen makeover but lacked the money to do so. Wow. What a bind your finances can put you in. However, through our hard money loans here at Wildcat Lending, you can budget for a kitchen makeover and enjoy the spoils once you sell the property. Below is some critical information for those interested in doing one:
The Scale of your Kitchen Remodel
When planning on a kitchen transformation, you must first estimate the scale of the project. When measuring your kitchen, be extremely precise. Inaccurate measurements may translate into higher costs when your dealings with fixtures that don’t fit.
Then, take a thorough look at the walls and doorways and measure their lengths and heights properly. At this point, you also need to assess the conditions of your present kitchen fixtures. For example, get some handymen to check your kitchen’s plumbing and switches.
After sizing up the scale of the renovation project, you can now begin drawing the intended kitchen layout, including switch placements in relation to appliances.
Your kitchen remodeling budget will vary depending on the size of the area, the quality of your materials and whether you want to transform the layout. On average, a kitchen do-over costs about $150 per square foot.
Ideally, you should budget to spend between 5% to 15% of the total property’s value when remodeling the kitchen. If your property has a market valuation of $450,000, you can spend anywhere between $22,500 and $67,500 and still receive a good return on investment (ROI).
Critical Customary Changes
Now that you know the budget and the scale of the project, it’s time to start the structural build-up. Configuring the frames, walls and windows requires carefulness since you want to fit every material in the right place.
This is where you start to grasp the impact of some of your transformations. For instance, you may need to replace the windows to create more cabinet space or add joists to the flooring to support your kitchen island. All of these things depend on your new kitchen’s layout and design. Take a look at some more big changes:
- Cabinets and countertops. Cabinet installation requires patience because the procedure usually takes a day or two, depending on the available labor. It’s something you can subcontract or do by yourself. On the other hand, ceramic countertops are relatively difficult to install. Regardless of what material you choose, you’ll require a qualified fabricator.
- Appliances, electrical wiring and plumbing. At this juncture, you know what appliances you need and where to place them. You’ll need a professional plumber to mount the dishwasher, conduit system, the sink and faucets. Additionally, you’ll need an expert electrician to connect light fixtures, electrical outlets and switches.
- Flooring. Installing the flooring material is one of the last stages of kitchen remodeling. There is a wide range of flooring materials in the market to suit even the most esoteric tastes. For example, you could choose from sheet vinyl, ceramic and solid hardwood. Whichever you choose, ensure it has a curb appeal, requires low maintenance and is highly durable.
How to Save on a Kitchen Remodeling Project
You may splurge a significant amount of money or spend just a little less on a kitchen makeover. That depends on the location, the size of the kitchen and the kind of tweaks you’re trying to make. However, two recommendations for those looking to keep some of their coins:
Maintain the Same Floor Plan
If possible, do not interfere with the current layout. Also, be prepared to change the existing plumbing network if need be. Also, try to maintain the sink, electric and gas connections. That way, you avoid additional costs of transferring the fixtures.
When remodeling, avoid sophisticated, high-end materials. For example, if you must have cabinets, search for easy-to-install models, instead of custom designs. Although you may also relish having drawer dividers and a counter-top garage, finding cheaper alternatives cuts down your budget.
The kitchen is something prospective home buyers will be highly critical of during a home showing. It’s no surprise, doing a kitchen makeover is key to boosting the property’s value. But to enjoy the bonuses of spicing up your home, you need to look for ways to create an aesthetic, functional, and modern kitchen without going overboard. Investing big bucks on the spare-no-expense kitchen may not be a smart move when you are targeting the highest return on investments. Consider going for small renovations with a big payoff.
Get to work on your fix and flip and apply for a hard money loan today. Kitchen remodeling has never been so profitable.