The kitchen and bathroom are not only the two most important rooms to you while you are living in your home, but they are also the two most important rooms when renovations creates the greatest return on your investment upon resale. But just how much should you expect to invest in a renovation project?
For a kitchen renovation, consider investing between 7.5-10% of the property’s value into the renovation. So if you are living in a $500,000 home, consider spending anywhere from $37,500-$50,000 on your kitchen.
For a bathroom renovation, consider investing between 2.5-5% of the property’s value into the renovation. So, again, for a $500,000 home, consider spending anywhere from $12,500-$25,000 on your bathroom.
The amount of money you choose to spend depends on the use of the space (a powder room renovation would be less than a main bathroom renovation, for example), as well as the quality of goods you wish to put into the space.
In terms of the design features you include in the renovation, consider how long you will be in the home. Strong personal tastes may not be attractive to buyers, but if you are planning on staying in the home for 10+ more years, these options may be more feasible. If you are looking at a shorter time of being in the home, it is best to stay with more neutral feel, something that would be attractive to the widest demographic of buyers.
To maximize resale value, make sure that the renovation is done right. These rooms are where it is most important to hire a professional installer versus the other rooms in your home. Because of the large amount specialty work required (plumbing, electrical, tiling, cabinetry etc), it is best to leave it to the professionals. Professional installers are not only skilled in the trade, but are thoroughly familiar with building codes in order to meet the standards for a home inspection.
All of this being said don’t live and die by the resale value of your home. If there is a design you love, go for it. You are the one living through the renovation and the final product so make sure you love what you have created. Future worth is never a guarantee, so find a harmonious balance between the both personal taste and resale attractiveness.