When getting ready to put their home on the market, many homeowners invest time and money into updating their kitchen to attract the best offers. But deciding how much to spend on a kitchen remodel can be confusing. Surely a brand-new, gorgeous kitchen with Sub-Zero and Wolf appliances will pay off, right?
As much as I love a well-appointed kitchen, let’s look at whether spending $75,000 or more on a major remodel kitchen pays off. According to the Remodeling 2020 Cost vs. Value Report ( costvsvalue.com ), a minor kitchen remodel (average cost of $23,400) garners a better return on investment (ROI) compared to a major remodel (average cost of $68,500) for mid-priced homes.
In 2020, homeowners in the Pacific U.S. (California, Hawai‘i, Washington, Oregon, and Alaska) saw a minor kitchen remodel ROI of 86.6 percent, based on an average project cost of $26,150. And even closer to us, homeowners in Los Angeles saw an ROI of 95.1 percent for a minor remodel, based on a project cost of $26,993. In comparison, major remodels recouped their sellers only 63.5 percent in the pacific region, and 75.2 percent in Los Angeles.