Investment Value

According to Remodeling Magazine's 2004 Cost vs. Value Report, the best home remodeling investment you can make is a minor kitchen remodel. This is the expected return upon resale of your home, but you must also consider how much more functional, attractive, and enjoyable your kitchen will be.

Project Type Job Cost Cost Recouped Resale Value
Minor Kitchen Remodel

$15,670

91%

$14,324

Major Kitchen Remodel

$32,645

58%

$18,901


If you are interested in the entire report, here is the link: 2004 Cost vs. Value Report

GMAC Mortgage, in their Additions That Add Value brochure, states, "To ensure that you are making a solid investment, add the cost of your proposed project to a current appraisal or market value analysis of your home. Your total investment should be no more than 20% of the average home values in your neighborhood."

A good rule of thumb according to the National Kitchen Association is that if you do not spend more than 10% of the value of your home on a kitchen remodel, you can expect to receive ninety percent of your investment back.

Since cabinet refacing often costs less than a "major" kitchen remodeling project, your return on investment may well exceed the cost of the refacing project itself.