Kitchen Renovation

Kitchen renovation or remodeling involves upgrading kitchen fixtures, fittings, and finishes for a more aesthetic look and improved system functionality. It requires meticulous planning and the help of a qualified and experienced contractor in plumbing, electrical, or interior design. The kitchen is a part of the house that can increase your home value, especially with new and trending fixtures, styles, and finishings. 

A clear vision of what you want your new kitchen to look like is essential because it helps you to make vital decisions about the materials and fixtures, kitchen styles, and the best designs at diverse renovation levels.

It is best to work with the best contractors with a proven track record of building the best kitchens in your region to get unmatched results for your dream kitchen. Before renovating your kitchen, consider numerous factors, including cost, space, design, and function. This masterpiece will explore kitchen renovation, especially its costs and value.  

Why Renovate a Kitchen?

A kitchen renovation involves upgrading your recent kitchen aesthetically and functionally by updating it to modern styles and designs. This project adds significant value to your home if you plan to sell it in the future. Kitchen remodeling requires a detailed scope of what you want, including layout, style, design, and spacing. 

You must set realistic expectations, make a plan, empty the kitchen, keep your valuables in a safe place, and ensure contractors can easily access your kitchen for the remodeling. Thorough research of trending kitchen designs can help you select one that appeals to you the most. 

You might consider remodeling your kitchen if it has a worn-out plumbing system, lighting, surface, cabinets, finishes, or a poor floor plan or layout.

Another reason for renovations could be the need for new additions, such as the latest appliances, new trending flooring, or adding a kitchen island or dining area. Homeowners planning to sell or rent their homes can embrace kitchen renovations to increase their property’s value. 

Level of the Renovations 

The most vital aspect to consider before kitchen renovations is the remodeling level. Such renovation levels are minor, moderate, or major. 

Minor or Small Kitchen Renovations 

Homeowners consider minor renovations to address issues such as worn-out kitchen parts. If the kitchen revamp you want is minor, it requires small changes to specific parts or additions of fixtures, leaving most parts, such as flooring, walls, or sinks, the same.

Such kitchen remodels can be smaller in scope as they concentrate on specific things such as changing countertops, repainting walls, cabinet refacing, or adding a new sink and fixtures. Minor renovations are cheaper, as they can cost around $20,000, depending on kitchen size, and take a short time. They enhance the functionality and appearance of your kitchen.  

Moderate or Midrange Kitchen Remodel

The cost will be higher when you choose moderate changes in your kitchen. The renovations are more than those at the minor level and might include ripping out worn-out parts such as the floor, countertops, or cabinets. However, they can change the look of your kitchen while retaining its layout, functions, and space. 

Major or Full-Scale Kitchen Renovation

You also have to decide if you want a complete kitchen remodel. Here, you can expand the kitchen by knocking down walls to add a colorful kitchen island or dining area, using smart technologies, changing the sinks and the fixtures, adding a kitchen storage room, rearranging the layout, and changing the lighting system. 

You can also choose to replace all outdated kitchen appliances with trending energy-efficient ones, such as drawer fridges, induction ranges, cooktops, speed ovens, or dual-fuel ranges.

The overhaul will change your kitchen design and style to improve functionality and curb appeal. If done right, major kitchen renovations enhance your kitchen’s beauty and value, though they are too expensive and require careful planning and budgeting.   

Budgeting for Kitchen Renovations 

Before deciding the scope and level of your kitchen renovations, you need to decide on the amount you want to spend on the entire process. A budget is vital because it helps you document everything you want to ensure a successful renovation without financial strain.

You need to evaluate your finances to determine the type of renovations you can afford. Even a minor kitchen renovation can cost around $20,000, while a complete remodeling costs almost $150,000. Depending on the design and products you want, the latter can be more or less expensive. 

A contractor can help calculate the cost of the renovations by making an all-inclusive budget for the project, considering aspects such as location, materials needed, and home value. The amount to spend on the kitchen renovation should not exceed 15 percent of your home value, making it reasonable. 

After understanding the amount you are willing to spend to revamp your kitchen, the hired contractor can assist in allocating the money to all the identified needs. At this point, make a comprehensive list of every aspect of the project to ensure the total cost is within your budget.

While budgeting, start with the things you prioritize more. The least essential renovations should be at the bottom of your budget. Categorize them from the most crucial to the least important. For instance, here is a budget breakdown of a kitchen remodeling budget. 

• Cabinets can take up to 20% of the budget
• Labor, that is, contractors, 17 %
• New high-end appliances 15%
• Countertops 13%
• Flooring 9%
• Plumbing fixtures and fittings 8% 
• Kitchen Island 5%
• Lighting 5%
• Miscellaneous and emergency fund 8%

Factors that Impact Kitchen Renovation Costs 

Getting the kitchen you desire to increase your home value depends on diverse aspects, such as:

Your Dream Kitchen Type and Style 

The kind of kitchen layout you dream of in your home will determine the amount of money you spend to make it a reality. Island, u-shape, L-shape, open, or straight kitchen designs are the most common options, with different installation costs depending on their complexity and materials. 

You will have to pay more for luxurious kitchen design, such as a classic, cottage, contemporary, eclectic, white modern, or modern gray gloss kitchen style, 

Type of Kitchen Appliances to Install

Appliances can also impact the cost of your kitchen renovations in a big way. When you choose high-end appliances, be ready to spend more than standard types. It is wise to research and window shop for freestanding or inbuilt appliances and get the ones that fall within your budget.

The brand of your wall ovens, cooktops, refrigerators, microwaves, filters, ranges, and dishwashers, such as LG and Samsung, also influences kitchen remodeling costs. Going for energy-efficient appliances can be costly initially but become cost-effective in the long run. 

Additional Expenses 

When renovating your kitchen, you can incur additional expenses that impact the overall remodeling cost. Additional or hidden renovation costs include permit fees, delivery costs, and charges for disposing of old cabinets and other kitchen materials.

If the contractors find hazardous materials in your kitchen during renovations, they might request payment for asbestos and lead removal in old homes built in the 1970s. 

Since kitchen remodeling takes time, you might have to find alternative ways to ensure food is on the table. You will have to pay for take-outs, go out for meals more often, find creative ways to make home-cooked meals or move out for a while, which might be expensive, increasing the kitchen renovation costs. 

Cabinets

Another factor driving up the cost of kitchen renovations is the cabinetry. If you choose high-quality materials for the cabinets, with the finest finishes and door styles, be ready to pay more for the remodeling. The number of cabinets and shelves in your kitchen, island, and countertops also influences the cost of renovation. 

Size of Kitchen 

The price of renovating a large kitchen is more than that of a smaller one. A big kitchen requires cabinets, countertops, and backsplash tiles and might take longer to work on than a tiny kitchen.

Labor for large kitchens is also more expensive because of the increased tasks and the time spent on the renovations. In addition, bigger kitchen spaces can require more appliances and require you to add a pantry, costly island, extensive plumbing, expensive layouts, and electrical work, leading to increased remodeling costs. 

Impact of Kitchen Renovation on Home Value 

Kitchen renovations have a substantial way of increasing home value. The process impacts your residential property’s value in the following ways:

Return on Investment

A kitchen is a vital part of your home, and its renovation can massively impact the value of your residential property. Making it more functional and aesthetic increases its worth and return on investment.

An upgraded kitchen empowers you to increase your selling price compared to an old and outdated kitchen. Hiring the best contractors for quality installations and work also increases renovation costs. 

Quickly Captures Buyer’s Attention 

A nicely renovated kitchen easily attracts the attention of homebuyers or tenants. Upgrading your kitchen using the latest kitchen design trends accelerates its selling process.

A modernized kitchen with energy-efficient appliances, high-quality plumbing systems, and an aesthetic kitchen style is enough to close a sale as soon as the buyer visits your kitchen. 

Improves Kitchen Beauty and Function

A quality kitchen renovation entails using high-quality materials to style and design your kitchen and enhance your property’s worth. The aesthetic kitchen island, cabinets, fixtures, pantries, and stainless steel appliances give your home a competitive edge in the real estate market. Investing in energy-efficient appliances is a valuable investment.

People value highly efficient systems that lower their utility bills and increase sustainability over time. Because of these numerous benefits, energy-efficient kitchen appliances are the go-to option for most homeowners.  

Financing Options at RenoFi for Kitchen Remodeling 

Paying for kitchen renovations should not be an issue with the numerous financing options available. After making an all-inclusive budget to estimate your kitchen remodeling costs, ensure you have enough cash to cover the expenses.

Suppose your savings and personal loans are insufficient for your moderate or major kitchen remodeling project. In that case, you can consider a home equity loan or home equity line of credit (HELOC) from lenders such as RenoFi.

RenoFi offers the smartest and most affordable home improvement or renovation loans, such as RenoFi, HELOC, and fixed-rate home equity loans. Our RenoFi loan is available at both fixed and variable rates. Thus, you can get a loan against the future value of your property after the renovation. 

So, do not stress if your home equity is low because we will appraise your current property value and future worth, considering the kitchen renovations. You can qualify for a 90 to 150 percent loan-to-value ratio of your home’s after-renovation value and repay at competitive rate. If you apply for a RenoFi loan halfway through the project, you can still qualify for the funds. Our professionals will calculate the loan amount and explain the repayment terms and rates.

For example, imagine your home is currently valued at $500,000, and your outstanding mortgage balance is $400,000. You plan to renovate your kitchen and expect the value of your home to increase to $640,000. With a traditional home equity loan, your borrowing power might be limited or even nonexistent if your LTV is already maxed out.

However, a RenoFi loan allows you to borrow up to 90% of your after-renovation value, or in this case, up to $176,000. This makes RenoFi an excellent option for homeowners looking to finance a comprehensive kitchen renovation.

Contact RenoFi for the Best Financing Options!

Kitchen renovations are essential in improving the value of your property and might require large amounts of cash to complete if you want a major kitchen remodel. Luckily, RenoFi loans are accessible to finance such renovations. They differ from traditional home equity loans because they use the future home value rather than the current one. Our loans are at a competitive rate because your home is the collateral.

RenoFi loans are the smartest way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the after-renovation value of your home. This allows you to borrow, on average, 11x more, get a low monthly payment, and keep your low rate on your first mortgage.

If you want a home renovation loan to fund your kitchen remodeling project, consider RenoFi. It is one of the best options for funding all your renovation plans without relying on credit cards or savings. Our renovation loans have potential tax benefits and streamlined application procedures. Call our renovation loan experts today to apply for the RenoFi loan.