If you are looking for more ways to improve your house or make it more attractive to potential buyers, remodeling your kitchen is a sure way to do that. A functioning, beautiful kitchen can be the center of your home. In other words, this particular space in the house is used very often. Indeed it can be a place for entertainment and long-lasting memories. A nice kitchen is a sure way to increase the price of your home. Therefore we wanted to do a quick overview of the basic remodel costs and what is a good remodel.
To cut it short, before we dwell into it deeper…an average kitchen remodel will cost around $25,000. Still, it really depends on the house, the size of the space, and what you plan to do. Our suggestion is to have at least $10,000 pocket to start any project in the kitchen.
The location of your house can also impact the cost. Homes in more rural areas can usually do remodels that will cost less. In case you have a home in a more urban metropolitan area, the cost can really skyrocket. In addition to that depending on the size of the remodel the price will vary!
Therefore let’s go through some of the kitchens remodels you may be planning. From the small ones to the bigger ones.
How Much Does A Small Kitchen Remodel Cost?
Some low-cost things can be done to improve the overall look and feel of the kitchen. Getting new appliances is always a good way to freshen up space. You need to understand that this is easy but it can be costly. New appliances will cost a lot but this is a sure way to make money back, as new appliances will have an impact on your house value. Some remodeling options can be DIY and for some, you may need a contractor, but as said this type of remodeling will cost you upwards of $15,000. These will include:
New countertops that can change the space immediately and depend on what material you get the price will vary. Per square foot nice ceramic tiles can go from $5 to $30 and they will look modern enough. Natural stone will cost you upwards from $10 to $50. You can get creative with these and are great for DIY people.
A fresh coat of paint is one more DIY project that will change the way of the kitchen. This is a great way to enhance the look of the kitchen and to improve the value of the home. Depending on the paint you choose, it may cost you upwards of $1,000 to do a smaller kitchen. This project can also be done fast.
New tiles can also be a game-changer. If you have a bigger surface with tiles, you may need a contractor for this job. There are some classic looks that are cheap and will work in more homely as well in modern kitchen remodel setups. This will cost you from $0.70 to $3 per square foot. With the contractor work, it could come out at $1000 to $1500.
In the event that you want to do a more serious kitchen remodel you may consider doing the following remodeling options:
Switch out the layout and get new cabinets. If you really want to go out you may consider changing the layout of the kitchen and maybe some new elements. Some things can hurt the value of your home, and a not functional kitchen maybe that. If you need to cut costs you may consider getting the same cabinets but with a new coat of paint. Think can your kitchen become smarter and easier to navigate.
Get a kitchen island if you have space for it. With the layout switching, a kitchen island is an excellent way to improve the kitchen. This can cost all from $300 to $5000. After all, this can really change the look of the space and you may get a cheaper option with just the base cabinets and countertop that will do. If you want to install water and electricity on the island, that will indeed cost more.
Countertops mean all the difference. If the old ones are not modern and sleek looking you may want to seek out a stone countertop to really give the house that exclusive look. Even if you can’t get stone ones, something like a laminate countertop can look really nice if you choose a nice and modern design. Expect to spend at least $2000 for this and more for the installation if you go with the price options.
Big kitchen remodels options include opening up spaces of your home and connecting the dining hall with the kitchen. Open spaces are a great way to improve the value of your home easily if you can get the space open in the first place. This can pull in the cost of getting custom-made cabinets and kitchen elements too. So plan carefully and think ahead of how you want to use your space.
One more thing that is currently popular would be a big pantry space. This can greatly improve the odds of your house being sold if you have a dedicated space for future cooks. Getting high-quality appliances is also on the list, if you really want to splurge on those, get a top-line stove and fridge first as those as the first things that come to attention. Lighting is also very important and if you spend enough on the lights, it may prove very useful. Some simply led strips and nice lamps can really make the whole space looking different.
In summary, if you want to remodel your kitchen, there is work to be done. Tim from gordonbuyshomes.com also tells us that you need to be aware that a remodeled kitchen, that is up to modern standards can really make a home. For many, this is the place where they could spend most of their time. Think that you may be able to get more than the half of money you will spend.
One more tip that we can add always plans money for added costs or accidents that may arise during the remodel. Especially if you are doing DIY projects, always be ready for something to go wrong or that you need to spend more.
So with that, happy kitchen remodeling!
Are you wondering will San Diego home prices will drop in 2023? You came to the right place to get data-driven information to help you understand what is happening in the local real estate market. While no one has a crystal ball, we can utilize the best data available to have a good idea of what is ahead for home values in San Diego. To understand this properly we need to take a look at how we got here after two years of rapid appreciation in San Diego.
Interest rates have a lot to do with San Diego home prices, let’s explain why
Most homes are purchased using a mortgage, typically 80-97% of the value of the property is funded through a mortgage. Throughout 2020 until the spring of 2022 rates were at all time record lows (2.6-3.5%). Rates so low they’d never happened before and these record low rates meant the cost to borrow funds had never been cheaper. Cheap money means your buying power increases.
This caused several things to occur that increased demand for houses in San Diego
1. More people could afford to buy a house in San Diego, Increasing demand.
2. It lowered the monthly payment for a house, so you could pay more for a house in San Diego and your payment would stay the same as before rates were lowered.
3. People could refinance their existing homes, withdrawing equity and they used that money to buy more real estate, increasing demand.
COVID19 impacted demand of San Diego homes too, here’s how.
COVID19 surprised everyone and it altered the behavior of people in a way that increased the demand for houses locally and nationally. Here is how COVID19 encouraged people to buy homes in San Diego
COVID19 related events that increased demand in San Diego
1. Remote work encouraged people to relocate to places they wanted to live, especially nice climates like San Diego.
2. Families wanted a home to live in to avoid living in close quarters in apartments and condos during the pandemic.
3. People retired early, changed jobs, and made big life changes to relocate to nicer areas for outdoor activities.
4. Student loan payments were paused, increasing disposable income making it easier to fund the purchase of a home.
5. No travel, limited eating out and opportunities to spend caused increasing savings and people chose to spend that money on a house.
6. Less people sold their homes during the pandemic, restricting supply and increasing demand for house buyers.
High demand, limited supply, growing savings and record low rates meant prices go up.
The perfect storm of increased disposable income, lowered interest rates and increased demand to own a home meant home prices could go up 30% and the payment would look the same as a home in 2019 with a higher rate mortgage. Homeowners didn’t care if the price was higher, the payment was the same. This drove San Diego real estate values up over 38% in two years.
The shift that occurred in 2022 that is leading to prices dropping, fast.
Many of the events that led to rapid price increases are no longer present. Interest rates the single most influential factor in the rapid increases of San Diego house prices, are increasing at the fastest rate in US history. This will impact how you can sell your house and for what amount.
Here is a table to show how much impact the changes in interests rates factor into what a house will cost you in San Diego. Your payment on a $700,000 home has increased 57% over last year. Home prices must come down.
When rates go up, prices go down. Its just that simple.
San Diego home prices increased artificially due to the low supply and record low interest rates. Now that both of those factors are no longer present. Real estate values in San Diego are dropping, fast. We have not seen interest rates this high since 2007 and they have never been raised this fast in US history. There are some mitigating factors but this table shows just how much difference a payment would be to make sense at the new rates.
A $700,000 home in San Diego with a 3% interest rate has a payment of $2951
To reach the same monthly payment at 7% interest rate that San Diego home would need to cost $550,000
With homes unaffordable due to interest rates, sales are plummeting.
In summary, are San Diego home prices dropping? Yes. There is an increase in supply, a drop in demand and interest rates can no longer support the prices. No one knows how much San Diego home prices will go down, but the table listed above shows it could be as much as 25-30%
If you have any questions or would like to review the data used here to assess the San Diego home prices please don’t hesitate to reach out.
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