Kitchen remodel

Just wanted some other opinions. We currently live in a nice suburb in Santa Clarita, CA. Nice area/street, at the end of a long culdesac. House is 3,300 sf, 5 bed/3.5 bath. My wife has her own home/interior design business that's going on close to 9 years now, and grown. This has led to both upstairs bathrooms being remodeled and done exceptionally well. We did the downstairs powder room ourselves and we're leaving the third full bath downstairs alone as it's in very good shape. A bit dated, but not bad at all.

We're now looking to do the kitchen. I knew all along it would likely hurt (the wallet). We're planning on using same contractor who is one of the better ones she's ever worked with and a bit pricier, but you get what you pay for. We also know him personally as they use to be neighbors on our street so I consider him a friend.

Kitchen would include new granite counters, remove double oven and replace with larger single and a convection microwave. Cabinet boxes likely to be re-used but painted with new doors, new draw pulls/handles. Remove microwave above stove and replace with large chef's hood, and new chef's stove. Fridge and washer are newer (3 yo?) and stainless so they're staying. New granite counters, new sink, new fixtures and the large island may actually get replaced. It's about 7' long and only has doors/access on one side. We're looking into carpenters who can either add doors to other side, or just scrap entire thing and replace with new one.

There's an open area at the far end that we use for eating. Has a table and built in desk. Desk will be gone for a bar area, upper cabinets, and wine fridge. Based on her experience with her business, wife estimates $75-$80k.

My question to those in the know, can I expect any ROI on this large of an investment? or just break even. Houses in our area/street are north of $850-$900k with the online estimates being $1.1m. There is only one house on our street that was upgraded as much as ours, and only the kitchen. They have yet to do their bathrooms. And our house is one of four models and is the largest model.

Before we spend that much on a remodel, I'm hoping that we can expect at least to break even on re-sale, but would be curious what others have experienced. Obviously, no exact way to know because I can't sell the house without the remodel, and then sell with. Just want to know if re-sale prices met people's expectations after similar upgrades/renovations.

Thanks.

 

Being the largest, nicest house on the block can work against you. The rest of the houses take your value down with them, vs. being the smallest house on the block being lifted by the larger nicer units. $80k for a kitchen remodel that doesn't even include new cabinets seems ludicrous to me, but that may just be your market and having a contractor do it. Have you priced out all the upgrades yourself and determined exactly what the contractor is charging you? I've remodeled our last two houses completely including the bedrooms and bathrooms and exteriors and did not spend $80k on everything combined for both. It sounds like you are dependent on teh skilled tradesman to do their thing, so you are at their mercy I guess.

 

Thanks. While I can do some of the upgrades myself, I know my limitations and my wife wants our contractor to do it. He's exceptional. His attention to detail is ridiculous and yeah, I do know what he's charging for labor. Since this is in Southern California, prices are what prices are. It's just incredibly more expensive here (not justifying, just a reality...and it sucks a$$). As far as comps and our value being dragged down, our entire street are similar in size houses. I think smallest is 2800 sf, with our size being largest. All are very well maintained. While we have the largest model, I do recognize this issue, but still not dissuading us from doing it. I just want to know if there's at least a balancing out on the ROI. If I can add value, even better.

 

Not to be a putz, but shouldn't your wife with her line of work be able to give you this answer? Isn't that what she's selling her clients?

I mean if you're going to value the house to sell right now and you get $X... value, will you be able to sell the house immediately after completion of the renovation at $X+80K? Probably not. Unless your kitchen is 20+ years old and very dated. But, kitchens are typically the highest ROI in terms of remodels. If you're planning on selling, then appliance upgrades and some paint are probably your best bang for buck (again unless the kitchen is 20+ years old) and it sounds like you have new enough appliances to pull that off.

If you're not planning on selling, then the ROI becomes subjective, or even meaningless, unless you're just out to measure tubesteaks at the monthly HOA meetings. So have your contractor buddy do exactly what you want and enjoy the hell out of it.

 

So my wife gave her opinion. She thinks we'll at least break even. Cost is $75+, added value is at least $75 in her mind. She is a home interior designer, not a realtor. And you're right, she does provide that insight. But she's got a conflict of interest, because she wants the remodel more than I do. I'm not eager to drop that much into a renovation.

We're not selling any time soon, but the question was merely to get the peanut gallery's thoughts. I know very well that a kitchen adds value, and obviously, there's no price on the fact that we'll get to enjoy it some before we consider selling then obviously take into account some perceived depreciation.

Not out to measure anything. It was just a question and we have no HOA. But you are correct. Gonna enjoy it, but I guess I'm trying to obtain some moral support based on the audience's opinions on ROI. It just kills me that it costs that much. Given the forum, I could have a new Tundra with extras for the cost of this kitchen....shit, I could mod the hell out of my '17!

 

Most folks spend the most of the time in the kitchen.

I’d say it’s probably a push on the cost/ROI. Or you might come out on top a little. Especially after a little time passes. Sounds like you’re in a pretty nice spot that doesn’t see much dip in home prices. If it’s not going to be a major financial issue for you, based on your circumstances it sounds like you will come out ahead.

Also a meticulous contractor is a good idea in a high wear n tear area like a kitchen. The finishes will tolerate a lot and hold their value and not look too beat up. Much like our tundras.

 

If you're looking for ROI, new counter tops and cabinet faces and hardware with fresh appliances and lighting should do it. That should in no way come even close to $80k. More like $20-25k. If you need to change the layout or add in new service types such as a gas line that doesn't exist already, then it's all new floors and cabinets and permits that may jack the cost up. I watch these remodel shows and just can't fathom where all the money goes.

 

Happy wife, happy life.

Build it as a showcase and expense it. Best of both worlds.

Or, build it to use and enjoy, knowing a tastefully updated kitchen never lost the sale. ROI is too inconsistent to worry about if you aren't planning to sell immediately. Knowing your market and being sensitive to it already has you a leg up. Paired with the wife and ctr combo and you're in a great position.

Good luck and post pictures!

 

As a contractor, that price seems a little high.
How long do you plan on being in the house?
ROI is not always solely based on resale value.
If you like the upgrades, use the kitchen regularly and have the liquidity, it doesn’t matter if you’re going to be there another 10-15 years.

 

We actually did a remodel on our kitchen through cabinet discounters……it was a GREAT experience. The installer had to build a bulkhead and do some extra work and the guy was a wizard. The cabinets were really nice hickory wood, the countertops were beautiful granite and I did the backsplash and under cabinet lighting. I think it was 7 or 8 years ago and cost us $16k (it was a small kitchen). But we definitely got our ROI out of it. When talking about $1.1 million dollar homes, that doesn’t seem crazy unreasonable, especially in that part of the country.

 

So the price includes a new island being made along with the built in bar/upper cabinets, but a carpenter. But cost of materials are crazy high. We just did our kids bathroom, tile (5' long x 3' wide for shower), new vanity, etc., topped $25k. Our master shower, $45k. Same contractor, but his attention to detail is second to none. And he's always busy. So yeah, he charges more but you really get what you pay for. Plus, with new appliances, fixtures, painting cabinets, etc., I'm just gonna roll with it.

We will be here at least 5+ years, likely 10 so you're all correct. ROI is going to be somewhat irrelevant since we'll get use of the kitchen for a while. But it's still nice to know that the cost at least has a chance of being recovered in increased sale price. Ugh...I really hate spending this much.

First pic is our master bath. Second is the large shower tiles being installed in kids bathroom. Again, I love our contractor and have no issue paying him. He's that good. I think the carpenter and certain other changes to our kitchen are significantly impacting cost. Doesn't make me feel any better.

 

Looks great @kevine0001 .

So yeah, it's a pile of money, but it looks like you're getting great work, and given your locale, it's not an outrageous sum.

Our kitchen remodel 2019 $55-60 (I think was the breakdown for the kitchen we did some other stuff too that was additional). And we’re definitely not in SoCal.

Before:

After:

 

Looks great! And definitely looks like a $60k reno.

 

Thanks. Yeah definitely felt OP's pain with spending that, but turned out to be worth it even though I still dry-heave if I think about it too long/often.

 

Bathroom looks nice, mine are dated, giving me that feeling to start a remodel on mine, but being a noob, I may mess this one up, but may do it anyway, since I wont be leaving for a while. My neighbor's contractor got caught up doing work without a permit via the airplane method, he was complaining about them permits being north of $7k. Assuming he was trying to pitch me a swimming pool deal, but I'm unsure of what to do on that side of the yard. I'm Northeast of you in Lancaster/ Quartz Hills area.

That's a nice kitchen right there... I'm looking into refacing my cabinets with hardware for now and replacing my oven with a double one as my stove is a stovetop and the wife doesn't like it, she wants an actual stove with an oven and a larger island.

 

Unfortunately, price on everything has gone up. And in CA, it's even worse. Just read an article that millenials feel they need a salary of $525k/year to be happy....lord save us.

 

Funny, we went out a month or so ago, bought all of the additional appliances we'll need. New convection oven with microwave above (removing double ovens and microwave above stove), new hood above new stove top and wine fridge. Store who is a vendor for my client will hold everything until summer when project starts. But we saved by using holiday sales prices and the fact that prices will likely go up just by summer. Insane.