In the kitchen
An upscale major kitchen remodel, in the report, would include replacing cabinets with custom models with built-in sliding shelves and other accessories; changing to stone countertops with imported tile backsplash; adding new high-end appliances like a 36-inch commercial grade range; and installing an under-mount sink and designer faucets. It would cost an estimated $105,487 in Phoenix and recoup $73,229 at resale — an estimated 69.4 percent recovery.
A midrange but still major remodel would include installing semi-custom cabinets, adding an island and laminate countertops, replacing the sink with a standard stainless steel model, and replacing appliances. It would cost an estimated $52,479 and recoup $42,951 at resale — an estimated 81.8 percent recovery.
In the kitchen, however, the less you spend can sometimes mean a better payoff, the report indicates. A minor kitchen remodel in which you reface the same old cabinets, replace some appliances and replace laminate countertops will cost an estimated $18,065 and recoup $16,981 at resale — a 94 percent recovery!
But keep in mind that if you live in a luxury, high-end development, a barebones remodel might not fit what buyers expect to find in your house. The same warning fits in a modest subdivision. Overdoing a luxurious renovation may not fit the concept of what buyers expect to pay for your house. In many cases, a remodeling job out of synch with the neighborhood can detract from rather than enhancing your home’s value.