Major Kitchen Remodel

2002 Cost vs. Value Report

Kitchens "are the big thing that sells homes," says Sacramento real estate agent Tamara Dawn, drawing on 23 years of experience selling new and existing homes. This year's study offers two gut-and-replace kitchen remodels: a mid-range price project at $43,213 and an upscale kitchen -- same size, different components -- at $70,368.

Real estate agents and appraisers see the return value of the upscale project (80% vs. 67% for the mid-range price point) as greater. That's because, as Dawn points out, upscale features are now almost a requirement in upper-tier homes. The price difference in specing granite vs. other types of materials for countertops, for example, may be $5,000, Dawn points out, but "it can make a $20,000 difference in the asking price, because of the perception about the quality of the home."

Project description

Mid-range: Update an outmoded 200-square-foot kitchen with design and installation of a functional layout of new cabinets, laminate countertops, standard double-tub stainless-steel sink with standard single-lever faucet. Include energy efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposer, and custom lighting. Add new resilient floor. Finish with painted walls, trim, and ceiling. Include 30 linear feet of semi-custom grade wood cabinets, including a 3-by-5-foot island.

Upscale: Update an outmoded 200-square-foot kitchen with 30 linear feet of custom cherry cabinets, granite countertops, and imported ceramic tile backsplash. Include built-in refrigerator, cooktop, 36-inch commercial grade range and vent hood, built-in warming drawer, trash compactor, built-in combination microwave and convection oven, high-end undermount sink and designer faucets, built-in water filtration system. Add new general and task lighting including low-voltage under-cabinet lights. Install cork flooring, cherry trim.