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Q: I am thinking of remodeling my kitchen to update the cabinets and countertop. Currently, the style and total cabinet space is not adequate but space would be the main focus point. The house Im in is a starter home (approximate value $125,000) and I only plan to live here for a max of 10 more years. The remodel (roughly $7000) would add needed storage space, make the layout more functional and add granite countertops. My question is, do you think it would be wise to invest in this remodel knowing that we wont be in the home permanently. I know typically kitchen remodels have great return value but Im not sure if holds true in todays market.

Eric, Appleton, WI

A: I am not sure if 10 years from now you will get the full amount you paid for it back. For one thing, 10 years from now, the kitchen will be a little dated. However, you will get 10 years out of a kitchen that suits your needs better. I say do it. You may not recoup all of your money, but it will really give it a better chance at selling later on than if it was a really dated kitchen. Plus, remodeling is really in right now because of sluggish home sales.

A: $7000 is very reasonable for a kitchen makeover. Yes, the answer is, it is worth every penney to remodel for your pleasure and resale. Layout and storage is just as important as the overall look.By the time you sell some colors or hard scape may be outdated. Keep the unchangeable colors (countertops) as basic as possible. Appliances stainless, white or black are most desirable, ivory is not.

A: You get the best return when remodeling kitchens and bathrooms. It sounds like you will be happy as well as wise to remodel your kitchen. Homes that arent up to date typically take a lot longer to sell and sell for a lot less money.

A: Ten years is a long time. By then, styles will change and buyers tastes may change. There is no way of knowing what buyers will be looking for in ten years. It would be difficult to calculate return on value ten years from now. Go ahead and remodel, make smart timeless choices that would appeal to the average buyer. But most of all, make it so that you will enjoy it for the next ten years.

A: It does not sound to me like a bad idea at all. Of course, the main thing you want to avoid is over-improving. A $7,000 kitchen remodel does not sound like an over-improvement on a $125,000 home. If you said you were looking at putting in a $25,000 kitchen, then I would question the resale value down the road. Remember that regardless of the resale, if you stay there 10 years, you also get to enjoy that new kitchen for that time.

A: One word, absolutely.

A: In the vast majority of cases, kitchen remodels do pay off when theyre done well, and not outside the normal level of finish for the neighborhood. No matter the market, a large percentage of buyers are looking for a move-in ready home. They will only be considering homes with well-finished kitchens and baths.

A: The better question would be: Will this change to my ktichen give me at least $700 a year in added livability? Your home is not like other investments. It serves a vital purpposeshelter and comfort. So while you never want to over-improve a home, if you stay within reason and get the added benefit of enjoyment of the improvement, I say go for it! Kitchens are usually one of the best invesments you can make.

A: Go ahead with the remodel if these are changes that will benefit you for the remainder of the time that you live there. Ten years is still a long time to be planning on staying in a house. Adding the storage space should be your main focus. That will be very important to future buyers & should provide some benefit to you. Less important are the granite countertops. Although I think granite is a great choice right now, the desirable countertop surface in 10 years may be something completely different than it is today. You are right that kitchen remodels have a good return valuebut only if those remodels are desirable at the time of sale. Storage space never goes out of styleyou can expect a good return on that portion. As far as the countertops gochose what you want to look at and cook on for the next 10 years. Return on that investment will probably be less financial and more personal.

A: I would like to start off by telling you that 10 years, in real estate time, is considered a long time and defined as a pretty permanent living situation. Kitchen remodels always have a great return value, but a 10 year old kitchen is not considered newly remodeled, on the contrary, could even be considered dated in 10 years time because of change of materials and trends in the building industry. Remodeling your kitchen now would be for your own enjoyment and value would be added if you are increasing the space. Many people like to remodel a few years before they intend to move (two years at max), to make their property more marketable and desirable. You need to decide whether or not you want to reap the benefits of a new kitchen now or later.

A: In todays market, remodeling will add to the homes value, however, it may only be a portion of the original investment. Make certain that the improvements being made are in market demand. If you are planning to stay in the home for 10 years, then you may need to make further improvements at that time, so for today, do what will make you happy in the home, there is no way to see inside the crystal ball for 10 years down the road.

A: Yes. $7,000 is a wise investment and you have a high chance of recovering your investment. Go for it!

As you probably know, most of the time spent in a home is spent in the kitchen. Lets just say you live in this home for 10 years. So using the $7,000 it would cost to remodel, divide it by 120 months and you get just under $60 a month or under $2 a day.

Besides the resale value, for $2 a day is it worth enjoying the most important part of your home? My answer would be yes. You assume you will move from that home in X number of years, but the future is always unknown. No one really knows what the future truly holds.

My opinion is two fold; for resales sake, yes an updated kitchen is a must. In todays market the competition does have the updated bathroom, the updated kitchen, etc. Anyone trying to sell their home is competing with listings that have these features.

Besides that, why not enjoy the home you are in, while planning for the future also. As the home market steadily improves, hopefully you will regain some of the expenses associated with the kitchen remodel.

My opinion is yes, do the remodel, enjoy the benefits of that remodel and it will update your home for a possible future sale. I dont see any downside in a remodel unless you are planning to sell in the next two years, then I woud say save your money.

Let me know if you need any more advice.

Thanks again, Haig.

A: Ten years is a long time and you should have no problem recovering a $7,000 investment in a new kitchen.

Keep in mind that in 10 years the kitchen will no longer be new but it will certainly be easier to sell your home with the upgrade. Understand however that exterior improvements give more of a return than interior changes when remodeling according to a cost versus value report that is produced annually and examines the cost versus value for home remodeling. The report can be helpful for those who are considering making improvements to their homes, especially if their home is one that they are considering selling in the near future. Historically, kitchens and bathrooms are where people tend to spend their money but the return on the remodel investment is not necessarily there.

According to the 2009 Remodeling Cost vs. Value Report the best return for your money are exterior improvements that often are lower cost projects to begin with. Adding decks, replacing siding, new doors and windows are among projects that recoup the most money when re-selling a home. The return on these projects is typically 80% or more.

The annual report shows how important first impressions are. If you are considering selling your home make sure that the exterior is as eye catching as it can be.

If you need the extra space you will definitely enjoy your new kitchen for many years to come. Get it done and enjoy it.

If you need help on the design, most experienced Realtors can give you some tips on what appeals to the majority of buyers. Dont be afraid to engage their services now.

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