Kitchen renovation costs

Is Your Kitchen Remodel Worth the Investment?

Find out if your kitchen remodel will be profitable with insights into costs, market trends, and value-adding tips. Learn how Picket's AI tools can help you make data-driven decisions to maximize your investment returns.

Picket Team

Aug 30, 2024 — 4 min read

Maximize your kitchen remodel ROI with smart design choices and market insights. Learn how to turn home upgrades into profitable investments.

Whether you're thinking about upgrading the kitchen, adding another bathroom, or finishing a basement, it all comes down to simple yet notoriously hard-to-predict numbers. How much will it cost you? And when it’s done, how much more will someone pay for the house with that improved feature?

How Much Will It Cost?

There is no simple answer here, as it all depends on where you live, what you are doing, the quality you are looking for, how much of the work you plan to do yourself, and more. However, there are tools to help you understand what a fair price is for any combination of things in a renovation, including Picket's Reno Estimator tool. This tool provides you with a reliable starting point, but it’s crucial to follow up by getting multiple contractor bids for your project. Using the Reno Estimator can help you make an informed decision on whether your renovation plans are financially feasible.

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The Hard Part: How Much Value Will a Kitchen Upgrade Add?

Like all things worth exploring, the devil is in the details. Upgrading an average kitchen to a luxury one in a neighborhood filled with average kitchens? That investment is unlikely to pay off. Looking to create an open kitchen when comparable nearby homes all have open kitchens? That investment may pay off, but we still need more data to know for sure.

You can’t just look at the kitchen alone to determine if the investment will pay off. The kitchen must be considered within the overall context of the home. For example, adding a luxury kitchen to a 4-bedroom, 1-bathroom home might create substantially less value than the same renovation in a 4-bedroom, 3-bathroom home. In other words, you need to think about the home the way an actual buyer does, viewing the kitchen as just one piece of the whole.

As you can imagine, the process can get complex quickly. But there are some simple rules and tools we can use to make this problem easier to understand.

How AI Can Help

This is where Picket's sale valuation models come into play. Built on top of data extracted from millions of property photos, PicketAI uses these photos to determine the quality of specific rooms in nearby homes, such as kitchens. This means that Picket's prediction already includes the current condition of your kitchen and other key areas of your home.

For example, if you're considering upgrading your kitchen, PicketAI can analyze similar properties in your area to provide you with a more accurate estimate of how much value that renovation might add to your home. By taking into account the existing conditions and the quality of nearby homes, PicketAI offers a more holistic view of how your renovation will impact your home’s market value.

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Making Informed Decisions

With the insights provided by Picket, you can make more informed decisions about your renovation plans. Instead of relying on generic advice or outdated assumptions, you’ll have access to data-driven predictions tailored to your specific property and local market conditions. Whether you’re looking to upgrade your kitchen or tackle other renovation projects, Picket's tools give you the edge you need to maximize your return on investment.

Ready to get started? Explore Picket’s free tools and take the guesswork out of your next renovation project. Whether you're an investor, a homeowner, or a vendor, Picket offers the insights you need to make your renovations as profitable as possible.