I have been engaging in a conversation over at the Arizona Real Estate Notebook about a kitchen remodel project. The original question came from a someone who needs to sell his home, and thinks the kitchen is outdated (he’s right!). It’s a 2300sf home in NE Phoenix (Tatum and Greenway), built in 1985. He wants to sell quickly, within a few months. The price range on the house is about $430,000. There’s no specifics on a budget, but I’m thinking somewhere in the $5-7k range is about right.

How would I flip this kitchen? Easy. The first thing Rob needs to do is go visit all the new home builders in the area. Looking at houses in the $500-550k price range should do it- with all the incentives builders are offering, it brings the purchase price down to the mid $400’s. This is his main competition. Most people want new homes, but buy resale due to price and/or location (some don’t like brand new subdivisions, and resale offers mature landscaping and proven HOAs). Next, Rob needs to have his Realtor® show him pictures of all the houses that have SOLD within the last 3 months in his area. This will not only give him a good idea on pricing, but have an idea of what the kitchens look like that people are buying into. Lastly, looking at Active listings could help somewhat. This is a good point of reference, but- keep in mind that these are all the ones that no one else has wanted yet. So take their kitchen designs with a grain of salt- Sold kitchens weigh more heavily on Active Listing Kitchens (however, Active Listings are your competitors as well, so keep them in mind). This should give him a strong idea of what needs to go into his kitchen.

Now, the question was asked as to what I would do to flip this kitchen. Personally, as someone who has flipped a couple hundred homes in the last few years, I would offer the most kitchen for the money. This means upgrades! You have to keep in mind the price range of home, and location. The buyers in this area are Scottsdale buyers, and expect quality. Especially if they are going to buy a 23 year old home for $430k. Quality sells- not cheap knock offs. People in this price range know the difference between quality and skimming. Give them the most quality for their buck.

The first thing that jumps out at me are the small, white tile counter tops. We all think the same things when we see them- public restroom. They have to go. He was thinking of doing granite tile counter tops for the price of about $3k. I think that’s a little high. Without seeing the kitchen or having actual measurements, I am just going by the picture you see here. My granite guys are quite a bit cheaper than anyone else out there. I believe he could have granite slab done for his $3k, and granite tile for even less. To me, slab is the way to go. There are other alternatives out there, for quite a bit cheaper- Lowe’s and Home Depot have a good selection of these. Avoid going with anything too ‘plastic’ looking. People want quality, and plastic isn’t quality. Granite tile is a cheaper alternative- but in that price range of home, and the current state of our market, I would only put in slab, plain and simple. Oh, and leave the bar top- families love the bar top.

The next thing that stands out are the cabinets. Oak. yuck. I hate oak cabinets. Nothing says 1980’s/90’s like Oak cabinets. Oak MIGHT fly in a 200k price range- but in a $400k+ in NE Phoenix- gotta be cherry wood, maple or something similar. Oak is bottom line, standard. Walk into a $200k new construction home (KB Homes)- you see Oak. That says it all. If you were to pay $430k for a 23 year old home, what would you want to see? Right- upgraded cabinets. Judging by the picture, I would think $3k give or take for new cabinets would do the trick here. Call around to TONS of different cabinet shops and get price quotes from them all- you’ll find a decent one for the right price. JUST AVOID THE OAK! Now, an alternative is to re-surface. Honestly, I’ve never done it- but have been meaning to try it here soon. It COULD come out pretty decent, and is MUCH cheaper than replacing cabinets. I’d be careful of an amateur job tho- that can make the kitchen much worse than it is right now. Find a professional, go see samples of re-surfacing oak yourself, then make the best decision at that time.

Another little cheap, but effective, upgrade can be putting hardware on the cabinets. Door handles upgrade the cabinets and make them feel more expensive. The style greatly depends on the cabinets you choose (get a woman’s opinion!!!). I would buy these on ebay for much cheaper than a local store. You can expect to pay $100-200 at the most. Again, this is optional- personally, I rarely do it. Typically I upgrade the cabinets, counters, and appliances enough to where that sells the kitchen by itself. But it is a cheap option.

Next on the list are appliances. Personally, I hate white appliances. It says cheap and dated to me. Again, it’s a 1990’s style, or a $200k home style. At a minimum, they gotta be black. However, in this market, Stainless Steel sells. Spencer’s Appliance, or Home Depot when the sales are going, has great pricing on these. You may luck out and find some used online- but it’s tough. I would include a refrigerator with the home (put a big red bow on it, and a sign on the front door that says ‘free stainless steel refrigerator when you buy this home’). Glass top ranges are going out in style- people are realizing what a pain they are to keep clean. I would drop about $2k on appliances, $1k give or take without the refrigerator.

Lastly- lighting. This is key. As you can see, this needs to be replaced. The acrylic cover and wood trim must come down. Depending on what’s underneath, replace the fixtures completely. If there’s 1′ or more of space up in there, you could expose this for a nice architectural detail, and give the illusion of a more open space. However, if it’s too shallow, or just plain ugly up in there- I would consider recessed lighting, and a ton of it. Whichever way Rob chooses to go, the lighting MUST BE bright. And I mean REALLY bright- hurt your eyes bright. Let me ramble for a second…

Here’s a little trick I use in every home I flip. I max out the lighting in every kitchen and bathroom. I’m talking possibly Halogen bulbs (they put out a ton of heat, so it depends on the space), but typically 100-watt bulbs minimum. Make sure your light fixture can handle it- if not, replace the fixture. Here’s why- brightness interprets to clean. Nothing sells kitchens and bathrooms more than being clean. Kitchens and bathrooms sell houses, hands down. Bring a woman with you when you walk through a home. Ask her to tell you exactly what they’re thinking every step of the way. I would bet one of the first things they think of when they walk into a kitchen or bathroom is how clean it is. The next thing they think of is how the lighting is for them to do their hair/makeup/dressing. If the lighting is bad, they’ll know it right away. My wife’s first comment to me when we were buying our new home was that we had to get a blackout shade for the window over the tub. The sunlight would come in and reflect in the mirror- making it tough to do hair and makeup. I never would’ve thought about that. And men, I hate to break it to you, but, women buy homes. 99% of the time if they’re not happy with it, we’re not buying it. :D

So getting back on track here- this kitchen, it’s gotta be bright. Depending on what’s under that acrylic cover- make it bright as can be and into today’s style. Rob says that the rest of the house is in great order- paint, flooring, etc. Assuming he didn’t paint anywhere else, I would leave the kitchen as-is. However, if he had done a nice 2-tone paint job elsewhere, he may consider painting the kitchen as well.

My last little tip is to replace hardware throughout the house. I know this is a little off-topic from the kitchen- but, it will help him sell his home. Put it this way, if there’s brass anywhere in the home- you may as well bust out the leg warmers and blue eye shadow- it’s outdated. Brushed nickel faucets, door handles, hinges and even door stops are the way to go. Door handles need to be a lever type- no round knobs. At $10/ea, it’s a cheap way to add quality and style to your home. And yes, people notice the door stops- replace them!

So where can Rob go for all this stuff? Construction Lots, Builder’s Outlet, even Stardust Building Supply. However- these warehouses are hit/miss on prices. Definitely price things at Home Depot/Lowe’s before going, so you know what’s a good deal, and what isn’t. Typically I see a savings of 10-20% off materials, IF at all. That adds up, so it’s worth a stop to see. Home Depot and Lowe’s just contracts out to local cabinet/counter top shops, so I go direct to them instead. Open the phone book and start calling for prices. Contact me directly if you want the name of my Granite guys. Here’s where I see this project’s expenses…

Cabinets- $3k to replace, much cheaper to resurface. give or take on size/style
Countertops- $3k granite slab, cheaper for other materials or granite tile, give or take a little
Appliances- $2k for stainless steel, including Refrigerator, $1k without, give or take Lighting- Depending, $100-200 give or take
Kitchen Sink/disposal- $200-300 (he didn’t say if he needs this or not)

All total- $7-8k, give or take. If you are to do the work yourself, you can certainly save some good money on the project. Again, without seeing all the competition, and the actual size of the kitchen, this is the best guesstimate for this job. Remember, you have to offer the best quality home for the best price if you want to sell quickly. This means upgrade to a $500k-550k quality home, but for the asking price of $430k.

I hope this sheds some light on it for you Rob! Make sure you are offering the very best product for the cheapest price, and you’ll have no problems selling your home.

Click to Subscribe to REI Pipeline and get Daily Updates by Email


5 Responses

subscribe to comments rss or leave a trackback
  1. Thanks for all your help,

    The kitchen really does need a complete make over. The problem is cost of course. I would gladly shell out $7-8k for new cabinets, slab granite, lights and appliances.

    I received two quotes for slab granite; both were from retail stores. both quotes were close to 7k. The kitchen is fairly large. There is 90 sq. ft of counter space with 40 liner ft. of counter edge. The front face of the cabinets is about 52’ including over head. There is also a 2.5′ x 7′ pantry. This does not include cabinet sides or back.

    I would love the name of your granite guy, or cabinet guy, or light guy or any one that could help…. my email is.
    reyna@globalpi.com.

  2. ok- for Granite, call ‘Ray Brothers Granite’ in Mesa. They’re off of about Stapley and Brown. Here’s the deal with them- they are much cheaper than anyone else- but- only stock about 10 standard slabs of granite. Since they don’t have a ton of material to house, they can keep their costs low. But, you have to deal with a slim selection. You should be able to find something for your needs. Your kitchen sounds quite a bit larger than I had thought- it may go outside your budget to do it. You may have to go with Granite tiles or a different material to hit your budget requirements. It didn’t look that big in the pictures… Let the Ray Brothers know I sent you (they just did my mom’s house in Val Vista Lakes, and previously a rehab/flip for me in Tempe- which, I sold in 2 hours, btw…).

    Cabinets- that’s a tough one. For me, I just get out the phone book and start calling. I’d get 5-10 quotes easy. Maple or Cherry wood. Keep in mind that this can take 3-6 weeks to get in! So the big question besides price is timeframe on installation. I haven’t found a decent cabinet company yet- so please let me know what you find. You’ll need to nail this down before picking a color for your countertops. Also keep in mind that you can’t really order counter tops until the cabinets are installed. They’ll need to come out and take a template once the cabinets are in- but you can put a rush on it if you need to.

    Lights/appliances are pretty fast- so I’d focus on getting cabinets in and a new counter top going ASAP. This is the PERFECT time to be doing this- it should be ready just in time for our peak selling season here in AZ- Feb/March.

    Please keep me posted on the progress, and let me know if I can answer any questions for you!
    Good luck!

  3. Thanks for all the info. What name should I give the granite guys?

  4. Austin McKnight. Let me know how it turns out for you- btw- I tried emailing you and it bounced back. Based off the size of your kitchen, this may go outside of your budget here. Be prepared for that. You may have to step down to granite tile or some other material (remember, nothing ‘plastic’ looking). Keep me posted! BTW- do you have a good Realtor to help you get this sold? ;)

  5. […] Rehab Tips - Kitchen Remodel […]

Leave A Comment

subscribe to our news feeds
Already a member, login below or join us here
USERNAME
PASSWORD