Renovate your kitchen, but don't expect a windfall when you sell

Are you thinking about remodeling your drab kitchen?

Be warned: Remodeling projects will not always fill your pockets with cash when your home sells. In fact, you might not recoup the entire cost of the project.

Experts warn against dumping thousands of dollars into a renovation before researching the project.

"Know what other homes in your neighborhood are selling for," said Michelle Jennings Wiebe, founder and president of Studio M Interior Design in Tampa, Fla. "You want your home to be in a similar range. If you spend $100,000 on a kitchen remodel, and other similar comparable homes have $20,000 kitchens, then you will not recoup your investment."

While the Great Recession forced many homeowners to delay selling their homes, kitchen remodels jumped 36 percent in the third quarter of 2011, according to the National Kitchen and Bath Association.

The biggest issues that homeowners face with renovations are the problems that arise during demolition. Budgets should include money for unexpected expenses.

"I would recommend adding at least a 20 percent contingency to any budget," Wiebe said.

She offered these recommendations when tackling renovations:

-- Hire a highly recommended general contractor with at least three references with past jobs comparable to your remodel job.

-- If you are doing the work yourself, make sure you know what you are doing. It's common for homeowners to hire designers

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Renovate your kitchen, but don't expect a windfall when you sell