The answer to this question depends on your home, but the good news is that a kitchen renovation is the most efficient way to increase your home’s value. For every dollar you spend on a kitchen remodel, you can expect a 92.9 percent return when you eventually sell the house.

The best way to get a feel for how much you should spend is to consult real estate agents or your own recent sales data. This will help you figure out how your kitchen compares to other homes in your area. You can also use the data to help you determine how much of a profit you’re likely to make if you ever decide to sell.

Whether you’re planning a small, midscale or large kitchen renovation, start by defining the scope of your project and creating an itemized list of everything you want to replace. This will help you prioritize what items should be a priority for your budget and what can wait.

Keep in mind that the kitchen is often the most expensive room to renovate. Cabinetry costs are the biggest culprit, followed by labor and appliances. If you can’t afford to pay top-of-the-line prices, avoid custom cabinetry and opt for more affordable options.

Consider narrower cabinets to save space and give you more workspace as well. You can also add pull-out spice drawers, sectioned drawers, corner cabinet carousels and other features that will make your space more functional and efficient.

If you’re looking to splurge, consider high-end stainless steel sinks, faucets and hardware. They can be quite expensive, but they come in a variety of colors, materials and styles that can give your kitchen a designer look without breaking the bank.

Adding lights to your kitchen is another great way to enhance its appearance and functionality. You can install under-cabinet lighting, ceiling lights and pendants that will create a brighter space and enhance the view of your kitchen countertops.

While many of these upgrades will eat up a significant percentage of your budget, don’t let them derail your overall renovation plans. Remember, it’s the quality of the work that matters most.

In addition to the quality of the materials, you’ll want to consider if the remodeling company is reputable and if the price tag seems reasonable. Check for reviews and testimonials on sites such as the Better Business Bureau, and do your research before hiring a contractor.

The cost of a kitchen renovation can vary widely by state, and even by city. For example, kitchen remodels tend to be cheaper in the South than in the North and West. Regardless of the region, it’s important to choose a contractor with experience in your particular neighborhood and a reputation for getting the job done right.

It’s also a good idea to plan for the unexpected by including 20 percent of your budget in case any major problems arise during the demolition and construction process. This will help you avoid unpleasant surprises like water damage, electrical that isn’t up to code or other potential budget-spiking gotchas.