Legal Kitchen or Not..?

Question

I have a legal commercial kitchen with all the commercial kitchen equipment (commercial refrigerator, ovens the works), store room, entertaining area with all the enmities separate from the living area (30' x 40' outside building) I built this kitchen to bake and sell cakes and other goods from home. Now that we are planning to sell our house for a custom built home with another commercial kitchen separate from the living area. I was want to know if you where going to buy a home would you put an offer on a home like this. If I keep the commercial kitchen and not turn it back into a garage then all the equipment will go with the sale. I am contemplating changing this back into a 3 car garage. Just needing a general public’s opinion. To complete this kitchen it cost around 30 grand, wanted to know if I would get my money back if I decided to keep it a commercial kitchen or turn it back into a garage. Thanks for all your help.

Oh yea I forgot to mention that a 2 car garage already exists connected to the home, and a wood working shop is in the back part of the building as well. On one acre of land, so parking is not an issue.

Answer 1

Today's homeowners are looking for one large, spacious, uncluttered, sparkling clean kitchen. People today do not use their kitchens in the same way as was done years ago when a second kitchen, or "summer kitchen" was a cool feature. The approximate value of having a legal commercial kitchen on your property is specific to your local area. The need in your local area will determine the value.

It's hard to say that your property value would increase by $30,000 because it cost that much to buy and install the equipment. Your main house should have a large, beautiful, (remodeled) modern kitchen with lots of stainless steel fixtures. Remodeling your main house kitchen is what can add the most to your property value, up to 150% of remodeling costs you expend.

The large commercial kitchen is of value to people who are looking to produce income, or who are in the food preparation business. Caterers, bakers, restaurant owners, and chefs. Also, someone planning to have a large garden on the acre of land, and grow food, might appreciate having the extra kitchen, and large storage coolers, as well. Online food sellers are now a hot business opportunity niche. They usually need a commercial kitchen to prepare their product. Florists also use large coolers and need extra storage space.

Check with your zoning board if one person can own the property and someone else can rent and run the kitchen. If you advertise in your newspaper a commercial kitchen For Rent, the response you receive may help you discover how popular the feature is in your immediate area. Explain to people who respond with interest that you don't use the kitchen any more, you are planning to sell your property, any lease would begin after the house was sold, and would be contigent upon approval by the new owner. As you begin to gather names, someone interested in renting the kitchen area may decide to buy the entire property, or they may know someone looking for this kind of value who would partner with them.

The point is to get the word out, and market your property specifically to those in the food, preparation, and refrigerated products industry. Do this in addition advertising to those in the general real estate market. There are non-profit groups that could have funding available specifically designated for maintaining a commercial kitchen

I would not change or convert the kitchen before you put the property up for sale. You say there is already plenty of other garage space, and storage space on the property. I am sure most buyers would appreciate having the upgraded electric, or gas service, and fire safety equipment even if they didn't plan on using the kitchen space. Having a list of prospective renters to give to the the new owners may actually increase the value of your property in the eyes of some people. Let the new owner decide if they want to keep the kitchen, or convert it back to gargage space.

If it turns out that interest in the commercial kitchen is low, either you or the new owner can sell kitchen equipment to raise extra money. It's possible this could even help the prospective buyer pay closing costs as an incentive towards the sale.

Answer 2

What you have done is put in a very expensive personalized garage conversion. More people will want the garage. If you leave it as a commercial kitchen, I think you might get $5,000 for it.

This is a little like putting in an in ground pool for $30,000. It would add about $15,000 to the value of the house though, because more people would see value in an in ground pool plus a three car garage than they would in a very expensive kitchen and no garage.

If you can keep and take with you some of the major things out of it, do it.

Good luck with your sale and new home.

Answer 3

For 99% of the homebuyers, the huge commercial kitchen is like buying a dead horse. For the very limited people that would buy a home like that...it might make the value higher.

Unless you don't mind waiting a long time for the right buyer, take your stuff and make it a garage, it will definetly sell faster and for more money from the average homebuyer

Mike

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Answer 4

Your commercial kitchen serves to a specific market. As a 3 car garage it would have more potential customers but I would advertise this property, as is, to specific markets. See how much of the existing equipment you can re-use. How much it would cost to convert the space to a garage.

Answer 5

Me personally, I would want the kitchen. With the popularity of cooking right now, you may very well find someone interested. Is there another garage or parking area? If not, then, maybe to appeal to more buyers you should convert it back. Good Luck.

Answer 6

If you can afford some time I would let a good agent give it a shot.

As you used it for commercial purposes I am assuming that it is properly zoned. Someone looking to buy a small business might be thrilled to pieces to hear about it.

This wouldn't happen to be in California?

Answer 7

Nothing is legal in California.