New 2023 Remodeling Study… highest and lowest cost recovered

Getting ready to sell and wondering what projects will add the most value to your home? Today’s Homeowner calculated the average return on investment for 34 projects, consulting with more than 30 experts including real estate agents, licensed home improvement contractors, property managers, and other industry professionals. They collected project material costs directly from suppliers to get the most accurate data.

You have no doubt heard about the importance of curb appeal, and this study demonstrates the importance of exterior home improvement projects. The average ROI across exterior projects is about 80% compared to roughly 57% for interior ones. In fact, all seven remodeling projects with an ROI exceeding 90% relate to the home’s exterior. There is even one project that yields a 100% return… a new garage door! And wood replacement windows aren’t far behind at 95.5%.

On the other end, finishing the basement is at the bottom of the list, with only a 22.7% return. That echoes what I find when I am out with buyers and reflects on why a walkout basement is so much more desirable. Homebuyers (and appraisers) place more value on above ground living space. I met sellers yesterday at a home with a walkout basement lined with huge windows letting in tons of light… it didn’t really feel like a basement so should have great appeal. Homebuyers typically are looking for lots of natural light on each level.

In the kitchen, new appliances gave a 74% return, followed by quartz and granite kitchen counters at about a 62% return. The overall average cost recovered on projects in Minnesota was 69.7%, with a midrange kitchen remodel recovering about 55.8%.

See the full report at ROI of Your Home Remodel , where you can get specific information for projects in your area. In Minnesota a screened-in porch yielded a return of over 100%… a good indicator of why the mosquito is often jokingly called our state bird!

Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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