Tis the season to think about home improvements. If you are thinking about resale in the coming months or a few years down the road, smart investments in updates increase buyer interest and resale value… and you can enjoy the improvements yourself until you are ready to move.
It should come as no surprise that some improvements yield higher returns than others. Nationally, four projects yielded a return over 100% of the amount invested…
- HVAC conversion – 103.5%
- Garage door replacement – 102.7%
- Manufactured stone veneer – 102.3%
- Entry door replacement (steel) – 100.9%
According to Remodeling‘s Cost vs Value Report for 2023 for the Minneapolis market, 23 projects are listed below giving their estimated cost, estimated resale value, and ROI, ordered from highest to lowest Return On Investment. An interesting project addition this year is HVAC conversion from gas to electric… yielding a very high return on investment as less reliance on fossil fuels becomes more valued.
PROJECT – COST – RESALE VALUE – PERCENT RECOUPED
ORDERED FROM HIGHEST TO LOWEST RETURN ON INVESTMENT IN THE MINNEAPOLIS MARKET
- Grand Entrance (fiberglass)
- Cost: $10,909
- Resale: $5,238
- Recoup: 97.5%
- HVAC Conversion (electrification)
- Cost: $18,328
- Resale: $17,615
- Recoup: 96.1%
- Manufactured Stone Veneer
- Cost: $11,463
- Resale: $10,582
- Recoup: 92.3%
- Siding Replacement (vinyl)
- Cost: $17,813
- Resale: $15,950
- Recoup: 89.5%
- Minor Kitchen Remodel (midrange)
- Cost: $27,009
- Resale: $22,784
- Recoup: 84.4%
- Garage Door Replacement
- Cost: $4,552
- Resale: $3,770
- Recoup: 82.8%
- Siding Replacement (fiber-cement)
- Cost: $21,451
- Resale: $17,129
- Recoup: 79.9%
- Window Replacement (vinyl)
- Cost: $21,609
- Resale: $16,917
- Recoup: 78.3%
- Window Replacement (wood)
- Cost: $24,353
- Resale: $18,610
- Recoup: 76.4%
- Bath Remodel (midrange)
- Cost: $26,181
- Resale: $16,491
- Recoup: 63.0%
- Deck Addition (wood)
- Cost: $16,519
- Resale: $9,781
- Recoup: 59.2%
- Roofing Replacement (asphalt shingles)
- Cost: $31,880
- Resale: $15,586
- Recoup: 55.7%
- Entry Door Replacement (steel)
- Cost: $3,674
- Resale: $1,818
- Recoup: 49.5%
- Roofing Replacement (metal)
- Cost: $52,822
- Resale: $23,719
- Recoup: 44.9%
- Bath Remodel (universal design)
- Cost: $41,828
- Resale: $18,100
- Recoup: 43.3%
- Deck Addition (composite)
- Cost: $25,598
- Resale: $11,056
- Recoup: $43.2%
- Major Kitchen Remodel (midrange)
- Cost: $77,739
- Resale: $31,157
- Recoup: 40.1%
- Bathroom Remodel (upscale)
- Cost: $80,013
- Resale: $26,720
- Recoup: 33.4%
- Major Kitchen Remodel (upscale)
- Cost: $152,918
- Resale: $47,554
- Recoup: 31.1%
- Master Suite Addition (midrange)
- Cost: $163,887
- Resale: $49,099
- Recoup: 30.0%
- Bathroom Addition (midrange)
- Cost: $60,592
- Resale: $16,461
- Recoup: 27.2%
- Bathroom Addition (upscale)
- Cost: $109,772
- Resale: $$28,117
- Recoup: 25.6%
- Master Suite Addition (upscale)
- Cost: $338,195
- Resale: $76,982
- Recoup: 22.8%
Complete data from the Remodeling Cost vs Value Report for 2023 and other years can be downloaded free at www.costvsvalue.com. Reports are available nationally, regionally and by city.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
