Five home improvements with the best ROI

Key insights:

• Investing in pre-sale home improvements may help generate buyer interest.
• Today’s sellers hold a keen advantage in the market, so they should be sure to update only what is necessary before listing their homes for sale.
• Data shows that some of the least expensive projects — such as a new garage door or a new front door — can have the greatest impact on a sale.

Today’s sellers are sitting in an ideal position, with many receiving their asking price (or higher!) at the closing table. Knowing that sellers have a market advantage, it may not seem like updates are necessary before you list your property for sale. However, you may get an even higher bid if you give your home little polish before selling — especially if your space is a bit outdated.

The 2022 Cost vs. Value Report for Minneapolis

When determining which projects are worth it for your property – whether you’re planning to sell or hoping to enjoy the renovations for a few years – the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com) will serve as your guide. This exhaustive report details the cost and value of various home improvement projects across the country, and they even break the data out by region and city.

Here are the projects Twin Cities homeowners should take on if they want to recoup the most on their initial investment.

1. Manufactured stone veneer

Cost: $11,268

Resale value: $10,382

Cost recouped: 92.1%

Partial stone veneers are all the rage on new construction homes. Current homeowners can freshen up an aging exterior by adding a stone veneer accent to the bottom third of their home, too.

To complete this project, you’ll first remove the bottom third of siding from the street-facing side of your home exterior (a 300-square-foot continuous band). Next, you’ll replace this area with a stone veneer, including 36 linear feet of sills, 40 linear feet of corners, one address block and an outlined archway around the front door. The installation also includes protection against water damage and corrosion.

You’ll be amazed at how this easy stone addition adds to the curb appeal of your home!

2. Garage door replacement

PHOTO OF 4-SECTION GARAGE DOOR WITH TOP PANEL WINDOWS

Cost: $3,990

Resale value: $3,552

Cost recouped: 89.0%

If your garage door has dings and dents, it may pay off to replace it; the average homeowner sees a return on investment of 89% when they replace their garage door.

For this project, you’ll remove and properly dispose of your existing garage door (16x7 feet) and its tracks. You’ll then install a new steel garage door with top-panel windows on new, galvanized steel tracks. You can continue to use your current motorized opener. The cost of this project includes a lifetime warranty on the garage door.

When buying the door, pay attention to your own moving plans and timeline. You may be able to pay less if you opt for a one-year warranty or forgo it entirely.

3. Steel entry door replacement

PHOTO OF NEW STEEL FRONT DOOR

Cost: $2,172

Resale value: $1,523

Cost recouped: 70.1%

If your door is made of wood or another outdated material, it may be time to consider an upgrade.

For this project, you’ll replace your current door with a new 20-gauge steel door that includes a dual-pane, half-glass panel. The door’s factory finish-color is the same on both sides, and the project also includes a new casing that matches the door color. Last, the cost for this project includes a budget for a brand-new lockset to accompany the door.

4. Window replacement (vinyl)

Cost: $20,108

Resale value: $13,790

Cost recouped: 68.6%

Quality windows are built to last 15 to 20 years. If you’re coming up on that timeframe, you may want to consider a vinyl window replacement. Begin by replacing 10 existing windows (3x5 feet) with new, insulated vinyl windows. This project accounts for custom-color exterior finish and exterior trim. The interior trim can remain in place.

Is it time to replace your home’s windows?

5. Minor, mid-range kitchen remodel

Cost: $27,948

Resale value: $18,773

Cost recouped: 67.2%

To take this project on, you’ll need to start with a functional kitchen in need of some cosmetic updates and appliance upgrades. Keep 30 feet of cabinets in place, replacing only the fronts with new wood panels, drawer fronts and fresh hardware.

A few major appliances — refrigerator, stove and oven — will be replaced with energy-efficient models, while the dishwasher (if you have one) is not included in this budget. Floors and countertops are replaced and the space is freshened up with new paint on the walls, trim and ceiling. Voila! A not-too-expensive update that saves you the cost of all new cabinetry.

Get expert guidance before you sell

Keep in mind that higher-cost, lower-ROI projects should be considered only if you plan to remain in your home for years to come. After all, your own enjoyment of these projects can certainly count as a return on your investment!

Remember to reach out to Edina Realty or your agent, who can advise you on the most cost-effective, impactful changes you can make to your property as you move forward.

©2022 Zonda Media, a Delaware corporation. Complete data from the 2022 Cost vs. Value Report can
be downloaded free at www.costvsvalue.com.