If you’re planning to sell your home in Minnesota, you might be wondering which home improvement projects offer the best return on investment (ROI). While today’s sellers are getting nearly 99.3% of their asking price, making strategic updates before listing your home could help you attract higher bids and sell faster.
Not all renovations are worth the money, though. Some projects yield a higher return than others, particularly in the Twin Cities area. Based on the 2023 Cost vs. Value Report, here are the top home improvement projects in Minnesota that offer the best ROI before selling.
1. Upgrade to a Fiberglass Grand Entrance
- Cost: $10,823
- Resale Value: $5,238
- Cost Recouped: 97.5%
One of the most impactful upgrades you can make to your home’s exterior is replacing a standard entry door with a fiberglass grand entrance. This simple project significantly enhances curb appeal while improving energy efficiency and security.
To complete this project, remove the standard door, expand the entryway, and install a larger fiberglass door with sidelights. Opt for upscale finishes like decorative glass panels and modern hardware to create a lasting first impression. This high-ROI project can be done in just one day and adds instant curb appeal.
2. Convert HVAC System to Electric
- Cost: $18,328
- Resale Value: $17,615
- Cost Recouped: 96.1%
Upgrading your home’s heating and cooling system to an electric HVAC can significantly increase its value. Electric systems improve indoor air quality, lower energy costs, and are considered safer than gas-powered systems.
Additionally, federal tax incentives and rebates may reduce installation costs, making this a cost-effective update for Minnesota homeowners. Given the long winters and temperature fluctuations, buyers appreciate homes with energy-efficient systems.
3. Add Manufactured Stone Veneer
- Cost: $11,463
- Resale Value: $10,582
- Cost Recouped: 92.3%
Adding a stone veneer accent to your home’s exterior is an excellent way to modernize its appearance. Many new homes feature partial stone facades, and this trend has become increasingly popular among buyers in Minnesota.
This upgrade involves removing the bottom third of siding from the front-facing exterior and replacing it with a manufactured stone veneer. The update includes installing water-resistant barriers to prevent moisture damage.
By enhancing your home’s exterior with stone veneer, you give it a fresh, modern look that significantly boosts curb appeal and attracts potential buyers.
4. Replace Vinyl Siding
- Cost: $17,813
- Resale Value: $15,950
- Cost Recouped: 89.5%
If your home’s siding is outdated or damaged, replacing it with new vinyl siding can add significant value. Vinyl is durable, low-maintenance, and energy-efficient, making it a popular choice among homebuyers.
New siding enhances your home’s exterior appearance, provides better insulation, and reduces pest issues. With a high ROI of nearly 90%, this project can help sell your home faster and at a higher price.
5. Minor Kitchen Remodel
- Cost: $27,009
- Resale Value: $22,784
- Cost Recouped: 84.4%
A full kitchen remodel may not be necessary to increase your home’s value. Instead, a minor kitchen remodel—which focuses on cost-effective updates—can be just as impactful.
This update includes:
- Replacing cabinet doors and hardware
- Installing new countertops and backsplashes
- Upgrading to energy-efficient appliances
- Refinishing floors and walls with fresh paint
Buyers in Minnesota prioritize functional kitchens, so keeping the design neutral, modern, and practical will help your home stand out.
Home Improvement Projects with the Lowest ROI in Minnesota
While some upgrades significantly increase resale value, others may not be worth the investment—especially if you plan to sell soon. According to the 2023 Cost vs. Value Report, the following projects have the lowest ROI in the Twin Cities area:
- Upscale owner’s suite addition (ROI: 22.8% of a $338,195 budget)
- Upscale bathroom addition (ROI: 25.6% of a $109,772 budget)
- Mid-range bathroom addition (ROI: 27.2% of a $60,592 budget)
- Mid-range owner’s suite addition (ROI: 30.0% of a $163,887 budget)
- Upscale major kitchen remodel (ROI: 31.1% of a $152,918 budget)
While these projects enhance comfort and luxury, they don’t yield a strong return in the Minnesota real estate market.
Should You Invest in Home Improvements Before Selling?
If you’re considering home upgrades to maximize resale value, it’s important to focus on projects that buyers value most. Improvements like a fresh coat of paint, updated curb appeal, and energy-efficient systems can make a big difference in attracting buyers and securing a higher sale price.
However, higher-cost, lower-ROI projects may only be worth it if you plan to stay in your home for a few years and personally enjoy the upgrades.
Before making any major improvements, consult with a real estate professional to determine which updates will best suit your market. If you’re thinking about selling, reach out for expert guidance on which home improvement projects will offer the best return on investment in Minnesota.
Elly Nguyen is a skilled freelance writer with extensive expertise in medicine, science, technology, and automotive topics. Her passion for storytelling and ability to simplify complex concepts allow her to create engaging content that informs and inspires readers across various fields.
