Twin Cities design experts break down which strategic home remodeling projects typically maximize your return on investment.
Today’s homes can be customized with amenities like golf simulators, wine cellars, movie theaters, and saunas. While fun and luxurious, investing in these types of “nice-to-have” features and spaces may not allow you to recoup the cost of building them if you ever plan to sell.
“The projects that have the most ROI are the ones that work on areas of the house that the owner is going to use all the time,” says Tom Henjum, president of Boyer Building Corporation. “These spaces aren’t unique to you. If they are good spaces, anybody who looks at your house in the future is going to see the value in them.”
As home sales are expected to increase in 2024 amidst dropping mortgage rates, now is an ideal time to evaluate how to increase the value of your home through remodeling.
“One thing that people forget about is if you’re not upgrading your spaces, they are depreciating. They’re getting tired and worn, and you’re losing value in your property,” says Rebecca Ryan, designer with College City Design Build and owner of Rebecca Ryan Design.
Here, she and Henjum break down the areas you should focus your remodeling dollars so you can get the most bang for your buck.
“The kitchen sold the house” is a common thing Henjum hears from clients whose kitchens he previously remodeled. With how kitchens are used today — from cooking and entertaining to working and doing homework — upgrades are necessary and, luckily, cost-recouping. According to Zonda Media’s “Cost vs. Value” report for 2023, minor midrange kitchen re- models — including new wood pan- els and hardware, energy-efficient appliances, and a paint refresh on the walls, trim, and ceiling — offered an ROI of 84.4% in Minneapolis.
“Changing your kitchen changes your life,” adds Ryan. “It’s where everybody spends time. It doesn’t matter what your kitchen is like—you’re going to have people squeezed in there. The difference is if you don’t like your space, you’re going to avoid having people over or you’re not going to feel good about it. When you can change it, it makes you feel better about yourself. It makes you feel better about doing things for your family. It makes you feel better about having people over in your home.”
You start and end the day in your primary bedroom, so it makes sense that this area’s remodeling ROI is high, especially for the bathroom, which clocks in at 63% for a midrange makeover, states the “Cost vs. Value” report. Think: porcelain-enameled steel bathtub, ceramic tile surround and floor, vinyl wallpaper, and a solid-surface vanity counter with an integral sink. When it’s the first thing you see when you wake up and the last thing you see when you go to bed, you just can’t escape it,” says Ryan, so it’s crucial to create a space that enhances your quality of life.
No one is immune from the laundry glut, but the easier you can make the chore, the better your everyday living will be. “That’s why we’re seeing laundry areas being brought upstairs to where clothes are being generated,” says Henjum. “A lot of times they’re in the primary closets or the main level in an area that’s easy to access and easy to use. It’s really a convenience factor.”
First impressions are powerful, as is the ROI on almost every exterior remodeling project in the “Cost vs. Value” report: 89.5% for vinyl siding replacement, 92.3% for manufactured stone veneer, and 82.8% for garage door replacement. “Anything you can add for curb appeal on the front of the house is very valuable,” says Henjum.
Going directly from garage to house leaves little room for the shoes, coats, and backpacks that inevitably are discarded by the door, which is why mudrooms, or transition rooms, as Henjum calls them, are a popular remodeling request from Minnesota homeowners. “Everybody wants some way to transition from garage to house,” he says. “These spaces get used every day, all the time. Making them efficient—I don’t want to say ‘beautiful’—and appealing is how you’re going to get the most value.”
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When planning your home remodel, it is important to work with a team of trustworthy professionals. Whether you are looking for a small bathroom renovation or a whole-home transformation, your remodeler will be spending a lot of time with you and your family. Hiring a professional will ensure that the process will run more smoothly, and your renovated home will perform better, look better, and live better. So, don’t let just anyone remodel your home.