Sep 30, 2023 - News

How to increase home resale value in the Twin Cities

Angi home projects with the greatest return-on-investment 🏠
Data: Angi; Table: Axios Visuals

Before you tackle that home renovation you've been dreaming or dreading, think about how it could affect your home's resale value.

Why it matters: Twin Cities sellers need to rake in all the cash they can if they're giving up lower mortgage rates.

By the numbers: Eight of the top 10 projects that command the highest return on investments in the U.S. are exterior changes, from fixing up the garage to building a deck, according to Angi data shared with Axios.

  • In the Twin Cities, replacing a garage door or a front door β€” two of the more inexpensive projects β€” costs around $1,050, on average.
  • A minor kitchen remodel, meaning the layout doesn't change, will set back Twin Cities homeowners nearly $31,000, on average.

The big picture: If you plan to stay at least five years, go ahead and spring for your dream kitchen, says Angie Hicks, chief customer officer of Angi.

  • If you're selling in the next year, it might be time to roll your sleeves up and tackle less sexy projects β€” like finally fixing that leaky faucet.
  • Reality check: Higher interest rates make tapping into home equity more expensive, Axios' Emily Peck reports.
before and after view of peel and stick wallpaper
Before and after installing peel-and-stick wallpaper. Photos: Courtesy of Scott Parkin

Zoom in: Some kitchen improvements are still budget-friendly. Peel-and-stick backsplashes can be DIYed in an afternoon for $500, a fraction of the cost of real tile options, according to Minneapolis real estate agent Scott Parkin.

  • The look can update a dated backsplash or dress up a blank wall "and possibly help command a higher price," Parkin tells Axios.

Be smart: You shouldn't expect to earn every penny back on things like a new roof or air conditioning unit β€” today's buyers expect the basics to work, Hicks says.

Here are Hicks' other top tips for getting the highest ROI.

🏑 Consider your neighborhood. If every house has 2.5 bathrooms, you might not need to convert that half to a full.

🌷 Invest in curb appeal. Replace your garage door, paint your front door, spruce up your landscaping.

🏠 Neutralize. If you're selling soon, it's not the time for a funky accent wallβ€” it's time for fresh, neutral paint.

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