When preparing a home for sale or simply looking to build long-term value, one of the most common questions homeowners ask is: which renovations are actually worth the investment? In a competitive real estate market like the Twin Cities, understanding the best return on investment home improvement projects can help ensure time, money, and effort are directed toward upgrades that buyers appreciate and that can increase resale value.
With home prices in the Twin Cities remaining steady and buyer expectations evolving, smart renovations can make the difference between a fast, high-value sale and a property that lingers on the market. But not every improvement yields the same result. Some updates boost curb appeal or functionality but have a lower return, while others—like kitchen upgrades or siding replacement—often recoup a substantial portion of their cost at resale.
Whether preparing a home in Edina, St. Paul, or Minnetonka for market, or simply planning future updates in a long-term residence, this guide focuses on the improvements with the strongest track records for return. Each recommendation considers regional trends, buyer preferences, and national cost-to-value data, helping homeowners identify the best return on investment home improvement for their unique property.
Minor Kitchen Remodel
A minor kitchen remodel continues to rank as one of the best return on investment home improvement projects in the Midwest region. Rather than tearing out cabinets and starting from scratch, homeowners can focus on updating the surface-level elements that make the biggest visual impact. This may include painting cabinets, replacing countertops with quartz or granite, updating the backsplash, installing new hardware, and upgrading to energy-efficient appliances.
These modest changes can dramatically improve a kitchen’s appearance while keeping costs lower than a full renovation. In Twin Cities neighborhoods where buyers are looking for modern, functional kitchens that don’t require immediate work, a minor remodel typically yields a strong return. The project also has the advantage of enhancing daily use if the home is not yet being listed.
These modest changes can dramatically improve a kitchen’s appearance while keeping costs lower than a full renovation. In Twin Cities neighborhoods where buyers are looking for modern, functional kitchens that don’t require immediate work, a minor remodel typically yields a strong return. The project also has the advantage of enhancing daily use if the home is not yet being listed.
Exterior Improvements and Curb Appeal
First impressions are powerful. Improvements to the exterior of a home—such as replacing garage doors, updating siding, or installing a new front door—offer consistent value in the resale market. A recent report from Remodeling Magazine found that a new garage door can return more than 90% of its cost in resale value, especially in regions like the Twin Cities, where winter durability and energy efficiency are critical.
In addition to major components, enhancing landscaping, power-washing walkways, and repainting trim can all improve curb appeal and position a home favorably in online listings and in-person showings. Buyers often decide within seconds whether a property feels worth exploring, making exterior upgrades a priority for those aiming to sell quickly.
In addition to major components, enhancing landscaping, power-washing walkways, and repainting trim can all improve curb appeal and position a home favorably in online listings and in-person showings. Buyers often decide within seconds whether a property feels worth exploring, making exterior upgrades a priority for those aiming to sell quickly.
Basement Finishing
Many homes in the Twin Cities have unfinished or partially finished basements, making this area an opportunity for value-add. A well-designed basement can be transformed into a recreation area, home office, guest suite, or fitness room—adding livable square footage without increasing the home’s physical footprint. With more buyers prioritizing space for remote work or multigenerational living, finished basements are in high demand.
While the total cost can vary based on the layout and scope of the project, finished basements often recoup between 65% and 75% of their investment and can tip the scale for buyers deciding between similar listings. When thoughtfully designed and integrated with the rest of the home, this project is a leading contender for the best return on investment home improvement in Twin Cities properties with underutilized lower levels.
While the total cost can vary based on the layout and scope of the project, finished basements often recoup between 65% and 75% of their investment and can tip the scale for buyers deciding between similar listings. When thoughtfully designed and integrated with the rest of the home, this project is a leading contender for the best return on investment home improvement in Twin Cities properties with underutilized lower levels.
Bathroom Updates
While full bathroom remodels can be expensive, targeted updates to older or dated bathrooms are among the more accessible ways to enhance value. Replacing lighting, refinishing tubs, installing new vanities, and updating tile or flooring can bring a bathroom into the current decade without requiring a full gut renovation.
Buyers tend to prioritize bathrooms that feel clean, bright, and functional. Even a modest powder room update can enhance a home’s appeal. Properties with more than one renovated bathroom generally perform better in competitive markets, especially among move-in ready listings.
Buyers tend to prioritize bathrooms that feel clean, bright, and functional. Even a modest powder room update can enhance a home’s appeal. Properties with more than one renovated bathroom generally perform better in competitive markets, especially among move-in ready listings.
Window Replacement
Energy efficiency is a major concern for homebuyers in colder climates like Minnesota, and windows are often one of the first things buyers inquire about. Replacing older, single-pane windows with energy-efficient models not only improves interior comfort and lowers utility costs but also contributes to resale value.
While the upfront cost of window replacement can be significant depending on the size of the home, it typically recoups between 65% and 75% of its cost and is viewed as a high-value feature by buyers. This improvement also aligns with sustainability and energy goals that are increasingly influencing purchase decisions in the Twin Cities housing market.
While the upfront cost of window replacement can be significant depending on the size of the home, it typically recoups between 65% and 75% of its cost and is viewed as a high-value feature by buyers. This improvement also aligns with sustainability and energy goals that are increasingly influencing purchase decisions in the Twin Cities housing market.
Roof and HVAC Systems
Buyers are often wary of major mechanical replacements and prefer homes with newer systems. A new roof or recently updated furnace and air conditioning system provides peace of mind and removes a future cost burden for potential buyers. These improvements may not be as visibly appealing as a remodeled kitchen but can play a major role during negotiations and inspections.
While these upgrades may not offer the highest dollar-for-dollar ROI, they can significantly strengthen a listing’s competitive position. In some cases, simply being able to state that the roof is under five years old or the furnace was replaced recently can help a seller avoid price reductions or inspection-related concessions.
While these upgrades may not offer the highest dollar-for-dollar ROI, they can significantly strengthen a listing’s competitive position. In some cases, simply being able to state that the roof is under five years old or the furnace was replaced recently can help a seller avoid price reductions or inspection-related concessions.
Open Floor Plan Enhancements
In many Twin Cities homes built prior to the 1980s, enclosed kitchens and compartmentalized living spaces can make a property feel smaller than it is. Opening up walls between the kitchen, dining, and living areas—when done with structural integrity and permitting—can modernize a home’s flow and appeal to current buyer expectations.
Even minor layout changes, such as widening doorways or improving sightlines, can have a transformative effect. While these projects vary in complexity, they often represent one of the best return on investment home improvement opportunities for homes with older layouts that don’t match modern preferences.
Even minor layout changes, such as widening doorways or improving sightlines, can have a transformative effect. While these projects vary in complexity, they often represent one of the best return on investment home improvement opportunities for homes with older layouts that don’t match modern preferences.
Interior Paint and Cosmetic Updates
Never underestimate the value of a fresh coat of paint. Neutral, light colors such as soft whites, grays, or warm beiges can make rooms feel larger, cleaner, and more modern. Paint remains one of the most cost-effective improvements and consistently ranks among the top upgrades in terms of impact per dollar spent.
Additional cosmetic updates—like replacing outdated light fixtures, refreshing trim, and upgrading doorknobs or cabinet pulls—can further modernize a space without extensive labor. These details contribute to the overall perception of a well-maintained, move-in ready home, which drives competitive offers and shortened market times.
Additional cosmetic updates—like replacing outdated light fixtures, refreshing trim, and upgrading doorknobs or cabinet pulls—can further modernize a space without extensive labor. These details contribute to the overall perception of a well-maintained, move-in ready home, which drives competitive offers and shortened market times.
Understanding Local Buyer Preferences
In the Twin Cities, where architectural diversity ranges from craftsman homes in Minneapolis to expansive new builds in Eden Prairie, understanding the preferences of local buyers is essential to identifying which updates are most valuable. Market trends shift year to year, but buyers consistently prioritize energy efficiency, functional layouts, and updated kitchens and bathrooms.
Working with an experienced local agent ensures that sellers invest wisely and focus on the improvements most likely to yield a high return. Regional knowledge allows for tailored advice based on price point, neighborhood expectations, and buyer demand—ensuring that homeowners choose the best return on investment home improvement for their specific goals and property type.
Working with an experienced local agent ensures that sellers invest wisely and focus on the improvements most likely to yield a high return. Regional knowledge allows for tailored advice based on price point, neighborhood expectations, and buyer demand—ensuring that homeowners choose the best return on investment home improvement for their specific goals and property type.
Choose the Best Return on Investment Home Improvement with Expert Advice
Making smart renovation choices can significantly enhance your home's value and marketability. Whether you're preparing to list your Twin Cities home or investing for the future, identifying the best return on investment home improvement requires local knowledge and strategic planning. Sally English offers trusted guidance and market expertise to help homeowners make informed decisions that maximize value. Contact Sally English today to explore improvement strategies that align with your goals and the demands of the Twin Cities real estate market.
