7 Home Renovations With the Worst Return in Minnesota

Thinking about renovating before you sell, or just improving the home you’re in? Not every project pays you back. Here are seven that, in our experience, typically have the worst return on investment in Minnesota.

Returns are rough estimates from what we see in the market; your home, neighborhood and price point all matter. If you’re renovating to enjoy the space for years, that’s a different calculation.

1. Luxury bathrooms

We’ve had clients spend $30,000 on a bathroom and recover maybe half at resale. Buyers want function more than luxury, especially in entry-level and mid-priced homes.

2. Over-the-top kitchens

Kitchens are worth updating, but tens of thousands on appliances or premium cabinets can outrun what buyers will pay. Over-the-top kitchen remodels often return only about 40% to 50%.

3. In-ground swimming pools

During COVID, pools briefly added real value because everyone was home. That’s faded. A typical in-ground pool costs around $120,000, and at resale you might see $20,000 to $30,000 more for the home. The real return is memories with friends and family, which is worth something, just not on the appraisal. Pools also affect insurance; see what raises home insurance premiums.

4. Four-season porches

A four-season porch is usually a second or third living space, and it’s expensive to build, with a roof, windows, insulation, siding and a finished interior. We typically see about a 50% return.

5. Home theaters and game rooms

The cool factor is 10 out of 10. But most buyers call them “nice to have, not needed.” I’ve seen a $150,000 theater add less than $40,000 of value, roughly a third. Most buyers would rather have a nicer kitchen or bathroom.

6. Garage conversions

Turning the garage into living space can seriously hurt value in Minnesota, where many buyers won’t consider a home without somewhere to park inside. Converting the whole garage can be hard to even put a number on.

7. Hot tubs

In my opinion, a hot tub has about a zero return. Many buyers don’t want the upkeep, especially running one through a Minnesota winter, even after you’ve spent $15,000 to $20,000 or more installed.

What does pay off?

Before listing, the low-cost basics usually win: decluttering, fresh neutral paint, deep cleaning, updated fixtures and flooring touch-ups. See quick upgrades buyers notice. Planning a project and want to know what it’ll add? Ask our team for a free, no-obligation consultation, or get a home value estimate.