Home renovation projects are undertaken for many reasons. Advancing technology, changing needs, and general upkeep are among the reasons to remodel or renovate a home. But which of these projects can increase the value of a home?
There are two aspects to increasing the home value. The first is curb appeal – does the renovation make the home more desirable to potential buyers? According to some surveys, buyers are willing to pay 5% more for a home that makes a positive first impression. The second is return on investment – are buyers willing to pay more for a home including the renovation or remodel? Fortunately, this question does not require speculation. A report by the National Association of Realtors (or NAR) and the National Association of Landscape Professionals (or NALP) has examined sales prices of homes and measured the value of certain outdoor improvements when it comes time to sell a home. Here are examples of outdoor improvements that will likely pay off when the house is sold:
Landscaping is big business. The landscaping services industry has over $93 billion in revenue and has grown 5.8% over the past five years. This growth is understandable since landscaping is one of the most solid investments you can make in your home. According to the NAR report, hiring landscape contractors to plant trees, shrubs, and perennial flowers in a garden with natural edging and stone accents provides a whopping 100% return on investment when the home is sold.
To boost that return even more, a landscape design with a stone pathway, stone planters, trees, shrubs, and bark mulch returns 105% on the investment. This means that the increase in value to the house is greater than the cost of the landscape installation.
Landscaping is critically important to making a good first impression. In fact, landscaping is so important to potential home buyers that even seeding the lawn or hiring a lawn care company to fertilize the lawn and apply weed killer can return over 300% when the home is sold.
A swimming pool installed or upgraded by a pool contractor not only increases the value of the home when it is sold but was also the top feature in the NAR report for increasing the current owner’s enjoyment of his or her home. Even those who replaced or refurbished worn out surfaces, finishes, or materials of an existing concrete pool reported a greater desire to be home after the pool contractor completed the pool project. Combined with a return on investment of 50% on the amount paid to the pool contractor, a new or upgraded pool is a sound investment in a home.
In many climates, a wooden deck is essential to entertaining, grilling, and enjoying the outdoors. A wooden deck, either attached to the home or separate from the home, is almost guaranteed to increase the value of a home with an amazing 106% return. Like a concrete patio, hiring a pool contractor to install a hot tub on, or adjacent to, the deck can increase both interest in the home and the value of the home.
Outdoor fire pits and fireplaces are all the rage and for good reason. Adding a stone fire pit with a gas burner can return about 60% on the installation costs and a stone fireplace with a gas starter for burning wood can return about 80% on the installation costs.
Investing a home’s yard with landscaping, a swimming pool, a deck, a patio, a hot tub, or a fire feature accomplishes many goals. You will enjoy your home more, your home will appeal to more potential buyers and make a positive first impression, and you will increase the value of your home.