Do Backyard Renovations Add Value?Home renovations are an exciting but also nerve-wracking experience. You may worry that your additions may not be worth the cost. Do backyard renovations really add value to your home?
It turns out that the features of the backyard are a driving consideration when looking for a house. For many homebuyers, the outdoor space is one area in which they aren’t willing to compromise.
You may have arrived with doubts about if it’s worth it to invest in your backyard. You will soon find that the answer is a definitive yes.
How Backyard Renovations Affect Your Home’s Value
Backyard renovations add value by increasing curb appeal and the property’s usability. Done right, they can add up to $1 million to a home’s resale price. Of course, the increase in home value you’ll enjoy depends on your specific real estate circumstances.
Will an Outdoor Fire Pit Add Value?
Outdoor living spaces have become some of the most in-demand features in homes today. With space carved out of your backyard for an outdoor fire pit and cozy seating, you can build fond memories. Picture yourself seated around the fire, sharing stories and kindling close connections.
You can enjoy this time spent near the flames, confident that a future homebuyer will also appreciate the addition. Install a gas-powered fire pit and recoup up to 70% of your investment.
Does Garden Renovation Add Value?
Another effective way to spruce up your outdoor space is with landscaping. Imagine yourself lounging outside in a verdant oasis, surrounded by your favorite plants. When a refreshing breeze comes by, green leaves sway and the scent of hanging oranges comes your way.
It can be a lot of fun to tend to a garden in your spare time. Plus, the results of working on landscaping only make your outdoor life more enjoyable.
When the time comes to sell your home with its garden, your hard work will be rewarded. The most recent realtor estimates state that beautiful landscaping can set homeowners up with a return on investment (ROI) up to 80%. Consider adding concrete walkways, medium-sized trees, flowering shrubs, shade structures, and tidy expanses of grass. In more modest-sized backyards, even having well-maintained grass can create a whopping 352% ROI.
Does Adding a Pool Add Value?
You may also wish to enjoy a cool and refreshing dip in the pool in your outdoor space. There’s nothing better than diving into your own backyard pool on a hot summer day. After some fun swimming, you may even lie back into the luxury of lounging on one of our Signature Chaises. Don’t let these dreams of fun in the sun be impeded by worries that this backyard addition may deter future buyers. In today’s climate and with more people working from home, pools are among the most popular features with homebuyers. Adding a pool to your property can increase resale value, especially if the property is competing against other local homes. Homes in areas where pools are especially in demand (Los Angeles, the Hamptons, Arizona, and Florida) can see anywhere between $30,000 and $95,000 during resale.
While a pool can significantly boost resale value, it will, however, not recoup the cost of building and maintaining it. Still, the value of a perfect outdoor day remains if you plan to enjoy your pool yourself. There will also be some reward for the investment if you later decide to sell.
The Long-Term Rewards of a Backyard Renovation Investment
A backyard renovation is an investment worth making. Putting the time and money into designing your backyard will turn your outdoor space into one you’ll enjoy for years to come. There can be no doubting the value found in kids splashing into the pool water, beautiful butterflies fluttering around the flowers, or everyone gathered around the fire to make s’mores. These are memories to last a lifetime.
Your backyard renovations will also stand the test of time, continuing to provide resale value. In San Francisco, which is one of the most expensive and competitive housing markets, homes on landscaped lots enjoy a rise in long-term value that is between 5.5% and 12.7% higher than those that are not. If your backyard renovations feature original or rare features, these can become more valuable over time. For instance, fruit trees like apple or cherry can add up to 15% to a home’s value over time since more mature trees can already bear fruit.
In addition, properties are among the assets uniquely poised for value surges during periods of inflation. Since inflation is often brought on by economic growth along with supply and demand issues, real estate often becomes a safe refuge investment since its value is not speculative. This means that the additional value that your backyard renovations add will be further compounded during times of inevitable inflation.
To Renovate or Not to Renovate: What’s Right for Your Backyard
So, are backyard renovations worth it? Well, renovating your backyard does indeed add value to a property. The only question left for homeowners to answer is what specific addition is the best for them. Remember, while some renovations may add more value, it’s important to consider what you and your family actually want and need. In this way, you can reap the benefits of your backyard renovation during your stay and should you decide to sell.
If you’re interested in taking on a backyard renovation project, feel free to take advantage of our free professional design services.
We would love to help you invest in your dream backyard.
ABOUT THE AUTHOR
Regina Jaina is a freelance writer with a passion for real estate. Through her research and writing, she hopes to help homeowners find their dream homes. In her free time, she is an avid tennis player.