Backyard Makeovers: A Smart Investment For Your Home

The backyard is an important component in determining a home's market value. While improvements to the front yard can drastically improve the image of a home, changes to the backyard can increase comfort and even raise the value of a home. A nicely landscaped garden that is low maintenance can add up to 10% to a home's value. For example, an outdoor kitchen can recoup about 71% at resale, while a new cedar deck can recover 80% of its cost at resale. Other improvements that can increase the value of a home include an irrigation system, an outdoor shower, fire pits, and an outdoor lighting system.

Outdoor kitchens can recoup around 71% of their cost at resale

Outdoor kitchens are a great way to boost the value of your home. According to the National Association of Realtors, outdoor kitchens typically garner a 71% return on investment. This means that an outdoor kitchen project costing around $14,000 can recoup about 71% of that at resale, which is approximately $9,940.

The return on investment for outdoor kitchens remains promising in 2024, ranging from 55% to 200% depending on various factors. The higher end of the spectrum could even double your investment. However, it's important to note that not every outdoor kitchen will deliver the same results. The cost of an outdoor kitchen can vary significantly, ranging from $1,000 to $100,000, depending on the choice of appliances, materials, size, and other factors.

When designing an outdoor kitchen, it's crucial to consider the quality of the components, such as the grill, cabinets, and appliances. A high-quality grill, durable countertops, and weather-resistant cabinets are essential features that can enhance the functionality and appeal of the space. Additionally, the design and aesthetics of the outdoor kitchen play a vital role in its resale value. A well-designed outdoor kitchen that complements the home's architecture and blends seamlessly with the backyard will likely add more value.

The location of the property also impacts the return on investment for outdoor kitchens. In warmer regions like Florida, California, and the southern US, outdoor kitchens are highly sought-after, and buyers are willing to pay a premium for well-designed outdoor spaces. On the other hand, homes in colder climates may not see as high an ROI, as the space can't be used year-round.

When planning an outdoor kitchen, it's important to keep the budget in mind and focus on features that will give the best return on investment. Consulting with experts in real estate, design, and construction can help maximize the value of your outdoor kitchen and ensure it aligns with current trends and buyer preferences.

A well-maintained lawn with an irrigation system can recover about 86% of its cost

A well-maintained lawn can boost your property's value and curb appeal. In fact, a nicely landscaped garden that is low maintenance can add up to 10% to your home's value. While you will rarely make a profit on landscaping a backyard, it is a good investment as you should make your money back by adding value to your home.

An irrigation system is a great way to maintain your lawn. For a lawn of about 2,800 square feet, installing an irrigation system is not a huge cost—about $3,500, according to landscape professionals. But you can recover about 86% of that at resale.

The cost of installing an irrigation system depends on several factors, including the size of your lawn, the type of system, the number of zones, labour costs, and the quality of your soil.

There are several types of irrigation systems to choose from, each with its own advantages:

• In-ground sprinkler systems are installed below the surface and are more effective but come with higher installation costs.
• Above-ground sprinkler systems are more budget-friendly and easier to install but can be less attractive and more prone to damage.
• Drip irrigation systems provide a slow, steady drip of water directly to the roots of plants, minimizing water loss due to evaporation or runoff.
• Smart irrigation systems use weather sensors, soil moisture sensors, and programmable timers to optimize water usage and adapt to changing weather conditions.

By installing an irrigation system, you can ensure that your lawn receives the right amount of water, leading to a lush and beautiful landscape that can enhance the value and curb appeal of your home.

Decks and patios can increase property value and attract buyers

A new cedar deck ranks high on the Joy Score (9.8/10), a measure of average homeowner enjoyment of a project. The 2018 Remodeling Impact Report from the NALP and NAR estimates that a 14x18-foot deck attached to the house with a ledger, decking, railing, stair treads, and sealer, recovers 80% of its cost at resale, which is about $8,000 for a $10,000 investment.

Remodeling Magazine's 2019 Cost vs. Value Report calculated a similar ROI of 76% after spending about $13,000 on a larger 16x20-foot deck that included a built-in bench and planter.

A functional outdoor deck provides a convenient space for entertaining and outdoor dining, allowing you to spend more time outdoors. It can also be a DIY project, saving you money and potentially increasing your profit.

When designing a deck or patio, it's important to create a snug seating area with attractive furniture and accessories, inviting buyers to picture themselves lounging or dining. This simple addition of an outdoor living space can boost your home's value and attract buyers.

Trees are a long-term investment that can raise property value

The exact premium a tree can provide depends on factors such as where it's planted, the tree's condition, and its maturity. A tree with a presence that serves as a pleasant backdrop for activities like picnics can have an "oomph" factor that appeals to buyers. Large deciduous trees on the east and west sides of buildings provide the most summer energy savings, and strategically placed evergreen windbreak trees offer the most savings in the winter.

Trees also have a positive environmental impact. They improve air quality, reduce water runoff, and trap carbon dioxide, which helps fight climate change. In addition, a healthy shade tree can reduce energy bills by up to 12% in 15 years.

When choosing trees, opt for native species that are disease-resistant and suited for your planting zone, such as the Northern red oak, sugar maple, or crape myrtle. Ensure they are planted in the right place and are healthy and maintained. Avoid trees that may pose a risk to your home, such as those with branches hanging over the roof or those planted too close to the house.

Outdoor rooms, such as kitchens and sitting areas, can be a high-demand feature

Outdoor kitchens, in particular, have surged in popularity, with homeowners looking to extend their living rooms outdoors. An outdoor kitchen can recoup about 71% of its cost at resale. A more expansive project, such as installing a flagstone patio with a modular kitchen unit, can cost about $57,000 but recoup about 55% at resale.

To make your outdoor kitchen functional, it's important to ensure it has the necessary equipment and amenities. This includes a properly equipped space, a roof for shelter, a ceiling fan or a design with good natural ventilation, and a fire pit for outdoor heating.

Sitting areas are another desirable feature, offering a luxury ambiance that can be enjoyed year-round. If you live in a colder climate, covering the pavilion with awnings and canopies can make the space usable even during cold or rainy weather.

In addition to kitchens and sitting areas, other outdoor room ideas include "man caves" and "she-sheds", which can be used as gyms, yoga and meditation rooms, or reading areas.

When designing outdoor rooms, it's important to treat them as extensions of your indoor rooms. This means creating a cosy and inviting space with comfortable furniture, lighting, and perhaps an outdoor rug or cushions.

By investing in these outdoor rooms, you can make your backyard a high-demand feature that not only adds value to your home but also provides a functional and enjoyable space for you and your family to spend time in.

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