Are backyard upgrades worth the investment when it comes to increasing your home's value? A well-kept garden is highly desirable for many potential buyers, especially as the pandemic has prompted us to use our outdoor areas as extensions of our living spaces.
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But does enhancing your backyard genuinely rank among the top methods to enhance value? Let's explore the most impactful improvements you should consider.
How Much Value Can a Beautiful Backyard Add?
The value added by a lovely backyard is generally an estimate, so consulting with a realtor is crucial to understanding what improvements will be effective in your area before you begin any projects.
Having a rough idea can guide your landscaping budget and help ensure a favorable return on investment. On average, a well-designed, low-maintenance garden can boost your home's value by up to 10%—potentially adding an extra $100,000 to a $1 million property.
While it's rare to turn a profit directly from landscaping, if executed wisely, you can expect to recover your expenses through increased home value, and you'll likely sell your home more quickly and at a higher price.
Backyard Upgrades That Enhance Value
If you've already taken care of essential improvements, such as sturdy fencing and a functional patio, what additional upgrades could add significant value? Here are our top five recommendations.
1. An Outdoor Kitchen
Outdoor kitchen concepts have gained immense popularity as homeowners seek to extend their indoor living areas outside.
According to Patrick Garrett, a real estate broker in Birmingham, Alabama, it's essential to create a functional outdoor kitchen space. This includes equipping the area well, providing shelter from sun and rain, ensuring adequate ventilation for hot days, and including a firepit for warmth during cooler evenings. Essentially, he suggests that the space should be enjoyable for use in at least 'three out of four seasons.'
2. A Firepit
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Jason Gelios from Community Choice Realty in Detroit states that you can expect to recoup about 60% to 70% of your investment in a well-installed firepit. He notes that gas-powered fire pits tend to offer the best return. If space is an issue, a portable firepit can still help buyers envision a cozy outdoor living area during property showings.
3. A Swimming Pool
Bill Golden, a realtor with RE/MAX in Atlanta, observes that the pandemic has shifted buyer interest toward homes with pools. 'With increased time spent at home, demand for pools has surged,' he explains. However, it's important to remember that the cost of installation may not be fully recouped, but having a pool can be a strong selling point, especially if competing homes also feature pools.
4. Privacy and Shade Structures
Given the trend of spending more time outdoors, many are seeking ways to enhance privacy in their gardens.
While strategically placed plants can offer effective screening, structures like roofs over outdoor cooking or dining areas, or a stylish pergola on a patio, can provide the perfect combination of privacy, shelter, and shade.
5. An Inviting Outdoor Living Space
If your garden already includes a patio or deck, how you style and arrange these areas can significantly influence potential buyers and enhance your home's value.
Lucy Searle, Editor in Chief, emphasizes the importance of treating your deck or patio like an inviting indoor room. The best part is that this can be done without spending a fortune and can significantly increase appeal—potentially leading to more offers.
When designing a deck or selecting patio styles, think about how the space will be utilized: 'Ideally, create a cozy seating area where potential buyers can envision themselves relaxing or dining,' Lucy suggests.
Enhance the space with attractive furniture, perhaps an outdoor rug or cushions, appealing garden lighting, and lovely container plants to instantly create a new living area.
Backyard Upgrades Can Boost Value—With Some Caveats
The good news? Yes, enhancing your garden can indeed add value to your home. However, the results might be different than you expect. The Remodeling Impact Report: Outdoor Features from the National Association of Realtors® revealed that while buyers appreciate the concept of features like a swimming pool or a new deck, they are willing to pay more for a garden that is well-maintained and beautifully landscaped.
This report estimates that maintaining a garden—including regular mulch applications, mowing a lawn of about 2,835 square feet, pruning shrubs, and planting around 60 perennials or annuals—can average around $3,000 annually. While this may seem like a significant expense, you can expect to recover all of that investment—a remarkable 100% return.
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However, there is a catch. The report indicates that many US buyers are not keen on garden upkeep, preferring to move into homes with gardens that are ready to enjoy without additional maintenance.
This means that while buyers willing to care for gardens will pay more for a well-kept one, you may also deter those who are intimidated by the upkeep involved.
Kelley Martin, a realtor in San Antonio, Texas, noted that around 70% of buyers express concerns about maintenance, often asking, 'How much effort is this going to require?' or 'I wouldn't be able to maintain that.'
In contrast, UK buyers are generally more willing to maintain their gardens over time. In the UK, buyers are likely to pay more for features that enhance their outdoor experience, with a study indicating that they would pay nearly £8,000 ($11,000) for a swimming pool, £5,325 ($7,378) for a home office garden room, and £5,107 ($7,076) for a garden gym.
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Unfortunately, these features are unlikely to convince US buyers to pay more, even if they find them appealing. This highlights the importance of understanding your target market when selling your property.
