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Deck and Patio ROI
from:When it comes to undertaking home improvement projects, math matters. Knowing if you’ll get a return on your investment or not, and recognizing how improvement will affect the resale value of your home, can be a helpful guide in your decision-making processes. Adding a new deck or patio, or enhancing an existing structure, can be a good way to increase the value of your home.
A return on investment, also known as an ROI, is the calculation of how much more (if any) additional money you can expect to receive if you ever sell your property. Although you may want to add a deck or patio for personal pleasure, it’s a good idea to understand the ROI to help you determine how much money you should responsibly include in your home improvement project.
There are several factors to consider when creating an ROI for your project:
1. Location of the addition is just as important for a deck or patio as it is for anything else you add to your house. If you add a deck off the kitchen or family room of your home, it will likely add more value than a deck that is only accessible off the master bedroom. If you add a free-standing patio that is difficult to access from the house, it may not add much value to someone else.
2. When it comes to location, think about the geographic region too. Adding a patio or deck in Michigan may not be as appealing as it is to potential buyers in Florida! But, if you create the right patio elements such as effective lighting, outdoor heating, a fireplace, roof, or other amenities, then you can increase its value for your particular region.
3. Keep in mind that adding a deck or patio to your house is one of the most valuable additions you can include in your home. A wood deck is the least expensive addition but increases the selling price of most homes. You’ll probably recoup about 75-90% of the costs for a deck if it is well-designed and well-maintained.
4. Spending a lot of money on the home improvement project doesn’t always mean you’ll get a lot of money back later. For example, adding a deck that is over-whelming for the size of the house or including a fully equipped, outdoor kitchen with stainless steel appliances, wooden cabinets, and other things can be extremely expensive. If the house is mid-range and the additional patio with a fully equipped outdoor kitchen is ‘over the top’, you’ll likely lose a lot of your investment if you decide to sell the house.
5. If you are planning to sell your home in the near future, think about design and how it impacts ROI. Buyers want to buy something they can envision themselves living in rather than seeing you there. Avoid extremely unusual designs that don’t fit in with the neighborhood or that conflict with the architecture of existing structures, and don’t include bazaar or unusual accoutrements in your design. This can be a turn-off for potential home buyers.
Home improvement projects often result in increasing the value of your home, but if you’re not careful, you could go too far with your investment. Make sure you are increasing the value of your home or property without going over the top by taking your deck or patio improvements beyond the limits of the neighborhood, geographic region, or your own home. Additions should be a natural extension of an existing home and should fit in well with the surroundings.
You may not be in the market to sell your house today, but you never know what tomorrow may bring. Make sensible choices when it comes to home improvement projects and get the most for your money, while enjoying your investment and changes in your home today.
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