We all know curb appeal can help a home sell, but just what is the return on investing in a home’s outdoor space? The National Association of Realtors and the National Association of Landscape Professionals teamed up to determine which outdoor property enhancements earned the greatest returns when it was time to sell.
“This report validates that landscaping is an investment worth making, offering the immediate benefits of increased enjoyment of your property, as well as desirable long-term value that holds if or when it comes time to sell,” says Missy Henriksen, VP of Public Affairs at the National Association of Landscape Professionals. “From lawn and tree care to installing a new fire or water feature or landscape lighting, there’s no shortage of opportunities to enhance your landscape and to reap the benefits these upgrades provide.”
The outdoor investment likely to reap the greatest returns for a homeowner is simply a standard lawn care service. According to the "2018 Remodeling Report: Outdoor Features," homeowners will recover 267 percent of the cost of standard lawn care when selling their home.
The report estimates standard lawn care costs $375, and homeowners can expect to recover $1,000 on their home sale. Landscape maintenance and tree care both bring a 100 percent return on investment. An irrigation system installation is likely to recoup 86 percent of the cost at sale, and an overall landscape upgrade is likely to recoup 83 percent of the cost.
Of the 13 outdoor projects the report covers, adding a new pool recovered the least amount of what was spent on the project, at 43 percent. Lighting incurred 50 percent ROI, according to the report.
“Realtors understand that a home’s first impression is its curb appeal, so when it comes time to sell, a well-manicured yard can be just as important as any indoor remodel,” said Elizabeth Mendenhall, President of NAR and a sixth-generation Realtor.
She added, “Even homeowners with no immediate plans to sell can gain more enjoyment and satisfaction from their home by taking on a project to revive their outdoor spaces.”
In addition to calculating the ROI for outdoor projects when it comes to resale, NAR and the National Association of Landscape Professionals also surveyed homeowners to find out how much joy each type of outdoor project brings to homeowners.
Fire features and irrigation systems earned a score of 10 out of 10 on the "joy scale." Wood decks, water features, statement landscaping, and new patios all earned scores of 9.7 or higher.
Residential properties aren’t the only ones that can benefit from extra attention given to landscaping. The report found that standard lawn care, overall landscape upgrades, and landscape management services are also good investments for commercial properties. All three are likely to bring high returns when the property sells. However, the report does not list percentage returns for commercial property projects.
For more information, visit the full "2018 Remodeling Impact Report: Outdoor Features."