The ROI of landscaping varies from project to project. For example, real estate experts say smart landscape design decisions can yield an ROI of anywhere from 200-400%, though pinning down an exact number can be difficult.
Making your house more efficient, adding square footage, upgrading the kitchen or bath and installing smart-home technology can help
increase its
value.
5 Proven Ways to Increase Home Value
- Make it more attractive.
- Make it low-maintenance.
- Make it more efficient.
- Make it bigger.
- Make it smarter.
A landscaping project can cost anywhere from $5,000 to over $100,000. When deciding on a budget keep in mind that investing in professional landscaping will greatly add to the value of your home. A general rule of thumb is to spend 10% of your home's value on landscaping.
The best time to begin landscaping and planting trees, shrubs, and perennials is in the months of April and May. These spring months will give your plants the opportunity to grow and acclimate during the summer and fall. However, the next best time to begin landscaping is the fall.
A fence itself does not add as much value to the home when compared to material and construction costs. It will enhance the value of the home only if there is a true need for such an outdoor structure.
Painting the interior results in a 107 percent on the return on investment (ROI), and painting the exterior leads to a 55 percent ROI, according to a HomeGain 2012 Top DIY Home Improvements for Seller survey. Painting the interior costs on average $967, and offers a $2,001 increase in value.
According to a study done by Michigan State University, a home with landscaping and effort put into curb appeal can increase perceived home value by 5 to 11%. Curb appeal can also sell a home faster.
Increasing curb appeal doesn't just bring people in, though. Adding curb appeal is a great way to increase the resale value of your home. For relatively little cost, you can drive up your home's appraisal value with low-cost, high-return investments in landscaping and exterior improvements.
8 Budget Curb Appeal Projects
- Glam the Front Door. Adding pizzazz to your home's front entrance is an easy, low-cost way to up your home's curb appeal.
- Manicure the Lawn.
- Tend Those Beds.
- Clean up the Exterior.
- Traditional American Home with Garage.
- Clean Your Windows and Make Them Sparkle.
- Update Light Fixtures.
- Trim Trees and Bushes.
Here are a few easy ways to make your home more appealing to buyers:
- Fix the Little Things.
- Clean and Keep It That Way.
- De-Clutter.
- Go For Neutral Paint.
- Look to Your Lighting and Fixtures.
- Avoid Personalizing Too Much.
- Handling Pet Issues.
- Up Your Curb Appeal.
40 Simple Tricks for Boosting Your Home's Curb Appeal
- Trim your shrubs.
- Put out planters.
- Plan on pressure washing.
- Add color to the front door.
- Redo your walkway.
- Paint the house.
- Upgrade your front porch light.
- Don't be afraid to go bold.
The Appraisal Institute recently advised homeowners to properly maintain their landscaping, which can significantly affect property values. “If a landscaping change is positive, it can often enhance price and reduce a home's time on the market,” says Appraisal Institute President Richard L. Borges II, MAI, SRA.
As for
how to sell a house with a bad yard, top real estate agents agree: tackle basic
yard care before you list.
Boost curb appeal with the following pro tips:
- Keep the lawn clear of clutter.
- Go for low maintenance landscaping.
- Mulch flower beds frequently.
- Power wash stones and patios.
There is no doubt that appealing landscaping can measurably increase the appraised value of your property. “If a landscaping change is positive, it can often enhance price and reduce a home's time on the market,” says Appraisal Institute President Richard L. Borges.
Check out our list of backyard design ideas to help you transform your green space into a beautiful oasis on a budget!
- Build a DIY Deck or Patio.
- Lay Down an Outdoor Rug.
- Create a Stone Path.
- Construct a Tree Bench.
- Set Up a Trellis.
- Create Shade with a Pergola.
- Invest in a Fountain.
- Use a Stock Tank Pool.
10 Ideas for Backyard Landscaping on a Budget
- 10 Cheap Landscaping Ideas for the Backyard.
- Use Mulch Alternatives.
- Repurpose Old Tires.
- Go Vertical With Your Gardening.
- Add a Splash of Color.
- Plant Useful Plants.
- Opt for Natural Perennial Ground Covers.
- Build an Outdoor Fire Pit.
Your real estate broker will be able to tell you the best possible return on your investment in terms of landscaping. Although pools actually do increase the value of the property, the return on investment is so low that the money invested is not worth it in the end.
Comparable homes or comps are one of the most important factors affecting appraisal value. An appraiser will take a close look at recently sold, nearby homes with similar bedrooms, bathrooms, updates and square footage to your home. The value of these homes can provide baselines for appraisal value.
Unless the amount of clutter begins to affect the structural condition of a home, it will not affect an appraisal. The cleanliness of a home also has no impact on the value. It is not uncommon for an appraiser to walk into a cluttered, messy home.
In practical terms, appraisers are looking for any items that adversely affect the home's value, such as needed repairs, soiled carpets and plaster cracks. They also itemize the extra things that make the home desirable such as added insulation, air conditioning or a new roof.
The age and condition of the home's HVAC units, appliances, and electrical and plumbing systems will be considered in the home's overall appraised value. Obviously, if these components are in bad shape, this will negatively affect the appraisal.
How to Increase YourHome Appraisal Value
- Create curb appeal. Make your home picture-perfect.
- Stage inside and out. Add that wow factor.
- Make updates that pay off. Invest in low-cost projects that increase value.
- Keep track of improvements. Take before and after photos.
- Learn what buyers want.
- See how it compares.
A decent appraiser will look in your closets because they are supposed to. They have to calculate the total gross living area of a home. If you have been out of town for the last couple of weeks and your house is a mess, then relax. Appraisers will pay the most attention to a home's size, exterior, and interior.
What home appraisers look for: What's the general condition of the house? An appraiser will evaluate and comment on: The materials and conditions of the foundation and exterior walls, the roof surface, screens, gutters and downspouts. The materials and conditions of the floors, walls, and trim.
How to find the value of a home
- Use online valuation tools. Searching “how much is my house worth?” online reveals dozens of home value estimators.
- Get a comparative market analysis.
- Use the FHFA House Price Index Calculator.
- Hire a professional appraiser.
- Evaluate comparable properties.
Foreclosures/Short Sales
Another threat to the value of your property are foreclosures and short sales in your neighborhood. These affect your property value by skewing the comparable sales in your neighborhood down. Having short sales and especially foreclosures on your street decreases the value of your home.
