Does a deck or patio add value to a home?
Investing in a 16-by-20-foot deck will increase your home resale value by 65% – 75%, according to the 2020 national Cost vs. Value report from Remodeling Magazine.
A wood deck addition, in particular, has a cost recovery rate of 73%. A composite deck addition, on the other hand, has a 67% cost recovery rate, because composite is usually more expensive than wood. A patio get’s about a 55% ROI.
There are a couple of take-aways from the data on the ROI or resale value of a deck and every situation will be different. Since the recovery rates for decks are less than the cost of building them, you may lose money on your house if you decide to sell it immediately after having your deck installed. It would be in your best interest, then, to wait to sell your house three to five years after building your deck – or don’t build one at all if you’re in sell mode. Decks, where there are current code violations or has safety concerns, may prevent the sale of your home. I have been out to many homes where home inspectors noted several issues with an older wood deck and then both parties negoiagte the price of the deck off the home purchase. In those cases it’s better to at least invest in having a corrrrectly build deck and enjoy the new deck for a while and get full asking price. Having a low maintance deck might actaullay be a great selling point in today’s competitive climate. Of course, we are not suggesting that you purchase the lowest quality materials or pay for substandard installation but to hit the sweet spot in ROI, choose a mid-point composite decking such as Deckorators Voyage, Trex Transcend or Timber Tech Legacy Line. If you plan to be at your home for longer than 5 years then it’s quite all right to invest in the top-of-the-line decking. Deckorators Voyage performs like a higher cost decking but is at a mid-range price point and is why is our #1 recommended decking product on the market. www.Deckorators.com.
I often get asked how much of an investment should I put into the outdoors of my home. Many studies suggest that 5%-10% of the value of your home should be spent on landscaping. Most of our clients do invest 10-20% of their home value on a deck or outdoor living space. The ones that do not plan on selling anytime soon or would rather invest in their own lifestyle tend to spend 25% and up of the value of their home.
While not all decks have equal value due to the different climates of regions, material choices, installation methods, and designs; they do overall prove to increase the property value of a home. The average return on investment reported for a new deck in the 2019-2020 year is roughly 70%.
If you are looking to invest in a home improvement project that offers a pretty amazing return-on-investment and could even potentially put money back in your pocket, an outdoor kitchen is your answer. Outdoor kitchens nationally return 100% to 200% of the improvement cost. This is a high percentage compared to the 53% reported for a new bathroom build or renovation or a 44% return on investment for a new addition build.
Planning your outdoor space doesn’t need to be a chore but a good design is very important to maximize your return on investment. Your backyard dream is our passion!