Outdoor Home Improvement Projects with Strong ROI (1/4)

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As Will Rogers once said, “You never get a second chance to make a good first impression.” These words ring true in everyday life and even more so in real estate. Whether they realize it or not, home buyers are heavily influenced by their first impression of a home. In fact, it may be the most important aspect of a home showing, as experts believe that buyers have a tendency to make up their minds within the first few seconds of seeing a home as to whether or not it warrants further investigation.

While boosting your home’s curb appeal will help create a good first impression and increase the value of your property, determining which projects to focus on can be stressful, especially if you have interior projects planned as well. Choosing improvements that will deliver the greatest bang for the buck is obvious, but what upgrades will improve curb appeal and offer the best return on investment (ROI) in today’s highly competitive market? In this blog series, Exterior Home Projects with Pay Off Potential, we will highlight outdoor home improvement projects that deliver strong ROI and, over the next few weeks, share tips on what features and upgrades will help maximize your investment for some of the most popular projects.
 
According to sources like Bankrate and RenoFi, “Homeowners can expect a 70% ROI, on average, with home renovation projects.” And while actual ROI percentages for various home improvement projects vary by type, location, market and timing, there is a fairly consistent list that has a history of really paying off and beating the law of averages. In fact, you might be surprised to learn that based on the National Association of REALTORS® (NAR), 2023 Remodeling Impact Report: Outdoor Features, a number of those projects can help boost curb appeal. Read on to see which projects the NAR Report indicates to have the greatest propensity to add value to your home’s exterior and deliver big payoffs. 
 
 

• Standard Lawn Care Service – Everyone loves a beautiful lush, green lawn and there is data to back it up. Coming in at a whopping 217% ROI (NAR, Page 10), spending money for standard lawn care pays off in dividends. Whether you choose to do it yourself or hire a professional, applying fertilizer and weed control a few times a year can make a big difference in the health and beauty of your yard. Not only will it improve the enjoyment of your outdoor living spaces while you own the home, but in a year’s time, you can get more than twice what you put into it if you sell. That is a win-win.

• Landscape Maintenance – With all the TLC your lawn is getting, it will be ready for mowing during the warmer months, and in order for your landscape to hold its own, you may want to invest in landscape maintenance. From mowing and pruning to mulching and planting flowers, this project, like lawn care, goes a long way to improving your home’s curb appeal. Delivering an ROI of 104% (NAR, Page 12), this is another area that really pays off and can be tackled as a DIY project or outsourced to a professional.

• Outdoor Kitchen – Once only found in luxury homes, an outdoor kitchen is not necessarily something that adds curb appeal, but outdoor kitchens have become an increasingly popular outdoor upgrade for the pure enjoyment factor and functionality they offer. Not only do they allow you to extend your entertaining and living space outdoors, but they help offload some of the work typically reserved for indoor kitchens. If you have been thinking about putting in an outdoor kitchen at your home, with a 100% ROI (NAR, Page 14), you can go ahead and drop in the grill, add some stainless steel drawers, a built-in ice chest, a sink and concrete countertops for plenty of prep space, and enjoy a touch of luxury right in your own backyard without worrying about sunk costs.

• Overall Landscape Upgrade – If your landscape is looking a little worn from wear, before you spend money on maintenance services, consider replacing an older sidewalk with a new natural flagstone walkway, add a couple of stone planters, replace overgrown or dead shrubs and add a new tree in your yard. While this is a slightly more involved landscape project due to several hardscape elements, it can really transform your exterior, adding tremendous curb appeal while delivering 100% (NAR, Page 16) return on investment.

• New Patio – While it may not be the first thing a potential buyer or your guests see, outdoor spaces that extend your living and entertaining area are in high demand. If you have an older patio that needs to be replaced or perhaps no patio at all, at 95% ROI (NAR, Page 18), this is a project that will nearly pay for itself when you sell. Consider adding in that outdoor kitchen while you are at it; between the two projects, you can expect to recover nearly all of your investment.

• New Wood Deck – If your home has an old wood deck that has seen better days and you have been wondering whether it is a good idea to sink money into replacing it, wonder no more. Similar to a new patio, a new wood deck extends your living space outside, making it easy to entertain and spend time outdoors. With an 89% ROI (NAR, Page 20), you will get your money’s worth out of this one.

• Tree Care – One area most people hate to spend money on is tree care. But when you consider the amount of time trees take to grow and how transformative they are to the look and feel of your landscape, it is important to assess what work is needed to keep your home safe and beautiful for years to come. The good news is that tree work typically delivers an ROI of 87% (NAR, Page 22), so if you have a tree that needs to come down or you want them to remain a healthy part of your landscape, you can service them knowing you will recoup most of what you spend.

• Irrigation System Installation – A professional irrigation system isn’t a luxury you only see at high-end homes and upscale golf courses, especially in the South. These systems are an essential way to save time and money while reducing wastewater and offering a convenient, cost-effective approach to keeping your landscape healthy and vibrant. So while this project does not add curb appeal directly, if you are investing in new landscape and spending money to service your lawn and shrubs, then you may be wondering if the installation of an irrigation system is worth it. Fortunately, with an ROI of 83% (NAR, Page 24), you can leave it to the professionals and rest easy hanging up the hose and retiring the garden sprinklers.

• Landscape Lighting – Curb appeal is not just for daytime. If you have driven by a house after dark that has landscape lighting, you know how transformative it can be. You can use landscape lighting to expand your space, heighten curb appeal, increase your property’s value, highlight the best of your exterior and increase safety. Delivering an ROI of 59% (NAR, Page 26), you can take your home from fine to fabulous with the addition of landscape lighting, and when you sell, you can recoup more than half of what you spend. That is brilliant!

• In-ground Pool Addition – Putting in a pool is a big project and not something you would likely undertake in order to improve curb appeal and sell your house. However, in-ground pools deliver approximately 56% (NAR, Page 28) ROI, which means if you want to put in a pool for your own enjoyment, all is not lost. And when it comes time to sell, just know that some buyers will not look at your house if it has a pool, others will look at it because it has a pool, and some will be ambivalent about it, but regardless you can expect to get back a little more than half of what you put into it. Add to that the enjoyment you got out of it, and you end up way ahead of the game.

• Fire Feature – If you have been thinking about a pool, an outdoor kitchen, new landscaping, a new patio and more, you may also be wondering what kind of return you can expect for installing an outdoor fireplace. Much like a pool, you can expect to get a little over half of what you put into the project. With an ROI of 56% (NAR, Page 30), you get a decent return, and when you couple that with the enjoyment and memories made sitting around the fire, it is an investment that will pay you back in more ways than dollars while elevating your home.

 
Source: National Association of REALTORS® (NAR), 2023 Remodeling Impact Report: Outdoor Features, March, 2023.  

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