When a customer asks whether the new deck or patio addition they are planning will add value to their home, we answer with “Probably,” and “Yes!”
Why two answers? Because at Archadeck of Columbus, we see two different ways to estimate that added value. The first can be expressed in dollars and cents, which is what you were probably anticipating. The other can best be expressed as emotional value. How do you measure the enjoyment you gain from a new outdoor living space? Perhaps by the number of hours you will spend relaxing on the new deck or patio. Or perhaps by the way it becomes the preferred gathering place for your family and even your closest friends.
There is a third way a new deck or patio addition can add value to your home, and that is during the sales process. You may have heard that you can only include heated and cooled room additions to your home’s square footage when determining market value of your home. That is correct, technically. But consider the emotional impact an attractive deck or patio can have on prospective buyers viewing your home. If other homes for sale in your area feature nice outdoor living spaces, yours will be more competitive if it does, too. Also, if you have a deck or patio in excellent condition, buyers can visualize themselves enjoying that outdoor space with family and friends. That vision should make your home even more appealing in their minds!
What ROI Can I Expect on a New Deck or Patio When Selling My Home?
Are you adding a new deck or patio in preparation for selling your home? You may see different figures when you consult more than one resource about the question of ROI. That means the projected return on investment will fall within a range. For example, Remodeling Magazine’s Cost vs. Value Report indicates that a homeowner can expect an average ROI of 80% from a new wood deck. Their estimate of ROI from a composite deck is lower, about 68% on a basic composite deck and about 60% for one that is extra fancy. It’s not that home buyers necessarily prefer wood decks, simply that it costs less to build a wood deck so recouping those costs is easier.
Meanwhile, another source indicates that ROI for patios and decks can reach or exceed 100%. Again, it depends on materials used and size of the project, but they have compiled information from “multiple studies.” If you’re listing your home for sale, your Realtor will probably caution you not to expect those results. For many homeowners, however, the knowledge that their new deck or patio can make their home more attractive to buyers is welcome. Anecdotally, a nice outdoor living space should help your home generate more offers and sell more quickly.
If you are adding a deck or patio primarily for the purpose of raising your home’s resale value, we recommend you keep it simple. Adding an attractive, well-built wood deck or paver patio – not huge, but large enough for entertaining – will most likely work in your favor. How large is too large? RemodelingCalculator.org suggests that, proportionately, a deck or patio added to enhance your home’s resale value be no larger than the biggest room in your home. They also recommend the outdoor living space be accessible from the main level of your home, preferably from the kitchen.
Can I Expect a Decent ROI If I’m Adding a Deck or Patio for My Own Enjoyment?
If you add an outdoor living space for your own enjoyment, you can expect an emotional ROI for as long as you live there. And even longer, because you’ll keep the memories forever. Please don’t read this as an exaggeration, because we don’t mean to come across as overly sentimental. It’s simply a fact that having a beautiful deck or patio – or a deck and patio combination! – will enhance your life. When you look at the ways a comfortable outdoor living space makes your home more pleasurable, we consider that a powerful return on your investment. Isn’t that why you’re considering such a project? And, if you enjoy entertaining at home, that ROI increases exponentially with every gathering you host.
Picture yourself dining outdoors with family. Taking your laptop out onto the deck so you can work from home in the autumn sunshine. Taking time out for a tea party on the patio with your child or grandchild. We don’t need to tell you how many ways you can enjoy a new outdoor living space! Nor do you need us to tell you how much it can increase your own perceived value of your home.
When a customer adds a new deck or patio for their own enjoyment, our recommendation is not to play it safe and keep it simple. If increasing the size of your deck will mean you enjoy using it more, then go big! If incorporating an outdoor kitchen into your new patio will increase your enjoyment when entertaining, then you should include it! If your primary reason for adding a patio is because you want a fire pit surrounded by a circular seating wall, let’s build it! Then, if you end up selling your home in the future, any financial ROI you may gain on the sale will be a bonus.
Are you ready to move forward with a new custom deck or patio at your home? There is no charge for our design consultation. Contact Archadeck of Columbus today to get started!
The Archadeck of Columbus team.