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If you’re planning on selling your house or just want to boost its curb appeal, the right landscaping may be a good investment. Here’s a quick look at landscaping projects to increase home value, their potential return on investment (ROI), and when they make the most sense.
Key Topics
How much does landscaping increase home value?
Opinions vary, but landscaping may increase a home’s value from around 5%1 to 20%,2 especially for professional work. Additionally, landscaping projects don’t need to be too hard — planting a few well-placed trees could help. According to Money Magazine, “numerous studies show that homes with trees have anywhere from 3.5% to 15% more value than those without.” (Note that the maturity of the tree can be a factor.) Some other things to consider include that:
- Timing can play a key role: “Homeowners may find it best to hold off on big renovations if they’re unsure how long they will be in their property,” a spokesperson for the Appraisal Institute said in a press release. “The longer a homeowner stays, the greater the opportunity for a potential return on investment.”
- Projects should make sense for your region and budget: Plants that are known to do well in your area will be more likely to survive, for example, saving you money. Then regarding budget, just because a project costs more doesn’t mean you’ll get more money back, notes This Old House.
- You may not need major upgrades if you’re selling your home: Are you in a seller’s market where there aren’t enough homes for sale to keep up with buyer demand? If so, buyers may make a competitive bid on your home as is.
Landscaping projects to increase home value
Here are a range of landscaping projects from a 2023 National Association of REALTORS® (NAR) report.3 Note that the amount you can potentially recover is based on professional estimates. So, if you’re a handy do-it-yourselfer, you may see even more ROI.
1. Lawn care
Basic lawn care topped NAR’s survey in terms of return on investment — 217%. It stands to reason since your lawn is one of the first things an appraiser or potential buyer will see. Simple things like cutting grass, fertilizing, aerating, weeding, raking, and watering regularly can pay off.
2. Landscape maintenance
Landscape maintenance also ranked well — things like pruning shrubs, planting new flowers, and maintaining driveways. It was expected to deliver a 104% return on investment. Most real estate agents surveyed also said they would recommend this or simple lawn care to a seller, with more favoring landscape maintenance.
3. Outdoor kitchen
An outdoor kitchen cooked up a 100% return on investment. Additionally, according to NAR’s report, there’s been a fair amount of demand for them. Demand had gone up 34% in the year before their survey. Still, only 1% of real estate agents recommended taking this on if you’re planning to sell your home.
How much should you budget for this landscaping project? That will vary depending on where you live, but NAR’s estimate was for a $15,000 kitchen.
4. Landscape renovation
If you’re ready for a big landscaping upgrade, that may also recover 100% of your costs. NAR’s test project called for a 30-foot path made of flagstone, 15-feet-high trees, and 6-feet-long stone planters. In terms of resale, about 1 in 4 real estate agents said they would recommend this upgrade to a homeseller.
5. Patio installation
Patios are a great way to create extra living space and you could net a 95% ROI. In terms of design, a top goal for this project should be “better functionality and livability,” NAR adds. Their patio landscaping project called for an 18-foot x 16-foot patio made of concrete pavers. That said, if you’ll be moving, you may want to focus on sprucing up what you already have. Only 3% of real estate agents surveyed would suggest it to a seller.
Landscaping options that may deliver a good value
Other projects that delivered a healthy value:
- Decks (95% ROI)
- Tree maintenance (87%)
- Irrigation systems (83%)
Tree care may also deliver more cost recovery than NAR suggests. Their estimate included removing a large tree. According to BobVila.com, tree removals alone cost an average of $750 up to $2,000. Tree care also ranked well with the study’s real estate agents — 44% recommended it for sellers. Decks and irrigations did worse — in the single digits.
Landscaping ideas if you’re staying put
If you’re not planning to sell soon, here are a few more landscaping projects to consider. These may not deliver a ton of ROI, but they may boost your happiness. They did well on NAR’s “Joy Score”:
- Lighting for your landscapes (59% ROI)
- In-ground pool (56%)
- Fire feature with 10-foot patio (56%)
Wherever you are your homeownership journey, a home equity loan could boost your home improvement budget. Talk to one of our Mortgage Professionals about your options at 800-765-9194 or get started online!
Sources
1. https://www.bhg.com/gardening/landscaping-projects/landscaping-projects-that-add-value-to-your-home/
2. https://www.bankrate.com/homeownership/landscaping-increase-home-value/
Disclaimers
Tradenames and trademarks used in this blog post are the property of their respective owners. Nationstar Mortgage LLC d/b/a Mr. Cooper is not affiliated, associated, or sponsored by any of these owners. Use of these names and trademarks is not intended to and does not imply endorsement, but is for identification purposes only. Information provided does not necessarily represent the views of Mr. Cooper. Information is subject to change without notice.
