As the calendar page flips over to the last month of 2021, I wanted to hit pause to look back at the top 5 real estate questions my team and I have received from our clients, family, and
Will This Year's Backyard Upgrades Hold Their Value in 2022?
Dated: August 14 2021
What do you do when you’re stuck at home and you’ve grown tired of looking at the same four walls? You do renovations! You could stick to indoor renovations, but many homeowners rolled up their sleeves this past year and turned their focus on their backyards. Since they weren’t able to be out and about, they wanted to create a backyard oasis that didn’t make the oh-so-long quarantine so dreadful.
Fast forward to today, homeowners are wondering if those backyard upgrades hold their value in today’s market. Top-rated real estate agents share their thoughts regarding the value of these upgrades and you might be surprised by their revelations.
In-ground hot tubs
We all know that swimming pools were in demand during the pandemic, but homeowners also wanted to give their backyard an extra bit of pizazz. So what did they do? They installed in-ground hot tubs.
Installing an in-ground hot tub is a pricey upgrade, as it can run you anywhere from $8,000 to $25,000. You’d hope to get most of that money back, but unfortunately an in-ground hot tub will only increase the value of your home by $4,000 to $7,000 - a paltry 42% return.
Free-standing hot tubs
Homeowners who wanted a hot tub but were on a budget opted for a free-standing hot tub instead. You could spend between $2,000 to $6,000 for your average run of the mill model. However if you wanted to go a little fancier, you could get a mid-range hot tub for $4,000 to $8,000.
Typically homeowners would take their hot tubs with them when they move, but buyers will sometimes ask for them to include the hot tub with the home. In doing so, the seller could tack on $2,000 to their asking price. That’ll get you a 100% return if you went with the cheapest model you could find. Otherwise, you may only recoup half of your investment.
An outdoor kitchen was in high demand in 2020 and homeowners pulled out all the stops when they built it. They could spend as little as $5,500 for their basic outdoor kitchen set up (built-in grill, ample counter space for food prep, a sink, and maybe a snack station). But if they really wanted to go the full monty, they’re looking at a $22,000 price tag (if not more!) for higher end materials, more elaborate set ups, and extra features like a wet bar, a sound system and the like.
When the house goes on the market however, the outdoor kitchen may add between $6,000 to $9,700 (or $11,900 if you’re in the Northeast or $12,500 if you’re on the Pacific coast). This would give you about a 71% return on your investment.
Homeowners that wanted to have a nice space to sit outside could create a patio, but many opted to build a deck instead. There are a lot of different deck designs and the cost is going to be dependent on the style, materials, labor, and size you choose to go with.
For a simple deck, the price range is likely to be between $4,000 to $10,000 (the national average is approximately $7,200). But when you put your home on the market, you can expect to see a 97% return, which is about $6,900 added value!
Backyard upgrades aren’t a waste of money
When we take on a renovation project, we aren’t necessarily thinking about how much money it will add to the value of our home. We just want to breathe new life into our spaces and make them more enjoyable! But, if you were to use a net proceeds calculator before the renovations and after, you’d be pleasantly surprised by how much all of that hard work can add to your property value. Now step away from your laptop and get some fresh air!
After years of working in the field of communications (from newspaper reporter/editor, creative services director, radio talk show host and freelance columnist), I've found a career path that allows m....
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