According to the National Association of Landscape Professionals and the National Association of Realtors, some of the strongest returns on outdoor investments come from the smallest projects. The duo’s “2018 Remodeling Report” indicated the most substantial financial payout at resale comes from a relatively inexpensive investment: standard lawn care service. That investment recoups 267 percent of project cost at resale, the report indicated.
The Remodeling Report analyzed more than a dozen outdoor residential projects and 10 commercial projects. Lawn maintenance and tree care topped the list for returns, recouping more than 100 percent of cost at resale. Outdoor irrigation systems recouped 86 percent of the cost. NAR president, Elizabeth Mendenhall, cited curb appeal as the main reason these types of outdoor projects resulted in such high ROI. However, they may not bring quite as much enjoyment to a homeowner during their tenure in a home as perhaps a fire feature, which tied with irrigation system in the “homeowner enjoyment” category.
83 percent of homeowners who installed fire features reported a “greater desire to be home” since completing the project. 69 percent of homeowners who installed an irrigation system reported a “major sense of accomplishment when thinking about the project.”
These results may be of particular interest to real estate investors not just from the perspective of higher listing and sales prices, but also from the perspective of keeping rental residents in place long-term. While a fire feature may not be ideal for a rental property, other homeowner-appeal projects that made the list included “new wood deck, water feature, statement landscaping, and an overall landscaping upgrade.”
“It’s not just homeowners that need to think about curb appeal,” said Mendenhall.
According to the report, top outdoor residential features for adding value at resale are:
- Landscape maintenance
- Overall landscape upgrade
- Standard lawn care
- New patio
- New wood deck
Top outdoor residential features for adding appeal to buyers and homeowners are:
- Standard lawn care service
- Landscape maintenance
- Overall landscape upgrade
- Tree care
- New wood deck
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