If you’re thinking about selling your home in the future but want to really make the most of your yard in the meantime, consider installing an outdoor living space. Both a deck and a patio area can create a lovely space for spending time with family, dining, entertaining and relaxing, but they don’t come with the same installation cost or return on investment.
Remodelling Magazine’s Cost vs. Value report for 2018 shares some information on home improvements and what a homeowner might expect to recoup when they spend money on certain upgrades. Here we compare the cost vs. value on both deck additions and backyard patios.
Cost vs. Value of a Deck Addition
Wood deck additions have one of the highest return on investments on the report, especially when repaired to other additions and home renovations. If you hire a deck builder to build a deck costing around $10,950 you can expect to add about $9,065 to your home’s appraisal value when you sell. That’s an 82.8% return on investment.
Here is their description of this example of a deck addition:
´Add a 16-by-20-foot deck using pressure-treated joists supported by 4×4 posts anchored to concrete piers. Install pressure-treated deck boards in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing system using pressure-treated wood posts, railings, and balusters.”
If you choose to build the deck yourself, you will save about two-thirds of the cost of having it built by a contractor. You can add that savings to your return on investment. Deck additions are well worth the cost.
Cost vs. Value of a Backyard Patio
Patios can be a beautiful addition to your landscaping, increase aesthetic appeal while providing a functional outdoor living space. While you might get a lot of personal enjoyment from your backyard patio, they are typically more expensive to install and do not have a great monetary return on investment.
According to the report, having a 20×20 flagstone patio with a pergola attached could cost upwards of $54,000 when installed by a professional landscape contractor. The resale value of this outdoor living space is $25,769, recouping just 47.6% of the cost. Here is their description of this backyard patio:
“Install a 20×20 flagstone patio and cedar pergola with lights behind the home. Install a lift-and-slide glass door on the back of the house. Place a gas-powered fire pit in the center of the patio and surround it with four mid-priced deck chairs. Install a stone-veneer modular kitchen unit with gas grill, mini-refrigerator, sink, and storage. Include all needed gas and electrical connections.”
Obviously, this is an upscale backyard renovation complete with an outdoor kitchen and some modifications made to the house. You could spend less than half of what this job was estimated, but the return on investment percentage could remain below 50%.
Just like a DIY deck, you could also consider purchasing the landscape materials from a supply store and installing a simple patio yourself. This would bring up the return on investment and if done properly, will add good value to your property.