Usable outdoor features like a deck, fire pit or pool can bring more enjoyment and entertainment to your space, home and family in the summer, but do they add value to the resale price of your home? The answer is, yes, they can!
Decks aren’t a cheap investment, but they can pay off if you plan on selling your home. Having a deck creates more space on your property for you to enjoy and is seen as an extension of your home.
What kind of return on your initial investment will you see with the deck? It depends on the material, size and scope of the project, but on average you could see upwards of 80% of the initial costs of the deck added to the value of your home.
If you are planning to build a deck to add to your home’s value, make sure to include good lighting for the new space, and ensure that all necessary precautions are taken to protect the deck against weathering and decay.
What Adds More Value To A Home?
Should You Build A New Deck or Patio?
Generally, decks require a much larger initial investment but have a higher resale value than patios do. A raised structure like a deck can increase the value of your house and can be a big selling point for potential buyers when it comes to selling. This is especially true for locations in warmer climates where outdoor living is more common.
While they are less expensive to build, patios have a lower resale value. Before choosing between a new deck or patio, consider when you plan on selling your home. This could help you balance the estimated cost with the possible ROI.
Is Adding a Deck a Good Investment?
Increase The Value of Your Home With A Deck
dding a deck to your house can cost you a fair penny. The average cost for a new wooden deck can range upwards of $10,000, and $17,000 to build a new composite deck. But this is not money being wasted, especially if you plan on selling your home someday. With a few considerations, you can improve your outdoor space and your resale value if you decide to move and sell your house.
While most home renovation projects can only recoup 50%-80% of their initial cost, many studies have concluded that the ROI for decks can exceed 100% based on their size and the materials used.
The Remodelling Impact Report of 2018 from the NAR states that on average, patios can recover 102% of their building costs. As previously stated, the 2016 version of this report claims that the recoup rate for decks was as high as 106%.
Some studies estimate that building a deck could only recoup a small percentage of the costs. However, if you were to eliminate the labour costs from your budget and do it yourself, you can add value to your yard and to your home’s resale value from your investment when you put your home on the market. But first, make sure to obtain the proper permits and build the deck yourself to minimize your deck building cost and maximize your return.
Consider Your Region
The region where you live can play a large role in how great the impact building a deck will have on the resale value of your house. Buyers are willing to spend more on a home with a deck that is in a geographical location that experiences warmer weather year-round where it is able to be used more (or with a view of water!)
Adding a deck to your home will greatly add value in warmer climates, and in areas that experience long winters that interfere with deck usage, this will not as greatly impact the home value when it comes time to sell.
How Home Resale Values Compare Based on Deck Material
When it comes to pure home resale value, wood decks have the best return from your investment. Wood tends to be a more affordable material, making a more affordable deck project, and it boosts the resale value to a similar amount as compared to a composite deck that can cost more.
The disadvantage of wood decks is that they are not resilient to weathering and temperature changes like composite decks are. Therefore, wood decks need more regular maintenance in order to keep their value up. Homeowners that are looking to sell their home right after their renovation project is done should choose wood decking.
Composite decking is higher quality than wood decking, making it more expensive. The average cost of a composite deck can range around $17,000, compared to a wood deck the same size being $10,000. It is more expensive due to the durability and dependability of the material.
Composite decking is becoming increasingly popular in the deck industry. Composite decking is nearly impervious to all weather conditions including rain, wind and extreme temperature changes. The only maintenance it requires is an occasional cleaning to keep it looking like new. Many homeowners choose to go with it to save themselves some time and effort when it comes to their deck’s maintenance.
These decks are ideal for homeowners who want to build a deck that they can enjoy for a long time before selling their home. Choose a composite deck if you are not going to try and sell within the first six months to a year of construction.