What’s the ROI on a New Deck?

Math matters especially when it comes to renovating your home. You need to make a budget, calculate costs and figure out what the return on your investment will be. Understanding how home improvements affect the resale value of your home is important when you’re trying to figure how to get the most for your renovation dollar.

Upgrade Your Home with New FlooringThe return on investment or ROI is how much money you can expect to get back from your renovation efforts after you sell your property. Adding a deck to your home doesn’t have to be about what your ROI is it can simply be for personal pleasure. Understanding ROI can help you understand what any renovation project is worth if you decide to sell your home in the future.

Here are some things to take into consideration when figuring out your ROI

1. Location, location, location

Adding a deck that is accessible to everyone in the home, that’s off the kitchen or family room, provides a better return than just building a deck off the master bedroom. A floor that can only be accessed from a bedroom will add value to you but not necessarily to a new buyer.

2. Consider where you live

Adding a deck to your home in Arizona that can be used all year round offers more ROI than in North Dakota. As unfair as it might be colder climates use their decks less than in the southern US, but you can offset that a bit by adding the right elements. Put in some patio lights, outdoor fireplace or a canopy to make it more valuable to your region.

3. Keep it proportional

back-porch-670293_640Adding a deck onto your home is one of the most valuable additions you can make to your home. A wooden deck gives you the most bang for your buck with a return of 75-90% of the cost. But…spending tonnes of money on a home improvement project doesn’t always pay off. Oversized decks or adding an outdoor kitchen to a mid-range home may be something you enjoy but not something you will get a return on. If you do this for your pleasure, fantastic…enjoy it. If it is meant to be an investment strategy, you’ll likely end up with a loss.

4. Keep potential buyers in mind

If you’re building a deck in as part of a strategy to sell your home, then consider the design and the impact it will have on ROI. You need something that the buyers can envision themselves using. Keep things as neutral as possible and no unusual design schemes.

Taking on a home improvement project can increase the value of your home but you need to be very careful you are doing that. Additions, be they rooms or decks should work with the surroundings, be a natural extension of your home. Even if you’re not in the market to sell today, keep an eye on the future when you undertake a project.