Whether it was the quarantine due to COVID or homeowners wanted to sell their home, there was a huge surge of homeowners taking on backyard renovations. They wanted to turn their hum-drum backyards into a summertime oasis that’ll make them forget the beach! These projects were labor intensive and expensive, but insights from top real estate agents reveal just how valuable those investments are in 2021.
Let’s take a look at how much those popular upgrades can add to a home’s value a year later.
An in-ground hot tub
Installing a swimming pool wasn’t the only addition homeowners took a dive at (pun intended). They wanted an added touch of luxury and so they installed an in-ground hot tub near the pool. The in-ground hot tub was a great addition because it was a way homeowners could relax, have a romantic evening, or ease away any aches and pains. Then after soaking in the hot tub, they could then make the easy transition to the pool to cool off.
Prior to COVID, in-ground hot tubs would add about $4,000 to the value of the home. However, in 2021, that same hot tub could fetch an additional $7,000. That might sound like a nice chunk of change (which it is!), but these things can cost between $8,000 to $25,000, so you’ll probably only get a 42% return on that investment.
Above (freestanding) hot tub
Much like an in-ground hot tub, an above ground (freestanding) unit is a welcome addition for the same reasons. The difference with a freestanding hot tub, the homeowner could choose to take it with them to their new home. Should the buyer want the hot tub to stay, the seller could add an additional $2,000 to their asking price.
Although you can add $2,000 to your asking price, you’re likely to only get 50% of your investment back because entry-level hot tubs can range between $2,000 to $6,000.
Built-in grill or outdoor kitchen
Your dad may have loved his charcoal grill, but in today’s world, that’s not going to cut it. So, homeowners ditched that old charcoal beast and went all out with creating a grilling station fit for a king. They used a variety of materials (brick and concrete being the most common) and built a grilling area with ample counter space. Some went even further to build a full-on outdoor kitchen, complete with a wet bar, refrigerator, cabinets and a sink.
Now, if you’re going for a simple built-in grill, you could spend around $5,500, but for a complete outdoor kitchen, you’re looking at $22,000 and up. Fortunately, if you have one of these, you could increase your asking price anywhere between $6,000 to $12,500. That means you can recoup 71% of your investment!
New deck or patio
You might have the hot tub, the pool and the outdoor kitchen, but all of that is kind of moot if you don’t have a place to sit! To remedy this, homeowners built a deck or patio. Some homeowners who already have one of these features revamped their space so it looks new (and safe).
Now, to build a new deck, the cost will depend on a variety of factors like the materials, the size of the deck/patio, the labor (if you’re not doing it yourself), and your neck of the woods. This project can range between $4,000 to $10,000, but the national average is about $7,200. There’s good news though because you could recoup 97% of the cost!
So the biggest question is ROI and if it is worth it. I believe that if you will enjoy it and regain cost back, then it is worth it. BUT of course, there are still factors and to get the best understanding of what your return on investment would be before selling, consider contacting a real estate professional.
I am always happy to help and assist with any questions you have. Contact me today!