Positive Effects of Remodeling Outdoor Features

First impressions matter in home sales, which is why just about every Realtor in America (92%) recommends sellers spruce up curb appeal prior to placing a property on the market. A recent report by National Association of Realtors (NAR) and  dives deep into why homeowners complete outdoor remodeling projects, the value of undertaking such improvements and how happy homeowners feel following the completion of various projects.

According to the 2023 Remodeling Impact Report: Outdoor Features, preparing to sell is just one possible motivation for home-exterior upgrades.

“The COVID-19 pandemic changed the way Americans use their homes for daily living, relaxation and entertainment,” Dr. Jessica Lautz, NAR deputy chief economist and vice president of research said. “Homeowners have embraced their outdoor spaces — transforming them into oases with pools, patios, plants and greenery. These outdoor features are embraced by the homeowner and can also attract buyers if the owner wants to sell.”

The report examined 11 possible exterior improvement projects, the cost and potential cost recovery on sale as well as consumers’ “joy score” after the project’s completion.

Those projects included fire feature installation ($9,000), in-ground pool addition ($90,000), irrigation system installation ($6,000), landscape lighting ($6,800), landscape maintenance ($4,800), new patio ($10,500), new wood deck ($16,900), outdoor kitchen ($15,000), overall landscape upgrade ($9,000), tree care ($2,875) and standard lawn care service ($415).

The pool installation and landscape lighting brought the most joy to homeowners — 10 on a scale of 1-10. A new patio scored 9.9. In fact, all of the projects resulted in a “joy score” of 9+.

Those scores did not necessarily correspond with Realtor estimates for high cost recovery, the researchers reported.

The least expensive project — standard lawn care service — had the highest cost recovery, followed by landscape maintenance, an overall landscape upgrade and an outdoor kitchen, all of which would recover at least 100% on investment.

Landscaping-related projects such as standard lawn and tree care is most important when it comes to securing the highest return on investment and offer on the home.

“It’s no surprise that nearly all Realtors and most homeowners place a high value on the curb appeal of a well-maintained yard,” said Britt Wood, NALP CEO. “Healthy outdoor living and green spaces help the environment, increase home values, make communities more desirable, and improve people’s mental and physical health.”

In comparison, the lowest cost recovery was for an in-ground pool (at only 56% recovery), the thing that brought homeowners the most joy.

The report also revealed that some 92% of landscape professionals reported increased demand for contracting outdoor features during the pandemic and 79% said outdoor project scopes increased in size from before the pandemic.\

View the full report and methodology at nar.realtor/research.