21 Jul How Much Will a Deck Raise a Home’s Value?
A deck can be a great location to gather and use the grill. A nice deck can cost thousands of dollars to build, but it also offers an outdoor area for entertaining and relaxing. Some people could question its value.
Do decks increase the value of homes? Yes, without a doubt. The price of your home when you sell it again may increase dramatically if you build a deck. The extra value can sometimes result in a deck’s cost being fully recovered at sale.
How much value you ultimately receive when you sell your house may depend on the kind of material you use for the deck as well as other considerations. Continue reading to learn more.
Does the kind of deck affect resale value?
Do decks increase the value of homes? How much of the building cost you can recuperate in resale depends on the style of deck. Wood decks, according to almost every study, are the greatest at increasing a home’s resale value.
When building a deck, composite decking material is more expensive than wood, which results in a lower value to cost ratio. In the United States, the average cost of a 16 by 20-foot composite deck was $17,249. Nonetheless, the resale value added was $11,252, resulting in a cost to value ratio of 65.2%.
In comparison, the same-sized wood deck typically costs $10,707 to build. A $7,652 value-added at resale was projected. That is a cost to value ratio of 71.5 percent.
According to a different study, composite decks had a lower cost recovery percentage of 67 percent compared to wood decks, which had a cost recovery rate of 73 percent.
Will a patio increase in value more than a deck?
Some people debate whether a deck would provide a better return on investment than a patio. A patio is always less expensive to install than a deck and is also simpler. Nonetheless, decks are worth more when they are resold.
A patio only has a 55 percent ROI, which is less than you would earn from a deck, according to a 2019 Cost vs. Value analysis.
Would an Expensive Deck Increase Value?
No, installing a more costly deck won’t dramatically increase the value of your house compared to a cheaper one. The possibility of recovering your entire investment decreases as a deck’s price rises.
For instance, the building cost of a high-range composite deck is $39,339 Yet, it only resulted in a $22,171 rise in the average sales price of a property, leaving a cost to value ratio of 56.6 percent.
With the increase demand of homeowners wanting and preferring composite decks, we expect this number to increase, however the material costs between different materials have a major impact. Example: Wood decks are cheaper to build vs Composite
The value of a deck can also increases by its amenities and features such as a built-in kitchen or covered structure.
The market value of a house once a deck is constructed is one factor that cannot be calculated economically. Having strong market value, which a deck can provide, is a great advantage for the seller even though it may not directly increase the sale’s price amount.
Your home’s marketability determines how it compares to other properties in the same market. A deck, for example, will increase its appeal to home buyers, putting you one step ahead of those who may have a lower price but don’t have a deck.
In order to maximize your return on investment, experts advise choosing deck materials that are less expensive but yet suitable in terms of quality and appearance for your location. Going too inexpensive will ultimately lower your Return and reduce the marketability of your home.