“When someone has a beautiful front entry it says the home is inviting; if there is living space in the backyard, it is the house people want to visit,” says Wright. “When you are selling a home, there is way more value in these features as opposed to a house that does not include these amenities.”
What is it really worth?
A 2001 study by the University of Laval advises the cost of a landscaping project should not exceed more than a quarter of the home’s overall value. If the project can stay under that threshold, the likelihood is high the client will be able to recoup their investment, even if the real estate market is soft.
This calculation is roughly based on another study by Virginia Tech University in the late ’90s, which estimated a professionally landscaped yard that is subsequently well maintained could add 30 per cent to the property value. With a sophisticated design, and the maturing and growth of the plants, this figure could climb above 40 per cent.
That said, it is not just homeowners who need to be sold on the value of investing in landscaping. Quite often, landscaping architects deal directly with real estate agents who are looking to clean up the exterior of a house that is about to be listed, and it is not uncommon for them to be shocked at the quote to perform the work.
“We discuss a project’s ROI with all of our clients to ensure they understand,” says Wright. “Putting $2,500 into a property can add $20,000 to the selling price.”
However, the current state of the real estate market has made potential homebuyers reconsider and instead invest in their existing property.
In fact, Wright recently worked with a client who was planning to move; however, they had difficulty finding another property they liked in their price range. When they found a home that included most of the things they were looking for, it required expensive upgrades that were more than they wanted to spend. Ultimately, they decided to stay put and invest in their current home by adding a pool with a water feature, screening for privacy, a patio and firepit, and a rebuilt play structure for their kids, which was incorporated into the side of a slope with a rock climbing wall.
“Recent real estate trends have made it tough for buyers to find what they want at a price point they can afford,” says Wright. “We are seeing more people choose to invest in upgrading their existing homes rather than pick up and move to something new.”
Incorporating basic real estate principles into each design
Many clients come to a landscaper with their immediate lifestyle needs in mind, and little thought is given to future needs in terms of what a particular project could do for their listing price should they decide to put their house on the market.
This is not entirely a bad thing, says Brydges. While there may not be monetary resale value in the home, there is intrinsic value in the enjoyment they will get from creating memories with family and friends while using their newly landscaped yard.
Every year, Brydges’ company designs approximately 75 backyard pools. While each project is different, they have one significant commonality: backyards have become a personal space for people who are seeking designs that speak to their individual tastes and desires, despite limiting the potential market for resale.
“There is no question, landscaping around the pool enhances the space and esthetics, and that will enhance its value,” he says. “However, putting in a pool is not the type of thing someone should do if they are planning to sell their home in the near future. This feature is a long-term investment a homeowner typically makes for their family. Adding a cabana, shade structures, and privacy screens are backyard features that can be personal for some people. The value of the pool is in its use.”
By incorporating basic real estate principles into each design and project, landscapers can help their clients look to the future—and potentially upsell them on new, innovative approaches that will reflect well on their property’s value. As such, talking up the long-term financial and environmental benefits of landscaping is an effective marketing strategy.
