A deck can be an excellent place for hanging out around the grill. It also provides an outdoor space for entertaining, but the cost of building a quality deck can run into thousands of dollars. Some may wonder if it’s worth it.
Will a deck add value to my home? The answer is yes. A deck can add significantly to the final sale price of your home at resale. In some cases, the amount spent on a deck is completely recouped at the sale because of the added value.
The type of material you use in building your deck and other factors can play a role in how much value you get at the end when you sell your home. Read on to find out more.
How much value would a deck add?
The value of a deck first came into serious discussion in 2007 when Remodeling magazine did its annual survey of cost-effective home improvements. That year, the top winner for a standard, mid-range home was building a wooden deck.
According to the survey, installing a wooden deck recouped 85.4 percent of the project at resale. The survey was based on adding a 16 by 20-foot wooden deck using pressure-treated wood.
It’s important to note that most home improvement projects don’t recoup the total cost. However, a wood deck did recoup all costs plus some, according to a study done by the National Association of REALTORS and National Association of Landscape Professionals.
The 2016 Remodeling Impact Study claims homeowners can recover 106 percent of the value of a new wooden deck when the home sells. That is based on a $9,450 construction cost, and the estimate by real estate professions was it would add $10,000 to the sale price of a standard home.
The study ranked a wood deck third out of 10 projects.
Does the type of deck matter in resale?
Will a deck add value to my home? The type of deck matters in how much of the cost of construction you can recoup in resale. Almost every study found that wood decks are the best at adding value to a home when it’s sold.
Composite decking material costs more than wood when it comes to deck construction, and so it has a lower ratio of value vs. cost. The average 16 by 20-foot deck built with composite material had an average cost in the U.S. of $17,249. Yet, the resale value added was $11,252, making it a 65.2 percent cost vs. value ratio.
That is compared to the same size wood deck with an average construction cost of $10,707. The value-added at resale was estimated to be $7,652. That is a 71.5 percent cost vs value ratio.
Another study shows that wood decks had a 73 percent cost recovery rate while a composite deck had a lower cost recovery rate of 67 percent.
Would a deck add more value than a patio?
Some people wonder if a deck would offer a better return on their investment than a patio. Patios are easier to build than a deck and always cost less. Yet, decks have more value during resale.
A 2019 Cost vs. Value report shows that a patio has a 55 percent ROI, which is lower than you would get out of a deck.
Will An Expensive Deck Add More Value?
No, putting in a more expensive deck won’t significantly add more value to your home than a less expensive version. The higher price you pay for a deck, the less chance you have at recouping your total cost.
For instance, the cost of a high-range composite deck is $39,339 for construction. Yet, it increased the average sales price of a home by only $22,171, leaving a 56.6 percent cost vs. value ratio.
Real estate experts tell homeowners to weigh the costs vs. the value carefully. It is possible to over-improve your home where you will never get a good return at resale.
What Else Makes a Deck Valuable to Home Sales?
Will a deck add value to my home? The value of a deck to home sales is sometimes determined by where you live. Areas where people enjoy the outdoors more tend to add more monetary value to decks in a resale.
This is proven when comparing the cost vs. ratio for a mid-range wood deck built in the upper Midwest to those built on the west coast or in the mountains. The ROI on decks on Midwest homes was 56.9 percent, while those built on homes in more scenic and better climates were much higher.
Statistics show the same deck on a similar home on the West Coast had an 81.8 percent ROI and an 81.4 percent recoup rate in mountain areas.
Some areas of the country have a greater love of decks because residents entertain throughout the year. These areas, like the South, tend to have good weather most of the time and mild winters, and that makes decks more desirable.
Value of Marketability
One factor that can’t be figured into a monetary figure is the marketability of a home once a deck is added. While this doesn’t necessarily add dollars to the sale, it is an excellent advantage to the seller to have solid marketability, and a deck can do that.
Marketability is how your home stacks up against other homes in the same market. Adding a feature people like, such as a deck, will make it more appealing to home buyers, and that could put you steps ahead of those who may have a lower price but don’t have a deck.
Does It Matter When I Add a Deck?
The answer to that is yes and no. You can add a deck anytime if you plan to use and enjoy it, but if your purpose is to sell your home, you should plan deck construction around a three to five-year timeline before selling your property.
Home improvement experts state you will lose money if you sell your home immediately after installing a deck. Recovery rates are already less on decks than their construction, and waiting a few years will allow your home equity to grow a little more.
Will a deck add value to my home? Experts also say you need to hit a “sweet spot” in recouping your investment by choosing deck materials that are lower cost but remain acceptable in quality and looks for your area. Going too cheap will end up decreasing your ROI and making your home less marketable.