23
Nov
What Percentage Of My Home Value Should I Invest In An Outdoor Living Area?
Author: Rob // Category: Q&AWe recently received an estimate on an outdoor living area which totaled 15% of our homes value. Included concrete work, pergola, and outdoor kitchen (inexpensive grill I might add). This seems a little high to me. Also, what type of return do you typically see on outdoor living areas…We don’t plan on moving anytime soon but want to know.
Tags: Area, Home, invest, Living, Outdoor, Percentage, Should, Value, What
November 23rd, 2009 at 1:34 pm
The “correct” answer depends on your location.
In your area do a lot of these outdoor living areas exist? You might ask a local real estate agent. In North Texas it is so hot in the summer we only use these in Spring or Fall but not so much in the full heat of Summer.
My daughter lives in Phoenix where it is even hotter- but some misters can make an outdoor area livable as long as you are not in full sun
You do not want to be the only house in your area with one this fancy or expensive.
The general rule would be that any addition does not return the amount you spend on it. Updating a kitchen or bathroom that desperately needs it would probably return the most and that would still be less than you spent.
November 23rd, 2009 at 5:19 pm
get another quote- never go on one quote only
it’s an issue of how much to “invest” – it’s how much you are willing to pay and is that amount reasonable for how often you plan to use it – it will NOT add anywhere near what you pay for it to your home’s resale value – probably 25% if you’re lucky, so only do it if you plan on using the area a lot
November 23rd, 2009 at 5:36 pm
In today’s market, builders and rehab specialist are all seeking work. I would get 3 quotes to determine if your quote is in the market and remember to not be afraid to ask for a discount or you will have to use the other builder.
Since you are NOT moving, who cares about the return on equity because you are going to enjoy this into the future and your return on equity will net out.
Below is a blog I wrote about why people are doing improvements and NOT large additions. I think it applies to you.
Good Luckhttp://fullsailmoreroomwithoutadd.blogsp…
November 23rd, 2009 at 7:50 pm
That is high. I am sure it will look nice but you will never get a buyer to pay you for all of that. I would think 3-4%.
If home was $200,000 home maybe about $6-$8,000 would be acceptable.