Do Outdoor Livings Rooms Increase Your Property Value?
Right now, everyone is talking about outdoor living rooms, which are also sometimes called outdoor living spaces or deck living rooms. They are one of the hottest trends of the year, and for good reason. Building an outdoor living room gives you more space for your family and for entertaining without an expensive home renovation or addition. But could there be another advantage to this kind of outdoor living space as well?
In our experience, yes! Studies confirm it as well: adding an outdoor space such as a deck or patio can increase your home value by up to 10% according to this article by Extra Storage Space. Let’s take a look at how to make the most of your backyard renovation if you’re hoping to increase your home’s value.
Why Your Home Value Matters (It’s About More Than Selling!)
Many homeowners make the mistake of thinking that their home value only matters if they are considering selling their home in the near future. While this is true (you obviously want to get the highest price you can), home value can matter in a few other ways as well. Before we talk about how to build an outdoor living room that increases your home’s worth, let’s talk about why you should care in the first place!
First, your home’s appraised value can help if you ever need a home equity loan or line of credit. Often, these types of loans have lower interest rates than if you get a traditional loan from the bank and they almost always have a lower interest rate than a credit card. A home equity loan or line of credit can be helpful if you suddenly find yourself in a bind, especially if you need a pricey home repair, such as a new roof. The more equity you have in your home, the bigger the loan you’ll qualify to receive.
Second, many homeowners buy without the full traditional 20% down payment. If you’re using certain kinds of mortgage offers for first time home buyers, veterans, etc. you might have put down as little as 0%-10%. However, this means that you likely have to pay monthly for private mortgage insurance, which protects the lender until your equity reaches at least 20%. The sooner you reach that magic 20% mark, the sooner you can stop paying this monthly fee.
An increase in home value may also help increase your overall net worth, refinance at a lower rate, and increase the value of neighboring properties you may own. There are many advantages even if you don’t plan to put your home on the market!
How Outdoor Living Rooms Increase Home Value
When we talk about renovations and home value, we talk about the return on investment, or ROI. This is how much your home value will increase in relation to the amount you spend. For example, let’s say your home is worth $300,000 and you pay $5,000 to add a deck. If your home then appraises for $305,000, your ROI is 100%.
Typically, ROI on most home improvement projects is less than 100%. Keep in mind that it’s impossible to price your enjoyment of a new space. Even if a project has a low ROI on paper, your happiness might make the experienced “ROI” through the roof.
Here are a few ways to keep your ROI high:
- Ask us for the best decking materials for a high ROI. This changes from time to time. Typically, wood decks will give you the highest ROI, but sometimes the price of wood is extremely high and composite makes more sense.
- Use neutral colors for the bones of your space. If you love bold colors/patterns, bring them in with furniture, rugs, and other fun outdoor decor choices. That way, when you sell your home, buyers can envision the space with their own customization.
- Customize the deck for the space. We specialize in custom decks that look much nicer than out-of-the-box decks. Rectangular decks often look like they are tacked onto the home. Our decks look like they were built with the home instead!
- Don’t take up too much yard space. While backyard decks are extremely popular, people love grassy areas as well.
Remember, you’ll get the most ROI from any project if you work with a professional team. While a deck might seem like a DIY project, this is something best handled by professionals.
FAQs About Building a Backyard Living Room
The team at Structurally Speaking has been building custom decks and porches for several decades. We’d love to see your backyard and talk to you about building the perfect outdoor living room for your needs. Here are a few questions our customers frequently ask.
Why are deck living rooms so trendy and how are they different from normal decks?
Outdoor living rooms are not super different from normal decks. However, when we design an outdoor living room, we typically build it to see a lot of use as an additional living space for your family, not just as a place to sunbathe or grill burgers. They rose in popularity as a trend during the pandemic, since people were looking to spend time outside. We think this is a trend that is here to stay!
What does it cost to build a new deck?
We talk about budget upfront when we start a new deck project. The cost depends on multiple factors, such as deck size, material, and design features. Structurally Speaking’s owner, Jim Brennan, specializes in designing personalized decks that fit into the budget you discuss during your initial meeting. He oversees every project personally so you never have to worry about going over budget or getting a subpar finished product. Whether you want a cozy sitting area or a large space for entertaining, he can design the perfect deck for you.
How do I get started?
Contact us today to set up a no-strings-attached free consultation. We’ll take a look at your backyard and Jim will start designing deck options for your new outdoor living space. Click here to send a message or call 919-786-4925 to schedule your meeting.