Adding a patio to your yard can create a new space to relax and entertain. It can also increase the value of your home if you ever decide to sell it.
But how much of an increase are we talking? Let’s take a look at the typical patio ROI (return on investment) you can expect from an average patio.
ROI Guide: Patio vs. deck
According to the real estate site Inman.com, determining the ROI of decks, patios, and other outdoor spaces is a little complex. “The average ROI of a professional deck construction is 73%. However, this rate tends to be higher for higher-quality wooden decks and lower for composite materials.”
According to Inman, patio additions have a slightly lower ROI than decks, but they’ll still give you a return of 30 to 60%.
Return on investment of an outdoor patio
PaveTech put the ROI higher than Inman. According to this tool and building site, an average patio that cost the homeowner roughly $2,000 to $4,000 will have a good resale value and provide an 80% return on investment.
Brian C. McHugh, Owner of McHugh Construction in Colorado concurs that a patio can bring an 80% return. “Outdoor living spaces can generate a great ROI for a homeowner if they are done properly and offer a unique value added to the home,” says McHugh.
He adds, “If the project looks like you skimped on quality just to get it done, you’ll lose big time. But if you spend the time and money to make it a feature of the home, you could potentially add 8% to 12% of value to the home, and an ROI of over 80% or more for you. Covered outdoor spaces are especially high on most buyers wish lists and will maximize your return.”
Aside from home improvement projects, check out these four critical factors that determine the value of a property.
Patio cost considerations: flagstone vs. concrete
Patios can be built with a variety of materials, from brick, ceramic tile, concrete, and hardwood to natural stone pavers or flagstones. The materials you select will greatly affect the price of the patio. But using higher grade materials won’t necessarily give you a higher ROI.
So, if you plan to live happily ever after in your current home, go crazy and pick the materials you like the most. But if your plan is to eventually sell your house and recoup some of the costs of the patio, then keep this important tip in mind.
There is a general rule of thumb that the cost of any home improvement project should not exceed 20% of the value of the most expensive house in your neighborhood. So before you build a patio, take a look at neighboring real estate to get a better idea of the right materials to use. You don’t want to price your home out of the real estate market.
So it really doesn’t matter what type of material you choose. It only matters that you pay attention to the homes around you and keep your patio within the same ballpark as comparable homes.
Avoid a patio that looks out of place
Leslie Sellers, president of the Appraisal Institute, told HGTV that patios that see the biggest return on investment are typically ones that look as if they have been in place since the home was built. She warns that this doesn’t mean the patio should look worn out or old; instead, homeowners should upgrade or add a patio with regard to the proportion of the home and property it sits on.
An out-of-proportion project can not only throw off a home’s balance, but it can also detract from the home’s value. So, remember that an extravagant patio won’t always give the homeowner a good return when it comes time to sell.
Financing your patio
You’ve decided that adding a patio to your home is worth it. You know you’ll enjoy the space while you’re living there and will reap monetary rewards in the form of a higher home price when you sell.
But first, you have to pay for the patio. This article provides several funding options for home improvement projects
In a nutshell, you have three main options: 0% APR credit cards, home equity loans, and personal loans. Check this article for a detailed analysis of the pros and cons of each option.
Let’s build that patio!
Once you’ve decided how you want to finance your patio installation, the next step is to find the best rates possible.
You can start by using SuperMoney’s loan offer engine and then heading on over to our reviews page to compare rates and terms from all the top lenders.
Looking for a reliable contractor? Homeadvisor ProFinder helps you find vetted professionals in your area.