by Trees.com – last update on November 24, 2021, 5:10 pm

 

Poor landscaping can decrease property value by as much as 30%

Key Findings

Home prices in the U.S. surged within the last year, the result of pandemic-related relocations, low mortgage rates, and a lack of new and existing housing inventory.

According to Zillow, the median home value in the U.S. is $303,288 as of August 2021, a 17.7% increase from 2020.

However, according to a new Trees.com survey of 1,250 licensed U.S. real estate agents, there’s one way to decrease a home’s value—neglect your home’s landscaping and hardscaping.

3/4 of real estate agents say poor landscaping, hardscaping negatively affects a home’s value

There’s no question that landscaping elements like trees, grass, and flowers add a lot of visual appeal to a home, but just how much does their absence affect what a home is worth?  Here’s an interactive map of the one shown below.

According to 43% of real estate agents, poor landscaping has a “very” negative impact on a home’s value. Another 35% say it will “somewhat” impact how much a home is worth.

Real estate agents have differing opinions on exactly how much a home’s value decreases with poor landscaping. Twenty-four percent say a home’s value decreases by 10%, while 22% estimate the value decreases by 20%. Eighteen percent predict that a home’s value drops by 30% or more if the property lacks an appealing landscape.

Much of it has to do with perception, according to real estate broker Kimo Quance, owner of the Kimo Quance Group in Santee, CA.

“Landscaping provides potential buyers with a first impression of your home,” Quance says. “When they observe a neglected lawn, or a home without any additional curb appeal, potential buyers immediately get the idea that the home was not well-maintained. They set a value of the home in their mind based on that, and it’s usually not a good price. On the other hand, a neat, clean lawn puts the buyer’s mind at ease.”

In today’s hot real estate market, even a 10% price decrease means a seller could be leaving tens of thousands of dollars on the table if they don’t bring their lawns up to snuff before putting their home on the market.

Hardscaping, which refers to all of the non-living aspects of an outdoor design, such as structural or decorative elements, is also important. Forty percent of real estate agents say poor hardscaping has a very negative impact on a home’s value, while 38% say it has a somewhat negative impact.

According to Chicago-based real estate investor and developer Bill Samuel, a well-designed outdoor space is even more important now due to how much time families are spending at home.

“Today’s homebuyer expects the home they purchase to be move-in ready and prefers not to have to do any work,” Samuel says. “Exterior hardscape upgrades that allow for outdoor entertaining are becoming even more desirable as most homeowners prefer to entertain at home and outdoors during the pandemic.”

Trees, grass and flower top list of landscaping elements that add value to a home

The landscaping elements that add the most value to a home include grass (64%), trees (59%), and flowers (52%).

Meanwhile, as far as hardscaping goes, real estate agents recommend adding or improving decks (58%), driveways (54%), and an outdoor kitchen (47%) to add the most value.

Adding one healthy tree will raise property value

Ninety-one percent of real estate agents say adding even one healthy tree to your landscape will increase property values.

According to 20% of real estate agents, the presence of one healthy tree in the front yard of a property increases the home’s value by 30% or more. Nineteen percent of real estate agents estimate a single healthy tree increases a property’s value by 20%; the same number of agents say it raises the value by 10%.

One reason trees can increase property values is the aesthetic charm they add to a home.

“A tree is one of the most natural and interesting ways to add color, texture and contrast to any home’s yard,” says David North, a real estate broker in Redmond, WA. “The natural beauty of a tree can be especially powerful when it distinguishes one property from others, whether by different shape, color, or size.”

Location is key, North says, encouraging homeowners to plant trees where they will provide needed shade, privacy, and noise protection.

There are also the practical benefits of having trees on a property.

“Big, healthy trees help improve the home environment and make it more sustainable,” Quance says. “Trees contribute to a functioning home ecosystem by helping with stormwater management, pollution filtering, and soil fertilization. During warmer months, trees are a natural cooling system, providing shade. Then, in colder months, trees that lose their leaves let sunlight filter through to warm the home.”

Those who are selling their homes shouldn’t forget about having greenery inside, either. Fifty-four percent of real estate agents say it’s very important to have indoor plants when showing a home for sale, while 28% say it is somewhat important.

Effects of landscaping vary by region

Home prices vary widely by location, and the impact of poor landscaping does as well.

Real estate agents in the Midwest are most likely to say that poor landscaping will have a very negative impact on home value (51%). By comparison, 44% of real estate agents in the Northeast say poor landscaping has a very negative impact on what a home is worth.

Having indoor plants during a home showing is most important in the South (67%) and the West (65%). Only 57% of real estate agents in both the Midwest and the Northeast think it is very important to have indoor plants for home showings.

While the majority of real estate agents in the Northeast say having a healthy tree in the front yard will increase property values, 10% say that it won’t. Comparatively, only 6% of real estate agents in the West and Midwest, and 5% of real estate agents in the South think having a healthy tree won’t increase a home’s value at all.

Methodology
All data found within this report derives from a survey commissioned by Trees.com and conducted online by survey platform Pollfish. In total, 1,250 currently licensed U.S. real estate agents were surveyed. Appropriate respondents were found via a screening question. This survey was conducted on September 17, 2021. All respondents were asked to answer all questions truthfully and to the best of their abilities. For full survey data, please email Julia Morrissey at julia@trees.com.

by Keeping Current Matters | November 22, 2021

 

Your equity is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.

If you’re looking for the best ways to use your growing equity, here are four options:

1. Use Your Equity To Buy a Home That Fits Your Needs

If you’re finding you no longer have the space you need, it might be time to move into a larger home. Or, it’s possible you have too much space and would like something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.

2. Move to the Location of Your Dreams

If the size of your home isn’t a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and you’re dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than you’d like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.

3. Start a New Business

If you’re not ready to move into a new home, you can use your equity to invest in a new business venture. As the U.S. Small Business Administration Office of Advocacy says:

“There is an estimate of 31.7 million small business owners in the United States, many of them started their business with the equity they had in their home.

While it’s not recommended that homeowners use their equity for unnecessary spending, leveraging your equity to start a business that you’re passionate about can potentially grow your nest egg further.

4. Fund an Education

Whether you have a loved one preparing to head off to college or you’re planning to go back to school yourself, the thought of paying for higher education can be daunting. In either situation, using a portion of your growing equity can help with those costs, so you can make an investment in someone’s future.

Bottom Line

Your equity can help you achieve your goals. If you’re unsure how much equity you have in your home, let’s connect today so you can start planning your next move.

Call our friendly agents today to discuss your options.

CA REAL ESTATE GROUP powered by Keller Williams Realty
linktr.ee/carealestategroup

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