Yard Improvements

Is there a rule of thumb in how much I should invest in improving my yard? Yes! As a rule, you should spend 10% of the value of your home on landscaping. For example, if your home costs $200,000 you should spend no more than $20,000 on plants, hardscaping, and sod/seed. If you spend more, you'll enjoy it very much, but don't expect to see the extra return on your investment when you sell.

The reason is that you don't want to spend more money on improving your yard than your neighborhood is worth. So the above rule is just a guide. There are times you can spend more and get the return. But be careful to do your homework. For example, if you have a four bedroom home, on two acres and bought it for $300,000. This home is basic with no yardscaping. This home is a builders special. If you spend $30,000 on the driveway, walkways, sod and plants you'll be sure to get that and more (probably much more if you do just those things). But if you add a pool, you most likely won't see any of that extra cost when you sell, if that's all the improvements you do.

On the other hand, if the same home has homes in the area that are worth much more, say $500,00 or more, then it might be possible to make a lot of very pricey interior upgrages and, if done right, you'd be able to sell for thousands more than the cost of the upgrades.

For instance, if I buy the same house above and add wood floors throughout, granite counters in the kitchen and baths, a whirlpool tub in the master, crown molding, upgrade the cabinets throughout, add storage in the basement and laundry. And spend $50,0000 outside and inside on the specific improvements I've mentioned above, then you could expect to sell your $300,000 home for a tidy profit. Here's why. You paid $300,000 for the home, you paid $50,000 for the pool and yard improvements, and $50,000 on the interior improvements. That means you spent $400,000 so far on the property. If your property is located with more expensive homes in the area, and if the improvements are popular and done correctly and not too high end for the neighborhood, you could list your home for sale for $500,000 or more. But be sure not to go overboard. Buying the most expensive custom cabinets will not improve the value to most buyers. Buying value, popular part custom part stock and adding furniture-type legs on cabinets, will be worth the cost right now. But you will not see a return on the cost of the pool. Everyone wants a pool, but few are willing to pay for it. So do not over spend on a pool unless you just want to enjoy it for yourself. Happy sweat equity building!