Does a Deck Add Value to Your Home?

When it comes to home features, few spark excitement quite like a fantastic deck. It’s a spot to relax, a place to entertain, and an area to spend time together as a family. But if you don’t have a deck currently and are thinking about adding one, you might wonder, “Does a deck add value to your home?” Similarly, if you have a deck, you might wonder whether replacing it before you sell is a smart decision.

A deck does add value to your home, though the value increase won’t fully cover the amount spent on installation. A wood deck’s return on investment (ROI) is between 65 and 75 percent, while a composite deck has an ROI of 60 to 70 percent.

However, decks are a highly desirable feature, so homeowners looking to sell may connect with more buyers if there’s a nice deck. As a result, ensuring yours is in good condition – or potentially replaced if it’s not – is worthwhile. If you’d like to learn more about the answer to the question, “Does a deck add value to your home?” Here’s what you need to know.

Does a Deck Add Value to Your Home?

Overall, a deck does add value to your home. Along with being a structural element, the feature has significant appeal. Homebuyers may prefer properties with a usable deck, which makes homes with them worth more than those without.

One reason that decks add value to homes is that they create an outdoor living area. Decks are popular for lounging, dining, barbecuing, and entertaining. Plus, they can make a house with limited square footage seem more livable, as many buyers view the deck space as an extension of the living area, even if it isn’t formally part of the square footage.

Decks can also add visual appeal to a home. When properly constructed, decks are an attractive element that makes a yard look more refined and usable. Essentially, it’s the equivalent of curb appeal; it benefits the back or side yard instead of the front in most cases.

How Much Value Does a Deck Add to a House?

How much value a deck adds to a house varies depending on several factors. First, the deck material plays a role. Along with impacting the cost of installing the deck, the material influences how it looks, its durability, maintenance requirements, and more.

Second, the desirability of decks in your area also determines the value of adding one. This includes everything from whether local weather allows a person to enjoy a deck often to what’s expected in your neighborhood. With the latter, a deck can be necessary in some areas because they’re widely available, while they’d be considered out of place in others.

Third, whether the deck outtakes the entire back or side yard may also influence how much value it adds. Some people may prefer less lawn to deal with, while others may believe a good balance of decking and greenspace is a must. Depending on which is more common in your area and how the deck is constructed, it can influence the overall value added to the home.

Finally, it’s critical to understand that the deck’s current condition is essential to consider. While usable decks in good repair can add value, degraded decks may harm what a home is worth on the market.

If a deck needs significant work, buyers won’t see the potential of having a deck; they’ll just see an expense. Plus, the appearance of a broken-down deck isn’t appealing, making your home seem less valuable. There’s also a chance that homebuyers would worry that a deck in disrepair would mean the rest of the house is potentially in poor shape, making things harder for the seller.

Still, having a well-taken-care-of deck can work in your favor. Here’s a closer look at how much value different decks may add to your home.

Wood Deck

Generally, the ROI for a wood deck is about 65 to 75 percent of the deck’s cost. Essentially, if you spent $7,000 on a new wood deck, your home’s value would increase by approximately $4,550 to $5,250.

The exact amount would depend on several factors. The quality of the construction, type of wood used, overall design, and usability of the deck and yard are all parts of the equation.

It’s also critical to note that the ROI generally applies to newly installed decks. Those that have been in place for a significant period may have lower ROIs, as homebuyers may have to deal with repairs and maintenance to restore their condition. However, that also means you’ve typically had an opportunity to enjoy the deck yourself, so you need to factor that into the equation.

Composite Deck

Composite decks usually secure an ROI of about 60 to 70 percent. As a result, if you spent $15,000 on a composite deck, the ROI would be in the $9,000 to $10,500 range.

Like wood decks, the construction quality, design, appearance, and functionality of the deck and yard all play a role in the ROI. However, the ROI on a composite deck may remain stronger even if it’s been in place for a significant period.

Composite decking better withstands the elements and has fewer maintenance requirements. As a result, issues like wear and tear don’t impact well-constructed composite decks as quickly. Plus, they maintain their look without sanding and restaining, so ensuring a composite deck looks its best before selling is simpler.

Does a New Deck Increase Home Value?

Adding a new deck to your home does increase the property’s value. Along with adding a new structure to your property, it can significantly impact the house’s appeal to buyers.

Generally, a deck is one of the most desirable outdoor features, with an estimated 75 percent of homebuyers wanting one. Plus, 29 percent of homebuyers believe a deck is a must-have. By adding one, you’re ensuring you can connect with buyers who view a deck as essential or a highly desirable feature.

Since buyer interest plays a role in home values – as desirability influences how much they’re willing to pay – it’s an aspect of the equation you can’t overlook. Plus, the heightened interest could lead to competitive bidding, which may secure an ROI that reaches the high end of the known ranges or even exceeds seller expectations.

Should You Add or Replace a Deck Before Selling Your House?

Whether you should add a deck before selling depends on a few factors. First, it’s critical to consider whether decks are commonplace in your neighborhood. If most neighboring properties do have a deck, not having one could lead to resale challenges.

However, if nearby homes don’t have a deck, installing one could mean one of two things. It may allow you to set your home apart, making selling easier if the market is a bit competitive. On the other hand, the deck may make your house seem over-improved for the area, which may lead to a lower ROI.

Second, it’s critical to consider how a deck impacts the usability of the property and its yard. If your living space is tight, a deck could make the house seem more livable. If a deck overtakes an otherwise comfortably-sized yard, it could restrict the lawn area to the point of being a hindrance.

If you’re trying to decide whether you should replace an existing deck before selling, it’s crucial to consider its current condition. A deck in disrepair looks like a burden to buyers, as they’ll need to handle the cost of correcting any issues. As a result, it can drive buyers away, making replacing it a better choice.

If the deck is in good condition but isn’t as visually appealing due to wear and tear, refinishing it could be enough. You can sand to correct surface flaws and restain to restore its color and appearance, making the deck look fresh without the cost of a replacement.

Does Removing a Deck Decrease Home Value?

Removing a deck can decrease the value of your home. However, the impact the removal has varies depending on the deck’s current condition.

Generally, removing a deck that’s in reasonable condition can work against you from a value perspective. However, taking down a deck that’s in disrepair and requires a significant amount of work – if not a full replacement – may be worthwhile. It does lower your house’s value, but it could also result in significant savings compared to getting it into good condition.

Additionally, removing a deck to add another feature could potentially limit or avoid the reduction in value. Whether that’s the case depends on the value created by the new project, so it’s wise to compare the value it adds to the value lost by taking down the deck if preserving value is your main concern.

Is a Deck or Patio Better for Resale Value?

Generally, a deck will add more value to a home than a patio. However, they’re also more expensive to install, and the ROI falls below 100 percent.

With a patio, installation is far less expensive, with the average cost usually falling in the $2,000 to $5,500 range, depending on the size, materials, and similar factors. As with decks, the ROI for patios can vary.

A patio also adds livable space in the backyard, creating an area for dining, entertaining, or relaxing. When done properly, the ROI often comes in near 80 percent, though it’s possible to secure an ROI at or above 100 percent, something that’s not typically possible with a deck.

As a result, a patio may add less value overall, but you may have an easier time recouping what you spend. However, you have to consider the desirability of a patio, the quality of its construction, the overall design, and other factors to determine the ROI potential.

For example, a plain concrete slab patio will have a lower ROI than one with more decorative elements, such as stained or stamped concrete or attractive pavers. Ultimately, you’ll need to look at your specific patio project to assess its ROI, making it easier to determine whether a deck or patio is the best choice.

Does a Deck Add Square Footage to Your Home?

In an official sense, a deck doesn’t add square footage to your home. You can’t list the deck’s area as part of the livable square footage when listing your house for sale, and the deck’s square footage isn’t considered living space for property tax purposes.

However, many people view a deck as a livable space, even if it isn’t officially counted as such. As a result, it can positively impact homebuyers, as they may use the deck for dining, entertaining, and other purposes that usually involve more traditional living space.

If you’re selling, staging a deck as a living space can work in your favor. It gives the impression of a more usable room, which can influence how buyers view the deck.

Does Adding a Deck Increase Property Taxes?

Property taxes are calculated based on the overall value. Since a deck does increase your property’s value, it can lead to higher taxes.

Once the project is complete, the tax authority in your area will assess its impact on the value of your property, usually resulting in an official increase. Then, that new assessment determines the taxes owed moving forward.

Is a Deck Worth the Investment?

Ultimately, a deck is a potentially worthwhile investment, as it does add value to your home. Plus, while the ROI is below 100 percent, it can make your property more attractive to buyers if you plan to sell, which can work in your favor. Still, it’s critical to assess the financial side of the equation, allowing you to ensure that it’s the best move in your situation.

Did you learn all you wanted to find out about whether a deck adds value to your home? If so, let us know in the comments. Also, if you know anyone asking, “Does a deck add value to your home?” make sure to share the article.