Return on Investment – Blog 8 – Patio Renovation

Now that you’ve maximized your return on investment for the inside renovations, let’s look at what sellers are doing with patio renovations to please potential buyers.

High expectations for patios and outdoor “living rooms” are typically present when buyers are looking for homes in the $3M to $4M range and up.  That’s not to say that most buyers don’t want barbeque hook ups and fire pits, it’s just that they aren’t expected.  Many entry-level buyers won’t have a natural gas barbeque either.  Your return on investment for these splurges will depend on the value of your home.

Natural gas BBQ hook-up:

If you’re renovating your patio it’s best to consider the current market price of your home. If your house is valued below $3M and you would like a natural gas barbeque, then you should install it to suit your tastes.  It’s not something that developers tend to do.  When you switch from propane to natural gas, there are no significant savings or efficiency to be gained.  The real benefit of natural gas barbeques is the elimination of trips to the gas station for propane refills.

Patio Heat:

In an earlier blog, I asked real estate expert Lance Phillips, “Do buyers care about efficiency?”.  He ultimately felt that it did not sway buyers who were looking at homes in the million dollar price range one way or the other. Furthermore, efficiency was even less important the higher in price you went.  “An outdoor space heater is totally inefficient and people love them.  They actually expect them in a house in the $4M price range.”.  However, if your home is not in that price range and you won’t get adequate use out of them, it is best to pass on outdoor space heaters. They aren’t going to get you that return on investment that this blog wants to provide.

What about an outdoor kitchen?

Again it comes down to price point.  $4M? Luxury Market?  Yes, an outdoor kitchen is expected. The best ones will come with built-in barbeque, prep area, sink and maybe even a small fridge. Patio heat to extend the season and a fireplace should be considered too.   At that price point any money spent on these features will be well spent.

Return on investment is not always about increasing sales prices. It is also about putting features in your home that the next owners will want. When selling your home you want to make it as desirable as possible, keeping it competitive in a competitive market.  As buyers look for quality, remember to get good quality parts and service for all your plumbing, heating and gas needs from R&B.