Landscaping Affecting Appraisal

[Tim The Enchanter]

In other words, landscaping is expected. Over landscaping is an additional expense.

Ding, we have a weiner.

 

[Elliott]

Never seen an REO with a great looking yard, they usually are the worst yard in the neighborhood. Lenders aren't looking to make that high value loan based on how well the flowers are trimmed and weeded.

 

[The Warrior Monk]

Landscaping is a very market dependent item. In some areas, it adds no value, and in other areas, it adds plenty. In my experience, it is generally the "permanent," large mature landscaping that has the most contributory value. A recent example I came across recently was a vacant, cleared, level parcel with a lawn, edged with large, mature cypress and cryptomeria trees. The level site and landscaping added on the order of 15%. However, these types boundary landscaping is expected in this particular market area, and if it wasn't there, the owner will have to spend money for additional landscaping.

Various other types of landscaping, such as annual, high-maintenance plants, etc. often add less value, unless its a property where the owner would typically hire a landscaper for maintenance. And, as Denis noted), it can help with the appeal.

 

[Mike Kennedy]

"Keepin up with the Joneses" aka Contributory, Residual Market Value of exterior amenities i.e. inground pools, decks, patios, porches, driveways and trees, bushes, grassy areas / landscaping IS neighborhood/competitive market specific.

OP utilize Google Earth overhead and street view and "drive" your neighborhood. The presence/type/amount or absence of landcaping illustrates by competitive local properties will give you a CURRENT answer to your question. Neighborhoods, Buyers, and Amenities can and sometimes do radically change over time in some neighborhoods. In others, not so much. Let your neighborhood (actions of other buyers and owners) guide you.

 

[KYLECODY]

There is another scenario not yet mentioned which is the difference between 'landscaping' and 'never been landscaped'. Our MLS offers the description 'dirt back'. New homes typically include front landscaping to meet HOA requirements. It's then up to the buyer to add rear landscaping. Just did a refinance for a home that was purchased new from the builder over 5 years ago. And they still have added no landscaping to the rear yard. It is still the same bare dirt as when they bought it 5 years ago. The comparable resales in the neighborhood have all done some work back there. Some have added extensive and expensive landscaping. Some have added bare minimum rocks and two bushes. While it may be impossible to extract market support for the difference between 'wow that is gorgeous landscaping' and 'well I guess you could say it has landscaping' there is a distinction between some landscaping and still no landscaping.

Theres so much new construction, and newer construction, in this area and I've seen it go both ways. Many people have never touched the backyard. I've seen the highest sales in the neighborhood for their size have nothing back there but dirt. I usually throw in a "landscaping may help marketability" type statement when people try and argue their home is worth more because of the backyard being nicer than the neighbors. My smart *** thought is ok so 6 trees, a little sod and 8 bushes is worth a measurable amount more than 3 trees, granite rock and two bushes? Many people would prefer a "blank" slate in the backyard than just typical landscaping. Theres no way to extract a measurable value in my opinion on typical sized city or suburban lots.

 

[Tim The Enchanter]

Dirt back. Haven't heard that description before, but have seen those yards.

I thought our place had kind of a blank slate type of back yard when we got here. Sprinkler system.
One big old Olive tree, a medium big fig, a medium and old grapefruit, a couple roses, some Irises, and some grass and weeds beyond the patio.
I guess it was more of a nice background to plant more stuff.

 

[Deleted member 128537]

The only time I tend to make a landscaping adjustment is if there isn't any landscaping at all (nothing but dirt). I did a house about 3 months ago and the guy put 200,000 into landscaping. It was very nice, but way over done. I gave him value for it only by comparing it to nicer overall sites. But he got about $40,000 in return. Not close to that 15%! And I had the same thing happen on another house where the guy had spent tons of money landscaping. Therefore he thought he should get so much back. I told him it didn't work that way. I told him his house (lake home) at this point would sell for 650,000 and he about killed me. Still paid me though. Well it sold for 600,000 because he put it on the market at 800,000 and it languished. But I have actually sold a house where there was so much landscaping people didn't want it. I'm in a second home market. People don't want to spend their entire weekend mowing lawns and cutting shrubbery. My own house has way too big of a lawn. It was that way when I bought it. But it also wasn't well taken care of and I've had nothing but a hassle in dealing with it. Thinking about redoing it and downsizing it considerably. So I suppose had everything been equal I would have gone with a house with a nicer lawn. But the fact is we went with the house features, and I didn't even consider the lawn. We bought in winter. But one person's landscaping might be another person's headache. That's how many people view it. That's how I view it. They want a decent lawn, but they don't want too much or it becomes MAINTENANCE. And it is expensive to keep up landscaping. So putting in water falls, shrubs, flower beds, etc. Don't waste your time. Make the lawn look decent and put in minimal shrubs etc. Otherwise you'll regret it.