Influenced by Pinterest and HGTV programming, more and more homebuyers are interested in pergolas which increase the comfort and enjoyment of outdoor living space. But do these features actually add value to a home? Here’s what homeowners should know.
Does a Pergola Increase Property Value?
Anytime you elevate your home in the eyes of buyers, you are essentially increasing property value. If a feature makes your property more enticing compared to similar inventory, it will allow you to command a higher asking price.
Since outdoor living has become especially popular, the value of homes with pergolas has been on the rise. A safe gauge for a backyard improvement or deck is about 50% to 80% for your ROI. That said, to the right buyer, an alluring pergola could earn an even better return while providing the X-factor that attracts future buyers to your house.
Because they are open and airy, pergolas can help define your outdoor space without making it feel smaller or confined. Typically, the ground under the pergola is topped with some sort of flooring, whether it’s concrete pavers, brick flooring or even a deck, which combine with the pergola’s pillars and beams to further define your outdoor living space.
Pergolas are generally good investments because they effectively provide more “living space” outdoors. It’s similar to adding a gazebo or patio to serve as an exterior living room. While it won’t give you as much ROI as other hardscape additions, such as a patio or outdoor kitchen, a pergola can add value to your property.
Getting the Most Out of Your Pergola
When it comes to maximizing ROI for your pergola, there are a few things to consider. While installing a pergola is one of the less expensive hardscape additions, the biggest factor affecting the overall cost is overall size and the kind of material used.
According to HomeAdvisor, the national median cost of a pergola is around $3,500. That said, you can expect to pay about $5,000 for a teal or ipe pergola, $3,000 for a cedar pergola and between $1,000 and $5,000 for an aluminum or fiberglass kit. If you’re an experienced DIYer, you can also opt to install a pergola yourself using a 10-by-10 kit that costs around $2,000.
Although wood is the most popular and beautiful option, it also requires more maintenance. You may have to repaint it, reseal it or repair hardware; and this could result in ongoing costs. With vinyl pergolas, on the other hand, you won’t have to worry about deterioration or maintenance.
Vinyl pergolas won’t peel, chip, splinter, rot, warp, fade or become discolored when exposed to UV rays. Unlike wood pergolas, they can’t be infested by termites or other wood-boring insects. They also don’t require frequent maintenance or annual staining.
The Bottom Line
When it comes to any home renovation, it’s important to consider all angles of the investment. If you’re looking to enhance your home’s outdoor space, there are a lot of good reasons to purchase a beautiful and durable pergola for your patio. In addition to boosting property value, these functional additions make your home more enjoyable while you’re still living in it.
Bear in mind that how you choose to pay for your pergola will also affect your ROI. For instance, if you choose to finance the pergola with a loan, you will incur interest charges that may offset any potential increase in property value. So, it’s important to weigh the costs and benefits before purchasing a pergola for your home.
It’s also important to remember that while a pergola could help you increase the asking price on a home; the increase isn’t going to be especially substantial. In some cases, it could increase the value of your home by a few thousand dollars. This depends on whether the pergola is part of a more extensive renovation that either extends your outdoor living space or defines it in a way that makes it more beautiful and more accessible.
If you’re planning to sell your home, The Wheaton Team can help. We specialized in residential real estate in Colorado Springs, Monument and the entire El Paso County. Let us help streamline the complex selling process and help you sell your home for a price that meets your expectations. To get started, contact us today!