Stonehearth Remodeling

Does Adding A Deck Increase Home Value In Minnesota? 

Yes, adding a deck can increase home value in Minnesota. According to the 2022 Cost vs. Value Report, a wood deck recoups about 68% of its installation cost, while a composite deck returns about 63% upon home sale. This makes a deck a fantastic option for a home addition in Minnesota.

Factors affecting the increase in home value are size, material, and complexity of the deck. Keep reading to learn more!

 

Factors Affecting The Value Of Your Deck

Type of Deck Material Cost Range per Square Foot Recouped Value Additional Benefits
Basic Wood Deck Pressure-treated Wood $16 to $35 68% Classic look, natural material, requires regular maintenance
Composite Deck Composite materials (e.g., Trex) $30 to $60 63% Durable, low maintenance, often made from recycled materials
Luxury Deck Exotic woods or high-end composites $50 to $100 Varies Premium appearance, may offer better longevity and unique design options
Multi-Level Deck Combination of materials $60 to $100 Depends on complexity and materials Adds dimension and space, suitable for uneven terrain

 

Are Decks A Good Investment?

Decks are not only a valuable addition to a home in terms of financial return but also greatly enhance personal enjoyment. According to a survey by the National Association of REALTORS®, a new wood deck ranks as the fifth most appealing feature to potential buyers, following various lawn and landscaping upgrades. This addition is highly valued for the lifestyle enhancement it offers, which is reflected in its high Joy score of 9.8 out of 10. Homeowners report significant enjoyment from this improvement, which often influences buyer interest and can make a property more attractive in the market.

Additionally, decks are known to hold their value well over time. The return on investment (ROI) for a deck depends on various factors including the quality of materials used and the construction standards. However, generally, a well-maintained deck in a locale where outdoor living is prized can offer substantial financial returns upon resale, alongside the increased usability and aesthetic appeal it brings to a home. This makes decks a dual-benefit addition, offering both immediate enjoyment and long-term financial gain.

What Adds More Value To a House, a Deck or Patio?

According to a HomeLight survey, an investment of $3,269 in a new patio could increase the value of a home by $3,563, translating to a 109% return on investment. This suggests that not only can the costs of building a patio be recouped, but it can also add additional value to your home.

However, it should be noted that even though the deck will bring a smaller percentage return, the nominal value added to your house is much larger than with a patio. 

So, well, a deck will bring more value to your home, a patio will bring a better return on investment. 

Does a Deck Add to Your Taxes?

Yes, adding a deck to your home can potentially increase your property taxes. The reason is that any improvements or additions that enhance the value of your property can lead to a higher assessed value. Property taxes are based on these assessments, so when the assessed value of your property increases, your property taxes may also increase.

The exact impact on your taxes can vary depending on the size, materials, and complexity of the deck, as well as local tax rates and property value assessments in your area. It’s advisable to consult with a local tax assessor or a property tax consultant to get a more specific understanding of how a deck addition might affect your taxes. They can provide detailed information based on current tax laws and the specifics of your local tax jurisdiction.

 

Takeaway

Adding a deck to your home can significantly increase its value by enhancing both its appeal and functionality. Decks offer additional outdoor living space that is attractive to potential buyers, effectively extending the usable area of a home. This makes the property more appealing in competitive real estate markets. Moreover, decks can be seen as a luxury feature, especially when made with high-quality materials and thoughtful designs. They serve as an enticing venue for social gatherings, relaxation, and enjoyment of the outdoors, which can considerably boost a home’s desirability. The return on investment (ROI) for a deck varies depending on factors like the construction materials and the design complexity, but generally, homeowners can expect a significant portion of their investment back (60-70%) when they sell their home. This ROI, coupled with the increased usability and aesthetic appeal, makes decks a popular choice among home improvement projects.

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