Selling your Home? The truth about your Landscape
I frequently run landscape consultations where I am forced to talk myself out of work. Many people think that when selling their home they should invest heavily into the aesthetics of their landscape. The reality is that Return on investment from landscaping is limited. When a buyer is taking out a mortgage, their maximum mortgage amount is the amount that the home is appraised for. While having an attractive front yard can draw the eye of potential buyers, we typically do not recommend heavily investing in your landscape unless you think you will be attracting cash buyers. A general clean-up, some flowers, and mulch will give you the most bang for your buck in this scenario.
Some articles state that nice landscaping can increase home value by up to 10%, and the University of Florida has published that it can influence up to 7%. However, while landscaping can increase curbside appeal, which is important, most appraisers do not take landscaping into account. It is expected that the property be decently maintained, but an average looking landscape versus a lush and gorgeous landscape typically will not affect the appraised value. This does not mean that you will not have more visibility / offers on the property if the landscaping is beautiful.
Also keep in mind that most buyers in South Florida will typically want to make their house a home. This means they may eventually buy your home, and then remove all of the landscaping you just put in.
Why this is Important (TLDR)
For homes that will be purchased with FHA or a Mortgage, the highest dollar amount that can be approved by the bank is the appraised value. This means that any landscaping above and beyond a refresh with a clean-up, some mulch, and maybe some flowers to add some curbside appeal, is wasted if the purchaser will use a mortgage to secure the property or does not have the cash to cover any amounts above the appraisal.
Why are we telling you this? We strive for transparency within our company. We want long term business and referrals, and will do what we can to guide you towards the best decisions, even if it results in less business for ourselves!
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