Factors and Causes of Equity Gains by Keller Williams

Does a New Patio Really Command Immediate Equity Gains?

July 7th, 2007 Categories: Keller Williams, Property Values

I have been grappling with what to do in my backyard now for the better part of five years. My wife and I have hired contractors to draw up plans, we have had numerous quotes for reconstruction and decking and additions but finally …just last month…we think we got it. We are hoping for gold!!!

In all the years of trying to figure out what to do in our backyard we finally had a recommendation from a friend who was an actual customer of this (so far) reasonably priced landscaper. I met with the owner and we came up with a plan. I paid 50% up front and the excavation and laying the groundwork has begun…My wife and I can’t wait for it to be completed.

I also can’t help but wonder is this a smart investment? I have been told by other realtors in passing that the equity of my house’s value will go up 50% the costs of the patio. In this case I am adding a $25K patio (two patios actually- upper and lower) so that means the value of my house automatically increases $12,500.00.

I have heard this a few times and can’t help but wonder the truth behind the figures. Do you really get that kind of appraisal/equity gain for adding a patio?

Here are some before and in progress pictures- Ill be sure to unveil the finished product in a few weeks!

Before: