The value of outdoor rooms

Especially since the pandemic, homebuyers value kitchens, entertaining areas and cozy places to relax.

Increasingly, though, the best of these features are not located in one of the rooms or the square footage cited in a listing — that’s because they’re outdoors.

Indeed, outdoor rooms are hard to define. For one, the cost, quality and types of features vary tremendously.

At one end, a simple store-purchased fireplace and barbecue island qualifies as an outdoor living space. At the upper tier, a full room can consist of a pool and patio, replete with custom-constructed kitchen appliances and bar.

Several surveys, such as one by real estate agents at HomeLight, finds that outdoor living amenities, along with home offices, rank as top renovations to add value this year, but don’t quantify how much a particular improvement will boost home price.

So how can homeowners estimate a return on an investment in the outdoor improvements they plan?

We asked residential appraiser Dawn MolitorGennrich — who frequently values outside living spaces in the homes in the Northern California market she works in — to share some tips:

Compare outdoor spaces in similar homes:

Inputting your street address at popular listing sites such as Zillow will yield homes that are probably like yours that are on the market or have recently sold. Especially in warmer climates, and if your home is in a mid- to upper-price neighborhood, clicking through photos on even just a few listings should display outdoor living spaces.

In colder climes, it may take more clicks to find backyard rooms.

Check prices and timelines:

What do homes without outdoor improvements sell for against similar properties that do have appealing amenities? The price premium versus the cost of installing improvements is the return on your investment. Days on the market is also a good indicator of how appealing and popular a home is.

Query real estate agents and landscapers:

What you can’t find digging through data is accessible anecdotally. Agents can relate popular local features. Landscape professionals can also view your yard and help you envision upgrades.