Placing a Value on Design
Placing a Value on Design
Design fundamentally has two elements – Form and Function. Function is the tangible aspects. What is it? What can I do with it? It’s easy to compare apples to oranges, see what is demanded across a population, and then ultimately put a price tag on what people are willing to pay for it. A deck for a deck, a shade structure for a shade structure, etc… Form, however, is much more intangible. It’s a subjective feeling about the creation. Is it beautiful? How do I feel in it? When a Landscape Designer puts a price on their work, they are putting a valuation on their own time and projecting that out as a fixed bid estimate of their total expected time expenditure. But how do we account for the value of the form, not just the function? For that, we look to secondhand sales to find out.
In 1999, a study conducted by Clemson University looked to quantify the effect of different quality landscaping improvements on the ultimate home sale price. They studied the effect that different properties in a wide variety of locations and conditions sold for using landscape quality as the variable. Consequently, what they found was that with all other variables accounted for, an excellently landscaped property could fetch up to 14 to 17% more at sale then one with landscaping rated as poor. In Denver today, that’s equivalent to $70,000 more for the average home!
Turn those drive-bys into walk-throughs, get more bids, and sell for more.
There is a cost to the investment of labor and materials to make the jump from poor to excellent, but the benefits will still far outweigh the costs. Rarely do our residential landscaping projects in Denver cost even 10% of the value of the home. Numbers crunched, that’s up to a $29,000 instant profit with the sale of your average Denver home.
When looking at your outdoor spaces don’t be afraid of the price tag. The money is being invested as equity into the home with a buffer of profit to dream big and create a space you will love. Regardless, he best way to maximize the value of landscape designing is to plan ahead. Significantly, moving into a new place is the perfect time to start planning your outdoor spaces. Undoubtedly, a more established landscape is worth more to the property and you get to thoroughly enjoy it while you live there.
Outdoor lighting, good yard maintenance, and well-placed trees will always pay for themselves in the end. Designing for varietal leisure spaces, noise reduction, visual barriers, creating a cohesive aesthetic with the architecture, crafting a clean outdoor look that makes the house feel cared for – these are some of the more subtle design challenges that people will subconsciously pay top dollar for.
None of this, however, accounts for the added benefit energy and water savings that a sustainably designed plan provides for the home. Not only do you create a curb appeal that makes you proud of where you live and an outdoor space that makes your home feel bigger and more versatile, but everyday utility and maintenance costs can be drastically reduced ultimately paying for the improvements themselves.
Tannenbaum Design Group, for these reasons, is proud to announce a new collaboration with GreenSpot Real Estate. As a landscape designer, we are now offering FREE customized designs with any Buyers or Sellers Agency Listing agreement with the purchase or sale of any home. We want to reinvent the way the home sale industry works by adding more value back into your homes than is paid in the commission. As a seller you profit! As a buyer you get to buy a house you like and turn it into a home you love, for free! What is your sister’s college roommate’s broker friend giving you for the cost of that commission? If you do the math, it makes no sense to go anywhere else.
Tannenbaum Design Group | Landscape Architecture and Outdoor Design | Placing a Value on Design