Professional fence installation contractors consult with many homeowners considering the prospect of installing a new vinyl fence around their property. Pros and cons are weighed with typical emphasis on cost—which can be extensive. Though homeowner objectives for the new fence vary widely, contractors will attest that one of the most difficult questions homeowners ask is, will the installation of a new vinyl fence increase home value?
There is no guarantee that a new vinyl fence will provide a return on investment (ROI) or an increase in value. Real estate markets are based on comparable sales, curb appeal and specific buyer needs. However, if a new vinyl fence increases the home’s marketability, buyers may be willing to pay more for the property.
Determining whether a vinyl fence install will increase home value or provide a return on investment (ROI) involves putting one’s self into the shoes of potential buyers.
This article has been designed to help current home owners evaluate, first, how a vinyl fence install may impact themselves. Second, whether it could potentially increase the home’s value and generate ROI. And finally, to determine if the capital available could alternatively be used towards other home improvements to increase the likelihood of home value increase.
13 Critical Things to Consider About Increased Home Value and ROI of a Vinyl Fence Install
1. Before Considering the ROI of a Vinyl Fence Install, Evaluate ROY—Return On You
Determining whether a vinyl fence install will increase a home’s value or provide a return on investment actually becomes a mute point if a homeowner is not planning on immediately selling the home. The security, privacy, and decades of maintenance free durability provided by a vinyl fence install may be able to drastically improve the quality of living for the homeowner. Though it may be a significant investment, installing a vinyl fence generates very low buyer’s remorse.
How long do you plan on staying in the home?
If you plan on living in your home for more than a year, calculating current ROI or appreciation values may not accurately depict potential returns a year from now when selling. How much the real estate market will appreciate or depreciate juxtaposed to how well a property is generally maintained will have a much more significant impact on a home’s potential sale’s price.
The Security and Privacy of a Newly Installed Vinyl Fence can Provide Long-Term Satisfaction for a Homeowner
For homeowners who plan on residing in their home long-term, being able to let the dog out each morning unattended is hard to put a price tag on.
Enjoying therapeutic privacy while gardening or reading a book on the patio is inestimable. Having the ability to allow the children to go outside anytime and play in the backyard in a safe enclosed environment may be priceless. And, appreciating the quaint contrast that the vinyl fence creates with the home and landscaping each time you pull up into the driveway are all delectables that transcend beyond monetization thresholds.
In essence, when considering the return on investment for a potential vinyl fence install, the very first question to ask is not about the returns on capital or increase in home value, but rather, the returns on quality of life. What personal and intrinsic needs will be met if a vinyl fence were to be installed on your property?
2. Vinyl Fence Installation Cannot be Assumed to Increase Home Value or Potential Sales Price of a Home
There are many home improvement projects that can reliable increase the marketability and the sales price of a home. For sellers, being able to recuperate the costs of upgrades is critical in order to generate and maintain equity.
Available resources help homeowners determine how much they are likely to get back or recoup once the property is sold. For example, Remodeling at www.remodeling.hw.net provides a yearly Cost vs. Value report with a breakdown of various home improvement projects and the average average amount of recuperation to expect when selling the home.
Unfortunately, vinyl fencing, and fencing in general, have not been included in the report. There is no guarantee that installing a new fence will increase a home’s value or generate ROI as there are too many other features that homeowners and appraisers prioritize.
3. Appraisals Help Define Home Value. However, Vinyl Fencing is not Itemized
When appraisers evaluate a property, they look for comparable home sales with similar square footage and assess characteristics that may contribute more or less value than the homes previously sold.
There are many features that have much more weighting in the assessment than the perimeter fence. Highly weighted features include: square footage, age of the home, location, number of bedrooms and bathrooms, recent renovations, and curb appeal.
4. Many Vinyl Fence Retailers’ Presumptuous Claims: Adhere with Caution
Many vinyl fence retailers tout property value increase and return on investment via the installation of their vinyl fence product.
Blanket statements on a vinyl fence company website are certainly not applicable to all areas and real estate markets. It would be much more prudent to consult with a trusted real estate agent who may be able to use comparable sales and their familiarity with local markets to determine potential home value increase and ROI.
5. Enhancing Curb Appeal is the Best Way to Increase Home Value and Obtain ROI from a Vinyl Fence Install
Curb appeal is the shoe in the door that has the opportunity to generate ROI, to increase home value and to increase a property’s marketability. A vinyl fence has the ability to beautifully frame a property perimeter and provide an aesthetic contrast with the home and landscaping.
A property with enhanced curb appeal has a strong advantage over other comparable properties and buyers may be willing to pay more.
However, it is important to get the “big-picture” before delving into a big expensive project. Will the installation of a vinyl fence alone, significantly enhance the curb appeal of the property?
Often, it isn’t just a new vinyl fence that a property needs to enhance curb appeal. Remember, vinyl fencing tends to unbiasly frame and highlight the landscaping and home. Get the “Big Picture”! Calculate the costs for the capital investment and time requirements for all outdoor upgrade needs.
A new vinyl fence un-complimented by a poorly landscaped yard tends to strike a negative chord with buyer sentiment. First impressions of such a property may set potential buyer’s mindset to a tune, from the very get-go, that the property is overpriced and is in need of upgrade.
The value of the home and its marketability may be diminished if landscaping upgrades are not paired with the vinyl fence installation.
The Right Style of Fence Can Draw Attention to the Home and Increase Marketability
There are many options to choose from when selecting which style of fence to install around a property. The fence shouldn’t draw too much attention to itself. Instead, it should highlight the home and the landscaping. “Wow! That home looks nice!”—should be the reaction generated from potential buyers that visit the property. The fence should provide a warm welcoming invitation for a prospective buyer to be enticed to enter the premises and explore the property.
It would be wise to gain a second or third professional opinion when choosing the style of fence to frame the property. Make sure and consider the following:
- Current Trends in the Neighborhood: The fence shouldn’t trend against the general aesthetics of the neighborhood environment.
- Lone Sheep: Subsequently, the fence should not be the only one of its kind erected in the neighborhood—as this would potentially be assessed as a deterrent by other neighbors and potential buyers.
- Quality Install: There should not be any negative attention drawn to the fence associated with poor installation.
- Neutral Colors: Though trendy colors may resonate with some buyers, it is better to use neutral colors that trend in the neighborhood and give the majority of prospective buyers no reason to suspect that the fence will lose its appeal over time.
- Style of Fence: The style of fence chosen should meet multiple needs of prospective buyers to generate the sense that it can provide a safe and private living environment for all—partners, pets, and children.
6. American Homeowners Need Fences
It can safely be assumed that most home buyers need a fence. It is possible that a vinyl fence install may increase buyer demand. Over half of potential home buyers own a pet or have children and could benefit from having a fully fenced property that may increase the home’s security and reduce the obligation for constant outdoor supervision.
- According to Gallop polls, over 44% of American households own a dog and nearly 40% own a cat. Over 57% own a dog, or a cat, or both.
- Statista reports that over 40% of U.S. households have children under the age of 18 living at home.
- Fool.com states that a fenced yard is one of the top ten features that home buyers look for in a home.
7. Vinyl Fencing Meets Homebuyer Needs of Security and Privacy
Many homeowners feel safer when their home is enclosed within a vinyl fence perimeter. They feel that the fence acts as a deterrent against intrusion and trespassing. Fencing allows homeowners to feel comfortable letting the dogs out or letting the children play in a safe enclosed environment.
Additionally, privacy fencing allows homeowners to enjoy more solitude while endeavoring in personal outdoor activities. Reducing the notion that a neighbor might be watching simply adds to living comfort.
8. Ornate or Luxury Vinyl Fencing May Enhance Curb Appeal, Temporarily
Installing an ornate, decorative, or luxury vinyl fence is often considered in order to increase the curb appeal of a home. However, ornate and luxury vinyl fencing not only costs more than standard variations, it may also draw unwanted attention to the fence itself.
Use caution when exploring these products because some potential home buyers may question whether a decorative vinyl fence will, overtime, appear outdated.
Subsequently, ornate fencing may not appeal to as many prospective home buyers as intended as it has a higher likelihood of losing its aesthetic appeal overtime and go out-of-style.
9. Will the Vinyl Fence Fit In with the Neighborhood?
Neighborhood trends should be a primary consideration when determining whether a vinyl fence or a specific type of fencing is appropriate. The new fence installation on a property should not trend against the look and feel of the neighborhood.
- For example, some neighborhoods have no fencing which provides the appearance of openness with undesignated boundaries. The look and feel specifically invites a sense of shared space and community.
In these areas, installing a vinyl fence could be frowned upon by other community members as it would break up the extensive shared landscaping views. Potential home buyers may see the fence as an obstruction to neighborhood trends and may not want to move into a property that already carries neighborly animosity. - Along the same thread, some neighborhoods have a similar trend of chain-link fencing. Though the space isn’t shared, the chain-link fencing still offers the sharing of landscaping views and still provides a sense of openness. Mutual respect for the space is honored by tidy clutter-free landscape maintenance.
- Installing a trendy style of vinyl fence in a neighborhood with stream-lined variants will definitely draw attention. The fence itself may look nice and offer a great contrast with the home and landscaping. However, if it goes against the trend in the neighborhood, neighbors may view it as an eyesore.
A trendy or contra-style fence may actually decrease a home’s value or marketability as the fence may cause some potential buyers to pause and pontificate the pros and cons of the home’s neighborhood presence before they have even stepped a foot inside the home.
10. Is a Vinyl Fence Actually Needed?
Sometimes, a property simply needs a fence and the home would seem naked and exposed without it. An example where this may be applicable is on a through-street.
High-traffic areas extend a greater need for a home to be fully enclosed with a fenced-in yard and a gate. Vinyl fencing could be a perfect solution and could certainly add to a home’s value, marketability, and potential ROI.
On the flip side, if a home is located in a cul de sac, its location may already have a sense of isolation and safety. The need for a fence would not be as prevalent and potential buyers may consider other home features with greater priority. Installing a vinyl fence in this type of area would lend itself more to curb-appeal than to safety.
11. The Catch-22 with Vinyl Fence Installation ROI
Many potential home buyers prioritize fencing as a “must have” feature they look for when prospecting for a new home purchase. In a competitive seller’s market with low inventory, home buyers are often faced with buying options that don’t meet all of their conditions. In turn, home buyers must re-prioritize their list of “must haves” to determine which conditions take more precedence.
Ironically, even though ‘having-a-proper-fence enclosure’ may originally be on the “must have” list for a prospective home buyer, it rarely makes it to deal-maker status because it is also at the top of another interesting list. I call this the, “Well, we can do that on our own—after the sale” list.
That’s right, when struggling to find a home in a competitive market, buyers start to think about compromise and settling. They often begin to consider how they might be able to improve the property later—after the sale. And for some reason, often with some element of a discriminant presumption, ‘having-a-proper-fence’ gets yoinked. . .only to come back around in full-swing and total karma to shock new homeowners with a cost and scope that was well beyond their presumptuous conjectures.
12. Before Installing a Vinyl Fence, Consider—What Home Improvements Will Provide the Biggest Bang For Your Buck?
Most homebuyers are looking for a home that is move-in ready. That being said, if a potential home seller is looking for ways to make their home more appealing to potential home buyers, it may not be prudent to have a new vinyl fence install at the top of the home improvement list.
Reasoning: a fence enclosure is not typically at the very top of the “Must-Haves” for potential home buyers. It may be on the list, but it is likely not at the top.
Instead, buyers tend to prioritize:
- Enhanced kitchen and dining room spaces
- Garage storage
- Energy efficient appliances and windows
- Walk-in master bedroom closet
- Newly remodeled master bathroom
- Walk-in pantry
- Hardwood floors
- Ceiling fans and AC
Source: Kiplinger
Making upgrades and improvements to these other areas may generate more attention from potential buyers and greater potential ROI than installing vinyl fencing around the perimeter of the property.
13. Vinyl Fence as a Negotiating Gambit to Generate ROI
Full recuperation on any home renovation can never be guaranteed. It may be to your benefit to incorporate a vinyl fence installation as a gambit in your real estate negotiations instead of having it installed yourself.
For example, if estimates come in for a vinyl fence install at $6500, you may consider conceding a $4000 credit to the potential buyer towards a new fence instead. That saves you $2500 and could be ROI depending on how much you’ve listed the property for.
Summary
In summary, considering the potential home value increase or ROI for a vinyl fence install is shadowed by the specific needs as a home owner.
If the home is to be sold in the near future, consider whether a vinyl fence will drastically improve curb appeal or whether the area lends itself to a significant need for security and privacy that a vinyl fence could provide.
If neither security/privacy and curb appeal have significant weighting based on the area, home value increase and ROI may be more reliably obtained by completing alternative home renovations to entice and attract potential home buyers.