When planning out the projects to tackle on a fix and flip property it is critical to remember these three little letters - ROI. The return on investment of any project you tackle is essential. One of the common projects flippers consider is a deck addition. But, is the potential return of this type of project worth the initial investment? Consider these things when deciding whether or not to add a deck as part of your next fix and flip.

Can Adding a Deck Increase Property Value?

Fix and Flip staging

According to popular home services site, Angie’s List, deck additions are one of the top five updates for adding value to a home - with one caveat: this statement applies to traditional wooden decks. Decks made of more durable composite materials do not provide the same upfront ROI, due to the higher cost of materials.

How much of a return on investment can you expect from adding a deck to your next fix and flip project? According to Money Crashers, you can expect to recover between 65-90 percent of the costs associated with adding a deck to the home when selling. This obviously is not a great number from an ROI perspective, so proceed cautiously when adding decks. While decks can certainly make a home more appealing and increase the overall value, overspending on a new deck may not make the most business sense.

If you do need to add a deck and you want to maximize the appeal to buyers, there are a few things you should keep in mind when planning and constructing your deck.

  • Don’t cut corners. A deck gets the full force of the daily sun and there are no corners where you can hide flaws or defects. Use quality materials and skilled workers to build a deck that will grab the attention of possible buyers.
  • Size it right for the property. An effective deck needs to be large enough to be useful without taking over all available real estate in the backyard. It needs to be practical and fit the space. Otherwise, some potential buyers may view it as something that needs to be removed which can negate the potential value.
  • Make it fit the home and the neighborhood. A charming deck is not a great addition to an ultra-modern interior. A deck for the sake of having one is not a good plan. Make sure it’s a good fit for the home.

Timing it Out

Timing is everything when flipping properties. Unless your fix and flip is in a location that enjoys mild temperatures year-round, such as some areas of California or Florida, deck additions are better considerations for homes that will go on the market in late spring or summertime. These are the times of the year when people are thinking about spending more time outdoors and will find the idea of a beautiful deck most appealing.

Fix and Flip staging

Ultimately, the big deciding factor for whether or not adding a deck is possible for your fix and flip property depends on your operating budget and the likely desires of potential homeowners. Just be careful not to overspend!

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