How Does Your Garden Grow?

Whether it’s a small garden, a big yard, or a tropical retreat, the outdoor botanical experience is a significant factor in why many people buy homes in Hawaii. Our unique climate offers the opportunity to create exquisite gardens that can potentially add value to the sale.

The Challenge of Valuing Landscaping

While appraisers generally agree on the value of a new kitchen or a remodeled bathroom, there seems to be no set standard for quantifying the true value of the one thing that makes that all-important first impression: the landscaping. Despite this, the value of quality landscaping cannot be underestimated. Many homes that lack an ocean view compensate by creating an enchanting tropical environment, making Hawaii indisputably a paradise for garden seekers.

How Appraisers View Landscaping

So, how do appraisers assign value in situations where landscaping is as integral to the property as the dwelling itself? Some years ago, I asked several trusted local appraisers, and each provided a different response. Most agreed there is no hard and fast rule on how value ought to be assigned. Since it’s not a required field on an appraisal report, it’s fair to assume that most loan underwriters who scrutinize appraisal reports for lenders don’t consider it a core consideration when determining value. However, quality landscaping can’t be easily ignored. Most local appraisers felt a reasonable adjustment would be 5-7% of the overall value, while online research suggests estimates as high as 15%.

The Reality of Landscaping in Appraisals

I examined several recent appraisal reports, including one for a property with very elaborate landscaping, where the appraiser noted that the landscaping was “good” but made no value adjustment. There is no question that the botanical garden setting was integral to that sale, yet the appraiser took a conservative approach and assigned no additional value.

Cautions and Considerations for Landscaping

A few cautions about landscaping are essential to consider. Plantings located too close to the home can promote moisture retention, becoming a conduit for termites. Additionally, while albezias can be beautiful, they don’t require fertilizer, and you don’t want them close to your house. Tree removal can be expensive and is certainly best left to the pros (call us for our totally biased recommendation). Be careful what you plant, and seek advice from agencies regarding invasive species.

Protecting Your Landscaping Investment

It seems we’ve had a bumper crop of pigs of late, so be sure to protect your landscaping investment from critters. Just as a fresh, clean home with new flooring, fresh paint, and updated kitchens and baths ensures a faster sale, quality landscaping will make a significant difference in marketing time and, to a lesser extent, the all-important eventual bottom line.