Did you know that trees can both increase and decrease your property value depending on the type, location, and health?
The average national house price in Canada stands at $716,828, an increase of 31.6% from last year.
Property value is crucial in determining how much a property will sell for. Every feature in the home and on the lot can make its final selling price go up or down.
Mature trees are one of the most effective ways to get a better deal from prospective buyers. Read our guide to learn how they can increase your property value and how to prevent them from decreasing it.
How Trees Can Increase Property Value
Knowing how to increase property value begins with understanding which factors contribute to value and how they work in terms of value.
Also known as market value, it refers to a professional’s estimate of how much your property would sell for. It’s based on several factors, such as the current market, the price of similar properties, and additional features.
Mature trees and well-landscaped yards are one of the best features you can have in your home. They can increase property value by 10-19%.
Trees benefit homeowners and their communities, making them an incredibly attractive feature. They increase its curb appeal, provide protection, reduce energy bills, cultivate privacy, and boost your mood.
Mature trees are a fantastic way to improve a home’s curb appeal. They can lead to increases of 5% when it comes time to sell.
Trees can also increase the curb appeal of an entire neighbourhood. They make commercial and tourist areas more attractive and breezy with fresh air, and encourage homeowners and renters to stay.
Environmental Protection and Energy Savings
Trees make any home a more comfortable place to be by helping to maintain the proper temperature. This protection also means you won’t have to use your cooling or heating systems as often.
Trees can reduce air conditioning costs by 30% or $57 per year and heating costs by 20% or $120 per year. Their net cooling effect is comparable to 10 room-sized air conditioners running for 20 hours a day.
Privacy and Mood Boosts
Trees block out the rest of the world and make your home feel like a private oasis.
Research has shown that exposure to trees reduces stress, blood pressure, and muscle tension within 5 minutes. It’s one of the fastest ways to calm down, especially when combined with the benefits of the sun.
The mood-improving benefits of trees extend to the community. Lower stress levels could mean lower crime rates and higher property values.
How Trees Can Decrease Property Value
Adding a tree won’t automatically increase your property value. You need to plan carefully and get the advice of a professional landscaper to turn them into an attractive addition to your home.
Planting trees can decrease your property value if they’re the wrong type, placed improperly, or poorly maintained.
Wrong Type of Tree
There are several ways to determine if a tree is right for your property. One method is to have it appraised by a professional.
The value of a tree is determined either by the cost of replacement or by its current market value.
Mature trees can be appraised for anywhere from $1,000-$10,000. Weigh the cost of buying and maintaining it against how much it could increase your property value.
Do some research into common vegetation in your area before choosing a tree. If it’s not desirable for the environment, its value can decrease by up to 50%.
Many of the most valuable trees are large, provide plenty of shade, and mature quickly. These include species such as the:
- Hybrid Poplar
- Red Maple
- Northern Red Oak
Other trees will be more of a hassle than an asset. Be sure to avoid anything with large roots or messy leaves. These include species such as the:
- Lombardy Poplar
- Weeping Willow
- Leyland Cypress
- Tree of Heaven
- Red Oak
- Bradford Pear
Every tree on your lot needs to be the right type so that it fits with your location and in your overall design.
Poor Landscape Design
Design sophistication has more of an impact on property value than any other factor. It’s a subjective but necessary measure.
Location determines what type of trees buyers want to see where. Large trees tend to be seen as more attractive in certain areas.
Placement is essential. Needle-bearing trees block winter winds when placed on the north and west side of a home. Shade trees belong on the south of the lot.
Minimalistic property design can decrease your property value because prospective buyers will find it boring and unattractive. Be sure to include at least 1 tall tree and a bit of colour.
Hire a professional for help and look at magazines for inspiration. The increase in property value you’ll get from a quality design will be worth the extra effort.
Attractive trees will lure in buyers, but unattractive ones will send them running the other way. Proper maintenance can help you avoid issues such as dead branches or missing bark.
If you have a dead or dying tree, have a professional remove it. It’s nothing but an eyesore for you and any potential buyers.
How Tree Moving or Removal Can Increase Property Value
Increasing property value is essential, even in a healthy real estate market. The greater it is, the higher the selling price of your home.
Adding trees makes your property attractive to potential buyers. It increases curb appeal, reduces heating and cooling costs, and more.
Careful planning will help you get the most out of your landscaping efforts. Create an attractive design, choose the right trees, and remember to maintain them.
The professionals at Pevach Corp. will help you manage trees that improve your property value and move or remove any that don’t. Get a quote for our services today!