Whether you’re buying and flipping a home or investing in a new property, it’s important to understand different ways to maximize your financial stake. One of the most common things that people examine when looking at a property as a buyer, renter, and investor is the condition of the structure. Yet, before one gets to the front door, they often pass through a fence, a security barrier or property marker that gives a first impression of the property. Here is a brief look at the importance of a fence in real estate investing, when it’s a good time to replace the fence, and the ROI that you can expect.
Why Fences Matter
Many homes on the market today are being sold to people in their early 30’s who are finally moving out from mom and dad’s and into their own place. They are bringing pets and small children with them, so having a fence on the property is comforting but somewhat necessary in many cases. As a real estate investor or seller, it’s a good idea to have a fence that is attractive and effective for security and privacy on the property or to consider replacing an existing one to be more useful.
When Should I Replace the Fence?
There are times when you will have an existing fence on the property that you’re selling or renting, but that fence might not be the right one for your needs. There are several times when you should consider replacing the fence that is on your property including some of the following:
- Missing panels in a PVC fence
- Damaged or rotten wooden fences
- A fence made of materials that are inferior to those of the neighboring fence.
In short, you want your fence to be free from damage, be effective at its purpose, and look as good or better than the neighbor’s house. If your neighbor has basic railroad tie fencing, then it might not be a bad idea to look at something more appealing like PVC.
What Is the ROI on Fence Replacement?
The question that lingers on the mind of every real estate investor is: how much can I expect to get out of my investment? According to estimates by Forbes, the average ROI for a fence on a single home property is between $1,500 and $4,000, with the ROI increasing with the quality of the fence. So, while you might spend over $1,000 to get a quality fence, the fact is that you should get much more in return. In addition to the home value, the overall look of the property with a fence will make it much more appealing to potential buyers.
It’s clear that replacing a fence on a property can have a major impact on the security, looks, and value of a home. While it might be an added investment that some people don’t plan on making, it is nonetheless important. After all, with the average ROI being between $1,500 and $4,000 for a home for sale, home sellers should be eager to replace the fence. Overall, fences are a very good investment project that can add value to a home and give potential buyers a good first impression.