Does a Fence Increase Property Value?

Last updated on March 26th, 2024 at 10:26 pm

When it comes to home improvements, homeowners are often pondering which upgrades will provide the most bang for their buck. 

One common exterior feature that’s always up for debate is the value of installing a fence. 

Does it merely serve a decorative or functional purpose, or does a fence increase your property value?

The simple answer is this: From an appraisal perspective, installing a fence will provide a somewhat minimal return on investment (ROI), typically in the range of 30-40% of the cost of the upfront investment. However, a fence in good condition can not only add to the overall appeal of the home, but is often a sought-after amenity in areas of high traffic or in neighborhoods where kids or pets are common.   

Along with any monetary value, a fence can provide security and peace of mind in addition to its utility as a defined boundary.

If you googled this question, you likely got a hundred different answers, most being from fencing companies or home improvement blogs, telling you a fence will add $10,000 or more to your home’s value… this is usually followed by a sales pitch that encourages you to buy their product. 

My mission is to give you an unbiased opinion from an appraiser’s point of view. 

Before digging into my personal opinion, let’s have a look at some cold, hard facts. Data from the National Association of Realtors (NAR) provides some illumination on topics such as this. 

According to online data, fences have an average cost recovery rate of around 50% – meaning if you invest $10,000 in a new fence, your property’s value could potentially increase by $5,000. 

Homelight notes that homes with landscaping (which includes fencing), sell for up to 10% more than homes lacking landscaping.

The American Society of Landscape Architects concludes that landscaping can increase a home’s value by 15-20%.

These are just estimates, of course, and can vary based on location and the type of fencing installed. 

However, it does provide a general baseline of what statistics say the potential return is on your investment, when you consider a fence as part of your overall curb appeal.

It’s also important to note that “value” isn’t always about a dollar amount – installing a fence can also make your property more attractive to potential buyers, increasing its overall appeal and marketability. 

There is “value” in the fact that something, no matter how big or small, may entice buyers to choose your home over competing homes for sale.

These are the minor details that an appraiser will analyze closely when comparing one home to another in terms of price.

On top of that, it’s wise to understand the term “utility value”. Although a fence may not bring in the most ROI compared to other home improvements, its functionality and convenience for families in high-traffic areas or low-privacy settings make it extremely useful and convenient.

Taking off my appraiser hat for a moment, and speaking as someone with three kids and 2 dogs – a fenced backyard was a huge selling point when we purchased our home. In fact, it was a must-have on our list of amenities while house hunting. 

Let’s look at some data:

As illustrated in the chart below, not all home improvements are created equal when it comes to return on investment (ROI). 

You’ll notice that NAR’s list of home improvements didn’t include fences specifically on their annual report, but there is data we can look to for an idea of a similar reported ROI. 

A new front door, for example, costs less than a fence and shows an ROI of 60-63%. 

A new garage door, which costs approximately $2,000-$3,000, (still less than most fences) shows an estimated ROI of 100%. See the full report here.

What can we take away from this information?

While fences may not be reported as having a dollar for dollar return, investing in upgrades that add to the overall curb appeal of the home, like front doors or garage doors have proven to be a wise investment in the long run, when you consider the property as a whole.

While NAR’s statistics provide a good starting point, I’ll hedge those findings with some personal opinions. I’ve found that the primary value fences add to a home goes far beyond their aesthetic appeal or basic function as a boundary.

In neighborhoods that are family-oriented or have a majority of pet owners, a fence provides wonderful peace of mind for parents. (of both kids and fur-babies) 

The “Joy” scores noted below demonstrate what similarly priced improvements can bring.

However, I must agree that you’re not likely to get 100% of what you paid for the fence when you sell your home. The data I’ve analyzed from an appraisal standpoint indicates a range of 30-40% ROI in strictly monetary terms.

My verdict is, and my peers agree, the ROI slightly is lower than what is reported in online sources, when applied in reality. But they aren’t too far off.

The condition and fencing materials used also matter. A quality, well-maintained fence can be an asset that nudges the discerning buyer to buy your home instead of the one down the street.

On the other hand, a dilapidated chain link fence that’s 20+ years old could actually detract from your home’s value.

(If you get the fence, make sure you maintain it properly!) 

Although it doesn’t often make or break a deal, properties with fences can move faster on the market in neighborhoods that value them, and can often command a slightly higher asking price. 

Anything that your buyers want in a home, and don’t have to invest in immediately upon closing, is valuable and can boost your sale price. 

Situations when a fence will have a greater likelihood to boost your sale price include:

• Close neighbors / Limited Privacy
• Heavy Traffic / Noise Barrier needed
• Yards with a pool
• Neighborhoods where added security is valued

RELATED: COMMON APPRAISAL QUESTIONS

When you have a seller’s market and an extremely low inventory of homes for sale (hello 2022-2023), whether or not a property has a fence, or a similar desired amenity, will become less and less of a factor. 

When home buyers are struggling to find any available home in the area they want to live in, they’re less likely to be deterred by the fact that there is or isn’t a fenced yard.

(However, in a seller’s market, you’re more likely to get top dollar for your home anyway, so any improvement is more likely to pay off!) 

When buyers have more options (or any options, for that matter), having a nice fence could give you an edge over the competition. 

Ultimately, there are three factors to consider anytime you’re deciding whether or not to make any home improvement.

1. How much does it cost?  
2. How much value does it add to the home?
3. How much joy will it bring you?

The first two are factual and can be determined by research and reviewing statistics. 

The third is more subjective, and arguably also the most important.

For me, having a fenced-in yard brings peace of mind, privacy, and convenience, and it was worth every penny of the $9,600 we paid for it.  

I can let my dog out without worrying about her wandering off or disturbing the neighbors. (which she 100% would do)

Photo of my dog / office assistant

My kids can invite their friends over, and I know they have a safe space to play outside and can’t wander off down the street. 

I don’t have to worry about the neighbor mowing into my flower beds or peering when I’m out on the patio sipping my coffee. 

• Do you have young children or pets?
• Do you want more privacy?
• Do you enjoy spending time in your yard?
• Do you have nosy neighbors? 
• Are you willing and able to maintain your fence? 

If you answered “yes” to at least two of these questions, then a fence is absolutely worth the investment, in my opinion. 

If you answered “no” to most of these questions, it may not be beneficial for you to invest in fencing, which can be pricey.

Additionally, keep in mind that there are many types of fences available, so do some research and choose one that best suits your budget and lifestyle.

MORE HOME TRENDS

Low Cost Fencing Solutions

If you need the benefit of a fenced yard, but are leaning towards NOT making the pricey investment due to the lower than average ROI, there are other solutions you may want to consider. 

In my almost 20 years of appraising homes, I’ve seen close to 8,000 houses and yards in my area of Central NY. 

I’ve seen million-dollar mansions with elaborate custom iron fencing (that probably costs more than my house), and I’ve seen the not-so-desirable homes that implemented creative (and sometimes unattractive) ways to contain pets or kids in the yard.

Photo credit: Rick’s custom fencing & decking

Perhaps the most important thing I can pass on is that a fence doesn’t have to be the most expensive material and doesn’t necessarily need to follow the standard rules of fencing to be pleasant looking and serve its purpose. 

(To folks with a homeowners association, disregard that statement – you may have fencing rules to follow!) 

There are low-cost ways to install perfectly functional fencing that can still be appealing to potential buyers.

Let’s review a couple I’ve run into, and would value similarly to an expensive or new fence, as they provide comparable utility.

 

This fence near my neighborhood went up a few years ago.

The homeowners spaced and installed solid wood posts, stained them, and then finished it off with a rustic-type look by attaching hog wire to enclose the area. 

Not only does this service its purpose and contain kids or pets, but it’s also a great foundation for attractive vines or flowers.

Est Cost: $20 per linear foot

If you like the rustic look, reclaimed wood can be purchased at lumber yards or advertised for sale locally at a discount.

Photo credit: Porter Barn Wood

Hire a handyman to place the posts and add your wood slats and you can have a functional fence at about $8-$10 per linear foot.

Incorporating corrugated metal into your fencing project can give it an industrial or modern look. This would blend well in certain neighborhoods (not so much in others). In rural areas or areas, or neighborhoods without a homeowners association, this is a viable option.

Est Cost: $15-$30 per linear foot

Bonus: Will last an estimated 40-60 yrs!

In lieu of installed fencing, planting a privacy hedgerow (Privet shown in photo) can afford you the same privacy as a fence, and can also deter wildlife (and nosy neighbors) from coming into the yard.

These lower cost solutions can serve the same purpose as a costly wood or vinyl fence if you’re unsure about making the investment. Any difference in the value added between a rustic style fence or a corrugated metal fence vs. a more traditional wood fence would be negligible from an appraisal standpoint. 

Some home improvements that fall under the “curb appeal” umbrella come down to a matter of style preference and what blends well with the rest of the home style.

Est Cost: $30 per plant.

Con: Will take a few years to grow to full height

Typically, when we think of home improvements that add value, we envision costly kitchen remodels or adding square footage to a home. However, exterior features like fences, patios, or pools have proven to play a significant role in determining your home’s value. 

After all, the appraiser is looking at the property as a whole, so anything that enhances its appearance or functionality is a plus in the eyes of an appraiser.

To recap, installing a fence will not significantly increase your home’s appraisal value, with a reported ROI of 30-40%, which is on the lower end compared to some other home improvements.

However, in terms of the added marketability of the home and the value in terms of convenience, privacy, and peace of mind — it will make your home more appealing, provide you with a significant amount of utility value, and may give you a leg up on the competition in your area.

Consider your situation — Factor in who the typical buyers are in your neighborhood and your own lifestyle needs before jumping the fence.

Some buyers struggle to see a home’s true potential.. But even minor improvements like a fence can make them think:

“This house is perfect for us. Let’s make our best offer!”