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Does Landscape Lighting Increase Home Value?

For most people, adding landscape lighting to their homes benefits them. It can make the outdoor spaces safer and also more inviting.

It can make your home seem even more welcoming at the end of a long day or turn your garden into a haven of relaxation.

Still, it would be nice if it also had a financial benefit, right? But, unfortunately, landscape lighting projects are exactly that – and don’t always come cheap.

Wouldn’t it be nice if they also increased the value of your home at the same time?

Landscape lighting rarely adds real value to a home, but it can add perceived value. It makes a home more secure and more visually appealing, but this is difficult to demonstrate during the day. It’s important to showcase your landscape lighting to your home appraiser so they can inform you whether it does add value.

To really explore this in more detail, we need to look at:

  • How much landscape lighting tends to cost
  • The difference between real value and perceived value
  • How much landscape lighting can add to the value of your home

Installation Cost Of Landscape Lighting

Worker installing outdoor ground spots lights

There’s no single answer for how much landscape lighting costs because it all depends on the type and scale of your project.

If you’re only trying to add a little lighting to your patio or decked area, then you’re working in a much more limited space.

This may mean the installation is relatively straightforward. You only need a handful of lights to achieve the desired effect.

However, you might have a larger garden. You want to add decorative lighting to highlight the walls and select features, including that beautiful tree sitting at the center of your lawn.

Pathway lighting is usually relatively inexpensive, and depending on the borders of your pathway, you might not need to dig trenches for the cables.

However, if your outdoor space has steps, then lighting them effectively becomes a little tricker.

Remember that you need to consider the cost of the lights and how much wiring you’re going to need and, depending on the location, you’ll need good quality burial wire for the job.

Then there’s time. Not everyone is an expert landscaper or electrician, so most people will hire someone to do the work for them.

The bigger the job, the more that the tradesperson will charge.

As an extremely rough guide, expect to pay $200-500 for smaller projects lighting a patio or deck, which will usually include your consultation fee.

Suppose you want to light a whole garden, with the work involved to dig trenches and use quality wire. In that case, you’re probably looking at somewhere between $2,000 and $5,000, depending on your garden size.

For the truly extravagant homes, with epic multi-level gardens, ponds and fountains, and various lighting zones, you could be looking at a much larger cost, potentially anything from $20,000 to $100,000 or more.

Real Value vs Perceived Value

added value chart

When you look at whether landscape lighting adds value, you need to create a definition between the actual value and perceived value.

The real value is highly material and quantifiable. This is where a feature of your home clearly adds a set amount to the property’s value.

Upgrading the kitchen or building an extension to use as another bathroom – these are all things that will increase the value of your home.

Perceived value isn’t measurable in the same way.

This is any feature that can help make your home more appealing and therefore potentially add value, but not in a set way.

For example, say you have a room that you’ve decorated in a particular style that isn’t to everyone’s tastes.

Re-paint that room in neutral colors, and you’ve not technically added to the value of the home – a paint job isn’t worth money – but it does make your home more appealing, and so it could sell for more.

So where does landscape lighting fall into that?

Does Landscape Lighting Add Value To A House?

house with garden on a sunny day

I’ve found it really interesting looking at how other people online are answering this question.

So many landscape lighting providers quote “numerous studies” that show that landscape lighting can add up to 20% onto the value of your home, which is a considerable sum.

Yet none of them can actually provide those studies, nor is there any evidence of them online.

In reality, landscape lighting is unlikely to add much real value to your home.

Unless you’ve spent upwards of $20,000+ on an incredible, intricate lighting setup, it’s more likely that the only benefit you’ll see is from perceived value.

This isn’t helped by the fact that you likely won’t be showcasing your home to potential buyers at night, which is when the benefits of your landscape lighting are most apparent.

However, there is definitely an argument for landscape lights increasing the perceived value of your home.

For that, you can call out three major factors:

Visual appeal – explain to your appraiser how your lighting setup looks. Show them photos or videos, and invite them to look at your home at night.

If you plan to sell, invite your realtor to see it too, and ask their advice on how to best show this feature to potential buyers.

Security – highlight how your landscape lighting can make your home safer.

Even lights designed to illuminate garden features provide more light that can make potential intruders second guess any attempt at your home.

Exclusivity – is your home the only one in the area with landscape lighting?

It’s essential to know the context of your home amongst the area because you can show that your property is worth more if it’s the best-looking home on the street.

Ultimately, there’s no hard rule on how much you could add to your home’s perceived value.

Are you prepared to explain the key benefits of your setup to an appraiser and ultimately to potential buyers?

In that case, you can definitely make your landscape lighting seem like a feature worth paying a little extra for.

Related: When To Install Landscape Lighting?

Final Words

If you’re looking for ways to improve the value of your home, then landscape lighting shouldn’t be too high on the list.

The fact that it’s only visible at night, combined with how it’s seen as more of a nice-to-have than an essential, means it rarely adds significant real value.

However, landscape lighting offers so many benefits to your home. It can definitely add perceived value, especially if you spend time demonstrating it to your appraiser.

More importantly, it can just make your home a safer and more comfortable place to live. So if you aren’t planning to sell your home, it’s a worthwhile lifestyle investment.

Have you had any experience selling a home with landscape lighting?

Did it help to improve the price you received?

Tell me your stories of landscape lighting and home value or any other questions you have around landscape lighting.