Curb appeal adds 7% to home prices

They say you never have a second chance to make a first impression. In real estate, this first impression begins at the sidewalk. From the lawn freshly mowed to a well -maintained bridge, the outside of a house can instantly shape the point of view of a buyer before they penetrate inside.

This is particularly important on the current Dallas-Fort Worth housing market, where supply exceeds demand. This is why Sriram Villupuram, associate professor in the Department of Finance and Real Estate and director of the Ryan-Reilly Center for Urban Land Using of the University of Texas in Arlington, studied the financial power of the call to the edge. His study was published in The Journal of Real Estate Finance and Economics.

His research shows that houses with a strong sidewalk – landscaping, well -maintained exteriors and a welcoming entrance – saddle on average 7% more than comparable houses in the same district.

“Everyone knows the sidewalk call issues intuitively, but no one had quantified it,” said Dr. Villuram. “When you can indicate a number, it helps buyers and sellers to understand compromises. A well -maintained exterior also indicates that the interior has also been treated, which reduces the risk for buyers.”

The study revealed that the sidewalk call effect is particularly pronounced on the slower markets. During the 2008 financial crisis, for example, the sidewalk call bonus increased to 10 to 11% while buyers climbed to houses that have proven neglected seizures. With the inventory of high housing today in northern Texas, Curb Appeal again plays a key role in the sale of a house.

Beyond higher selling prices, CURB Call also helps transactions to close. Near one in five reception contracts in DFW falls, often because buyers discover problems during the inspection and move away, said Villupram.

“A neglected courtyard or exterior means that buyers wonder what has not been maintained-the CVC, the foundation, the roof,” he said. “This first impression is important.”

The implications extend beyond the owners. Real estate agents are becoming more and more selective on the announcements they have, and a robust home maintenance sector benefits landscapers, entrepreneurs and service providers. Investors also consider the sidewalk call as a lower risk marker when buying properties to rent or resell.

“Whether it is seen by a seller trying to obtain a dollar or an investor looking for a stable property, the outside of a house tells a story,” said Villupram. “And the data show that this is a story of about 7% of the value of the property.”