Retaining wall cost vs value

<<>> Retaining wall cost will always depend on the type of materials that you use. In this part of the county (WA State), the most common retaining wall material is concrete block and concrete.

My assignment was to determine the value of this home that was purchased the prior year. Since the home owner moved in, they installed a new retaining wall in the back yard.

This retaining wall cost them over $25,000. Now the idea was that the home owners would install this retaining wall and complete some landscaping. These improvements would increase the value of their home.

The sad reality is landscapers, retailers and nurseries tout that the value of landscaping will increase the value of their home by as much at 10%, but before you listen to them, read this.

I located all home sales, listings and pending sales in this area. All of the homes offered nice landscaping. Some of the homes offer similar retaining walls as the subject property. All of the comparable sales that I analyzed did not support an increase of value for the retaining wall or the landscaping. Some of the lots backed to a steeper hillside. These homes are the homes that needed retaining walls in order to provide a functional back yard.

Here is the question that you need to ask yourself before you spend thousands of dollars on your landscaping and/or retaining walls and think that this will increase the value.

If a buyer found two identical homes in your neighborhood and the only difference was that one home offers a level back yard with average landscaping and your home offered a yard that slopes down to your home and you finished building a retaining wall with average landscaping, would the buyer pay you the cost of installing this retaining wall. So in other words, one owner spent $25,000 to make a level lot, while the other home already offers a level lot. Would you pay an additional $25,000 for the retaining wall? I didn’t thing so.

So when you consider making improvements, ask yourself if a buyer is willing to pay for these improvements if they were to find similar homes as yours and this is the only difference. If the answer is no, then do not make the improvements under any situation.