As a homeowner looking to invest in your property for a future sale, you may be thinking about the return on investment (ROI) for a driveway. Driveways are often overlooked as a critical selling point, with many renovations focusing on bathrooms and kitchens. However, many homeowners consider it a major plus to have a driveway completed when they buy a home due to the many benefits that paved driveways provide for their home, family, and vehicles.
Value of Installing a Driveway
With that shiny black appearance, freshly paved driveways significantly add to the curb appeal and first impression of a home. Additionally, cracked, drab, and weed-lined driveways create the opposite effect, with many homeowners being put off at first glance.
So, what’s the ROI of installing a driveway? Depending on your market, a well-maintained driveway can add $10,000 to $20,000 to the property’s value. However, before we can determine the ROI, we must also look a the costs.
What Does a Driveway Cost?
The cost of a driveway can range anywhere from $3.00 to $30.00 per foot. Why the vast range? That’s because the price greatly depends on the materials, driveway size, and installation requirements.
Forbes reports that “the average size of a two-car driveway in most homes is about 600 square feet. To install a concrete driveway that costs $8 per square foot, a homeowner can expect to pay at least $4,800 for installation.”
Of course, driveways with unique designs, are made with expensive materials, and/or have costly requirements, like excavation needs, will be much more expensive than a standard driveway with no frills and standard materials.
ROI of Installing a Driveway
Let’s assume that you are an average homeowner or investor looking to complete a standard driveway installation of either concrete or asphalt with the recommended sealant. This means no extra amenities and the assumption that extensive excavation is not needed. If that is the case, we will assume that the average cost of a driveway installation is $4,800.
Additionally, we will assume that you fall in the middle of added property value, placing you with the benefit of $15,000.
Property Value Gain ($15,000) – Installation Cost ($4,800) = $10,200
Therefore, we can assume that the ROI of installing a driveway average $10,200 in potential property value.
What to Keep in Mind about ROI
It is vital to remember that ROI calculations like this are based on assumptions from previous data, and it is not a concrete guarantee. There is a possibility that the installation cost could run higher than expected and that the property value gain didn’t play out as expected. Additionally, you could have a less expensive driveway and gain even more value than predicted.
While keeping that in mind is critical before making significant investments, a paved driveway is a highly recommended amenity. With over 90% of driveways being paved in the USA, it is a standard of living that homeowners have come to expect.
Are you interested in paving your driveway? Give us a call today at Signature Paving for a quote.