Trees have a lot of uses. They make the world a beautiful and better place to live in. The only problem is that we seem to like to place the value of trees in finished products such as furniture or structure. So how do we place value in what cannot be counted or enumerated?
The world today operates in numbers and that makes valuation a paramount thing. But with trees or other natural resources, it might be beneficial to focus on the life support functions. This is what has given birth to non-market valuation techniques.
What Is The Importance Of Non-market Valuations
Owning land and developing it is an expensive affair and if the value of the intangibles is not considered then the hard costs discourage you from investing in natural capital especially if that natural capital does not have an indicator of its economic value. This is now becoming an issue of the past since more and more local decision-makers are coming on board and accepting the hedonic pricing method. The hedonic pricing method attempts to capture the proportion of property prices derived from the non-use value of trees and other natural elements.
What Are The Benefits Of Trees
Now that you know that trees can make your home a little more expensive and in a good way, let us take a look at the general ways of how this happens.
Trees give your home permanent beauty
We all know that trees live longer than humans and can last for generations. This gives a home a lifetime of beauty. This adds aesthetic value. Beautiful scenery forms mental impressions of and associations with places. Trees are associated with a high rate of amenity and visual quality. Studies show that districts with trees had a high positive score compared to other districts without trees despite them having the same level of care.
Trees have greater ROI
Remodeling your home might make it fetch a higher price but nothing beats the environment around it. Landscaping can actually increase the value of your property by 200 percent. So keep your yard in good shape because it will be worth your while. It would be good to consult an arborist or tree service provider like Progressive Tree Service so as to know the best trees to plant to increase property value. According to the Council Of Tree and Landscape Appraisers, the cost of mature trees is an appraised value of between $1,000 and $10,000 per tree. So if you do not have any trees in your compound, you better start planting.
Cool shades save energy
With trees within your vicinity, you are sure to have a cooler environment and therefore save money. You will not need to turn on the AC as much. According to the American Power Association, you can reduce your home cooling bill by 50% annually just by ensuring there is proper landscaping done. Trees ensure that your landscape is not a heat island.
Value Of Trees On Property- Residential
Studies have shown that people prefer homes with trees as compared to those without. According to the study, this is what raises property value and by how much:
- Mature yard trees increase your property price by 2%
- Trees in the front yard increase the value by 3-5%
- A good tree cover in the neighborhood increase home value by 6-9%
- Mature trees in high-income neighborhoods increase the property price by 10-15%
The price is variable depending on how tree presence is defined. The socio-economic environment of a residential area also matters.
What if you already understand the advantages of planting trees but you don’t have any on your property? If you leave near an urban open space, park or forest then you still stand to benefit. Studies show that people are willing to pay more for homes that are near open spaces. Homes that are adjacent to such spaces have a value that is 8-10% higher than those in other areas. Living near a forest incorporates lots of functional benefits such as minimal noise, low energy use, and recreational value. A house with a park or forest view has a price increase of 8%.
Value Of Trees On Property- Commercial
Hedonic pricing and other valuation techniques have illuminated the fact that people can gain returns from tree invest even from commercial properties. Here is a short breakdown of the value and utility of trees on your commercial property.
- Rental prices increase by 7% if you have quality landscape
- Consumer spending increases by 9-12% in forested business districts
- Home prices increased by 23% if they are within a quarter of a mile of these business corridors
Trees That Increase Property Value
According to Michigan University, every dollar you spend on landscaping gives you 109% in return. PNW Research Station state that a tree in front of your house increases the home’s sales price by an average of $7,130. But do not just plant any tree for instance fruit and palm trees are good but they do not add up to much in the property business. The value of oak trees on property, on the other hand, will fetch you a good price.
There are no specific trees that are listed for the purpose of improving property value but you should plant what is suitable for your planting zone. Here are some trees that can help you out:
- Crape myrtle
- Northern red oak
- Bigleaf magnolia
- Concolor fir
- Sugar maple
So what if you only have fruit trees on your property? Well, you never know their tree replacement value. Fruit trees are a matter of personal preference, you might just get a buyer who loves the apples or the lemons.
Money Does Grow On Trees
Yes, money literally grows on trees and never doubt that because now you know that trees increase home value. You also know that trees create a positive perception which is good for your business. Landscaping property value is not as expensive and demanding as home remodelling. Perhaps all you need to do is invest in trees for your home and leave the trees to take care of the expenses for more information visit www.progressivetree.com.