Smart Backyard Upgrades That Can Increase Your Home’s Value

Your backyard is where you unwind, grill and spend time with family and friends. Landscaping and design shape how your backyard looks, but a “smarter” approach can improve how it works.

Smart devices connect to your home’s Wi-Fi so that you can control them from your phone or other devices. Features like lighting that turns on at dusk, scheduled irrigation or outdoor security can add convenience to your daily life. Not only can smart upgrades make your space more comfortable and functional now, but they may also support your home’s value. When you're ready to sell, these are the types of upgrades buyers tend to notice.

Before starting a larger smart tech project, focus on features you’ll use regularly and that can appeal to future buyers.

Key takeaways

• Smart backyard upgrades may increase your property's resale value and attract buyers
• Functional improvements like outdoor lighting and smart irrigation may offer high returns
• Highly complex or niche tech systems may not appeal to the average buyer
• You can finance outdoor renovations using a cash-out refinance or a home equity loan

How Smart Backyard Features Can Boost Home Value

Home appraisers consider how well a property functions and how features like outdoor living spaces contribute to its overall value. Outdoor areas designed for dining, relaxing or entertaining can increase overall desirability. Adding smart features can build on that. From reducing routine maintenance to giving you more direct control over features like lighting and irrigation, these updates can deliver practicality and potential financial return.

Smart Backyard Upgrades With the Most Value Potential

Certain outdoor improvements consistently yield better returns than others. Focus on professionally-installed upgrades that blend functionality with broad appeal.

1. Outdoor Lighting for Safety and Curb Appeal

The National Association of Realtors reports that lighting is an easy way to boost your curb appeal. Proper lighting extends the hours you can enjoy your backyard and Smart LED lighting systems allow you to adjust brightness and color right from your phone. You can also set schedules so your landscape lighting turns on at sunset. A well-lit exterior provides an extra layer of safety, highlights your landscaping features and always looks inviting.

2. Irrigation Systems That Save Water (and Money)

A lush green lawn requires consistent watering. Smart irrigation controllers connect to local weather forecasts and adjust watering schedules automatically. They skip watering on rainy days and increase output during dry spells. You’ll save water, lower your utility bills and help maintain the health of your landscaping.

3. Integrated Outdoor Security Systems

Smart outdoor cameras and motion sensors help keep your space secure, sending alerts directly to your phone when someone enters your yard.

4. Smart-Controlled Pools and Spas

In some markets, a swimming pool can be a strong selling feature, but it does require upkeep. If you already have a pool, adding a smart control system makes it much easier to manage. You can adjust the water temperature, turn on the spa jets and monitor chemical levels from a mobile app. Spend more time swimming and soaking up the sun, and less time on maintenance chores.

5. Automated Shade and Comfort Features

You can’t control the weather, but you can control your comfort. Motorized pergolas and smart retractable awnings provide shade at the touch of a button. Some advanced systems even feature wind and rain sensors that automatically retract the awning during bad weather. These additions make your patio usable throughout the seasons.

6. Smart Outdoor Kitchens and Grilling Tech

An outdoor kitchen creates an ideal environment for hosting. According to Zillow research reported by Forbes, homes with outdoor kitchens can sell for roughly 2.2% more than otherwise similar properties.

Adding smart technology elevates the outdoor cooking experience. For example, Wi-Fi-enabled grills allow you to monitor meat temperatures remotely. Enhance the dining area with weather-proof smart TVs and outdoor sound systems to keep guests entertained.

7. Smart Outdoor Speakers and Entertainment Audio

Bring music to your outdoor gatherings with weather-resistant smart speakers that keep cords and portable devices out of the way. You can manage playlists and volume from your phone or voice assistant, create different audio zones for the patio and yard, and enjoy consistent sound without hauling equipment outside each time you entertain.

8. Smart Fire Pits and Outdoor Heaters

Cool evenings don’t have to end your time outside. Smart gas fire pits and outdoor heaters can be controlled by a remote, app or timer, making it easy to warm up the space when you’re ready to relax. Extending how long you can comfortably use your patio or seating areas makes your outdoor space more usable throughout the year.

The Smart Upgrades That May Not Add as Much Value

While technology offers many benefits, it’s important to choose upgrades thoughtfully. You may enjoy certain features for your own use, but not all of them will deliver a strong return on investment.

• Complex or difficult-to-use systems. Technology that requires constant troubleshooting or relies on a complex app can deter potential buyers, who may view it as a hassle rather than a benefit. Aim for user-friendly and intuitive tech choices.
• Niche or very high-end tech. Luxury additions, such as a fully automated outdoor theater, may appeal to some buyers, but not everyone is looking for such specialized upgrades.

Financing Your Backyard Improvements

Creating your ideal outdoor space requires an upfront investment, but fortunately, you can leverage your existing home equity to fund these projects. Your home equity is the difference between your property's current market value and your outstanding mortgage balance.

Here are a few ways to finance your backyard improvements:

• Cash-out refinance: This type of refinance allows you to replace your current mortgage with a new one for a larger amount. You receive the difference in cash, which you can use for landscaping, smart tech, an outdoor kitchen or almost anything else. This loan option often provides a lower interest rate compared to credit cards or personal loans.
• Home equity loan: This provides a lump sum of money while leaving your primary mortgage untouched. It features a fixed interest rate and predictable monthly payments.

The Smart Way to Make the Most of Your Outdoor Space

Making strategic upgrades to your backyard can improve how you use your space every day while also contributing to your home’s overall value. Prioritizing features that simplify upkeep and make the space more functional can pay off now — and may continue to make a difference if you decide to sell later.

If you are ready to start planning your outdoor renovations, reaching out to a professional can help you understand your financial options. Connect with a Pennymac Loan Expert to learn how a cash-out refinance or home equity loan can help bring your backyard vision to life.