Tree Valuation: Determining the Value of a Tree On your Property (Part 1)
This blog post is the first of two on the valuation of trees. It discusses how homeowners can evaluate the worth of a tree on their property. The second blog post will discuss more formal tree appraisal methods.
How much is that tree on your property worth? If you’re like many homeowners, that thought seldom crosses your mind. That’s no surprise. Homeowners tend to buy trees based mostly on aesthetics or what they think will look good in their yards. While aesthetics is a great reason for buying a tree, it’s not the only one.
You also need to look at the economic benefits trees bring to the table. Trees boost the economic value of one’s property and home more than you may realize. Truth is, the right tree planted in your yard makes a difference to your home and property—a big difference. Often, that difference goes well beyond your initial cost for the tree.
So how much is a tree on your property worth?
Research by the Arbor Day Foundation shows that planting a good-sized tree increases property values anywhere from 3% to 15%. The Council of Tree Landscape Appraisers, on the other hand, says a sound mature tree can add $1000 to $10,000 to the value of your home. Put simply, when it comes to selling a house, trees improve curb appeal.
What’s more, a good shade tree can save you money by cooling off your house. Some experts say it can reduce your home cooling bill by 50%. In the winter, the right tree (Evergreens) can block the wind, cutting heating costs from 20% to 50%. Suffice it to say, then, that trees boost the value of a home and property—a consideration you should keep firmly in mind when buying a tree.
Determining the Value of Trees
RITree’s recent inventory of forests in six Rhode Island urban communities—Cranston, Johnston, North Providence, Warren, Warwick, and Woonsocket—found that an average tree provides over $108 in annual value, including:
- $42 in energy savings
- $40 in aesthetic value
- $11 storm water control
That’s a great return on your investment from a single tree over a single year. Over ten years the return adds up considerably. It compares favorably to the return provided by planting a public tree. A public tree in its 20th year after planting, provides $96 in benefits and only costs $36 for an annual net benefit of $60.
And let’s not forget the economic benefits trees bring to the community. Research by the Tree Council, for example, shows that collectively, the six Rhode Island communities mentioned above provide about $32.5 million annually in environmental services, including savings, carbon storage, and storm water controls thanks to the trees on their land.
Put simply, trees increase the value of your land and a healthy return on your money when planted on your property. If you want to calculate the economic benefit provided by s single tree in any landscape, go to the MyTree website at: https://mytree.itreetools.org.
Seven Trees that Add Value to Your Property
The key to generating a great return on your property is finding the right tree for your yard. Matching the right tree to the right property benefits both the tree and the property. With all the different species available, however, choosing the right tree for your yard can be confusing.
Ideally, you want to select a tree that grows to a known width and height. That way, you can match the tree to the space available. Plus, some trees, add more economic value to your home and property than others.
Maples, oaks, lindens, and tulip trees are good choices for local homeowners from an economic standpoint. So are magnolias, ornamental cherry, and citrus trees. Deciduous trees are great for suburban gardens. They let light in autumn and winter.
While these trees add value to your property, not all of them are well suited for every site. Some considerations when selecting a tree for your property in addition to the value they provide and their economic benefit include:
- Tree form and size
- Tree placement
- Growing conditions
- Soil conditions
- Clearance for sidewalks
- Clearance for driveways
- Function of the tree
- Exposure to sun and wind
These are critical factors you need to take into consideration when buying a tree for your property. That’s why it helps to consult someone knowledgeable about trees when buying a tree for your yard.
Buying a tree for your property is a serious decision. So, do your homework when it comes to purchasing a tree or trees to plant in your yard. Research the tree’s pros and cons and then consider the factors mentioned above. Doing that will help you choose the perfect tree for your property—one that not only beautifies your land but also boosts its value.
If you’re still confused about buying the right tree for your property, contact RI Tree at (401) 764-5885. We’ll help you choose a tree that makes sense for you and your property.