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I'm paying more than that PER YEAR to develop mine. But there again my garden isn't the average size ... :)
I think that there are two schools of thought here. One is that a keen gardener would be happier to take a poorly presented plot and haggle the price down substantially so that they may develop the garden in a way that suits their own tastes and style.
The saving on the property can more than pay for the garden restoration/landscaping.
The second thought is as suggested in the article. If you are looking to sell a house then having the garden tidied up will make it all the more saleable to a buyer.
I think it may be a great way of investing in property in the future i.e. buying a house with a poor garden and just superficially tarting up the décor (maybe a new kitchen and bathroom) but investing wisely in the garden.
Target the landscape for the right demographic. If it is a family style home then landscape it with large open lawn and installed play area but if you are looking to sell to a middle aged couple then landscape the garden with large terrace for sitting and entertaining, perhaps a conservatory and well thought out and stocked shrub borders.
I've used the 10% of house value quote many times and that can reassure people. With clients where I used to live occupying £500,00 - £1,000,000 homes that can add up to something quite useful!