Do Pools Add Value to Home Appraisals?
What makes something worth more to one person and not so much another? You might ask the Peanuts character Linus. It’s Halloween and the all-time classic “It’s the Great Pumpkin” is set to visit our screens.
You all know the story, while everyone else is out trick-or-treating, Linus doesn’t place much affection for walking from house to house filling up sacks with candy. Instead, Linus, along with the canine sidekick Snoopy, sits in a pumpkin patch waiting for the “Great Pumpkin” which of course never arrives. Linus just doesn’t place much value in filling up a sack with candy. Different folks place value in different things.
Are you a homeowner? Are you thinking about putting in a swimming pool? Are you shopping for a home and one of your criteria is the home must have its own in-ground pool?
If this is you, then you have placed value in a swimming pool. But what will adding a swimming pool to an existing property do to its value?
It does, but only to those who also want a swimming pool. An article in the National Association of Realtor magazine points out the average cost to install, equip and fill up a swimming pool starts somewhere near $30,000.
In addition, there are ongoing maintenance and operating costs to consider including operating the pump and heater and another $600 to clean and maintain the pool. And you should also talk to your insurance agent to make sure your liability coverage is enough to protect you in case of a pool accident.
So far, it doesn’t sound very much like a pool adds value. But it can and does in most case. Somewhat, anyway.
According to the same article, a pool might boots your property value by as much as 7.00%. If your home is currently worth $321,000, then the value might increase to $350,000. That’s very close to what you would initially spend.
But remember, not all homebuyers want a pool. Who wouldn’t want a swimming pool to enjoy in the hot summer months?
Perhaps buyers with young children or infants. Still other buyers see a swimming pool and don’t see having a pool party with friends but see a maintenance issue.
Pools can be a bit high maintenance and one reason why pool maintenance companies are in business. However, there are reasons why you should definitely consider adding a swimming pool.
If in your neighborhood most other homes have swimming pools, not having one might actually detract from your home’s value. If the swimming pool is the right size and doesn’t take up the whole back yard and there is still plenty of lawn then the pool would be a desired amenity.
If however no other homes in the neighborhood has a swimming pool, there won’t be any other recent sales of homes in the area that have pools and it might be a bit difficult to compare your home with someone else’s.
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