A Pool Can Increase The Value Of Your Home But Location Matters
A 2019 analysis from real estate brokerage Redfin calculates exactly how much value a pool can add. The analysis calculates the value of a private pool as a premium to a home’s per-square-foot sale price in metro areas where houses with pools for sale are relatively abundant. In certain regions, having a pool is a major perk, and home-buyers are willing to pay extra for it: A pool can add $95,000 to a median-priced home’s value in Los Angeles, Calif., for example, and almost $30,000 to a home’s value in Tampa, Fla.
In other regions, though, having a pool can actually detract from a home’s value. Redfin’s analysis found that homes with pools in Boston, Mass., were worth approximately $15,000 less than comparable homes without pools.
Redfin’s analysis was limited to 19 metro areasregions had to have at least 5,000 homes sold in 2018 where at least 2 percent of sold homes had pools to be includedbut the variety in pool values proves that the true value of an inground pool really depends on where you live. Added value from a pool in areas included in the analysis ranged from $11,000 in Phoenix, Ariz., to $95,000 in L.A.
An Expanded Owner’s Suite
A new owner’s suite with a luxury bathroom and walk-in closet can be a huge selling point that increases your home’s value. But, that’s not necessarily the case if the remodel turns your three bedroom home into a two bedroom homeor if you lose some other living space in the process.
In general, the more bedrooms a home has, the higher the price it can fetch. If you take away a bedroom, your home will be priced according to homes in the neighborhood with the same number of bedroomseven if that owner’s suite is huge. Fewer bedrooms also mean fewer potential buyers, which can make it harder to sell your home at the price you want.
How Much Value Does A Pool Add To A Home
The experts are a split on how much a pool can contribute to a homes value.
One HouseLogic study suggests an increase of 7 percent, at most, under ideal conditions, while HGTV reports that the average inground pool can up your propertys value by 5 to 8 percent. Another analysis by the brokerage Redfin of 19 warm-weather markets found that a pool can add between $11,591 and $95,393 in value to your home.
As is true of virtually any facet of real estate, location makes a big difference.
In towns with a below-average amount of pools, a homeowner with a pool could see a large increase in value because of their unique selling proposition, DiBugnara explains. Also, neighborhoods that are heavily populated with school-age children will likely see the greatest increase in the need for pools.
Be forewarned, however: The presence of a pool isnt enough to raise your likelihood of higher resale value.
A poorly maintained pool in need of repair or maintenance could drag your home value down and deter buyers, cautions DiBugnara.
If youre pondering having a pool built, consider paying for a professional appraisal. This expert can best evaluate if adding a pool will augment your homes value
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Cost To Install A Pool
According to HomeAdvisor, the average cost to build an inground pool, including labor and materials, ranges from $20,000 to $60,000 for a fiberglass pool and $35,000 to $100,000 for one made from gunite or concrete. The typical tab for an above-ground model spans $1,500 to $15,000.
Those expected prices are in line with what Casey estimates.
Bear in mind that, although inground pools are pricier, they tend to last years longer than above-ground pools, says Casey.
Pools Can Reduce Values In Some Cases
Pools can actually reduce the value in some cases. When you got people who dont want a pool and all the hassle that goes with it buyers may just see it as an expense and hassle.
They might actually be turned away from the pool and they might actually not make offers on your property because it has a pool. A lot of real estate agent say One of the best ways to get great deal for your house is to appeal to the most amount of people and to hope for a bidding war.
Sometimes a pool can actually reduce value because youre appealing to a smaller market of people who want a swimming pool.
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Not Selling Soon Keep Maintenance And Ongoing Costs Of Owning A Pool In Mind
The ongoing maintenance and upkeep can be a costly endeavor. If you dont continuously keep your pool clean, it will turn green in no time! You should also make sure to have the protective cover on during winter months to prevent any tree branches from falling into your swimming pool or otherwise damaging it beyond repair. This is because trees love to drop their leaves right about this time of year. Beyond that, once you start adding up all of those monthly costs including chemicals, water treatment systems and supplies then things start getting expensive real fast without even considering the initial cost for building one out first!
According to Homeguide pool maintenance prices in the US fall into these ranges:
- $81 to $143 per month during the swimming season
- An average of $300 to either open or close the pool
These costs dont even factor in a possible increase in your homeowner insurance rates that may come along when you add one to your home. Do the math based on how soon you plan to sell your home and be sure to factor that into your decision-making so that you will have a good idea if the property value increase will be worthwhile or not for your particular home.
Why Do Inground Swimming Pools Increase Property Taxes
Inground Swimming pools increase your homes property taxes because inground swimming pools add value to your property. It all comes down to supply and demand more and more homeowners are looking for properties with swimming pools but only a recorded 5% of pools have homes. Therefore, if a buyer finds a house with an indoor pool, it has a higher chance of being sold.
Adding a swimming pool to your home is classified under home improvements, which are among the most common reasons for an increase in property tax.
Depending on the market, your swimming pool may add as little as 5% or as much as 30% to the overall cost of your property.
From here, your property taxes are determined by the assessed value of your home and then multiplied by your local tax rate.
For instance, if your property is worth $500,000 and your property tax rate is 2%, your property tax bill might cost around $10,000 annually.
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How Well Is The Swimming Pool Maintained
One thing that we are often asked to do it a report for potential buyers of a house with a swimming pool. This is to check that there is nothing currently wrong with the swimming pool, and nothing that will need replaced in the near future. Also to check that the pool has been well looked after over its lifetime.
Anything wrong will, of course, have to be fixed, and will cost money. This could affect the sale price.
The main thing to remember with this is that your swimming pool need to be well maintained with regular servicing over its lifetime to ensure that it maintains it value.
Especially, if you are thinking of selling in the future you will want to make sure you look after your swimming pool and if anything goes wrong, that you get it quickly repaired.
Custom Pools Compliment Your Home And Landscape
New, custom-built pools are in demand. Homebuyers will typically avoid homes with outdated pools and pools in poor condition since these pools will need extra work and money.
Potential homebuyers want beautifully designed backyards with pools that are in top condition and are ready to use, with no need for repairs and upgrades.
Many homebuyers will also want plenty of green space in their backyards. So consider the landscape and your homes style in your custom pool designs. These designs should include landscaping, decks, and patios to turn your backyard into a luxury oasis.
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Thinking About Building A Swimming Pool Here’s How It’ll Affect Your Home’s Value According To Experts
Swimming pools are more popular than ever, but does that mean they’ll give your home value a boost? Here’s what the experts have to say.
According to realtors in a recent HomeLight report, the estimated value of a swimming pool has increased nationally by 69 percent. In the Northeast, it has increased by a staggering 113 percent, followed by a 98 percent increase in the Midwest.
On the other hand, in the almost 10 years that Ive been covering Remodelings Cost vs. Value Report, it has never even listed a swimming pool addition among its annual 22 recommended remodeling projects and this year was no exception.
Granted, the pandemic has certainly caused a shift in the features that buyers want in a home. If youre thinking about putting a pool in your backyard, and how it will affect your home’s resale value, these are three factors to consider.
- Thinking about going above ground? Check out: How much does an above ground pool cost?
The Cost Of Maintaining A Pool Can Outweigh The Value
As great as an inground pool might be, it takes a lot of time and money to maintain. Think heating, cleaning, and any repairs that may come up. Annual costs of pool maintenance are between $1,200 and $1,800, says Arnold Long, general ops manager at Mr. Blue Plumbing. Opening and closing your pool in the summer and winter comes with additional costs, tooaround $150 to $300, depending on how clean your pool is. So is the cost of a pool worth the value it adds?
“No, and it’s not even close,” says Long. “In the best-case scenario, in which you got a deal on pool installation and don’t own the property for too long, you’ll lose $23,000 on your investment. But this is if everything goes right, you get lucky, and the pool doesn’t require any repairs.”
The cost of installing an inground pool and maintaining it does vary based on the type of pool and other factors, but the it’s still an expensive add to your home . It’s important to consider all the costs and whether it would be a worthwhile investment for you.
“A pool should only be added to a home if the homeowner plans on using it for years. Otherwise a pool should be considered a bad investment,” says realtor Jason Gelios.
However, if you live in an area where having a pool in the backyard is par for the course, it may be a major boost to your home’s value when it does come time to sell. It’s your gamble.
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How Pools Add Value: Different Pool Types
Lets start by getting down the basics: Theres a big difference between an in-ground pool and an above-pool. While an in-ground pool is much more expensive and timely to install, this permanent investment is the only real way to add any sort of swimmy-value to your home. As the name would suggest, these pools are installed into the ground of your yard or garden, often using concrete.
On the flip side, the equally intuitively named above-ground pools are installed quickly above ground and are made of plastics and metal enforcements. While you personally might have invested a fair share in your new aquatic playground , these pools wont provide a thing when it comes to the resale value of your home.
Who Is In The Market To Buy A Home
It might seem really obvious, but who is looking for a house at that moment will determine how much value it adds.
If someone is looking for a house with a swimming pool then yes, it will add value as it means they dont need to spend money and add their own.
If they arent looking for a pool, then as you would imagine they would be less willing to pay extra for one, even if they like the rest of the house.
Its all about getting the right buyer at the right time. Which means, that it might take longer to sell at the price that you want.
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Is It Worthwhile Owning A Pool The Verdict:
As mentioned earlier, the value of owning a pool also factors in you and your familys additional enjoyment, which you cant put a tag price on. And when deciding whether to own one, you shouldnt look at it solely as an investment rather as a way of upgrading your lifestyle, especially if you have the financial capacity to do so.
There may be cases where it would make sense to add one before a sale, but you dont want to take the risk of losing money, which is way more likely than the former scenario in most real estate markets.
In the end, follow your hearts desire but just be prepared for the costs and responsibility of owning a pool.
How A Swimming Pool Affects Homeowners Insurance
Once a swimming pool is on a property, the chance for injury or death increases which is why homeowners insurance increases with a pool. According to Zacks Investment Research, insurance companies typically require an increased liability coverage, sometimes up to half a million dollars, and some even encourage additional umbrella policies. There are ways to keep premiums at a reasonable rate by installing a locking gate around the pool, keeping the pool covered with a safety tarp, adding motion sensors to the pool, and even cameras surrounding the pool.
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Interested In More Articles Like This
We hope this post helped you understand how swimming pools impact home appraisals . As you can see, several variables go into figuring out the answer to the question of “how much value does a pool add to an appraisal?”
You cant put a price on the enjoyment a pool can bring to you and your family. Instead of viewing it as an investment in your home, look at it as an investment in your lifestyle. You may or may not recoup the monetary part of the investment when you sell your home.
If youve enjoyed reading this article, wed love you to continue browsing the blog. Youll find a wide range of articles for both home sellers and home buyers.
When A Pool Makes Financial Sense
- If you live in a higher-end neighborhood and most of your neighbors have pools. In fact, not having a pool might make your home harder to sell.
- If you live in a warm climate, such as Florida or Hawaii.
- Your lot is big enough to accommodate a pool and still have some yard left over for play or gardening.
Still, thats no guarantee youll get a return on your investment. At most, your homes value might increase 7% if all circumstances are right when it comes time to sell. Those circumstances include the points made above, plus:
- The style of the pool. Does it fit the neighborhood?
- The condition of the pool. Is it well-maintained?
- Age of the pool. If you put a pool in today and sell in 20 years, you probably wont recoup your costs, especially if the pool needs updating.
- You can attract the right buyer. Couples with very young children may shy away from pools because of safety issues, but an older childless couple may fall in love with it.
But only you, the homeowner, can determine the true return on investment. A pool can add value to your quality of life and enhance the enjoyment of your home. You cant put a price tag on that.
But we can put a price tag on how much a pool costs to build and maintain.
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Cost Of Swimming Pool Maintenance
If youre toying with the idea of buying a home with a swimming pool, youll want to know how much its going to cost you to maintain it. DiClerico says homeowners will pay an average of between $1,200 and $1,800 in annual upkeep.
Opening your pool, which includes removing the cover, reassembling the filter system, cleaning and testing the water chemistry, and refilling the water, typically costs between $150 and $300. However, he says, this cost could be higher if your pool is dirty and requires extra labor and chemicals.
Closing and winterizing the pool also falls within the $150 to $300 range.
Monthly maintenance could cost anywhere from $80 to $150 a month, depending on the services, DiClerico explains. On the lower end of that amount, pool service professionals will test the waters pH, and also check the filters, settings, and equipment. The upper end of that amount also includes such services as brushing down the surface, vacuuming, skimming , and emptying traps and baskets.
If you decide to maintain the in-ground pool yourself, DiClerico says youll spend at least an hour a week doing so, and will likely need the following:
Occasionally youll also probably need chlorine to shock the pool to eliminate the buildup of ammonia, nitrogen, and other contaminants. The chlorine comes in 24- to 50-pound bags, ranging from $55 to $120.
Pools Aren’t Cheap To Build
The average cost in the U.S. to install, equip, and fill a 600-sq.-ft. concrete pool starts at $30,000.
Add in details like safety fences , waterfalls, lighting, landscaping, and perhaps a spa, and youre easily looking at totals approaching $100,000.
Costs also depend on the type of pool you choose.
Gunite is the most popular in-ground pool. Gunite is a mixture of cement and sand, which can be poured into almost any shape. It has replaced concrete pools as the sought-after standard.
Fiberglass shells and those with vinyl liners fall on the lower end of the budget scale, but the liners typically need replacing every 10 or so years. Changing the liner requires draining the pool and replacing the edging , so over time, costs add up. Most homebuyers will insist that you replace a vinyl liner, even if its only a few years old.
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