Does A Pool Add Value To A Home?

Spending summers in the hot, dry desert of Phoenix, AZ means always looking for ways to stay cool. Adding a swimming pool to your home is a popular choice. Some homeowners insist on having a pool because it fits their lifestyle and they can’t imagine living in AZ without it, while others consider a pool as an investment in their home. But for those considering a pool as an investment, they will likely be shocked to find out the cost to build a pool might outweigh the additional value when it comes time for a home appraisal.

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Difference Between Cost and Value

According to SwimmingPool.com a small fiberglass pool might cost $40,000 to $45,000 with a large fiberglass pool costing $55,000 to $85,000 and up. Pebbletek pools cost more and some pools cost over $250,000. The cost of building a pool is the actual money spent to design, construct, and complete the pool, including materials, labor, permits, design fees, and other expenses associated with the construction process.

However, the value of a swimming pool is the increase in the overall market value of your home that can be attributed to the addition of a pool.

 

What Affects The Value of a New Pool?

This increase in value takes into account various factors including:

     

    1. Market Trends

    The current real estate market trends and buyer preferences play a significant role. In some markets, pools might be in high demand, while in others, they might not be as attractive to buyers.

     

    2. Property Size

    The size of your property matters. If your yard is already quite small, adding a pool might take up a significant portion of your outdoor space, which could potentially deter buyers who are looking for more yard space.

    In addition the size and quality of the home also matters. If you have what could be classified as a “starter” home for example an 800 sqft home on a 5,000 sqft lot a large expensive pool would likely be an over improvement and add considerably less value than the cost. This can also be a concern on the opposite side of the spectrum. If you have a very expensive home for example a 5,000+ sqft home on a large lot a small inexpensive pool could be an under improvement and also add less value than it costs.

     

    3. Maintenance Costs

    Pools require ongoing maintenance and can come with significant costs. Some potential buyers might be put off by the idea of dealing with these costs and responsibilities.

     

    4. Aesthetic Appeal

    A well-designed and landscaped pool can enhance the overall aesthetic appeal of your property, making it more attractive to potential buyers.

     

    5. Safety Concerns

    Pools also come with safety concerns, especially if there are children in the household or if the property is located in an area with strict safety regulations. This might impact the attractiveness of the property to certain buyers.

     

    6. Personal Preference

    Not all buyers want a pool. Some might see it as a liability due to maintenance, safety, or simply because they don't have an interest in using it.

 

In essence, it’s how much more your home might be worth with the addition compared to its value without it.

Here’s an example to illustrate the difference:

Let’s say you spend $60,000 to add a pool to your home. This $60,000 is the cost of the pool. However, after the pool is completed, an appraiser assesses your home’s value and determines through accepted appraisal methods that the pool has increased your home’s overall market value by $40,000.

In this scenario, the cost of the pool ($60,000) is higher than the value it added to your home ($40,000). This can sometimes happen, and it’s important to be aware that not all home improvements will provide a direct dollar-for-dollar return on investment.

If you are considering adding a pool to your home, it’s a good idea to consult with real estate professionals or appraisers who are familiar with your local market.

 

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