Impact of a Pool on Property Appraisal in 2023
Pools are excellent for private properties because the whole family will get to enjoy them. They are also good investments for business property because they might increase the selling price. But when the time comes to put the property on the market, it is important to know how much value does a pool add to an appraisal.
The answer is much more complex than a specific price range. There are a lot of factors to consider when appraising properties with pools. That’s why this guide explains when and how much a pool can increase a property’s value.
How Much Value Does a Pool Add to an Appraisal?
In the last few years, the real estate market has noticed a drastic increase in property values and prices in the USA. Consequently, many owners and potential buyers find themselves wondering how much value does a pool add to an appraisal.
Generally speaking, a well-maintained and functional pool might increase the property value by up to 7%. However, the average impact of a pool on property appraisal is lifting the price between 4-6%.
Suppose a property is valued at $500,000 without a pool. Getting an appraisal with a pool might increase the property price between $20,000 and $30,000.
As with all home improvements, everyone thinks about the resale value before investing in something. When it comes to pools, they can cost between $25,000 and $120,000 to build. But do they have a good ROI?
There is no real guarantee that the investor will get the money back when selling the property. In most cases, increasing the property value by 7% might not be actually worth it if the investor builds the pool only for the sole purpose of increasing the property value.
Is it harder to sell a house with a pool?
Whether a pool makes it harder or easier to sell a house in the USA generally depends on the potential buyers’ perception. A luxury pool is a selling point for some. Conversely, some buyers see it as a liability instead of a luxury and are concerned about maintenance costs.
Factors Influencing the Pool’s Added Property Value
There are many factors that can influence how much a pool impacts a home’s value.
First and foremost, knowing the pool type in question changes whether it will impact the home value. For instance, above-ground pools typically don’t influence the property value. In rare cases, an appraiser might include it in the property assessment if it is physically attached to it.
Namely, the addition of a glass wall pool can significantly elevate a property’s value. The luxurious aesthetic appeal and modern design of such pools contribute to an upscale atmosphere, making the home more attractive to potential buyers.
On the other hand, in-ground pools are the type that can add value to a property. In addition to the pool type, whether a swimming pool adds value depends on the pool’s size and condition.
Property climate and location
How much value does a pool add to an appraisal also depends on the climate and location of the property. For instance, building or remodeling a pool in Arizona is worth it. The state has a hot and humid climate, allowing the pool to be used for longer periods during the year.
Another interesting factor is the number of swimming pools in the neighborhood. If pools are a standard amenity in the area, having a pool will allow the property to keep up with the house market prices.
To illustrate, the cities with the most swimming pools in the USA are:
- Las Vegas
- Los Angeles
- San Diego
Whether a swimming pool adds value also depends on the backyard space. If the property has a small backyard and the pool takes up the whole place, it might not add value to the property.
The pool should blend into the space. Plus, the backyard should be spacious enough and designed accordingly so it uses the space wisely. Thus, a backyard with a pool and enough space for other activities, like a patio or deck for relaxing or an outdoor kitchen, is beneficial.
Pool’s condition and features
The pool’s condition is one of the most important factors. A well-maintained pool that doesn’t require the buyer to invest money in it will likely add to an appraisal. However, having a pool in poor condition may even decrease the property value.
Another important factor is the pool features. For instance, pool heating, water effects, spas, and tanning ledge might make the pool look more luxurious and possibly add value to the property assessment.
Tips for Maximizing Pool-Related Property Value
Increasing the property value needs a lot of dedication. Luckily, when it comes to using pools as assets for a house, homeowners can maximize the pool-related property value in multiple ways.
First, regular maintenance is of significant importance. The filters and pumps should be fully functional. The pool should be built from durable materials and in top shape. Aside from the pool condition, it is important for the outdoors to feature attractive landscaping.
Furthermore, upgrading to energy-efficient pool equipment will make the pool an asset for the property. They will drive buyers who are environmentally friendly. In addition, an energy-efficient pool will attract buyers who want to enjoy a pool but avoid paying high utility bills.
Another important thing is to take into consideration the safety measures. A pool with a cover, fencing, alarms, lightning, and other features might increase the property’s value.
Smart pools are also a huge hit. Investing in automated cleaning systems, pH regulators, and, most importantly, remote control systems will increase the chances of having a higher property value because of the pool.
In the real estate market, the property value is determined by many factors. The same goes for how much value does a pool add to an appraisal. Generally, homeowners can expect a property value increase of between 4-6%.
Whether the pool will have a good ROI or not depends on location, design, features, conditions, and pool type. The appraiser will take into consideration these factors, and if everything checks, it might increase the selling price by a maximum of 7%.