- Does A Pool Add Value To Your Home?
- Does a pool add value to a home?
- Cost to install a pool
- Cost to maintain a pool
- Cost to insure a pool
- How much value does a pool add to a home?
- How to finance a pool
- Bottom line
- Learn more:
- Does a Swimming Pool Add Value to Your Home? | | REX Blog
- When the Price is Right for a Backyard Pool
- Average Costs for a Backyard Pool
- Is Installing a Pool Worth It?
- Tips to Maximize Return on Investment
- Here are some other articles you may enjoy:
- Home Upgrades With the Lowest ROI
- #1 Outdoor Kitchen
- #2 In-Ground Swimming Pool
- #3 In-Ground Spa
- #4 Elevator
- Does a Pool Add Value to a Home? | Clever Real Estate
- Above Ground or Inground?
- Cost, Climate, and Neighborhood
- Insurance and Maintenance
- Will a Swimming Pool Add Value to Your Home?
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Does A Pool Add Value To Your Home?
Here’s a cool and refreshing thought: Does a pool add value to your home? Research suggests that it does, but know what you’re getting into before committing to a swimming pool. Maintenance, repairs and insurance coverage can be costly, and there’s no guarantee that your home will sell for more down the road because of the pool.
Does a pool add value to a home?
Many experts say having a well-kept pool can boost your resale value, especially an inground pool.
“If you search for real estate, you will most certainly see a higher cost for homes with ready-made backyards that include pools,” says Ralph DiBugnara, president of New York City-headquartered Home Qualified, a digital resource for homebuyers, sellers and Realtors.
Melissa Zavala, a broker with Broadpoint Properties in San Diego, agrees.
“Specifically now, in the age of coronavirus, many buyers are seeking a pool. They the idea that their home is a one-stop shop for all their summer entertainment activities since they are concerned about leaving the house,” says Zavala.
Tom Casey, vice president of sales at Anthony & Sylvan Pools in Doylestown, Pennsylvania, says pools are more coveted in warmer regions where they can be used year-round.
“If you live in a warmer climate Florida or Texas, it can increase your property value and make it more ly to sell your home,” notes Casey.
“Coastal or resort communities with vacation home rentals allow owners with swimming pool properties to command higher rental rates than nearby properties without them.
And higher-end neighborhoods are also more amenable to pools that increase a home’s resale value.”
In fact, if most of your neighbors have pools but you don’t, it could decrease your home’s worth on the market.
“But if you live in a typical community where some houses have pools but most do not, having a pool built will probably not have any impact on the value of your home,” cautions Robert Taylor, owner of The Real Estate Solutions Guy in Sacramento, a homebuying and flipping company.
Not all pools are built a, however.
“In many markets, inground pools are preferred and above-ground pools do not increase the value of a home,” Zavala says.
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.
Cost to maintain a pool
Pool upkeep and repair isn’t cheap, either. HomeAdvisor reports that the average cost for basic pool maintenance annually is $1,200 to $1,800. Throw in needed repairs and utility costs ( water and, if you use a pool heater, fuel) and the combined yearly total can range from $3,000 to $5,000.
Upkeep will require buying and adding chemicals to maintain proper pH levels and prevent algae growth, having the pool vacuumed and cleaned regularly during swimming season, and purchasing accessories telescoping poles and attachable brushes and leaf skimmers.
“Homeowners can significantly lower their costs by doing some of the maintenance themselves instead of hiring a pool service,” suggests Casey. “Additionally, your costs can be lower if you invest in a saltwater pool rather than a chlorine pool.”
Cost to insure a pool
Another cost to factor in is the price to insure your home — your homeowners insurance premiums will ly be higher when you have a pool.
Lev Barinskiy, CEO of SmartFinancial Insurance in Costa Mesa, California, says most policies usually cover up to 10 percent of the cost to replace an external structure a pool, and also at least partially cover most swimming pool accidents.
“But even though the liability portion of your homeowners insurance covers pool accidents if a guest is injured or dies, you can still be legally held accountable if you were not providing a safe swimming environment when you allowed guests to use your pool,” Barinskiy says.
If your insurer considers the pool an external structure, you need to list it as one on your policy,” adds Barinskiy, noting that most policies require that you have a fence installed around the pool and eliminate any diving board.
It may also be smart to pay for a personal umbrella policy that gives liability protection beyond the limits of your homeowners policy.
How much value does a pool add to a home?
The experts are a split on how much a pool can contribute to a home’s 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 property’s 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 ly see the greatest increase in the need for pools.”
Be forewarned, however: The presence of a pool isn’t enough to raise your lihood 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 you’re pondering having a pool built, consider paying for a professional appraisal. This expert can best evaluate if adding a pool will augment your home’s value
How to finance a pool
Eager to build a pool? Chances are you may need to borrow money for that purchase. The good news is that interest rates are near historic lows, which means the cost to borrow money is cheap.
If you qualify, you have several pool financing options:
- Pursue a cash-out refinance, whereby you tap your home’s equity and take extra cash out at closing that you can devote to the pool.
- Apply for a home equity loan, in which you pull equity from your home in the form of a fixed-rate second mortgage.
- Consider a home equity line of credit (HELOC), which works as an adjustable-rate line of credit you can draw from when needed, up to a preapproved limit.
- Opt for a personal loan, which is an unsecured loan that doesn’t require collateral or tap into your home’s equity, but may come with a higher interest rate.
- Choose a credit card, which can be a viable alternative if you don’t qualify for any of the above and you are approved for a zero- to low-rate card that you can pay off before the introductory rate expires and higher rates kick in.
The decision to build a pool or buy a home that includes one shouldn’t be taken lightly. Think carefully about when and how much you intend to use it. Explore the extent to which it can factor into your entertaining and recreational plans, and determine if you’ll have the means and local resources to keep the pool operating in good condition.
Lastly, give thought to how you’ll need to prep and market your property and swimming pool when it’s time to sell.
“You need to cater to the right buyer and employ good marketing tactics. The pool will need to be repaired and cleaned, and you’ll want to nicely stage your outdoor retreat,” recommends Casey, who also notes that higher-end buyers, as well as families with kids or teens, are the most ly buyer candidates.
“And if you’re in a colder climate, you should wait to sell when the weather is nice and your pool will be open,” Casey says.
Featured image by JohnnyGreig of Getty Images.
Does a Swimming Pool Add Value to Your Home? | | REX Blog
Have you ever considered having a pool in your backyard?
Imagine yourself lounging poolside on a hot summer day with a book in one hand and a cold drink in the other. If you have children, it’s easy to picture them splashing around in the safety of your backyard. Sunshine, summertime, burgers on the grill: Sounds a dream, doesn’t it?
Especially nowadays, when public pools are completely off-limits, the idea of a backyard pool probably sounds pretty good! As an idealist, it seems a perfect plan. But as a realist—and a homeowner with a budget—you need to consider the value of your investment.
Does a backyard pool improve your home’s value? You’d to think so, considering the amount of time and effort that goes into planning, designing, and installing one. But what you hope for isn’t always what you get.
Let’s take a look at the numbers. We’re going to calculate whether a pool can offer your home a solid return on investment that will make it worthwhile.
When the Price is Right for a Backyard Pool
Here are some factors that may make a pool a good fit for your home:
- Do you live in an upscale neighborhood where many or most of the other homes have pools?
- Is it warm all year round where you live?
- Would you be able to fit a pool in your backyard and still have space for other things, a garden, play area, and a barbeque?
Even if you answered “yes” to these questions, it still won’t guarantee a good return on investment. Conversely, if you answered no, that doesn’t mean a pool can’t work in your favor. The questions simply indicate that the conditions may work to your benefit, but they’re not the only factors at play.
A pool is a significant investment of time and labor. After all that effort, you want to be sure that you can use it more than a handful of times a year.
That’s why pools typically make sense for homes in warmer states Florida, California, Arizona, and Hawaii. However, that doesn’t stop homeowners nationwide from getting pools installed.
It’s just ly that you’ll get more bang for your buck in warmer states.
Average Costs for a Backyard Pool
According to HomeAdvisor, the national average cost of a pool is $27,887. However, this number can fluctuate significantly several factors. The range for a typical in-ground swimming pool can be anywhere from $14,415 to $41,573. However, you can easily spend as $100,000, depending on your tastes.
An above-ground pool can have a price tag of $1,500 to $15,000. Meanwhile, an average in-ground swimming pool made of vinyl or fiberglass can cost anywhere between $20,000 and $60,000 for labor and materials. Keep in mind, though, a vinyl-lined pool will need to be replaced every ten years.
The cost of installing a pool actually varies widely from state to state, and of course, depends on the contractor, labor, and materials used. Use HomeAdvisor’s cost calculator to see how much this project is ly to cost in your home state.
This doesn’t even account for additional purchases enclosures, pool covers, diving boards, filtration systems, lighting design, landscaping, et cetera. And on top of the hefty installation costs, there are associated fees for pool maintenance that can set you back between $500 and $4,000 annually.
Is Installing a Pool Worth It?
It’s clear that a pool can be a financial sinkhole. But if you want one and have backyard space and resources to make it work, don’t let the numbers deter you. However, we do caution against installing a pool with the singular goal of increasing your home value and recouping your financial loss.
While a pool can increase the desirability of your home to prospective buyers, it’s unly that you’ll be able to earn back the money it cost to install it in the first place. Installing a pool may only increase your overall home value by seven percent, and that’s the best-case scenario.
But just because the payoff doesn’t quite balance out doesn’t mean that it’s not worthwhile. You simply can’t beat the enjoyment a backyard pool can bring. Maybe you feel that investing in a pool will enhance your quality of life and the satisfaction you get from your house. If that’s the case, go for it!
Enjoyment of your home is especially pertinent these days, as COVID-19 still has a massive hold on our society. You may find yourself longing for the fun and relaxation a pool can offer. If you’re considering putting a pool in your backyard, the lasting impact of COVID may be a good enough reason to go ahead with the project.
Tips to Maximize Return on Investment
If you are determined to have a pool in your backyard, here are a few tips to help you get the most your investment.
- Maintenance. Take care of your pool! Doing a little bit of work will save you from grief in the long run. For a pool to be a good investment for your home, you’ll need to put effort into maintenance. A pool that’s dirty or in poor condition won’t do anything to increase your home’s value.
- ROI is not just about money. Remember that there’s no definitive rule that can guarantee you a return on investment. Consider some of the factors listed above, but keep in mind that only you can determine what’s best for your home.
- Feature your pool when you list your home. Not all prospective buyers want a pool, and that’s okay. However, the right buyer may be willing to spend more to get a pool, so advertise accordingly.
- Build with longevity in mind. A 20+-year-old pool isn’t going to be a significant selling point, so consider if and when you plan to sell your home before installing a pool.
At the end of the day, a backyard pool is what you make of it. If you do decide to make the investment, you’d better also be ready to enjoy it! Pool or not, when you’re ready to list your home, call REX. We do things differently, and you can save up to 70 percent on agent fees.
Interested in buying or selling a home? We would love to help!
Give us a call at 855-205-0599
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Home Upgrades With the Lowest ROI
Life is a balancing act, and upgrading your home is no different. Some upgrades, a kitchen remodel or an additional bathroom, typically add value to your home. Others, putting in a pool, provide little dollar return on your investment.
Of course, homeowning isn’t just about building wealth; it’s also about living well and making memories — even if that means outclassing your neighborhood or turning off future buyers. So if any of these six upgrades is something you can’t be dissuaded from, enjoy! We won’t judge. But go in with your eyes wide open. Here’s why:
#1 Outdoor Kitchen
The fantasy: You’re the man — grilling steaks, blending margaritas, and washing highball glasses without ever leaving your pimped-out patio kitchen.
The reality: For what it costs — median cost is $14,000 — are you really gonna use it? Despite our penchant for eating alfresco, families spend most leisure time in front of some screen and almost no leisure time outdoors, no matter how much they spend on amenities, according to UCLA’s “Life At Home” study.
- Bathroom & Laundry
When converting your tub to a shower, follow these 6 foolproof tips.
Some trees are more trouble than they’re worth. Before you head to a nursery, see our slideshow. Then, see even more trees readers hate.
Save on Utilities
Does your toilet have the cold sweats? Here’s how to fix condensation on a toilet tank before the dripping water rots out your bathroom floor.
The bottom-line: Instead, buy a tricked out gas grill, which will do just fine when you need to char something. If you’re dying for an outdoor upgrade, install exterior lighting — only 1% of buyers don’t want that.
#2 In-Ground Swimming Pool
The fantasy: Floating aimlessly, sipping umbrella drinks, staying cool in the dog days of summer.
The reality: Pools are money pits that you’ll spend $57,500 to install, and thousands more to insure, secure, and maintain.
Plus, you won’t use them as much as you think, and when you’re ready to sell, buyers will call your pool a maintenance pain.
In fact, according to the “Remodeling Impact Report” from the National Association of REALTORS®, you'll only get back 43% return when you sell.
The bottom-line: If a backyard swimming pool is on your must-have home list, go for it. But, get real about:
- How many days per year you’ll actually swim.
- How much your energy bills will climb to heat the water ($760 to $1,845 depending on location and temperature).
- What you’ll pay to clean and chemically treat the pool ($20 to $100 per month in-season if you do it yourself; $75 to $165 per month for a pool service).
- The fact that you'll ly need to invest in a pool fence. In fact, some insurance carriers require it.
Related: Natural Swimming Pools: 9 Myths Busted
#3 In-Ground Spa
The fantasy: Soothing aching muscles and sipping chardonnay with friends while being surrounded by warm water and bubbles.
The reality: In-ground spas are nearly as expensive as pools and cost about $1 a day for electricity and chemicals. You’ll have to buy a cover ($50 to $400) to keep children, pets, and leaves out. And, in-ground pools, in-ground spas’ ROI depends solely on how much the next homeowner wants one.
The bottom-line: Unless you have a chronic condition that requires hydrotherapy, you probably won’t use your spa as much as you imagine. A portable hot tub will give you the same benefits for as little as $1,000 to $2,500, and you can take it with you when you move.
Your fantasy: No more climbing stairs for you or for your parents when they move in.
The reality: Elevators top the list of features buyers don’t want in the NAHB “What Buyers Really Want” report. They cost upwards of $25,000 to install, which requires sawing through floors, laying concrete, and crafting high-precision framing. And, at sales time, elevators can turn off some families, especially those with little kids who love to push buttons.
The bottom-line: If you truly need help climbing stairs, you can install a chair lift on a rail system ($1,000 to $5,000). Best feature: It can be removed.
Does a Pool Add Value to a Home? | Clever Real Estate
As with many wishlist additions one would to make to their home, the question of “value” is a significant one. Sure, you might be able to pay for it and get it done, but will you be able to maintain it?
And, when the time comes, will building this addition hurt you when you're selling?
One of the more common wishlist additions made to a home's property is a swimming pool. When properly maintained, it provides a near infinite amount of entertainment that you can keep coming back to. Swimming comes with a laundry list of health benefits and the proximity ensures that you'll never need to hear “I'm bored” ever again from your kids.
Let's face it: getting a swimming pool can seem a slam dunk case when it comes to how it influences your lifestyle and your family.
But let's also face this: getting a swimming pool comes with some hard-to-answer questions about finances and selling.
Above Ground or Inground?
Comparing costs between an above ground pool and an inground pool can seem to make the choice obvious. An above-ground pool is cheaper, and therefore it's the better option.
Not so fast.
It's true that an above ground pool can save you a lot of money. They're potentially temporary, typically can be easily removed, and still provide your family an easy outlet for activity and entertainment.
However, it's also true that above ground pools consistently lower a home's value when selling. Many buyers require the removal of the pool before purchase. While an above ground swimming pool can get you what you want at a cheaper price, it won't end well should you ever elect to sell your home.
Above-ground pools can negatively impact the home's aesthetic, especially in comparison to neighboring homes. The cheaper implementations stick out a sore thumb and many homeowners usually place the pool in the center of their backyard where it'll damage the grass and vegetation below.
If you hope your pool will increase the value of your home, going inground is the only path.
Cost, Climate, and Neighborhood
When you're looking at the potential of installing a pool, you have to consider the cost, the climate, and the neighborhood. All three of these considerations can heavily influence the value of your home.
For example, installing a pool might end up costing 15 to 20 percent of what you paid for your house (or more!). Poor land quality, altitude, uneven soil, and more can all contribute to a growing expense list if you want to put a pool in the ground. Even if everything goes well, any added value to your home's appraisal won't compare to the money you put into it.
There are also different kinds of pools that you can install, made different materials and each requiring varying levels of maintenance. Fiberglass shells are cheaper but need to be replaced every ten years! The type of pool can impact the cost of installation and the value it adds to your property.
This ties into the climate of where your home is located.
Colder climates will ly need a type of housing around the pool (which costs more money) and will also make maintenance a little trickier than if you were in a warm climate.
A good rule of thumb is that warmer climates will value swimming pools more than colder climates simply due to practicality — a swimming pool that can be used more is ultimately more valuable to the buyer (and seller).
And finally, where your home is in relation to other houses can matter. Homeowner Associations can have strict regulations about pool installations, and certain neighborhoods might even result in your home's value going down if you install a swimming pool.
A home that is significantly more costly than the surrounding properties can discourage buyers and some people may not the idea of having the only swimming pool in the neighborhood. A pool costs money to maintain.
Many buyers won't want to deal with that recurring cost while also paying a premium for the actual property compared to other homes in the area.
List with a full-service agent, get top dollar, save thousands.
Insurance and Maintenance
Installing an in-ground swimming pool can impact your insurance premiums. While a basic homeowners policy will ly cover the pool itself, you'll want to increase the liability coverage in case of flooding and natural disaster.
Some insurance providers might also require certain modifications to your swimming pool. A fence, for example, might be requested in order to prevent children from getting in while unsupervised. Before installation, consult with your insurance broker. They can help you make sure you do everything right on the first try.
What should also be kept in mind is that pools require maintenance. This is a fact even if you shell out the dough for the best materials.
Filters, heating, cleaning, water balancing, and the water itself can all contribute to the cost of maintaining your pool.
These responsibilities need to be kept up with even if you aren't using your swimming pool as neglect can pile up and make it more expensive to bring your pool back to a usable standard.
Technological developments have helped with the task of upkeep. There exist efficient heaters, effective balancers and sanitizers, and even robotic cleaners that do the weekly cleaning for you.
These devices and materials have a significant upfront cost and then expected annual costs, especially if you hire someone to do the maintaining for you.
You should expect to pay between $15-30 per week in maintenance.
Will a Swimming Pool Add Value to Your Home?
Curious if a pool will add value to your property in your neighborhood? Clever has local agents who can help you out. Clever agents are knowledgeable, reliable, and capable of finding the answers to the real estate questions that keep you up at night.
If you decide you want to sell, a Clever agent will list your home for a fraction of the cost of other realtors. They'll save you thousands on commission — and save you from the headache of unanswerable questions.
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