How Much Does a Pool Add to the Sale Price of a House

Real Estate News Article

< Back

How Much Does a Pool Add to the Sale Price of a House

Written By: Rudyard
Sunday, May 19, 2019

Thatrsquo;s because whilst homes can appreciate in value, pools do not. A pool is like a motor vehicle ndash; once it has been used, its value starts depreciating, and a pool that is more than 10 years old would have almost no value at all in a real estate transaction.

Of course, there are exceptions to that general rule. A well-constructed concrete pool using high-quality materials in a high-end property, and which has been well maintained throughout its life, is still going to have value after 10 years.

Mr Pool Man, a leading supplier of high-quality pool pumps and filtration equipment, says the condition and quality of the pool fixtures and fittings that have been used also has a big impact on whether an older pool can hold its value. But the average quality pool in a suburban home is likely to depreciate at around the same rate as a motor vehicle ndash; a large drop in value the first year, and then steadily decreasing until there is not much resale value left at the end of a decade.

So the answer to the question as to whether the cost of installing a pool can be recouped in a property sale is almost certainly no.

As to the question of how much can be added to the sale price to reflect the value of the pool depends on a range of other factors aside from age:

Type of pool

Only professionally constructed in-ground pools with a shotcrete, gunite or tiled finish are capable of holding much value beyond 10 years. Even then, the value is going to be largely dependent on its condition and the quality of fixtures and fittings.

Any noticeable cracks in the surface of the pool - even without any evidence of leakage - is going to reduce its value.nbsp;

Many manufacturers of fiberglass pools claim their pools can hold their value as long as concrete pools. Technically that is true at least for the first 10 years, but in practice most homeowners donrsquo;t keep the water quality at an optimum level throughout the year, and this often results in premature discoloring of the gel coat finish on the fiberglass.

Any discoloring of the surface of the pool is going to result in the pool looking older than it might really be, thus having some impact on the amount that can be added to the selling price of the property.

Pools that have a vinyl liner are the cheapest to install and this is reflected in the fact that they have the lowest resale value. Vinyl liners have to be replaced every five years or so, so unless the liner has been fairly recently replaced, it is unlikely that the value that a buyer would place on this type of pool would be anything close to its installation cost.

Buyerrsquo;s needs

After the age and the type of the pool, the factor that has the most influence on the extent to which the selling price of the property can be inflated to recoup some of the installation costs of the pool is whether the buyer is actively seeking to buy a property with a pool.

This is where the issue of how much to add to the selling price becomes very subjective because whilst some buyers ndash; families with children for example ndash; may be actively seeking a house with a pool, others may be ambivalent about whether the property has a pool or not.

In fact having a pool may even turn away some buyers who do not want a pool because whilst a pool may enhance the look of a house and garden, if the new homeowners have no intention of using it, they will need to still spend money on keeping it maintained to avoid it becoming unsightly with green algae.

Rule of Thumb

So with one of those factors being so subjective, how is it possible to estimate a figure to add to the sale price of the house to account for the value of the pool? A good rule of thumb is to work out what the cost of installing the pool represents as a percentage of the cost of building or buying the house. Generally that figure is around 10-15 percent. Then take half that figure and apply that percentage to what would have been the sale price of the house. So, for example, if the cost of building the pool was 12 percent of the cost of building the house, then increase the selling price of the house by 6 percent.

Of course, that price needs to be compared with the market price of similar properties that may have been sold in the same area, and for older houses with older pools, that figure may end up only being a starting point from which you will have to negotiate, but at least you will have a figure that represents the maximum likely return from a house and pool sale.





Copyright© 2019 Realty Times®. All Rights Reserved

Updated: Thursday, May 23, 2019

4 Hazards Facing New First-Tim...
In a market inundated with realty advertising , letrsquo;s look at 4 critical are...

Replacing Your Roof? Now You C...
The new smog-reducing roof Granules from 3Mnbsp;will ldquo;harness the power of the sun to i...

What Happens When Tariffs Hit ...
ldquo;Tariffs on goods traded between the U.S. and China have already increased in several s...

Copyright ©2019Realty Times®. All Rights Reserved

Housing Rebound: Factors to Consider
In Miami we have had an incredible year of growth with an ever shrinking supply of condos...

Hoteliers Buy Versace Mansion at Auction
Gindi Family and Nakash Family of New York were the winners of the auction for Casa Casuarina...

Stunning Estate for Sale on Allison Island
Allison Island is one of the man made islands comprising Miami Beach. One half of the island...

Avant Garde and Luxurious Penthouse on Fisher Island
Fisher Island is home to some of the highest net worth individuals in Miami. It is a private...

6000 Indian Creek, Condominium Spotlight
6000 Indian Creek is a Sieger Suarez project that was completed in 2007 and consists of...

$35 Million Buys you THIS on Star Island
$35 Million for a home on Star Island is par for the course in Miami Beach real estate....

Development Update
It is looking like a dusty winter season in Miami, with all the construction rapidly underway,...

North Bay Road Charm, 4330 North Bay Road
4330 North Bay Road is a stunning example of Mediterranean architecture in Miami Beach....

Best Home Improvements for Resale Value
It could not be a better time for a homeowner to list their home for sale in Miami. The...

Biscayne Gets a New Development
The Melo Group of developers acquired 601 NE 23rd St last year and have conceived of 23...

520 West Ave Residence 2301
520 West Avenue is home of the Bentley Bay. Bentley Bay is comprised of two modern towers...

Spice 2013, Guide 101
Miami Spice is a program whereby most of the restaurants in the city encourage people to...

Hollywood has a New Hotel
Margaritaville Hollywood is coming to Hollywood Beach and is likely to completely alter...

Sustainable Waterfront Home on Normandy Isle, 1.85 Million
Rarely on the market do we find completely sustainable, off the grid, homes in Miami Beach....

Housing Inventory on the Rise at the Close of Summer
The Wallstreet Journal released numbers via Realtor.com regarding the inventory of available...

Warm Spanish Style Home Listed on the Sunset Islands
1844 W. 23rd Street is listed on the Miami Beach luxury real estate marketplace for $11...

Former Gansevoort Getting Complete Eco-Renovation
Last year the Perry Hotel, formerly the Gansevoort, was purchased for $230 million. The...

Affordable Luxury Waterfront on Hibiscus Island
A home that is considered affordable in Miami terms for waterfront is generally between...

Bart Reines New Masterpiece Released on the Market
Bart Reines is one of the worlds most impressive modern architects living, and he has just...

New Listing on La Gorce Island
98 La Gorce Court has just been listed for sale. This over 7800 square foot home with 8...