Can the pool add more or less than 10%? Absolutely, it's only a guideline. A fancy well-landscaped deck area around a pool with waterfalls and so on can easily fetch close to what it cost to put it in. On the other hand, a plain play pool on a $100k house may not fetch a premium of $10k, even though it cost $19k to put in.
Your question about price per square foot exposes one of the problems we all face in valuing houses. As Mary Beth points out there are many factors that go into determining the value of a property, not just how much per square foot. A formal appraisal attempts to factor in all those other attributes of a property. But when you're just trying to estimate the rough value or do a sanity check on a price, price per square foot is an easy measure.
If the house next door is priced at $150 psf and you're priced at $120 psf, something is amiss. Either the property has a lot more land or a lot more amenities and features or somebody made a gross error in pricing one of them. A careful comparative analysis and evaluation of a home would reveal what would be fair. CMAs are similar to appraisals and are done by Realtors.
Formal appraisals may be more accurate because they take into account not just whether a pool is there but also whether it is a diving pool or a play pool, whether it has a heater, cover, nice decking and so on. But the final proof of the true value is what it sells for. Theory is fine but more accurate CMAs than just price per square foot will give better results.
You are looking at a standard. I would take what Bruce says as the closest answer. NO ONE knows with out seeing the property and pool.
BUT if what you are saying is true, would we subtract the value of the added detached garage , the stables, designer landscaping and fencing.the ,
The sellers do not alwys recoup the amount they put into these improvements but the standard value can not be deducted.
There are different pools, and some can cost $30,000 and some $300,000 and higher I am sure but I have not been privileged to sow those homes in Texas.
We would no more add 15K than deduct 15K for all these homes. We just advise Buyers and Sellers that when they put in improvements such as these the should not expect a full return on their money.
As as mentioned below, some pools cost more to repair that they are worth - due to age.
Hope this helps , Have a good day
6 months of sales history in that "given area"
$15K for pool each home "stands alone" determine value of home. Homes with Pools in most instances will have higher comp value over a home with no pools.
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Keep in mind, too, that a pool can certainly detract from value for some buyers. Finding the exact right home with the exact right pool is a really tough combination. Negative, zero, and positive value are all a possibility.
In a buyer's market, the pool is one more amenity that buyers will try to de-value, like they do with granite countertops and wood floors when there is saturation in the housing market. In a seller's market, it is the amenities of each home that help it stand out and retain more value to the buyer's. We have both market conditions going on in DFW right now. Each neighborhood has to be checked for current available inventory and sale history for the last 30-60-90 days to see where it falls.
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It will depend on the pool, the age, the neighborhood, and perhaps other factors.
Some pools may have no value or even negative value on a home.
Some pools may add $50,000 in value...
So it just depends.
If you would like to see what homes with pools are selling for in your neighborhood just follow the link below.
Keller Williams Realty
Great Question! Many people are confused about how a pool adds to the value of a home. First, there is no rule of thumb that you can use for coming up with the value for a pool as was stated by some of the other realtors that has answered your question. Again, you have to look at what other homes with pools are selling for in the area. When comparing it with homes without pools you must subtract it from the square footage price, however if you are comparing it with homes with pools then you must add it in to the price. I have gone through appraisal school and there are lots of things that must be taken into consideration when coming up with the value of a home. Each home is competing with other homes in the neighborhood and surrounding areas and that is why a realtor has to know the market.
Knowledge, experience, and a past track record of successfully selling homes is what you should look for when picking a realtor to sell a home. Always ask if they are a full time agent or a part time agent so that you can find a dedicated professional to help you sell your home. I appreciate you allowing the realtor community to answer your questions and if I may be of any additional assistance, please call me at 214-676-8040 and I will be happy to help you. There is no obligation to you for allowing me to assist you with your questions.
Keller Williams Realty
Good question and certainly one the town or county assessor will take into consideration. Assessors figure your total square footage, then add the extras, pool, fireplace, tile etc. Appraisers will try to find similar homes which have recently sold that already have a pool to determine your value.
The good news is homes are not generally sold by $/sq ft. (I do agree some sellers OFFER their house by that method, and buyers and investors who are--bottom feeders--may be looking for a deal and check the lowest $/sq ft;) but people who are looking for a family home really have other parameters.
And dollars per square foot really don't tell the story. What if there is a big parcel of land? Or a tennis court? Or water views? Or a long manicured driveway? Or a pool and spa with tile or pavers? All of these add to the value/asking price, but the asking price is then divided by the square footage (in New England square footage can include the basement--in Florida it's usually only the area that is air conditioned). The final cost per square foot varies by style. So the square foot cost is best used when comparing similar condos or homes in a neighborhood built by ONE builder.
Now we have to evaluate the sales (and only the last 4 months) and more importantly what is your competition. Now how does your price per square foot measure up? And that pool...does it add value to the whole picture?
You need an agent experienced in selling real estate in todays market. Let me know if I can help.
Mary Beth Harrison
The Harrison Group