Question Details

May, Home Buyer in Sacramento, CA

I'm moving into a new home. I'm thinking of putting in a pool in the backyard. Do you think that this is a?

Asked by May, Sacramento, CA Wed Mar 26, 2008

good investment? Does it add value to the home?

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Answers

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Whether or not adding a pool adds value depends entirely on your geographical market and the specific neighborhood you are moving into. In Las Vegas where having a pool is a prized commodity in family neighborhoods, it definitely adds value, though you never get the return back dollar for dollar. Typically it is about 60 cents on the dollar. If I put that same pool in a Sun City retirement community, however, the added value is only about 30 cents on the dollar.

But even though it does not add a dollar amount value, a pool can help your home sell much more quickly when it comes time to put it on the market, again depending on the typical buyer's profile in the area you live in. In Las Vegas it would be a big help. You should really contact an agent you trust in your local market area to find out what kind of value it would have for the specific home you are buying.

But first and foremost, do NOT get a pool unless you will really enjoy it! They do require upkeep and maintenance. I have had a pool in all my homes for the past 25 years and I love it. But if you are not going to use it personally, it is not worth the expense.
1 vote Thank Flag Link Wed Mar 26, 2008
May, I think you'll find that no matter what you will never recoup your cost of putting in a pool. I think if you plan to really use it, and stay in the home for a long time, then by all means do so. If, however, you think you'll only be in the home for 5 years or so, which is average, then you'll see very little if any return on your investment. Peggy
0 votes Thank Flag Link Wed Mar 26, 2008
In North Florida for resale homes I have never seen a pool add more than half it's construction cost to a home's value (apx) - for new homes they charge you full price no matter what ; )
0 votes Thank Flag Link Wed Mar 26, 2008
May,

Pools are just like red Jaguars .. everyone stops and looks, everyone ooh's and ah's, but nobody really buys one ...

You may enjoy the heck out of a pool .. but most will walk away at sale time ...

Tracy has hit this one right on target ....


:^)
0 votes Thank Flag Link Wed Mar 26, 2008
Depending again on the area is where you will find part of the answer. West Coast, Arizona,Fla, states that are warm and have a cliamte that is hot is hot will help a return on the pool. However in other states that are warm but not really year round you may loose.

You really limit the buyers out there because of the pool. They may love the home however the upkeep tec for the pool is added expense that they may not want or can afford. So if you put it in be prepared to maybe accept less for the ome because of it.
0 votes Thank Flag Link Wed Mar 26, 2008
Value may vary by area. Here in Northern Indiana you would not get enough value added to cover the cost of an inground pool. If you are thinking of an above ground pool it can always be removed and the yard repaired when you put the home on the market.

The biggest question to ask yourself... How much will you use a pool? Will your enjoyment be worth the investment?

A personal story: About 2 yrs. ago we built a new home and had a large inground pool installed. The amount the appraiser allowed for the pool was $20,000+ less than the cost. Have we regretted this expense? NO. Can we use the pool year round? No. Using the pool heater we can get about 6 months use of the pool. The pool is one of the best things we have purchased. Our children ask friends over to swim, we get to know their friends, and they are home instead of at others homes.

So... I can not give you a yes or no answer. I hope that this information can help you make a decision.
0 votes Thank Flag Link Wed Mar 26, 2008
Hi Tracy,

A pool is not a good investment but it does add value to a home. If you are looking to get into a home, you should buy a home with a pool already in it. Feel free to contact me via my site http://www.equitypath.org if you need help finding a home with such an amenity.

Hung Pham
Realtor / Licensed Appraiser
http://www.equitypath.org
Web Reference: http://www.equitypath.org
0 votes Thank Flag Link Wed Mar 26, 2008
If you add a pool, you will exclude many prospective buyers when you want to sell, so it may add some value, but it will also exclude many potential buyers, say, family with small kids.

If you enjoy swimming, which don't sound like, you can join local YMCA, Fitness Center ...etc. or you can go to priceline.com to bid 4* hotels that always got very nice pool to use.

When you do not sell your home with a pool you seldom use, even if the value added, you will pay higher property tax, so be very careful!

But, if you enjoy swimming pool party, it is very different. Like my neighbor who got a nice pool and jacuci, and can't believe snowing days they had an outdoor party for that ... but, they only use those for party, one or twice a year...

If you have spared cash in your CD, you may find the rate collapsed from 5% to 2%, and inflation is high, so if you have no where to invest your cash, adding a pool may be a good idea.

We just get a 10,000 sq ft drive way paved because it is now $3.5 per sq ft, but due to the hike of gas price, it could go up to $7 per sq ft, so you know that I "save" money on the driveway, rather than in CD's...
0 votes Thank Flag Link Wed Mar 26, 2008
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