If you have 2 alike houses, & 1 has an inground pool, what is the $ value that the pool adds?

Asked by Gail, 19115 Wed Apr 15, 2009

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Tina Baba, Agent, Tucson, AZ
Thu Apr 16, 2009
Hi Gail,

A pool can actually detract from a home to a potential buyer that does not want to pay for the up keep and maintenance of a pool. A pool does cost $$ to have....
Does the pool make the home/garden more attractive? If so I would add 1/3rd of the value it would cost to install a brand new pool like the one that this home has. However if the pool detracts from the home I would not add any value to the home, you could start subtracting if the pool needs some repair....

Hope this helps.

Please email me if you have any further questions...

Tina Baba.
Web Reference:  http://www.tinababa.com
0 votes
David - Appr…, , Maricopa, AZ
Wed Apr 15, 2009
The market dictates what the pool contributes (or detracts) to the overall value of the property. There are many factors that need to be taken into consideration in determining the contributory value even if houses are alike. There is NO SET PERCENTAGE that is used as others have erroneously mentioned. That may be their way but it's not the appraisal way.

The most widely acceptable method used in a scenerio such as the one you presented, is the method of matched pairs analysis. A short version - this is where one researches several similar properties within the specific market area where the only major difference between the properties sold is (in this case) an inground pool. A few of the sold comparables (3 or more) do not have pools, and a few (3 or more) do have pools. Given all aspects being equal (not likely) and differences have been accounted for (adjusted), theoretically the differences in sale price between those with and those without pools would indicate the market reaction in regards to pools within that specific market area.
0 votes
Tom Goeders, Agent, Burbank, CA
Wed Apr 15, 2009
Hi Gail,

2 things determine the value of a home:

1st, what a buyer is willing to pay for it
2nd, buyer's price justified by an appraiser (sent out by buyer's lender)

Regarding the first part, it depends on what type of buyers are out there any given time and what they are looking for. Some buyers prefer a pool, others are very opposed to them.

Regarding the second part, an appriaser will adjust an appraisal report approx. 2.5-5% for a pool, generally speaking (I'm in CA, your local experts will have the best numbers for AZ). This can vary depending upon overall value of the area, type of improvements made in pool area.

You've got some good detailed info from a couple of AZ Realtors.

You can also ask your lender to refer this question to one of their appraisers although I'm betting their answer will be similar to Howard's.

Best of luck in your home search!

Tom Goeders, Realtor, SRES
Keller Williams Realty http://www.TomGoeders.com
tomgoeders@kw.com
(818) 378-7602
0 votes
George Szkup, , Tucson, AZ
Wed Apr 15, 2009
Gail,
Pools vary in value by a substantial amount of money. In addition, there is a consideration of how easy or how difficult would be to built one. You can discribe the pool to a pool installer and ask how much would a new pool cost. Than asume that the appraised value will be about 60% to 75% of this number.
George in Tucson

http://www.DestinationTucson.biz
0 votes
Howard Roth, Agent, Tucson, AZ
Wed Apr 15, 2009
That depends on the quality and features of the pool and the values in the neighborhood. If you spend $50,000. on a quality pool and spa to be put alongside your $80,000. manufactured home property; you will only get a small percentage of the cost back. If you put it in the backyard of a million dollar home; you will probably get most of that $50,000. back when you sell the home. You also get more value for the pool if there are no community pools nearby. Adding a pool to a house that is in a neighborhood that already has a community pool gives you a smaller return on that investment. In general terms....if you spend about $25,000. on a pool & spa for a $250,000. house; you can expect to get $10,000. to $15,000. more for your house than for an identical house without a pool. Adding a pool can provide great entertainment for you and your friends and family, but don't expect to get the full cost back when you sell your home. Please also note that you get a lot of money for added "bells & whistles" on your home in a sellers' market, but you tend to get less for those items in a buyers' market like the one we are in now.

HowardRoth@remax.net
0 votes
Don Wehn, Agent, Tucson, AZ
Wed Apr 15, 2009
In discussions with appraisers they will generally add 5-10% of the appraised value for an inground pool assuming that it is in good condition. That is the formula I follow when determining a property value to list or make an offer.
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