The value of a pool for Homes?
July 18, 2023 By Ryan Lundquist
Excerpts:
Some areas have more pools than others
Real estate is about location. That’s what we always hear. And, it’s true. Homes in different locations and price points tend to have different amenities, and that includes pools. Keep in mind the presence of a pool could be about lot size also – not just the price range.
More pools at higher prices
Here’s a look at the percentage of homes sold with pools by price range in a few local counties. In short, the higher the price, the greater chance of having a pool. This likely has to do with the cost of building a pool, cost of maintaining a pool, and even larger parcels at higher ranges – not to mention buyers at higher price points expecting a pool more often.
NOTE: Does your market look similar?
Adjustments for pools
Last but not least, let’s remember there is no such thing as a one-size-fits-all adjustment for a built-in pool because the value of a pool is going to depend on quality, condition, and even age. But it’s also about location because some price ranges and areas simply expect a pool to be present. In contrast, pools hardly exist in some locations, so it’s less of a factor because buyers don’t expect a pool. Ultimately, let’s look to the comps for the answers. What are buyers willing to pay? The ideal is to find similar homes with and without pools to help us understand that.
To read more and see Ryan’s tables and graphs on pools, click here
My comments: I live in an island city with a “Mediterranean” climate located on San Francisco Bay, which means some fog and moderate temperatures. This week, the highest temperature will be under 70 degrees. About 10-15 miles away, east of the hills, the climate is totally different, with very hot summers. The current high temperature there is about 100 degrees.
Where I live, very few homes have pools. After 35 years of appraising here, the value effect is none. Often, the MLS mentions that the sellers will fill in the pool, but I don’t know if that has ever happened. In dramatic contrast, when I first started appraising “over the hill”, 10-15 miles away where there are many subdivisions, I noticed that in certain neighborhoods, a pool was almost mandatory. I used comps with pools for any homes with and without pools to see any adjustment.
If you are not in an area where this is clear, making pool adjustments can be tough without adequate comps. I have appraised a few homes with pools in areas with few pools. It was tricky.
Pools can be a significant hazard, especially for children. Also, maintenance and heating is a hassle.
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NOTE: Please scroll down to read the other topics in this long blog post on non lender appraisals, foreclosures way down from 2008, Freddie and ANSI, unusual homes, mortgage origination stats, etc.
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