As a homeowner, you're always looking for ways to increase your home's value, and one of the first places you might take a look at is installing an inground pool. Why? Well, they're fun for the family and appeal to almost everyone; however, do they increase the value of your home? By installing a pool, will your home see an increase in value based on how much you spent on the pool?
We're going to dive into whether or not having a pool is worth it in terms of your home's value. You might be surprised to learn that a dollar-for-dollar pool isn't worth it, but there's another value in having that elegant and luxurious body of water in your backyard.
Benefits of having a pool.
As a homeowner, particularly a homeowner with kids, there are endless benefits to having a pool. The allure of playing in the water and jumping into a refreshing, fabulous pool after a long day at work or school is highly enticing to anyone of all ages.
Especially for those living in warm climates such as Texas, who can't help but think about how nice it would be to have a pool on one's property?
Your home instantly becomes the focal point of parties within your circles with an inground pool. Birthday parties and barbeques quickly become the location everyone gravitates towards.
However, it also begs the question, are there any benefits to having that luxurious pool in terms of home value?
Affect of a pool on a home appraisal.
Unfortunately, pools generally don't add as much value to your home as they'll cost to install.
Depending on where you live and the size, pools can cost anywhere between $25,000 to $100,000. That's a substantial investment for any homeowner, but Amanda Brown of Amanda Brown Realty says homeowners shouldn't expect to get that money back when they sell it.
"When a home is appraised, the appraiser is going to compare the home with similar homes with pools. If they can't find homes with pools, they'll typically add around $5,000 to the comparable homes that don't have pools," says Amanda.
In essence, they'll provide a slight bump in the value of the comparable homes, but not as much as the homeowner has invested in the pool.
Bringing in the buyers.
There is a silver lining, however. While the endless summer fun is a perk, there is something to look forward to when you sell your home with a pool.
Almost everyone dreams of having a pool, and it's effortless for potential buyers to envision themselves having a blast in the pool. This may result in multiple offers on your home, and with multiple offers, you will see better offers.
Having multiple offers means you'll be able to negotiate the price of your home higher than it would have been if you just had one offer.
So, does the pool increase the home's value?
It might not increase the value of your home a significant amount on paper, but you can't look past the fun your family will have this summer with the pool.
Just keep in mind, you probably won't recoup the costs of installing the pool.
Amanda states, “I recommend homeowners to install a pool only if it’s something they’re going to use, but not necessarily for resale value.”
If you want a pool for your home and want to maximize the value, most real estate agents would recommend buying a home with a pool already installed. You'll enjoy the fun in the sun and all of the other benefits while not having to pay the costs of installing the pool.
The bottom line.
Pool owners should keep in mind that appraisers will typically not factor the cost of the pool into a home's appraisal. This means, if you want to maximize your investment and have an inground pool installed on your property for increased value, it may be best to buy a house with a pre-existing pool. You will get the most bang for your buck this way. If installing a new one is more appealing to you, remember that you won't recoup the costs when you sell the home.