How much value does a swimming pool add to my home in Maryland?
We've often been asked "how much value does a swimming pool add to my home?" Well, it depends.
The traditional wisdom is that the pool doesn't add a particular amount in value, but rather makes the home sell quicker.
To that point, RealEstate.com said, "In one study of similarly priced houses in the same community, homes with pools stayed on the MLS an average of 76 days, while homes without pools sold in an average of 53 days.".
Most real estate agents will tell you that pools do not add value to a home, and for the most part this is true. What value a pool may add is small – typically about 8 percent of the home's value, according to the National Association of Realtors® National Center for Real Estate Research. The margin of increase is larger for homes in the southern U.S., Florida and Hawaii.
The decision to install a swimming pool should be based on your personal lifestyle and desire, not whether it will add value to the home.
Got my point?
A swimming pool may be just what you need in a hot summer's day, however, it may be wise to look beyond the immediate satisfaction of having a pool and consider its impact on your time, budget and safety in the long term. Doing your research, considering the risks and rewards of pool ownership and talking with insurance and real estate experts prior to your pool purchase will help eliminate future surprises and frustration.
What's obvious is that in order for a pool to increase your home's value it must be well maintained. That means in addition to the initial cost and time investment of installing a pool, there is the future cost and time requirements of ensuring your pool is kept clean and in good working order.
After all, what's not to love about a swimming pool in your backyard? If you have one, you may feel blessed. If you don't, and are considering adding one, hang on a minute.
According to Better Homes and Gardens Real Estate, middle-aged buyers with teenagers at home comprise the biggest market segment for homes with swimming pools. This makes sense when you consider how dangerous an unfenced pool is for families with toddlers.
Another segment of home buyers who may find a pool desirable are younger couples who entertain frequently. There has been a lot of emphasis over the past few years on outdoor entertainment areas, including outdoor kitchens, fire pits, fireplaces and seating areas. A swimming pool frequently figures into these plans.
"Location, location, location" may just be a trite real estate mantra, but it is important nonetheless. According to the U.S. Consumer Product Safety Commission, the three most popular states for homes with pools are California, Arizona and Florida. The National Association of Realtors says an in-ground pool adds about 7.7 percent to the home's market value. However, in colder climates, a pool may add no value. If you live in Hawaii, Florida or the Southwest, a pool is far more in demand than for homes in Minnesota, Alaska or North Dakota.
Then, drill down your location even further. Even if you live in the desert climate of the Southwest, if there's a community pool a block away, installing a pool at home may be a waste of money. On the other hand, if your neighbors all have pools, you should probably consider putting one in.
Owners of luxury homes in higher-priced neighborhoods with roomy backyards that appeal to buyers looking for a certain lifestyle may be able to justify the expense of installing a swimming pool. In fact, if you own a luxury home without a pool, you may lose buyers.
Lot size is a huge factor in deciding whether or not to have a swimming pool installed. Remember, if you have a small lot and the pool takes up the entire backyard, you are removing your home from consideration by buyers with small children and buyers who garden or entertain. Pet owners and young families typically want grassy areas where their pets and kids can play safely. Many seniors like to putter in the yard. If there is no room for any backyard activity other than swimming, you narrow the buyer field dramatically.
One of the most important factors to consider when thinking about adding a pool as a home improvement project is to not over-improve for the neighborhood. If you own a modest tract home in a neighborhood of similar homes, a pool may be overkill. The value of your home can only rise to that of the most expensive home in the area.
Above-Ground Alternatives
If you are concerned about the cost of a pool versus the amount it adds to your property’s value, then consider an above-ground pool. These pools have become increasingly easy to install and maintain, and cost only a fraction of the tens of thousands of dollars that a homeowner must pour into an in-ground pool. Most pool companies now say they install significantly more above-ground pools versus their in-ground models.
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