A question I get at least once a week. A huge pat on the back for thinking in terms of adjustments and not a price per foot. To properly answer this question I would need to ask additional questions.
- What price range home?
- Describe the pool, is it a gunite, diving, play pool, have a spa?
- Age of the pool?
- Condition of the pool?
- Features (water fall, fountain, etc.)
- Construction ... does it have stone surrounds, aggregate decking, etc.?
- Is the pool over built or under built for the price level?
The answer is not a simple one and Realtors need to realize just because a home has a pool many factors apply before you can properly consider the value contribution. Also the word common sense applies. Because a home has a pool does not mean that it is worth the same as a similar sale with a pool in the price range.
All these homes are located in the same subdivision and are the same price range. Visually look at the points of difference. Clearly the top right pool is much less quality, no spa, very basic. The lower right pool is much newer as it was built in 2005, has many features such is a salt water pool, stone work, spa. All the other pools were built in the mid 1990s . So I ask ... should all these pools be given the same value with no adjustments? NO ... is the answer. That is where you would need do a little research to discover the points of difference and consider that in your analysis.
The answer to the question ... it is what a buyer in the market would be willing to pay for the amenity. Consideration for all the above question should be given. The increase interest in outdoor living has given more value to pool amenities. The price range of housing is around $300,000. Clearly the lower right one should receive a higher value than the other pools and would bring about an additional $28,000 to the price of the home. The upper right one may bring $12,000 ... it really is understated for the property with no bells and whistles.
In your market pools may bring varied values to a property maybe even detract from the value. You need to research, use common sense and pinpoint what the buyers are willing to pay. Sources to assist you with opinions are other professionals in your office, local appraisers and other Realtors that have an expertise in the area. Seek first to think clearly and then the answer to the question will fall in place.