Hey Appraiser, How Much Value Should I Give for a Pool?

By
Real Estate Agent with Keller Williams Realty

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. 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Lainie Ramsey 09/12/2009 12:53 PM
Topic:
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Location:
Texas Collin County
Groups:
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Collin County, TX Real Estate Professionals
Diary of a Realtor
Tags:
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comparable analysis
appraising a home

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Rainmaker
238,510
Angelia Garcia
Pure Realtors - Dallas, TX

They all give lots of value in my opinion since I live in Texas.  Today was too hot for me even though the temp is in the 80's.

Apr 21, 2009 12:29 PM #1
Rainmaker
238,510
Angelia Garcia
Pure Realtors - Dallas, TX

Do you feel the same as I do since you are only 35 min. away?

Apr 21, 2009 12:30 PM #2
Rainer
261,098
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Angelia - upper 80s and I am smiling!  I love it hot, use to lifeguard in high school for 4 years and love to soak in those rays.  Yes, they all do add value in this climate and great point ... more in the spring and summer than in the winter months.

Apr 21, 2009 12:32 PM #3
Rainer
47,502
Karina Morgan
CENTURY 21 Regency Realty - Enterprise, AL

Around here a 20 X 40 Gunite well done with kool deck and not skimping on the deck and stain runs around 40K. Liner pool's around 15-20 K. Fiberglass can also run around 35 K.

Very Hot here in lower Alabama so a pool is a plus.

Some want it Some don't

Take care

Karina

Apr 21, 2009 12:53 PM #4
Rainer
261,098
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Karina - thanks for the input and insight to your area.  It all depends on what is acceptable to your area. 

Apr 21, 2009 01:01 PM #5
Rainmaker
1,007,773
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Connie:  Besides finding buyers who will agree that having a pool adds "some" value to the property... there will always be those who walk into the back yard, see the pool... and the first thing they think of... is how much it will cost them to "fill in the hole."  Sometimes having a pool can be very detrimental to the sale of the house.  I have found that, at times, having a pool can really slow down the sale of a home... or have a negative effect on it's value.  Thanks for sharing...

Apr 21, 2009 06:11 PM #6
Rainer
261,098
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Karen - you are right, it all depends on what a buyer in the market is willing to pay or not pay for the amenity.

Apr 21, 2009 11:15 PM #7
Rainmaker
545,146
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

ToulaRosebrock.comHi Connie:

That is the answer.  How much is a buyer willing to pay for that additional amenity.

And let's face it, for some buyers, a pool is a deterrent.

Have a great day.

Apr 21, 2009 11:53 PM #8
Rainer
261,098
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Toula - you nailed it!

Apr 22, 2009 12:29 AM #9
Rainmaker
213,142
Sandy McAlpine
RE/MAX EXECUTIVE - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC

Some appraisers have told me that the value for a pool is less than half of what it costs to put it in. ?

Apr 22, 2009 12:52 AM #10
Rainmaker
3,477,585
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Connie...what a great idea for a post...useful too! I agree with all the comments too, especially my friend Toula!

Apr 22, 2009 02:05 AM #11
Anonymous
Anonymous

Kristen - thanks and I appreciate the visit. 

Apr 22, 2009 05:23 AM #12
Rainer
478,183
Not a real person
San Diego, CA

By the time I finished with that upper right pool and landscaping that yard, it would be worth far more than any of those other pools.

I don't like that bottom left pool. It has no privacy from all those people gawking out those huge windows at the half naked bodies in the pool -- LOL.

Apr 28, 2009 09:49 PM #13
Rainmaker
1,116,658
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I haven't had the opportunity yet to help anyone buy or sell a property that had a pool since I work most in 40 condominium complexes.

May 01, 2009 04:27 AM #14
Rainmaker
1,507,472
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Houses with pool are usually sold faster and higher in $$ than identical houses without pools. 

Mar 14, 2018 06:47 PM #15
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Rainer
261,098

Connie Goodrich

CRS ABR (McKinney Realtor)Texas
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