Will you get your investment back when it’s time to sell your house?
This question comes up often and the only real answer I can give is that it depends. There are so many factors to consider when determining the resale value, like geographic location, neighborhood, type of home, type of pool and age and condition of pool. If you live in an upscale neighborhood where most homes have pools, or you live in a warm state like Florida, it can certainly increase the market value, however if the pool is over 20 years old or in poor condition, it can hurt it.
It also depends on who’s buying. Regardless of how beautiful or extravagant a pool is, some families simply don’t want it because of the extra cost, maintenance and safety issues with small children. Either way, you probably will not get the full cost of installation in resale value.
If you’re thinking about putting a pool in just to add value to your home, you’re probably better off making physical improvements or renovations to your house instead, like an outdoor patio and kitchen, bedroom or finished basement.
Having said that, most people put pools in for family enjoyment in hopes that it will at least maintain it’s value. Is there a price tag for the years your family will enjoy in an outdoor pool? Many families substitute vacations for a backyard oasis. So there is much savings and value there.
If you are planning to install a pool and resale value is important to you, make sure you do your research first and calculate all the costs associated when you budget. Visit The Association of Pool and Spa Professionals (APSP) website at apsp.org for information and resources regarding materials, safety and standards.
5 important things to consider:
Are you in a neighborhood where there are many homes with pools? Is the yard large enough to fit a pool with room left over for play or gardening?
2. Type of pool and cost to install
This price includes permits (from some HOAs) excavation, pool installation, decking, landscaping, lighting and safety fences (most states require them). This could easily reach or exceed $100,000.
3. Filtration and heating
Filtration pumps and heaters use a lot of energy, although newer systems have been designed to be much more efficient than in the past. A gas heater is less expensive to install, but has higher operating expenses.
This will include chemical balancing, cleaning and opening and closing each season. If you choose to do this yourself it will be less expensive than using a pool professional however opening and closing should be done professionally.
5. Insurance and Taxes
Most homeowners insurance policies will cover a pool structure however you should increase your liability. Also, in some areas, a pool may increase your property taxes but won’t necessarily add home value.
A general rule of thumb should be to keep the cost of your entire pool investment to between 10% and 15% of what you believe the resale value of your home is. So, if your house has a market value of $750,000, a 12% investment would be $90,000. If your house is valued at $500,000 then the project should not exceed $60,000. This will keep you from investing too much in an amenity that won’t necessarily pay back.
If you are interested in learning what the current value of your home is, email Bryan Garcia at email@example.com. He can provide a detailed Competitive Market Analysis.
Or, sign up now for a free Market Snapshot. You’ll get an emailed report with all the current homes for sale in you neighborhood, recent home sales and prices, new listings, days on the market, price changes and more.
If you are interested in buying a home in the Haymarket area with a pool, see click below to see some wonderful homes for sale with pools.
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