Should you take the plunge?
So you've heard that a pool hurts resell of your home and it is an expense that you will not see a return on. Want a pool but afraid to dive in?
The pat answer in Real Estate, "It depends" certainly applies when it come to an in ground pool. I must admit, having grown up a swimmer, that I am quite envious of those homes in my neighborhood with full driveways and screaming laughter spilling from the back yard when the summer heat arrives. I imagine my home being the one that attracts friends and family for an afternoon BBQ and fun. So how do you decide if its may be right for you? Answers to the following questions will be helpful in helping you make a wise decision.
1. How much value does a pool add when it comes to an appraisal?
"It depends." Sometimes an appraiser will give no value to a pool. Sometimes they will give a minimal consideration as would be given to a patio space for entertaining. If there are recent home sales with pools then you can expect a better return on the investment, however the opposite could leave you all wet. Therefore if lots of your neighbors have a cement pond then keeping up with the Jones' could work out well for you.
2. I've heard people say that most buyers do not want a pool. Is that true?
"It depends." In Florida the answer would be a solid "no". However, its probably true if you live in the Piedmont area of North Carolina. We have warm summer temperatures but the swimming season typically extends from Memorial Day to Labor Day and many people don't want the maintenance of a pool they only use for a quarter of the year. That being said, there ARE buyers that only want a house with a pool. That is an important fact to consider and evaluate.
When you decide to put your home on the market and have a pool you've certainly eliminated all buyers that absolutely do not want a pool. At the same time those buyers that MUST have a pool will have a small number of homes to choose from. Your competition for that buyer is reduced. A buyer that desires a pool will likely prefer to find a home with an existing pool rather than a home on a lot that will accommodate a pool. Why? They've heard, just like you have, that you never get a good return on a pool. They know the most economical way to have an in ground pool is to buy a home with an existing one. The pool buyer will have fewer homes to select from therefore they may be willing to pay a solid price for your home to get what they are looking for. They certainly see the value in the pool.
3. Can a higher priced home get a better return on a pool?
Yes, you guessed..."It depends." As a general rule I think the answer to this question would be yes. Buyers in a higher price point often are looking for amenities and the added expense of maintaining a pool is not a deal breaker. I would caution you to consider the style and location of your home. Your neighborhood demographic might reduce the desire for a pool. If the HOA provides for maintenance free living then potential buyers in your neighborhood may not want the added upkeep. A wooded lot surrounding your oasis could also deter folks for fear that keeping a pool clean would be far more work than they want to take on.
My best advise to anyone considering a pool is this. First and foremost you should consider the main return on your investment will be the enjoyment and memories made on those hot summer afternoons. You can't put a price on that! Go into the project without the expectation that the $30,000 pool will increase the value of your home by $30,000. I can promise you that it will not. Cost never equals value with any upgrade. It will certainly add saleability and value to the buyer that MUST have a pool and be seen as a refreshing addition to the buyer that doesn't object to a pool.
Should you take the plunge? Decide if the poolside memories out weigh the possible loss of the investment. Don't let your dreams drown in fear. Just dive in with your eyes wide open.
