Do In-ground pools add or detract to a residential property's appraisal or market value?

Question

Working in the ad valorem property tax mass appraisal field, I have heard various comments from home owners that in-ground pools take away from the actual value of a home or property due to the known dangers of pools and the potential increase in home-owners insurance premiums. It's been my experience that this is not the case as most houses of similar size and in a similar areas or markets with a pool will sell for more then houses that are comperable with out a pool. This theory also doesn't seem to deter home owners from putting pools in anyhow. I'd like to hear from Real Estate Agents and any experienced Appraisers with their comments on this. Is there truth behind this theory or is someone giving some bad advise to home owners.

Answer 1

Inground pools add to the value of property. Depending on what part of the US, they add more or less. In the North, where there are fewer months to enjoy a pool, they add between 20-30% of cost to install. They add much more in the South, especially the Southwest, where pools are almost as desirable as a two car garage.

If you are in the property tax profession, there are statistical tools you can use to isolate the value of a swimming pool. The first is the matched pair technique. Find 2 properties that recently sold and are fairly similar. The difference between sale prices should be the value added by the pool.

Another technique involves multiple regression analysis or AEP. The International Association of Assessing Officers texts provide good examples of these methods. Good computer-assisted mass appraisal software includes these as modules.

As a matter of practice, taxpayers expect that an inground pool adds value. It's specific derivation through mass appraisal techniques will be incomprehensible to 98% of all who demand to see it (including equalization board members). Taxpayers expect that an oversized lot adds value, a shed adds value, a paved driveway adds value, etc.

Answer 2

The typical adjustment I have seen for pools is around a $10,000 increase to value, obviously this is totally dependent on the area. If you are the only pool in the neighborhood, it may not add any value. If a pool is common in the neighborhood and highly desirable, then it will add some value.

The thing is, even a normal pool costs $30-40,000 to install, so it can be hard to re-coup the cost of a new installation. It is just a personal preference. Some buyers won't even look at homes with pools while others have to have one. You really have to take the area and demographic into consideration. Of course pools require a lot of maintenance, extra water expense and electricity for the pumps/heater.

Answer 3

It depends. I live in MD. We can swim usually from June 1 to mid Sept. A pool in this area doesn't add value and if the price range of the home is in the lower range, it decreases value because of the upkeep. If you are buying a beach home, then YES, it adds value. When we go to the outer banks each year, we only rent a house with a pool.

Answer 4

An in-ground pool will increase the value of the property, but generally only by about half the cost of installation. Difficult installations -- access, grade or large boulders -- will typically return less than half the cost.

Answer 5

If you have teenagers it is a positive; if you have two year old living in the same house with the pool, not so much. It's all relative.

Answer 6

i believe they detract given the cost of maintenance and liability
they especially are a turn off to people whove owned one before

Answer 7

It adds but barely anything, maybe a couple thousand at best.

Answer 8

the still add even tho pros and cons

Answer 9

add of course.