how much value *approximately* does an inground pool add?

[gtnos]

first off, im not talking resale value on the market here, im aware that pools can make or break resale on your house, as it depends on how your buyer values the pool. im wondering how much it would increase the appraised value?

here is why im asking:

we will be financing our pool, we pay all our bills with money to spare, but we are middle class and dont have 35-40k sitting around. basically, i see there are two ways to finance, home equity loan or a personal loan, both have pros and cons, such as the interest rate being tax deductible on home equity vs home not at risk with personal loan. both have about same interest rate and terms. BUT,

IF we did the personal loan, and the pool added enough value to our house, (which we bought brand new last august and put down 25k on it) we might have enough equity in our home that i could pay for another appraisal, and if we are below 80% LTV, after 24 months (which is only another 12) we could get the mortgage company to drop PMI, which is about 80 bucks a month, or about a grand a year. that would be worth more than what a tax write off would be worth on a home equity loan.

so how much do you think it would bump up our appraised value?

 

[msgtdan]

Re: how much value *approximately* does an inground pool ad

Good question, but not sure if you can get a good answer here as I think it would be something that's location specific. Pools in Florida adding more value than in Alaska. Might try calling an appraiser and see if they could give you a ballpark number for your location.

 

[kcindc]

Re: how much value *approximately* does an inground pool ad

Location, location, location.

Pools do not add much value where I live because of the short season. For example, install an 80k pool on a house and you are lucky to get 20k in increase value. In this example, the LTV wouldn't help you get rid of PMI. In most locations, pools do not increase the property value more than the cost of the improvement.

I suggest you talk to a local realtor who knows your location and an experienced loan broker. They could give you detailed guidance on helping you choose the best path.

 

[gtnos]

Re: how much value *approximately* does an inground pool ad

well, right now we owe 224k on a house that last year appraised for 250k, so by my math, if we dropped 40k on a pool, and our appraisal went up by 30k... we would be hovering right at 80%LTV.

so thats what im wondering, if a 40k pool would net a 30k return on an appraisal....

 

[Donldson]

Re: how much value *approximately* does an inground pool ad

Appraisal value is directly tied to market value, your house is worth what someone could realistically buy it for in your area.

Really, in most cases a pool isn't going to actually add much value due to the perceived cost of maintenance. I have hard of houses where the appraiser counted zero value towards a pool. Your best bet is to call some local appraisers and get their opinion. Markets are so localized you really need to talk to someone local.

IMO though i doubt you are going to see 75% of your pool value added to the appraised value...

 

[gtnos]

Re: how much value *approximately* does an inground pool ad

Appraisal value is directly tied to market value, your house is worth what someone could realistically buy it for in your area.

Really, in most cases a pool isn't going to actually add much value due to the perceived cost of maintenance. I have hard of houses where the appraiser counted zero value towards a pool. Your best bet is to call some local appraisers and get their opinion. Markets are so localized you really need to talk to someone local.

IMO though i doubt you are going to see 75% of your pool value added to the appraised value...

well... you hit the nail right on the head... i just called an appraiser and asked he said:

realistically, it will add nothing to the value. its a 40k hole in the ground that a few people will pay extra for, and that many people wont want even if you gave it to them for free.

he said he himself has an inground pool, and he recommended that we treat the purchase of the pool just like a vacation or any other thing that you buy for pleasure or luxury. you are paying for the experience of enjoying it, knowing full well that it will be worthless when you are done with it or that you will have nothing to show for it in the end.

sooo, guess we will go the home equity route.....

 

[Donldson]

Re: how much value *approximately* does an inground pool ad

Well at least you know before jumping in, so to speak. I'm willing to bet a lot of people built pools thinking it an investment, then finding out it was as good an investment as Enron was. You are going in knowing that it is something for you and your family to love, not necessarily the next people if you ever move. It's kind of empowering really, build the pool you want, not what you think will be most attractive to someone else someday.

 

[gtnos]

Re: how much value *approximately* does an inground pool ad

Well at least you know before jumping in, so to speak. I'm willing to bet a lot of people built pools thinking it an investment, then finding out it was as good an investment as Enron was. You are going in knowing that it is something for you and your family to love, not necessarily the next people if you ever move. It's kind of empowering really, build the pool you want, not what you think will be most attractive to someone else someday.

well, id rather invest in the pool than enron.... :lol:

im going to have to change one my sayings too now.... i am big into Mustangs... ordered a premium GT new in 2006 and have done all kinds of things to it. paid 35k for it. its is immaculate, it only has 30k miles on it and has never seen rain... and its currently worth maybe 12-13k right now and in true Mustang fashion, going down every day... of course i knew how bad cars lose value, especially Mustangs and Camaros before i bought it. i didnt care then and dont care now as i sure enjoy driving it and banging gears at the race track with it.

i have often said "nothing in this world loses value like a Mustang"

now i think ill change that to a "pool". :lol:

 

[techguy]

Re: how much value *approximately* does an inground pool ad

I know this question was about an in-ground pool. I just re-financed and had an appraisal done. I have an AG pool with decking. In the appraisal, it was mentioned I have an AG pool and it was considered "personal property" and had no effect on the house's value.

 

[pool mum]

Re: how much value *approximately* does an inground pool ad

Yep, one of our best friends is an appraiser and he doesn't add a cent to the home's value for an inground pool. He said a lot of people don't want them. In fact, when a friend of my dad's came over to see our house for the first time, he said he'd fill that pool right in and make a fire pit/patio area of it.

 

[gtnos]

Re: how much value *approximately* does an inground pool ad

well, thanks to this forum, the wife and i feel like we almost HAVE to buy a pool now... after learning about pools, the chemistry, and why public pools smell like they do.... the mere thought of swimming in a public pool ever again has me wanting to run to the shower and scrub all the nastiness off....

so, it looks like this forum is gonna cost us 35-40k :lol:

 

[jblizzle]

Re: how much value *approximately* does an inground pool ad

That is a hazard of reading and learning here ... all public pools really become questionable to you

 

[chem geek]

Re: how much value *approximately* does an inground pool ad

I've had four appraisals on our house over the years, for the initial loan and subsequent refinancing, and the value of our pool (see my sig for details) has been $25,000, $50,000, $50,000, $15,000 (this latter appraisal is lame in many respects so ignore it). Looking at actual home prices in our area, I'd roughly value an in-ground swimming pool with solar system at around $50,000. We live in the San Francisco Bay Area where home prices, cost-of-living, and construction costs are high and in an area that has a fairly large number of pools (36 out of 69 homes in the blocks closest to our home have pools, most with solar heating and all appear to be in-ground). The values of these 69 homes range from $759K to $1.52M.

 

[faby3003]

Re: how much value *approximately* does an inground pool ad

The appraisal that was done when I bought my house said the pool added $1000 to the value. I live in MN and have an in-ground pool.

 

[ComputerGuyInNOLA]

Re: how much value *approximately* does an inground pool ad

When I refinanced last year to install our pool I asked the appraiser how much value the pool would add he said he adds 10k for a pool regardless of size or how much was spent to put it in.

 

[BoDarville]

Re: how much value *approximately* does an inground pool ad

Really depends on location and the target market of the house. Pools in hotter climates with a longer swim season will tend to add more value to the house than an identical property in a colder climate. But, at least around here, the biggest factor in how much a pool adds to a property's market value is the target market that the house appeals to. Simply stated, a "starter home" with a pool may actually lose value because it has a pool as most people who buy a first home are most concerned with utilities and maintenance costs. We considered putting in a pool at our former house but were advised against it by everyone we spoke with (realtors and people who recently faced a similar decision). The primary reason: Our former house appealed to a large number of first time buyers (a fact later validated since almost every buyer asked about utilities & maintenance costs). It was a unanimous opinion that we would be better off purchasing a house with a pool already installed and that's the path we chose.

So, the rule of thumb around here is, pools installed in a house that is valued above the median property value contributed more to the property value than those properties valued below the median. People purchasing a properties above the median value were much less concerned about maintenance costs vs. first-time buyers and placed a higher value on having a pool to deal with the hot DFW summers.

However, if you and your family would get a lot of enjoyment from a pool (including any health benefits from the low-impact exercise that a pool can provide), those are also factors you need to consider.

 

[tracy070]

Re: how much value *approximately* does an inground pool ad

I bought a house with a pool and I believe I basically paid $15k over the value of the home. Moving from Minnesota to Texas, I believed our family would enjoy being able to swim and stay cool anytime. Where we were looking had about 8 homes with pools to look at in our range, they all wanted more than the house was worth. I looked at buying any house I wanted then installing a pool, but as we see, it is much cheaper to buy one with a pool already. I bought a house, paid more than it is worth, and don't expect to get the $15k back from the pool. If I was in Minnesota with a pool, I would have probably been able to pay $15k less because it would be that much of a burden for only 3 months of usable season!

 

[JohnT]

Re: how much value *approximately* does an inground pool ad

IMO, on average it is approximately nothing. It is 100% dependent on the location, the particular house and the buyer. In some places, a house is expected to have a pool. In other places, once a house hits a certain size it is expected to have a pool. A pool can be just as much of a negative as a positive. In a moderate climate someone who wants a backyard for the kids won't care for a pool that occupies the whole thing.

 

[msgtdan]

Re: how much value *approximately* does an inground pool ad

In a moderate climate someone who wants a backyard for the kids won't care for a pool that occupies the whole thing.

That is why I got my pool for the cost of removing it. The little girl in the house was so excited that we were taking the pool cause now she could have a swing set. My girls were excited that we were getting a bigger pool. Win win for everyone.

 

[ssgumby]

Re: how much value *approximately* does an inground pool ad

I dont think its just the pool as far as appraisal. I think in most cases, if you put an IG pool in you are also doing some very elaborate and elegant patio work. Adding hard scape does add appraisal value. So creating a nice relaxation area which includes the pool would raise appraisal IMO.