Oro Valley Real Estate - Does a Pool Add Value?
Questions that are often asked of real estate agents by homeowners who have pools include how much can be added to the sale price and can the costs of installing a pool be recouped in a property sale.
The answers are not what sellers want to hear. But they can be good news for buyers.
That’s because whilst homes can appreciate in value, pools do not. A pool is like a motor vehicle – once it has been used, its value starts depreciating, and a pool that is more than 10 years old would have almost no value at all in a real estate transaction.
The condition and quality of the pool fixtures and fittings that have been used also has a big impact on whether an older pool can hold its value. But the average quality pool in a suburban home is likely to depreciate at around the same rate as a motor vehicle – a large drop in value the first year, and then steadily decreasing until there is not much resale value left at the end of a decade.
A good rule of thumb is to work out what the cost of installing the pool represents as a percentage of the cost of building or buying the house. So, for example, if the cost of building the pool was 12 percent of the cost of building the house, then increase the selling price of the house by 6 percent.
Of course, comparable prices in the neighborhood still apply for a final sales price.