Indoor Pool Value

[Ted Martin]

Might not be an appraisal issue, but rather an underwriting issue. If the assignment was for lending, the client (lender) may have the instruction to the appraiser not to give any value to the pool whether it is inside or out.

 

[CJ1234]

I'm more curious why the 1000 SF difference exists between the two reports, and I'd focus on that issue more than the pool issue. Because 1000 SF is a LOT of room, and would impact value significatly, in my market.

 

[residentialguy]

I'm more curious why the 1000 SF difference exists between the two reports, and I'd focus on that issue more than the pool issue. Because 1000 SF is a LOT of room, and would impact value significatly, in my market.

My guess would be that they shifted the value of that addition to another area. I will often not included a 4 season porch (attached, insulated & heated) in with the Gross Living Area. Why? Because many times the porch has more value per sq ft then the GLA. Also, typically there is no basement under the porch and to include it would turn the full basement into a partial basement, thus taking away additional value. Again, that would be my guess, as no one can be sure without seeing the report.

 

[Michigan CG]

.............Also, typically there is no basement under the porch and to include it would turn the full basement into a partial basement, thus taking away additional value..........

Um, HUH????? Basement area is basement area.

 

[CJ1234]

My guess would be that they shifted the value of that addition to another area. I will often not included a 4 season porch (attached, insulated & heated) in with the Gross Living Area. Why? Because many times the porch has more value per sq ft then the GLA. Also, typically there is no basement under the porch and to include it would turn the full basement into a partial basement, thus taking away additional value. Again, that would be my guess, as no one can be sure without seeing the report.

1000 SF? That would be a very large porch. Also considering the Original poster said the differing GLAs are 3200 and 2200. Thats 1/3rd of the house, either too large or too small.

 

[residentialguy]

Um, HUH????? Basement area is basement area.

MLS doesn't have the sq ft listed of the entire basement, just the finished area. Therefore, I make an adjustment of a partial basement verses full. And then adjusting for variances in finished sq ft and walk-out variances. Partial basements are worth less then full basements.

 

[SutnNC]

Since we're talking Indoor pools-

Quick note.....they are not common in my area's of coverage however it did come up in a CE class (the grapevine) that an appraiser got a slap on the wrist for including the "pool area" in the enclosed "floor area" calculation of square footage. I think the slap was for other things too but this was one of them.......

 

[redfish]

The home is 3,000 sq ft w/o the pool. There are virtually no homes in the are with indoor pools so I don't know how this effects the market value. There are lots of homes with barns - farming town - so it seems that it should be worth at least as much as a heated barn would be. I have had 2 appraisals - the house is unique for the area, three including the purchase appraisal. In two the house was 3200 sq ft and one it was 2200 sq ft b/c he didn't want to include one of the additions (I dont' know why). In one the pool was worth $10,000 and the other it wasn't included. I want to refi my mortgages - but I keep getting appraisal values that don't make sense. I am trying to figure out is there some kind of standard that appraisals follow or is it just they make it up as they go. If I buy a classic car with a unique set of features it isn't worth less, is a house different?

How long ago did you purchase the home. How many other 3,000+/- sq.ft homes did you look at without an indoor pool?

How much more/less were you willing to pay for the home with the indoor pool over the same house without? Did you look at other homes with amentities more common in your "farming community" neighborhood. Did the pool seal the deal for your purchase. If the same home was listed down the street without the pool would you have purchased it for ?% less.

I can tell you that if the home down the street with no pool was listed for the same I would have without a doubt purchased the one pool home. I have yet to complete an appraisal on a home with an indoor pool that did not have some deficiency related to the pool. Most of the market runs from homes with indoor pools especially those in your value range.

 

[bgillett]

Wow...thanks for the response. A little more info - we have done extensive remodeling to the home, during which we took out a home equity loan that we would like to refi. Our home is above average in size for the area, it has an indoor pool, and we installed Geothermal Heating in cooling. We are on an average size piece of property and we have a pond. I think the appraisers are confused b/c of the uniqueness of the home. The previous owners - over 25 years - did several additions, and added the pool - which is attached to the home, but separated by a wall and a glass siding door. I don't know what was built first. It is a concrete floor covered by carpet. Here is a link to a pic o the pool room. We have done stamped concrete sidewalks and a stamped concrete patio off of the pool room.

My issue w/ the appraisals is that they are putting the home at the low end of the market range - (the upper end in my area is 150 or so) that they come up with for the home - 119-155 - and I don't know why. The pool and that fact that it was purchased as a foreclosure 2 years ago for 85k are the only reasons that I can make sense of, but given the fact that we have redone most of the home I don't see the lower end of the market as logical.

One appraiser doesn't want to count the additions, but comes up w/ a value of $130, @ 2200 sq ft and the other comes up w/ a value of $124 at 3200 sq ft? A remodeled farmhouse on 1 acre that was 2200 sq ft just sold for $135 so shouldn't ours be worth at least that? Again the pool - which could be a heated pool barn if you choose and the previous sale price. If the market is narrower for because of a feature that doesn't mean that it is automatically worth less? Does it? IE some people might not want a pond, but it diesn't seem to hurt the value? Sorry about the length of the post. Thanks for the replies!

 

[Scott R Marshall]

bgillett,


Thanks for the photo. While the difference in reported gross living area and the discrepancies in opinion of market value between the 2 appraisals would give me some cause for concern, as the one which represents the subject as being 1000 square feet larger also has an opinion of market value $6000 less, this could be explained if they appraiser(s) explained in detail why the felt the pool room should/should not be included in the gross living area and how they reconciled the opinion of market value. If the explanations and research performed were sufficient, as opposed to just arbitrary, what you may very well have are 2 appraisals were each appraiser actually gave consideration to your pool room, just reported it differently. If that is the case, what you really have are 2 appraisers who came up with an opinion of market values less than 4.5% apart from each other on what apears to be a unique home and very well a complex assignment.

My next comments are directly specific to my market and may not at all apply in any way to your market. You mention that the upper end of your market is $150K. Now in my market and socio-economic environment, $150K homes are located in neighborhoods and appeal to buyers/families where the burden of maintaining an indoor pool, while maybe a desireable amenity, may not be feasible due to overall costs associated with year round running and maintenance. The pool may, to potential buyers, be seen as something adverse, as the family budget simply does not permit them to maintain correctly, which then leads to additional problems. Just food for thought.