Indoor pool converted to "living space"....should this be added to the GLA?

[Overimprovement]

I'd treat as a very large enclosed porch. Heated and cooled. The adjustment value per sqft will decrease as the room size increases. Comp selection will be key in determining market reaction.

 

[andrew81]

Interview of buyers, sellers, listing agents, and peer appraisers indicate that properties with an inground pool often deter buyers. Due to the climate pools can be used about 4 months of the year with an effective usage of 2-3 months due to cooler weather at the beginning or ending of summer and rainy periods. If properties with inground pools are priced higher than competing properties without pools, they tend to have longer marketing times and several price reductions. Inground pools are considered an overimprovement and only appeal to a limited segment of the market. Moreover the pool and patio consumes the back of the property limiting the usable yard area for other recreational purposes.

 

[kdepue]

it's a 5 acre parcel. We've been listed way over price (at the sellers direction) for almost a year. All of the things you mention are why I'm struggling with this. We have a buyer, that the space is valuable to...but they haven't presented an offer yet. Now the seller wants to know what their current market value is in anticipation of that offer. I have a CMA almost finished, but the closest comp has a pole barn, not living space. I think it's more valuable than a pole barn...but, by how much? In the past, I've given the seller a suggested list price, which is not the same as a market value...I'm trying to be as precise as possible.

 

[J Grant]

it's a 5 acre parcel. We've been listed way over price (at the sellers direction) for almost a year. All of the things you mention are why I'm struggling with this. We have a buyer, that the space is valuable to...but they haven't presented an offer yet. Now the seller wants to know what their current market value is in anticipation of that offer. I have a CMA almost finished, but the closest comp has a pole barn, not living space. I think it's more valuable than a pole barn...but, by how much? In the past, I've given the seller a suggested list price, which is not the same as a market value...I'm trying to be as precise as possible.

Your seller is an idiot. They have been on the market for over a year, now they are finally ( maybe) going to get an offer, and NOW the seller wants to know the MV?. IF you are not an appraiser and are the RE agent trying to get opinions about a CMA...idk what to say. Tell them you asked questions here and summarize the on target responses and show it to your seller, IMO instead.
Tell them wait and see if this buyer actually makes an offer and then decide whether to take it the offer. Then if they do not take teh offer, get an appraisal done..

The right appraiser for the job ( experienced, knows the area well could do a well-supported MV opinion; the wrong appraiser for it is useless, sorry to say.. It would take several days or longer after inspection to research for a supported MV opinion, and if an appraiser does not get a clue that being on the market for a year with no offers means it is price,d and an oddball with limited appeal, as a few of us pointed out before you told us it has been on the market a year -

 

[Mark K]

This is the language on the assessors site:

Dwelling

1​

EFP/CRAWL - 12/53:EFP ENCL FRAME PORCH/CRAWL

2,968​

Enclosed porch...makes sense.

So, I guess the next logical question would be...How do I determine the value per SF?

You really don't. A local appraiser could probably help but from what I've seen, most appraisers would just include it using a rectal extraction method. Bottom line is this room is worth quite a bit to a very small segment of the market. Its not worth much to everyone else. Maybe if you could turn it into a garage or re-configure for other use...in-law apartment, something functional.

Its a White Elephant. Likely no market comps and few, if any, homes with similar amenity.

IMO, List it, prepare the owners for extended marketing times. The "right" buyer will really want and be willing to pay for it. Nobody else wants to pay the taxes, maintenance, and utilities for this monster.

By the way, the contributory value will be based largely on the price range of the home, just like a pool.

 

[CGinMN]

Heating that space is rather costly, I imagine, and overall most potentially interested parties will see it as a detriment. The fact that you have a buyer that is interested in utilizing the space is great, you found the needle in the haystack. Negotiate from there. An appraisal won't change anything because opinions are like assholes.

 

[Mark K]

I have a CMA almost finished, but the closest comp has a pole barn, not living space. I think it's more valuable than a pole barn...but, by how much?

Personally, I'd rather have the pole barn. In reality, in this area, a nice pole barn would by significantly more functional and desirable. You might be surprised how close the contributory values could be.

 

[Overimprovement]

Interview of buyers, sellers, listing agents, and peer appraisers indicate that properties with an inground pool often deter buyers. Due to the climate pools can be used about 4 months of the year with an effective usage of 2-3 months due to cooler weather at the beginning or ending of summer and rainy periods. If properties with inground pools are priced higher than competing properties without pools, they tend to have longer marketing times and several price reductions. Inground pools are considered an overimprovement and only appeal to a limited segment of the market. Moreover the pool and patio consumes the back of the property limiting the usable yard area for other recreational purposes.

Its indoor, not inground.

 

[Terrel L. Shields]

No. I would treat it separate. I have seen houses with indoor pools but they were designed that way originally. However, that does not mean the contributory value is necessarily inferior to the GLA. Heated SF as advertised, correct. But as defined as Gross Living Area, no.

 

[Dublin ohio]

Can't see the picture. But how much will it cost to heat and cool that large of an open area. If it is like most indoor pool areas I have seen. It will have a lot of glass. Hard to heat in the winter and a giant sauna in the summer without a/c. Around here I would probably compare it to what many call a "party barn" Basically a giant recreation room in a pole barn. Usually heated but seldom cooled. Minimal interior finish. But functional