Outdoor pool in Wisconsin, contributory value?

[Dave Smith]

For only the second time in all my years of appraising I have an assignment involving an outdoor swimming pool. Obviously I can't do a paired analysis to come up with the contributory value of the pool.

The subject is a high quality 4,746 square foot, seven bedroom & five bathroom second or vacation home in a good location. According to the owner the pool and the related site improvements cost about $50,000 to install three years ago. According to the owner the pool gets heavy use in the summer months by the large extended family.

Any suggestions on arriving at the contributory value for the pool?

 

[Restrain]

Actually, it may well be a negative due to the maintenance costs, limited use, etc. You are talking WISCONSIN, for pete's sake, not Florida.

How many homes have pools in your market? How many have actually sold? I would do a quick survey of local real estate agents and see what their input is about a pool. In a lack of solid sales data, a survey of experts in the market is sufficient to support your decision.

 

[Mike Kennedy]

F.o.

If comparable research for the local market, retroactively for possibly 3 years if available, regardless of style, indicates ZERO closed, contracted, or actively listed properties would approach it as Functional Obsolescence-Superadequacy.

If, market data indicates other properties with IGPL which are not comparable in terms of style, GLA, age, etc. sold, and/or exist, then the overall market may indicate limited buyer demand for IGP. If market data indicates higher retention rates for properties with IGP resulting in lack of current sales, contracts, listings, would utilize at least 1 older sale with the amenity - adjust for time etc, and extract IGP contributory adjustment.

 

[George W Dodd]

Dave said "For only the second time in all my years of appraising I have an assignment involving an outdoor swimming pool"

Based on this the pool appears to be an over-improvement resulting in functional obsolescence. It's unlikely that you will have many, if any, paired sales to extract direct data on pools from. You might look to other type of amenities like someone having multiple garages, oversize decks, etc., and determine what if any contributory value these items have.

 

[Mountain Man]

"by the large extended family."

Definitely a negative adjustment! LOL

 

[Stone]

Dave - I've found that decent inground pools have some contribution. There are a few around here. It makes a difference if it is heated (most newer ones are), since the swimming season is longer. The 'ol solar blanket heating system takes until mid-June before the water is a a reasonable temp.

Around here, you are not talking about a large contribution, and I would assume that is similar up your way.

 

[larryhaskell]

I would try and find some sales of properties with pools even if they are different from the subject. If you find them you could do a paired sales analysis on these properties and then jump to a conclusion.

 

[Ray Miller]

Dave,


I have found around here very little to none for an inground outdoor pool. They also appear to stay on the market longer.

 

[Pat Butler]

This is one of those situations where the definition of market value really gets in the way. We always talk about the 'typical' buyer, blah, blah.

But, in your situation, it's more likely that the property will have an extended marketing time until the one unique buyer comes along to purchase his dream property- complete with the swimming pool. And that buyer will pay extra for that pool. So you can tell your client what it would be worth to the 'typical' buyer (probably nothing, or perhaps negative), but if they find that one unique buyer then it will be much higher.

 

[Richard Carlsen]

Dave

Welcome to the Frozen Pool Appraisal Club.

We've run into in-ground pools several times in recent years. We did a market study in both the Traverse City market and the Alpena market (biggest cities in the region @ about 15,000 each). Both studies found no measurable contributory value for an in-ground pool in either market in any of the sales. Zero!

Sorry the HO spent so much on it but based on our data, if it were located this side of the lake, there would be zero value attributable to an in-ground pool in this regional market.