Pool House Value Question

[Broker JB]

How do appraisers usually value pool houses. If it is climate controlled living type space, is it similar to living area in the home? Trying to determine how to complete a rehab for the best value. Hope this is the right place to ask.
Thank you.

 

[Terrel L. Shields]

Pools and related pool houses invariably suffer a huge amount of functional obsolescence. For every buck you put in them, you might get 50¢ back...on a good day, in areas were pools are common...which might include Texas. They are NEVER to be considered as "GLA" - gross living area - even when their replacement cost new is higher than the dwelling RCN. I've seen places with $80,000 pool rooms and $40,000 pools that barely budge the cost curve. It is a guess but buyers want a pool about 1 in 4 times...maybe less. I can show you a place where the buyers filled in the pool and made a patio... then converted the pool room into a mini-guest house.

 

[hastalavista]

How do you define "pool house"?
In my markets, pool houses are not designed (and typically not allowed by the zoning) to be used as overnight occupancy units.

As to your larger question, my experience is this: The value varies based on the type of home and its market-segment. Pool houses in higher value homes within higher value neighborhoods will contribute more value vs. its cost than lower value homes in lower value neighborhoods.
Sometimes value equals cost in higher-end neighborhoods. As the neighborhoods move down the value curve, so does the contributory value of a pool house (in general).

 

[glenn walker]

Agree with Post #2 & #3 ***

 

[Howard Klahr]

Trying to determine how to complete a rehab for the best value.

Have you identified properties within the immediate area that have a similar amenity? If none of the homes in the area have this amenity then it is likely an over improvement for the market. If other homes have this feature, have any of them sold? You would then be able to compare the difference in proce to those with vs those without and you'll get an idea of how this feature contributes to the value.

 

[J Grant]

What you call a "pool house" in FL we call a cabana..typically a smallish room with a changing area, a bathroom, the more elaborate ones might have a built in bar or such. If its living space with AC then it's a guest house situated by the pool. If it already exists, make it clean and functional but don't over improve it imo.