Pool Incomplete

[JTRock]

Appraising a property for refinance purposes. The borrower is having a pool installed and it is not complete. Should I appraise the property and just not give value to the pool and do I need to take into account a cost to cure of filling in the pool? Appraising as is... thanks

 

[Michigan CG]

How complete is it? How much more do they need to spend to complete it?

In my neck of the woods a typical in-ground pool is worth $7-10K even though they might have spent $30K building it.

 

[Financially Feasible]

I had a similar property... pool was incomplete (was 1/2 way done, per the pool company). Here's what I did:

Cost of pool (per pool company as well as invoice): $40,000

Range of adjusted values between properties w/ and w/o pools: $30,000 - $50,000 (buyers in the area typically demand pools per my discussions with RE agents) - sample size: 27 properties with pools, 15 properties without pools.

Sales with 1/2 finished pools: 0 (DUH! :laugh

Determined property has functional, CURABLE, obsolescence.

Reconciled adjustment for properties with pools vs. without pools: $45,000 (hybrid of cost of pool plus middle to upper range of sales comparison adjustments... more adjustments fell in the 45-50K range anyway).

Percent of pool finished: 50%

Adjustment for sales without pools: +$22,500
Adjustment for sales with pools: -$22,500

Cost of appraisal: priceless.