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Pool Incomplete

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JTRock

Junior Member
Joined
Mar 1, 2007
Professional Status
Certified Residential Appraiser
State
Texas
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

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Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
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

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
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.

:peace:
 
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