Swimming pool needs work. conventional loan.

[ajazmartin]

We are purchasing an older home with some cosmetic issues but the real question is the in ground swimming pool. It's old, needs a new liner and hasn't been used in a couple of years. We are getting a conventional loan and wondering what the appraiser might say. It has about 3 feet of water in it and there is a fence around it. We are planning to fix it in the spring.
Since we're going conventional, how much do we need to worry?

 

[hastalavista]

I think there are two issues here regarding the pool:

A. Will the appraiser determine that in its as-is condition, it creates a safety issue?
You say it has a fence around it; that's good. Chances of accidently falling into the pool are greatly eliminated.
In-ground pools are typically designed so that the inward pressure that the dirt around the pool exerts is offset by the outward pressure the water exerts when the pool is full.
In cases where pools are not full, I will always mention that the typical design requires water in the pool for optimal integrity. A lender may decide you need to fill the pool.
Empty pools with no safety barrier are a hazard in my opinion. The fence would eliminate the hazard in my opinion; the structural integrity issue remains until the pool is full.

B. What is the impact on value of a pool that needs repairs and isn't usable as-is?
What you have is a hole in the ground that is designed to be used as a swimming pool, and cannot be used for that purpose as-is. Are you factoring this condition into your purchase price? I'd think the typical buyer would make that a consideration, and probably calculate not only what it might take to bring the pool back to a functional condition, but also factor in some additional cost (for unforeseen contingencies, and maybe a PIA premium: you are going to take the risk of fixing the pool; that may be worth an additional discount in your pricing).
So, the appraiser may consider the impaired-pool to be a negative factor in the market valuation. Not everyone will buy a home with a non-functional pool; and those that do will not always fix them- sometimes they'll demo them instead. How this gets factored into the valuation will depend on your market (as measured by the appraiser).


So, I cannot tell you "how much you should worry". I will say that these are two issues, neither insurmountable for a mortgage loan, that may come up.

 

[Thomas Fiehler]

This time of the year, the appraiser might not even mention it.

 

[Lobo Fan]

A non-functioning pool is just a hole in the ground and a potential safety hazed. It depends on how bad it is. It could range from a positive adjustment as an amenity to a negative adjustment with a cost to cure to bring in a dump truck full of sand to fill it in. It depends answers suck and I apologize for that. If it were me, it would depend upon the neighborhood. A swimming pool behind a starter house has minimal value, where a pool in a better area might have some contributory value. I would be tempted to not give it any value and a cost to cure to fill it in.

If your question is whether the appraiser can require repairs, the answer is no. It is our job to arrive at a market value. Now FHA is another matter of course. This situation will come down to how the lender ill want to proceed.

 

[james stephens]

I don't think you have too much to worry about. The appraiser might say the pool is a safety hazard in its current condition. The way to rectify the hazard would be to install a strong pool cover; one that is sufficiently sturdy to prevent a person from falling in the pool or through the pool cover.

 

[TRESinc]

another factor to consider is the actually contributory value of a pool, in need of repair or not. NJ is similar to Ohio for weather, and typically you get a solid 3 months of use per year from the pool. based on that fact, and the small amount of pools vs the number of homes in the areas i cover, typically result in little to no contributory value of an in-ground pool (and no value to an above ground as it is considered personal property). add to that the increased insurance costs, cost to maintain (chemicals, cleaning, electricity, etc) and it can actually be a negative impact on value even in perfect condition.

i did an appraisal earlier this year where the homeowner, who was a professional tri-athelete, bought a house with an in-ground pool and promptly filled it in. since he sort of swam for a living i asked him why he did what he did. he told me it was easier and cheaper to get a membership at the YMCA and swim daily there than it was to maintain his own pool. if there was anyone in the world who would place value on having their own pool you would think it would be someone who swims for a living, right?

 

[Restrain]

Just figure the cost to fill including permits, etc. so you end up with a concrete edged planter. Be sure to knock some holes in the bottom.

 

[Thomas Fiehler]

TRES-I can see where the athlete would have a membership at a fitness center and use their pool (yar around use) but I disagree with the little to no value for a pool. Not sure where you are located at, but I'm in the Cincinnati area and we sold our last house that
had a pool about 8 years ago. The feature that sold our house was the heated pool since the buyer had some arthritis issues. It sold for full list price after 3 DOM and buyer was in France-bought it sight unseen. Our subd. had about 65 houses and there were 8 inground pools. Our current house does not have a pool but our development does and I miss having our own pool.

 

[TRESinc]

TRES-I can see where the athlete would have a membership at a fitness center and use their pool (yar around use) but I disagree with the little to no value for a pool. Not sure where you are located at, but I'm in the Cincinnati area and we sold our last house that
had a pool about 8 years ago. The feature that sold our house was the heated pool since the buyer had some arthritis issues. It sold for full list price after 3 DOM and buyer was in France-bought it sight unseen. Our subd. had about 65 houses and there were 8 inground pools. Our current house does not have a pool but our development does and I miss having our own pool.

every buyer is different, with different wants and needs. personally i passed on a house 3 years ago because it had a pool. my cousin on the other hand only wanted a house that had a pool. either way we still only get about 3 good months of use out of a pool in ohio (i am along the lake fwiw).

a buyer from another continent buying sight unseen cannot be considered typical, right?

 

[ajazmartin]

Hey everyone - thanks for the insight.
Since we are buying the home "as is" and it was won at an auction, I guess my concern lies with the possibility that the lender may require some action on our part regarding the pool in order to get the mortgage - and anything beyond installing a safety cover will possibly delay closing (which, according to the auction website, needs to take place within 30 days of the auction - which brings us to the first week of March).
Anyhow, in your experience, with regard to conventional loans, have you seen lenders require a pool be filled as a contingency for the mortgage (even at this time of year?)