The Dreaded Indoor Pool Question

[J Grant]

You did make a good point, a local experienced appraiser who has also done an indoor pool or two is a great choice.

 

[bnmappraisal]

I agree that the best option would be to find someone (RE Appraiser) who specializes in type of property (residential single family home with INDOOR pool) but sadly, it is probably very difficult (at best) to find this (in your local market - NE FL)

I am in the Central FL area. Generally the market shows a slight reaction between screened in vs open pools. I would (generally - I've obviously not inspected your property) agree that the pool area would not be counted as GLA (Gross Living Area).

The sad thing I run into with homeowners (and the reason I specifically don't ask what certain updates cost) is that because a certain item may "cost" X dollars, may only contribute Y dollars in the end. Therefore, as far as the market is concerned, your "indoor pool" may only be "worth" the same as a screened in pool, or an open pool or (sadly) no pool at all....... It all depends what the market/neighborhood will pay for it!

 

[Terrel L. Shields]

I am one of those appraisers who chooses not to ignore such a feature. I focus more on the reduced pool of buyers. It is simply not credible to expect buyers to line up to properties with unique features.

Thus marketing time is affected, market appeal is affected. But it is still not invisible. And so I checked our MLS. "indoor pool" gets lots of hits. Unfortunately they all relate to one agent who puts a comment in about the clubhouse of a POA having an "indoor" pool. There was not a single such amenity in our MLS in the past 10 years. However, there have been several hundred that are heated or saltwater...something special in inground pools.

At some point I might try to estimate the contribution of these top quality pools, then estimate a straight line depreciation (physical) and determine the percent deduction for functional obsolescence. Say I came up with 50% functional.

Then I go back to the indoor pool, estimate its age and RCN...estimate the DCN, then take the 50% off. It is a cost-related adjustment...perfectly acceptable appraisal practice found in any textbook, and just do it. You can defend it. You cannot defend arm waving adjustments. you cannot defend ignoring it and pretending it is not there.

 

[TRESinc]

You did make a good point, a local experienced appraiser who has also done an indoor pool or two is a great choice.

so 1 or 2 experiences with something is good enough for you? i hardly think that would qualify anyone for anything with such limited experience. as scott said:

To answer your first question, "Do they sell for more, or not?"...it depends on the market (although I have, in my market area, seen only one sell where a premium was not present) - which as you stated - is why a knowledgeable professional proficient in the market should be used - but I would tweak that to suggest asking about their experience with indoor pools.

so based on j grant's limited qualifications an appraiser who has done 1 or 2 indoor pools would arrive at one of 2 conclusions:

1. there is no contributory value for an indoor pool (if neither of the sales showed a premium)

2. 50% of the time there is a premium (if one of the two indoor pools showed a premium)

either way, as scott pointed out in his market, would not arrive at the correct outcome. it takes a lot more than 1 or 2 times to gain reliable knowledge on any particular topic. scott had it right.

 

[Noreen]

I am one of those appraisers who chooses not to ignore such a feature. I focus more on the reduced pool of buyers. It is simply not credible to expect buyers to line up to properties with unique features.

Thus marketing time is affected, market appeal is affected. But it is still not invisible. And so I checked our MLS. "indoor pool" gets lots of hits. Unfortunately they all relate to one agent who puts a comment in about the clubhouse of a POA having an "indoor" pool. There was not a single such amenity in our MLS in the past 10 years. However, there have been several hundred that are heated or saltwater...something special in inground pools.

At some point I might try to estimate the contribution of these top quality pools, then estimate a straight line depreciation (physical) and determine the percent deduction for functional obsolescence. Say I came up with 50% functional.

Then I go back to the indoor pool, estimate its age and RCN...estimate the DCN, then take the 50% off. It is a cost-related adjustment...perfectly acceptable appraisal practice found in any textbook, and just do it. You can defend it. You cannot defend arm waving adjustments. you cannot defend ignoring it and pretending it is not there.

I did an appraisal on a home with an "infinity pool", I ask what they cost just for this type of adjustment and to quantify " cost versus value"... in this case it was $50,000 ( electric, steel supported base, heaters, everything "infinity") all in. The valuation did not support the investment but the homeowner knew it wouldn't, he definitely had the right mind set and knew it was for his personal comfort.

 

[J Grant]

so 1 or 2 experiences with something is good enough for you? i hardly think that would qualify anyone for anything with such limited experience. as scott said:

so based on j grant's limited qualifications an appraiser who has done 1 or 2 indoor pools would arrive at one of 2 conclusions:

?? These are your assumptions , not mine.

1. there is no contributory value for an indoor pool (if neither of the sales showed a premium)

2. 50% of the time there is a premium (if one of the two indoor pools showed a premium)

You write some ignorant posts, but this post takes the cake!

You make assumptions and attribute them to me, very odd. (since I said neither of the above) Go ahead and make stuff up...

either way, as scott pointed out in his market, would not arrive at the correct outcome. it takes a lot more than 1 or 2 times to gain reliable knowledge on any particular topic. scott had it right.

Since most appraisers encounter few indoor pools in their career its unrealistic in most markets to find one with in depth experience. An appraiser broad experience in complex properties and valuing unusual amenities should be able to do well with the assignment (imo). You are free to disagree of course.

 

[TRESinc]

i quoted you, there is no mistaking or twisting what you said. re-read it again, slowly, and maybe you will understand. then you can go back and edit your response a second time.

 

[J Grant]

You did not quote directly from any of my posts. Show me where I said that in my post, either link it or post number, thanks.

 

[TRESinc]

http://appraisersforum.com/showpost.php?p=2459681&postcount=24

 

[J Grant]

You just linked back to your own post! Funny. Pointless to argue with you.