Value attributed to pool

[Lonnie Hogan]

A loan officer just contacted me and asked "why do appraisers typically avoid giving value to a pool at a home."

I know what my answer back would be but I thought it would be cool to share with him what appraisers around the country thought of the matter.

Anyone who cares to share why they would or wouldn't attribute value to a swimming pool can post below. I'll then send the post to the l.O. who is curious

 

[Justin Dake]

Above ground?? Personal property.

 

[Michigan CG]

Valuing a pool is hard to do because what does the typical home buyer want? Well, a lot of home buyers don't want the pool and it can have a negative value for them in that it would need to be filled in, removed or if not, then it would have to be maintained. If a pool were a highly desirable amenity then a lot more people would have them.

Above ground pools in my area are virtually worthless, and it is hard to attribute any value to them because they are relatively cheap, but hard to maintain.

I did a residential once and estimated a value of $8,000 for an inground pool, although they cost about $25,000 in install.

 

[Narkissos]

In S.E. Michigan such improvements have a strictly seasonal use and require additional time & expense to properly maintain. The actual cost often far out ways the added value. I am sure it varies depending on location and market acceptance.

 

[JTip]

I sold a home last year with a very nice inground pool. The buyers filled it in so they could park their Class A motorhome off street. To each their own.

j

 

[Deleted member 77547]

Depends on your market and I am assuming you are talking about an in ground pool. I see you're from Chicago. GENERALLY, due to their limited seasonal use, expense and liability, the market may be ambivalent about the pool feature. However, there are some suburbs (OakBrook, Medinah) where finding comps with inground pools isn't that difficult.

I suspect if one lived in Arizona or Florida, the market would react differently to an inground pool feature than it might in Chicago.

 

[Steve Owen]

The correct answer is that it depends on the market. In Joplin, Missouri you'll be lucky to find the market paying $5,000 for an in-ground pool that cost $40k to install; you might get a little bit more for a $60k pool at a high end property. In Beverly Hills, California, on the other hand, I would not be surprised to find that $200k pool adding $300k to the value. Keep in mind that I do not know a single thing about that market except for what I learned on The Beverly Hillbillies... if any CA appraisers who want to chide me and say I'm wrong, I'll agree with you immediately.

Point is, the only way to find out is to compare houses that sold with pools to houses that sold without them. That is the right answer and every other answer is wrong.

 

[JRS at OBX]

I live in a summer resort area. In the neighborhoods that have mostly weekly seasonal rentals my standard adjustment for an inground pool is around $35,000. In the more residential neighborhoods I will give about $10,000.

I don't give anything for an above ground pool unless there is a lot of decking around it. In that case I might give a nominal value.

 

[Mike Kennedy]

"why do appraisers typically avoid giving value to a pool at a home."

:icon_idea: Knowledgeable, ethical, and competent Appraisers are required to appraise ONLY "real property" with no preconditioned expectation of contributory value of ANY aspect of a subject property (site first, then any permanently attached improvements). Personal Proprty items (if above grade - a pool) are given no weight in a real property appraisal. Contributory Value of an Inground Pool is determined on a case by case, neighborhood by neighborhood, basis as of an Effective Date of Appraisal.

Market perceptions change, contributory values change, "one size does not fit all". There is only a specific answer to a general question such as stated above.

"IT DEPENDS". Need to know......hire an ethical, geo-competent, professional Appraiser and find out.

 

[Michigan CG]

It is hard to negate an above ground pool with a deck that is "cut" to match the pool or surrounds the pool. This makes the personal property harder to define.