Today we’re going to answer the common question “How much additional value does my pool bring when I sell my home?”
Value of a Pool
So one of the questions I get asked when I have a client with a pool or if we're comparing them to a property that has a pool and they don't, is "what's the value or formula you use to calculate the additional value of that swimming pool?" While it does depend on the type of pool and the extent of the outdoor living space, there is a good rule of thumb you can use. I generally start with giving value of 10% of the home's value, up to $25,000, whichever is less and that’s a good starting point and then we’ll go from there. That formula will also fall in line with what an appraiser's usually going to give us value on. Not to say that the appraiser is the end all be all, but it is a good guideline to start with.
So let's say your home is worth $300,000 and you've got a pool that's newer or if it’s not new, it’s in tip top shape as far as the plaster and everything being well cared for. Ten percent of the home’s value would be $30,000 and I’d likely go down a bit to account for that being greater than the $25,000. Now if the pool is very extensive and has hot tub, fire pit, fountains, etc then we may be able to go higher. If it is more basic or older, we may have to reduce that initial value. Again, it’s something we’ll look at and discuss in detail during the listing appointment.
When I have a luxury property where the home is valued over $500,000, then we may get more money depending on what the pool entails. Does it have outdoor kitchen, does it have other outdoor spaces, etc. So it will depend on the type of pool that you have, and it will depend also on the age of the pool and the condition.
Pool Condition & Maintenance
Sometimes I have clients where the condition of the pool is really poor and they haven't maintained the pool. In this case, unless the seller gets the pool in better condition, the pool is going to be a detriment to selling and from a market value standpoint, we're actually going to have to list the home lower than if we had the pool to pay the market to accept it. Having a pool doesn’t automatically guarantee you get more for the home if you aren’t maintaining it.
So it’s really important to maintain and care for your pool so you can get as much for it when you sell as possible. That being said, the reality is you will almost never get dollar for dollar what the pool cost you when you sell, so make sure to enjoy it and accept that when you make your move!
Get more of your questions answered in my post What do I Need to do to Sell My Home?
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