One of the most sought-after amenities by people planning to buy a home and as well as an upgrade that homeowners usually take on is adding a pool. Pools are a relatively big commitment but a very rewarding one. And although having your own pool is just awesome, it is a decision you need to take seriously.
The amount that will be added to your home’s value will be sourced from a combination of all of the factors that will be mentioned in this article. However, a good estimate says that homes with pools were selling for around $16,000 more than similar homes without.
Making the decision to add certain features or upgrades to your home can often be an overwhelming decision. Whether you are planning to install those upgrades for your own enjoyment or add those features to increase your home's value in the market, you need to make sure that it is indeed worth it.
The Value of a Pool
Pools seem to be one of those upgrades that vary in value to an almost extreme scale. Building a beautiful pool, deck, and maintaining it well seems like a sure-fire way to add value to your home. But there are other factors that can alter its market value such as the neighborhood.
One other important factor that affects the value is the type of pool. Is it a standard in-ground pool? An above-ground pool? Or is it a luxurious in-ground pool with numerous features that make it feel like a resort or spa? These different kinds of pools differ in their cost to install or build.
Let's take a look at how much each of the two main pool categories cost to install and build:
An above-ground pool kit (all of the physical components of the pool) typically costs somewhere between $2,000-$7,000 depending on the brand and quality of the pool and pool kit. After that price comes the installation of the pool. A pool installation will typically set you back somewhere between $1,000-$3,000.
The price of an above-ground pool can also vary by the shape. Oval shaped pools will cost more to purchase and install than a circular pool, which is the most common above ground shapes. Rectangular above-ground pools are the most expensive to purchase and install because they usually require some sort of supportive deck structure to keep them upright.
In-ground pools are more of an expense than an above-ground pool, but there will be more payoff if this is the road you go down. They last much longer and if either one has the chance to up the value of your home, it is an in-ground pool.
These pools usually cost somewhere between $25,000-$100,000. In some extreme luxury cases it can be even more. This wide range is because there are a wide range of in-ground pool sizes, materials, installation methods, and extra features.
A $100,000 pool is close to the very top you are likely to spend and would be an extreme turn-key luxury upgrade with almost every available pool feature. A $25,000 pool will likely be your standard size, vinyl-lined pool. Vinyl-lined pools are typically the cheapest in-ground option and the most expensive option is a concrete-filled pool.
Factors of Value
In most cases, an above-ground pool will not add any value to your home. You and your family can make lifetime memories in these pools, but do not expect them to up the price of your house much, if at all. An in-ground pool, however, does have the power to potentially increase the value of your home but that can depend on several different factors. Let's take a look:
The neighborhood can have a large effect on how much a pool will increase the price of your home. If you live in a neighborhood with older children, families with older children will also likely be looking to purchase in the area.
Families whose children are now in school will find pools desirable. Families who have babies and younger children are usually not interested. So, if you live in a neighborhood that is primarily young families with babies, the pool may not be extremely desirable or add value to the home.
How Common Pools Are
The number of pools in your neighborhood can also have an effect. If you live in a neighborhood where pools are extremely common and you are the minority, installing one may not bring up your house value above your neighbors. It may just bring it up to the neighborhood baseline.
If you live in a neighborhood where pools are uncommon, being the stand-out with a nice in-ground pool could bring your house value up quite a bit. Or -- it could also have an adverse effect. Your neighborhood may not draw in the type of people who want pools (parents of babies or toddlers), so a pool might actually make it harder to sell your home and not add value to the price.
The climate your home is in significantly affects how much value a pool could add to your home. If your city is fairly cold or is covered in snow for almost half of the year, a pool will not likely add much value to the space as it can’t be utilized for that time period.
Nevertheless, there are also cases when some homeowners really enjoy having pools even if they only get to use it for a short amount of time each year. But banking on the fact that someone might want to spend the extra cash on a home with a pool in a colder climate might not be the most wise investment.
On the other hand, if you live in a hot climate, a nice pool will be able to add at least a small amount of value to your home as pools are used for a significantly longer period of time. Thus, it can bring more value to a home if they are well-valued in the neighborhood or area.
One of the key factors in whether your pool will add value to your home is dependent on the potential buyers looking at the space. Note that similar types of people look at similar houses or neighborhoods. This is because lifestyles, needs, budget, and desires are likely similar because of age or family size.
Thus, if the type of people that want live in your neighborhood want pools, it can likely add value to your space. But if you live in a neighborhood with lots of young families and babies, this population typically does not value or want a pool with their home because of potential risk hazards.
Quality of the Pool
Like mentioned earlier, in-ground pools on the less expensive end can cost around $20,000. Pools on the higher end may set you back around $100,000 if you are looking to include all of the bells and whistles. How much money you put into installing and building your pool will also affect if and how much value it will add to your home.
A less expensive vinyl pool in a neighborhood where pools are not highly valued will not add much value to your home. If you’ve invested six digits into your pool and if you live in a luxury neighborhood where people looking at homes want a luxury pool experience, your pool will likely add a decent amount of value to the home.
The quality of the pool is not the only physical aspect that impacts the value. How you maintain and take care of your pool will also affect the value. If you spent less money on a pool, but maintained it extremely well, your pool will likely add more value than a luxury pool that was forgotten and never taken care of.
Let’s get into the Numbers
The amount that will be added to your home’s value will be sourced from a combination of all of these factors mentioned previously. money.com says that homes with pools were selling for around $16,000 more than similar homes without.
These numbers were taken before the COVID 19 pandemic hit and have since slightly adjusted. Because of the lockdowns and the need for social distancing, pools have become an even more desirable investment as families want a safe option to spend fun and exiting times outdoors without breaking restrictions.
Some pools might be valued up to $10,000 more than they were before the pandemic. And don’t forget — these numbers are all impacted by climate, neighborhood, the type of buyer and the quality of the pool. Not every pool is guaranteed a value of an extra $16,000.
As mentioned before, hotter climates make pools more desirable. In the northern part of California, homes with a pool can sell for up to $50,000 more than similar homes without them. However, in most cases, appraisers will only add somewhere between $15,000 and $20,000 to a home with a pool. This can be slightly adjusted up or down depending on the quality, size, and maintenance of your pool.
If you spend six digits on a pool, you are not likely going to recoup six digits back from the pool alone unless you live in a high luxury neighborhood with a high luxury pool.
Home value experts say that it is more lucrative to spend money on a middle of the road pool and keep it extremely well maintained. This way, you are more likely to recoup an amount for the pool alone similar to the amount you spent building it. You could potentially recoup more. It all depends on how other portions of your home are valued and what you spent on upgrading those portions.
Homes with pools can be a place to host parties, create memories, and relax after a long week. They are a great investment to make if you want to have the space for yourself and your family to spend time together and make memories. And most significantly, they can add value to the home.
Not all pools are created equal and do not add an equal amount of value to a home. Building a pool for the sole purpose of making more money when you sell your house may not necessarily be what happens in the future. You may be more likely to break even on the expenses used for the pool.
So, can a pool add value to your home? Yes! While it can add monetary value, it 100% adds value by giving those living in the home a space to make memories right in their own backyard.