Greetings, and a Salute to our Veterans!
I have many clients ask me when they purchase a home or during their ownership, if installing a pool will help or hurt the future sale, and if they will get any of their money back. Like many answers in real estate – It Depends!
Now pools may be the last thing on your mind as you are prepping for the holidays, but if you are going to have one put in for next summer, you should be getting bids and start planning this winter. First question is will you use it enough, and are you OK with the necessary time and money for maintenance and repairs. Second, do you have room for one without losing your yard. Third, what is the approximate value of your home.
Main answer is that pools are an improvement to be enjoyed by you, family and friends. You will most likely not recoup the full cost, and may not even get back half. In some instances owners will actually hurt the resale value and realize a negative return. Main factors for how much money the owners will get back at time of sale are:
1. How much are you spending vs. How well designed is the pool/ how does it fit the lot. I have seen some gorgeous pools (and surrounding decking/landscaping/hardscaping) that make the backyard a true oasis and was worth every penny, and others that should never have been put in. These things can hit $100,000 quickly with lots of bling, or it can be a lower budget $20,000 small fiberglass type. Above ground pools will cost much less, but are uncommon now, and I may even recommend that they be removed prior to selling as they hurt value more times than not.
2. What value is your home. It makes no sense financially to place a high end pool with a low end house anymore than doing a high end kitchen in a low end house. At $200,000, buyers expect certain house amenities, size and condition, so adding a $70,000 pool brings a low percent back on resale as they will choose the house that feels like $270,000 without the pool. However, at $900,000 that $70,000 pool could make financial sense, especially if your lot holds it well and has yard leftover for other things. I see the natural tipping points in St Louis around $400,000 on pools, where under that you tend to get a lower percent back, and over that a better return; and $700,000 is about the point where buyers start to look for pools as an amenity and is much more common. A rough rule of thumb is no more than 10% of home value should be spent on a pool, or kitchen for that matter. Also consider where you are in relation to the homes around you – are you near the bottom of values or near the top already?
3. Condition, age, construction type and features all play into how much eventual return you will see. A 3 year old concrete/gunite pool with spa and stone waterfalls is a real plus on a summer day, while a 25 year old worn vinyl liner pool with cracked decking is a real concern and a deterrent. Pools are similar to other home improvements in this regard: the newer it is, the more desirable it is, especially when it has today’s features and colors (saltwater is hot right now vs chlorine). The older it is, the more drag on resale it has.
One more thing…if you plan to sell your home when the pool is closed, have paperwork handy from the company that opens and closes it. If you do it yourself, consider having an inspection performed before closing it. Photos help immensely. Offering home protection plan coverage helps too. Best advice is sell your home with the pool open. If it’s closed during swimming season, be prepared to knock alot off the price – better to pay for opening and repairs, or even have it torn out.
Have a Happy Thanksgiving!
Gary Hoeferkamp, Broker - Owner of Hoeferkamp Real Estate 