Can A Home's Value Be Increased By Installing A Pool?
If you are considering building a pool in a home that is not your forever home, you may wonder how that project affects the value of the home. A pool can raise the value of some homes, but it can also decrease the value of other homes. This is because some people want a pool, and to others, a pool is just an added expense. There are many factors that need to be looked at if you are thinking about installing a pool solely for the purpose of maximizing your real estate's price. If you are thinking of installing a pool, here is some information you should know about pools and your home's value.
What Factors Determine if a Pool Will Increase a Home's Value
In the right circumstances, a pool can increase the value of a home. If you live in an area where the climate is warm, such as Florida, Hawaii, or Arizona, a pool tends to be more desirable. This is because a pool can be used more often than not in these areas.
If you live in a high-end neighborhood where pools are prevalent, installing one may be beneficial. This is something that buyers may look for and they may not even consider your home without a pool.
And lastly, you want to make sure that you have the appropriate-sized yard for a pool. If you still have a place for a yard or patio, you may be able to increase the value of your home by adding a pool.
What Factors Determine if a Pool Will Decrease a Home's Value
In many cases, a pool does not add any value to a home. And in some situations, it can actually take value away from a home. When deciding whether to install a pool, look at the average income for homeowners in the area. Owning a pool is not cheap. The pump and heater raise utility costs, while pool chemicals can cost hundreds of dollars a year. If the incomes in your area are not high, buyers may not be able to afford the added expense of a pool, looking at is a burden.
The second factor that determines if a pool will decrease the value is home insurance. Owning a pool will increase your insurance premiums. But in some situations, the pool can cause your premiums to skyrocket. If your home backs up to a school or park, having a pool is a huge liability. If you live in an area prone to flooding, a pool may make your home more susceptible because the pool can over flow. Always price out home insurance before adding a pool to see if there are any major increases that would make owning a pool a downside for you or potential buyers.
Deciding whether or not you should install a pool in your home is a big decision. If you plan on selling the home in the future, ask a real estate agent their opinion on whether it will hurt or help you. A real estate agent knows the area and knows what sells and does not, helping you make this big decision.
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