How A Swimming Pool Can Add Value To A Home
Purchasing a home is one of the largest investments you’ll likely make in your life. Whether or not you plan on selling your home any time soon, it is important to take steps to preserve and increase the value of your home. There are many cost-effective renovations that you can make to improve the quality of your home and increase its resale value. Adding a swimming pool is one such renovation that can add significant resale value to your property, depending on a number of conditions.
Here are a few things to know about how a swimming pool can add value to a home.
How Much Does a Pool Cost?
The cost of installing a swimming pool can vary greatly. The total cost will depend on factors such as the size of the pool, in-ground vs. above-ground, whether or not your yard needs landscaping, and more.
According to HomeAdvisor, the average cost of installing a pool is $24,495 with a range of $12,424 to $37,038. These figures account for both in-ground and above-ground pools.
In-ground pools tend to cost $35,000 and $65,000 while above-ground pools cost between $1,500 to $15,000. These prices include the cost of labor.
While in-ground pools are more expensive, they also add much more resale value than above-ground pools do.
How Much Value Does a Pool Add?
Installing a swimming pool will often add value to your home, but how much?
The answer depends on a number of factors, including:
- Whether or not you are located in a warmer climate
- Whether or not most of your neighbors have pools
- The style of pool
- The size of the pool
- Your neighborhood
These factors, among others, determine the value that a pool adds. Under the right conditions, HomeAdvisor indicates that you could see an ROI of around seven percent.
Depending on the current value of your home, the cost of the pool installation, and the added resale value, it may or may not make sense for you to consider adding a pool to your home.
For example, if your home is valued at $200,000 and adding a pool increases that value to $220,000, but the installation cost you $30,000, then adding a pool wouldn’t make sense financially.
Getting an Appraisal
Ultimately, the best way to determine whether or not adding a pool to your home would increase the value by enough to offset installation costs is to get an appraisal.
An appraiser will be able to give you a fair estimate regarding your home’s current value. Additionally, your appraiser will be able to estimate how much value a pool could add by comparing your home to similar homes in your area that do have a pool.
In some cases, you’ll find that adding a pool may not be worth it if your only incentive is to increase the market value of your home. The installation and construction costs may be more than the added value.