Are you considering installing a swimming pool in your backyard? Pools are a great way to cool off during the summer months and a reason to invite friends or family over to spend time with. But before you take the plunge, it might be worth considering how they could affect the resale value of your home.
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What Goes Into Installing a Pool?
Swimming pools can be expensive to install and maintain, so it is important to weigh up any potential gains from adding a pool against the upfront and ongoing costs. It could cost anywhere from $20,000 to $50,000 or more to install an inground pool and typically about 2-3% of the installation costs are required each year for maintenance. Additionally, you need to consider available space, installation time and whether you’ll be digging into irrigation or utility lines.
How Would a Pool Benefit My Resale Value?
Generally, properties with a pool sell for around 7% more than those without one. There are a few caveats to this, though. Normally you will only see this figure if the home is based in an affluent area, or somewhere where swimming pools are in high demand.
The ability to use the pool year-round is also fairly crucial. This is easier to do in a warmer climate, but if you’re based in a country with cold winters then it’s less likely you’ll see any increase in resale value from it. The swimming pool would also need to be well kept to be any kind of desired asset. Buyers with small children may love the idea of a pool to keep children busy or be more inclined to turn their noses up at a home with a pool, noting the potential dangers.
Could it Negatively Affect My Resale Value?
Realistically, as long as you maintain your pool and keep it in good shape, it likely won’t affect your resale value negatively. However, with the approximate value increase being approximately 7%, you should consider whether or not it’s worth the price of installing as there likely won’t be a significant increase if you do choose to sell. Some buyers may not want a home with a pool so it could tighten the number of prospective buyers interested in your home at the time of sale. This means that your home may spend a little longer on the market until the right buyer comes along.
Before making a decision, do some research on the local market to see how popular swimming pools are in your area and talk to a real estate professional about the resale value of your home. Ultimately, a pool can be a great addition to your home, but it should be viewed more as an investment into your lifestyle rather than a way to increase the value of your home.
