The value of a swimming pool
When it comes to assigning a value to something that is beautiful and gives you and your family hours of pleasure, it can be hard to put a price tag on it. However, from a real estate perspective, the value of a swimming pool is strictly in the eye of the beholder - or the potential homebuyer.
It comes as a surprise to some homeowners that although it is one of the most expensive improvements that can be made to a property, a swimming pool does very little to add to a home's resale value. In fact, having a pool on your property may even have a negative effect on its value. Why? Well, the answer is just simple economics; specifically, the law of supply and demand.
The resale value of a home is influenced to some degree by the cost of the property itself and the structures and improvements upon it. However, resale value is primarily determined simply by what price the market will bear. For example, a beautiful house on a large lot won't bring a good price if it was built on a toxic waste site and no one wants it. Alternatively, a simple rural shack might command a very high price if it was the birthplace of Elvis Presley, and there's great demand for it. In a similar vein, the price of installing a pool can't simply be added to the cost of your home to determine its new resale value. It's really all a question of who wants it.
In the case of swimming pools, the reality is that not all buyers want a pool. In fact, many buyers give their real estate representative specific instructions that they do not want to view properties with pools. This diminishes the number of buyers that may be interested in your property and, in general terms, the lower the interest, the smaller the chances of getting a top price. If you're a homeowner who is considering adding a pool to your home, its advisable to make your decision solely on the basis on how it will add to the quality of life for your family. If you can afford it and the pleasure it will bring is worth the cost - then go for it! Just don't make the mistake of thinking that your investment will be recovered when the time comes to sell your home.
Your Coldwell Banker real estate professional can counsel you on what home improvements will realize the best return on your investment when the time comes to sell. Why not take advantage of their expert advice?
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