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Does Installing a Pool Increase the Value of a Home?

Posted on Apr 7, 2014

When you think of relaxing during the hot summer months, what comes to mind? Most people picture themselves sunbathing by a glistening pool, with beach music in the background and a drink in hand. If that’s the American vision of summer relaxation, then it reasonably follows that homes with swimming pools are more desirable than those without, right? Well, the answer may not be so clear-cut.

Just like anything else, swimming pools have pros and cons when it comes to their return on investment. There are a number of different factors to consider when determining whether a pool increases the value of a home, and almost all of them are situation specific. Three of the most important factors are location, home value, and integration.

Location, Location, Location

In real estate, it all comes down to location, location, location. When it comes to swimming pools, the idea remains the same. If a neighborhood has a community pool, a backyard swimming pool is not nearly as valuable as it would be on a street without one. The same is true for neighborhoods in which every house has a backyard swimming pool. Having a pool becomes less of a luxury item and more of a requirement. But when in a hot geographical location with a limited number of swimming pools nearby, you can be confident a pool will bring a higher price tag.

Existing Home Value

Believe it or not, your existing home value can actually determine whether or not a swimming pool will add value. An already attractive home will see a much more noticeable bump in value for having a swimming pool than an average home will.

Backyard Integration

Layout and landscaping can have a major effect on whether a pool will increase the value of a home. If a pool is sloppily placed in a yard, it can detract from the home’s value. But if a pool has elaborate features, proper placement, and attractive landscaping around it, it will appear as a natural part of the backyard and command a much higher price tag.

In addition to location, existing home value, and backyard integration, other factors like area studies and appraisals can determine the value of your home’s swimming pool. There is no clear-cut answer, and it often depends on a combination of geo-specific factors and circumstances. The good news is that a well-kept pool will rarely detract from your home’s value and almost always add selling points.

 

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