Real Estate types - does a pool add value in the B'ham market? (sale, insurance)

[jakabedy]

I'm in the midst of dealing with sale of a home for a relative and our value is suffering compared to an identical floor plan because the latter has a pool. I've not dealt with a pool in Alabama before, but was under the impression that it's an amenity, but not necessarily one that adds value in an appraisal. Can anyone shed light on this for me? We're talking sub-200K garden homes, and an appraiser who says the pool adds 10-15K in value.

[sean1the1]

Originally Posted by jakabedy

I'm in the midst of dealing with sale of a home for a relative and our value is suffering compared to an identical floor plan because the latter has a pool. I've not dealt with a pool in Alabama before, but was under the impression that it's an amenity, but not necessarily one that adds value in an appraisal. Can anyone shed light on this for me? We're talking sub-200K garden homes, and an appraiser who says the pool adds 10-15K in value.

Well considering the fact that it could cost as much 20k to build a pool. Of course it adds value no matter where you are. I mean would you rather have same house with the pool, or without the pool.

[bluebeard]

Originally Posted by sean1the1

I mean would you rather have same house with the pool, or without the pool.

No question: without. I definitely don't want to pay for and deal with pool maintenance. Bu then if you don't use it, you either have an awesome skateboard park, or a giant ugly waste of space in your backyard.

Given that a garden home is likely a smaller lot (from my quick google search), many people looking for those types of housing might not even want a pool as part of the property. I think it would be a risk and quite possibly a waste. Also, I can't imagine the house has difficulty selling solely because some other house(s) in the neighborhood with small lots have pools, whereas yours doesn't. I call shenanigans on your agent.

[cpg35223]

Depends on if you like pools or not.

When we were house hunting seven years ago, my wife adamantly refused to even consider a house with a pool for several reasons:

1) The upkeep.
2) The liability, i.e., if some kid cracks his head on the diving board.
3) The worry. My wife was always terrified that some small kid would wander into the pool, not be able to figure out how to get out, and drown. It happens all the time.

[Kreutz]

I don't live anywhere near you, but we bought a home awhile back and passed on an otherwise great house because it had an in-ground pool.

Didn't want to deal with liability, markedly increased homeowner insurance costs, maintenance, and the risk of one of my kids drowning.

[LCTMadison]

Pools can either add SOME value or actually deter a buyer. The value lies with the PURCHASER.

Shocked an appraiser gave you $10k for a pool.....generally your basic pool MIGHT add $5k-$7k on resale, depending on the pool type/shape and surround.

I always tell buyers swimming pools are depreciating assets....it will cost around $20k to put one in and you will never get that back out on resale, and it can HINDER your resale. I have many buyers who do not want to look at homes with pools period.

[bluebeard]

Originally Posted by cpg35223

Depends on if you like pools or not.

3) The worry. My wife was always terrified that some small kid would wander into the pool, not be able to figure out how to get out, and drown. It happens all the time.

Exactly. Not everyone wants to deal with a pool.

My wife forever lives in fear of swimming pools due to the realistic risk they present (and have shown through both her repeated anecdotal and fact-based evidence).

Drowning Top Cause of Injury Deaths in Kids 1-4

I think they'd just be annoying to have. The upkeep is in no distant way worth the result. Time is precious enough. The last thing I want to do is add more work to house maintenance.

Whether you agree or not, many people like myself pretty close to rule out anywhere with a pool. Particularly if the lot is smaller.

[bluebeard]

Originally Posted by Kreutz

Didn't want to deal with liability, markedly increased homeowner insurance costs, maintenance, and the risk of one of my kids drowning.

I wasn't even thinking about homeowner's insurance... but it definitely makes sense.

[cpg35223]

Funny thing is, you'd think that a swimming pool would be incredibly fun for the kids. My three teenagers have yet to visit a pool this summer. They just don't give a rip.

[jakabedy]

I know all the intangibles -- some love pools and some hate them. I was looking for info on just the hard numbers. Because it's a situation where the comps are quite spread out, and I think the appraiser bridged the gap by WAY overvaluing the pool.

Three virtually identical houses (3/2, same builder, same essential interior finishes, within 20 square feet (1,700), in the same development).

A) Sells for 160K in 8/12.
B) Sells for 180K in 5/13.
C) Under contract for 178,500 in 7/13.

160K was an estate. It sat on the market in the 180's for 6 months then they dumped it for 160 to be done with it. B is the one with the pool, and sold within 60 days. Appraiser says that since A sat on the market for 6 months, that it wasn't really a fire sale, so had to be fairly close to actual value, maybe within 5K-7.K. So that means that he has to justify the big gap between A and B by attributing the bulk of it (12-15K) to the pool. When means that when C comes along (mine), it suffers, because it doesn't have the pool. Mine has some things that A and B didn't (larger screened porch, more brick, better landscaping), so he falls to the north of splitting the difference, and lands C around 173,500.

My position is that the 20K gap between A and B has more to do with fire sale and market improvement than it does with the pool. I mean, heck. It's a garden home community with 1,700 sq. ft. homes on 4,000 sq. ft lots. It's a freak thing that B has a pool, anyway. I just don't see a small pool in this neighborhood as having that kind of value. I just think it was the easiest way for him to bridge the gap and poor C had to suffer for it.