A pool may increase a home’s value, but it may also decrease value. Factors are: pool type, location, market value, and appraisals.
At most, a home’s value increases 7% with a pool. Pool liability raises insurance costs. To see if a pool adds value, get two appraisals of your home – with and without a pool.
In-Ground vs Above-Ground Pools
In-ground pools add more value than above-ground ones. However, installation and maintenance costs may outweigh increased home value. Adding a pool ranks low for return on investment. Location strongly impacts a pool’s effect on home value.
In warm areas with longer swim seasons, pools add more value. In cooler climates, pools add little value. Nearby amenities like beaches also reduce a pool’s impact.
Costs and Return on Investment
- Installation may cost $20,000 but only add $10,000 in appraised value.
- Removing older pools in cold climates usually increases value by adding green space.
- Frequent maintenance is required to keep pool value high when selling.
Bigger pools in pool-dense areas add more value. But a poorly maintained pool or an oversized pool reducing outdoor space lowers value.
While a pool may increase value, owners rarely recoup installation and maintenance costs. Pools are best enjoyed, not installed expecting financial gain.
Conclusion: Is It Worth It?
In ideal circumstances, installing an in-ground pool can boost property value by 5 to 8 percent. But it won’t be easy since a pool can make a home harder to sell. Many buyers see it as a liability rather than a luxury. Enjoy your pool, but don’t expect to make a profit from installing one.