There are several paths homeowners can take when they decide to take steps to increase the overall value of their home or enhance the general quality of their property. Naturally, there are surefire ways to do this, such as through kitchen and bathroom renovations or remodeling. Other options, however, are not a guaranteed way of increasing value and enhancing property quality.
Consider a pool, for example. A pool is one amenity that is often hotly debated concerning whether or not they can add true value to a home. If you are considering whether or not a pool is a good investment, be sure to consider the following:
1. Cost of Installation
The cost of installing a pool can prove to be a hefty one. Costs will vary depending on the desired location, type, and size of the pool. Other costs can stem from maintenance costs which can add up over time and prove to be costly. Simple required actions such as opening and closing the pool during relevant seasons may prove to be expensive over time.
Other maintenance costs include purchasing chemicals, accessories, test kits, and other cleaning options or resources. As far as home insurance premiums are concerned, these may be potentially increased due to the possibility of a pool increasing the property’s liability. Of course, all these maintenance costs, coupled with the initial costs, complete the total financial investment a homeowner will experience when choosing this feature.
2. Addition to Quality of Life
Unsurprisingly, there are many reasons property owners can decide to add a pool to their property. One such reason is entertainment. There is something appealing about enjoying time with family and friends at a private pool party.
On the flip side, some potential homeowners can see you immaculately installed pool as a dangerous feature that they would rather do without. Those homebuyers who view a pool as liability may request that the same be filled in (ground pools) or dismantled (above ground pools). This, of course, results in another incurred cost for property owners who must convert a pool they have already invested so much in.
Importantly, location (and the accompanying culture) may be a significant factor in determining whether a pool will be viewed as a liability or asset to a property. For example, pools on properties within warm climates are usually a welcomed addition. In fact, they are usually very popular in such neighbourhoods and contexts.
3. Getting It Appraised
In spite of the above, the actual effect of a pool on property value can actually be appraised. An appraiser can provide an accurate appraisal of the home both before and hypothetically after a pool is added. Current housing market trends and comparable homes often work as useful benchmarks.
That said, with the right circumstances, a home with an inground pool can increase the value of a property by up to 7%. Marketing strategies can also be used to increase likely returns. A detailed and well-logged pool maintenance history and monthly costs should be provided for potential buyers as well.