The weather has been scorching in so many areas across the country. I don’t know about you, but I’ve been thinking about water, lakes, and air conditioning quite a bit this week. Anyway, today I have some pool stats that I’m excited to share. I also want to show you the DIY “pool” I built this weekend. Haha.
UPCOMING (PUBLIC) SPEAKING GIGS:
7/20/23 SAR Market Update (in-person & livestream)
7/26/23 Fairway Mortgage (free and limited space)
8/18/23 Details TBD
10/23 SAR Think Like an Appraiser (TBD)
SOME AREAS HAVE MORE POOLS THAN OTHERS
Real estate is about location. That’s what we always hear. And, it’s true. Homes in different locations and price points tend to have different amenities, and that includes pools. Keep in mind the presence of a pool could be about lot size also – not just the price range.
MORE POOLS AT HIGHER PRICES
Here’s a look at the percentage of homes sold with pools by price range in a few local counties. In short, the higher the price, the greater chance of having a pool. This likely has to do with the cost of building a pool, cost of maintaining a pool, and even larger parcels at higher ranges – not to mention buyers at higher price points expecting a pool more often.
NOTE: If you’re not local, does your market look similar?
BIG MARKET UPDATE ON THURSDAY
I’m doing a big market update in a couple of days. You’re invited. There is a live and webinar option. Register here. No pressure.
POOL SALES INCREASED DURING PANDEMIC
There was a bump in the number and percentage of home sales with pools during the pandemic. Part of this could be working from home and buyers wanting a perfect backyard paradise to quarantine in style so to speak. But at the time buyers were targeting larger homes at higher prices, and that’s a big deal for understanding this trend. Being that there are more pools at higher prices, a big part of the increase in pool sales during 2021 was a function of prices rather than buyers seeking pools. Yet, it’s not just prices because there is no mistaking buyers wanted pools more often too. It also seemed like everyone and their Mom installed a pool during the pandemic (besides me).
Here’s what I mean about a home size spike. Do you see that huge spike in the blue and red lines during 2021? That’s buyers purchasing larger homes. And larger homes tend to be more expensive, and more expensive homes tend to have more pools.
THE COWBOY POOL I BUILT THIS WEEKEND
I posted this online a few days ago, and let’s just say I’ve heard all the redneck jokes. And I know it looks like I’m preparing for a cult event involving sacrifice. Kidding aside, I made this from scrap wood in my garage because I had the itch to create, and it was going to reach 110 degrees this weekend. I don’t have a pool, so I wanted a DIY way to cool off, and I figured a tiki vibe would work. I do have a pump to change water as needed. Anyway, if this appraiser thing doesn’t work out, maybe I’ll start a dad bod cold plunge channel…
ADJUSTMENTS FOR POOLS
Last but not least, let’s remember there is no such thing as a one-size-fits-all adjustment for a built-in pool because the value of a pool is going to depend on quality, condition, and even age. But it’s also about location because some price ranges and areas simply expect a pool to be present. In contrast, pools hardly exist in some locations, so it’s less of a factor because buyers don’t expect a pool. Ultimately, let’s look to the comps for the answers. What are buyers willing to pay? The ideal is to find similar homes with and without pools to help us understand that.
Thanks for being here.
Questions: What stands out to you about the stats? Would you buy a house with a pool? Why or why not? I’d love to hear your take.
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Looks like we are missing the “value of a pool” part?
No, we are looking at how various price ranges value pools. I’m not going to give a specific value for a pool because there is no such thing as a one-size-fits-all adjustment. The title can be read a few ways. Hope there is still some value here… I think this is really interesting.
Hi Ryan!
I think another important fact is the placement of the pool. Over the years, I have seen pools so close to the back door that it was an effort to not fall in. I wouldn’t put much value in a pool that actually created a detriment to the property. I have also seen pools put in behind the garage. The likelihood of using a pool like this diminishes witht the placement. For parents, it’s much harder to keep an eye on the kiddos when they are around the corner. Just another thought!
Great point. It would freak me out to not be able to see a pool with my kids swimming. Thanks Paula.
Thank you.
very beneficial. Much appreciated
My pleasure. I had fun with this. I hope it resonates.
IMO, appx. $25K+/-…LOL
Thanks Kary.
Ryan, I once did an enormous amount of Pairings for Pools, Pool/Spas, Spas alone.
It was in an average-priced neighborhood. I found that 1} homes with pools bring more in the summer than the winter and 2} pools contribute to a percentage of the sales price and finally 3} the cost of a pool is not connected to the value per-se, location and home size/quality do make a difference.
As you observed, more pools were added during Covid, just as they were after 9/11. Where I lived at that time, I say a dozen homes in my comings and goings in my immediate neighborhood that added pool/spas, guest houses or both. We in fact added both as we stopped traveling with the extended family and made our backyard into a playground for the grandkids.
I found that pools/spa packages contribute between 5% and 15% to the sales price depending on location, size/quality of the homes.
Thank you Steve. I wish I had stats to show how many pools were added over the past few years. I should reach out to a few counties and cities to see if they would share building permits. I appreciate your take here. It’s always fascinating to hear from your experience. I can appreciate your thinking in terms of a percentage also. We don’t want to just think about a dollar amount.
I was working on an appraisal of a home that had a nice new saltwater pool. Found a comparable sale two doors down that also had a nice new saltwater pool. I thought, wow, this is my luck. I called the agent to talk about how the pool influenced the price. He said that it was his personal home and the pool added no value. I asked how that is possible. He said the new owners had bids to take it out and he begged them to keep it and try it out for a year. LOL. It’s colder in Portland. We usually see pools help the value on homes if the pools are in good condition and if the homes are nice homes, but the pool cost usually far exceeds the value add. It’s always hard to pin down a number for pools since most homes that have pools also have many other extra amenities like large patios, elaborate landscaping, entertainment spaces with bars, etc… The best thing we can do is get comps with pools, analyze, and reconcile.
This is a golden comment, Gary. Thank you so much. Your commentary underscores the importance of location. It’s like the saying goes, an air conditioner might not have the same value in Arizona and Antarctica. 🙂
It is fascinating to hear this. I don’t know that I’ve heard of a local buyer wanting to remove a pool, but I suspect it has happened. It is HOT here in the summer. Still, probably not much swimming in the winter even here.
Had pools for most of my life. Would never have another. Too much costly maintenance. I never used. The kids and my wife used it regularly.
Winter time no use. And I lived in California and Texas.
Thanks Ken. Makes sense. I think the cost alone is one of the reasons why we see more pools at higher prices. It’s expensive to install and maintain.
In Los Angeles County where I practice real estate, in general, homebuyers would rather have a grassy back yard for their children to play, Many buyers are a turn-off because of required maintenance and safety issues and added insurance costs. I also noticed that most luxury homeowners with pools rarely use their pools. Unfortunately, pools take up most of the back yard. Also, I see a lot of pools with no safety fence or gate.
Thank you so much Flavia. I really appreciate hearing from you about this. Extra expenses in an inflationary environment seem all the more unfortunate. At the least, buyers need to do their homework. The cost to heat a pool can be really high too, which is why some people have really cold pools. 🙂
In an unrelated topic, I have two teenage boys on my auto policy now, and holy batman!! Talk about expensive. 🙂
The maintenance of a pool is a major cost and safety concern. Liability with a pool is a factor- accidental drownings happen. In fact, when I was helping my Dad look for a new house six years ago, his one request was “no pool,” which the Realtor ignored; it irritated him to no end to be shown homes with pools. I’ve maintained small home spas for over fifteen years and the chemistry, filtration, parts has been enough to keep me busy (and wary). My gym membership is worth every penny to have someone else do all the work in maintaining the pool. By the way, love your cold plunge pool!
Thanks Geneva. That’s annoying to be shown home with pools. Ha. You know, we have an inflatable spa at my house, and I really hate the chemical part. Thankfully my oldest son manages that.
Speaking of liability… I don’t know if you’ve heard of a service called Swimply. You can actually rent someone’s pool by the hour. One of my wife’s friends is going to host a pool party in a few weeks at some fancy pool coming soon. I have a local Facebook friend who rents his pool out like this. We live in wild times.
I would have liked to seen a diving board on your pool you built. So for that I’ll give you 4 out of 5 stars.
Haha. Sorry to disappoint, Tom. Maybe the next one I build.
Speaking of digging pools, I can’t help but think of the 90s classic, Encino Man. The main characters dig a pool for a prom party they’re going to throw.
Hot topic Ryan.
No one mentioned yet how pools may not appeal to investors planning to rent a home. Additional liability that an investor doesn’t want
Glad you mentioned it. Thanks Joe. I think that’s spot on. I definitely have heard this sentiment from investors. Between liability and extra expenses with cleaning and insurance, a pool can eat into profit unless there is a premium for the rent to offset the issue. I suppose it depends on the price range too of course.
Very interesting article. To answer your question: if I do move to Tucson, maybe; but here in Seattle, no! I liked Steve Smith’s estimate of a pool adding 5 to 15% of the value. Of the property value in SoCal, of the cost of the pool in Seattle.
Several years ago a friend was selling his home with a pool in an upper end neighborhood in Bellevue, across Lake Washington from Seattle. He reduced the price 3 times, but all prospects mentioned the pool as the detriment. He took it off-market, punched holes in the bottom of the pool, filled the pool and landscaped the area. Back on the market a month later, it sold within 1 week for more than his original asking price.
Ten years ago air-conditioning was a rarity in this area, now it is common in mid-range and higher priced area, but pools are still rare even in the very high-priced neighborhoods.
Thank you Barry. I’m blown away to hear stories from other markets. Granted, I know logically that the contributory value of something is going to vary by location and price range (and region), but it’s still wild to hear stories like this. Thanks for sharing. I would be shocked if a seller here filled in a good pool to sell it.
Ryan, I have appraised many homes with pools in this area and have usually been able to support a positive adjustment. As you said, 2 similar homes, 1 with, 1 without, the ideal paired sale with only 1 difference. However, I had a situation about 15 years ago, appraising a 20 year old split-entry. I had 2 comps about 1/2 mile from the subject, split-entrys a year or 2 different than the subject. I drove up, they were across the street from each other, both faded exterior paint, both the same size per the listings, probably by the same builder, sales prices $5,000 different. The one with an in-ground pool was the lower priced home.
I enjoy this business because there is something unexpected so often!
Thanks Barry. This is such a good example for all of us looking on about there not being a one-size-fits-all adjustment. I wonder if pools are more expensive in your area since it’s not all that common. I know pool builders were extremely backed up down here. A neighbor installed one in 2020, and said she wouldn’t have been able to afford the pool had the install happened just a year later when prices skyrocketed and pool contractors had an incredible backlog.
Great article Ryan. The appeal of an Inground Pool did become greater during the Pandemic in my areas(around Cherry Hill, NJ). People could have they own at home Oasis. There was a waiting list for the installation of Pools at that time. Good for the Pool contractors. I have seen investors just fill in a Pool on foreclosure flips properties that were located in lower priced areas. Your Tiki outside soaking Tub is very cool. lol. I want one.
Thanks for sharing, David. Your area sounds very similar to Sacramento. Hey, it’s time to build a tiki tub. Go for it!!! Haha. Actually, check in with me in a few weeks. I bought a pump to drain it here and there because I realize this could turn into a science experiment in the sun. Time will tell. I’m loving it for now. 🙂
Ryan, as always, you do a great job telling a story with data. Here in south Texas we see similar patterns. I often look at pool adjustments as a percentage of the sales price rather than a lump sum as I often see more patterns in the data.
Thank you Steve. You are too kind. I mostly tend to think of pools in terms of the dollar adjustment, but I think I need to think in terms of a percentage also. There are some things I think of terms of percentages in many cases such as condition and upgrades, but I’m going to flirt with percentage ahead for pools to see if it changes my perception at all. Thanks.
Okay so I am a few weeks late to the party. Been out of town dealing with family stuff. I remember in the mid 90’s down in SoCal where the pool was a detriment, and I could show price decrease on sales with pools. All about costs of running it and keeping it clean. Out in Palm Springs you better have a pool or Ain’t no body looking at your home. Fast Forward to Covid and people were flocking to my area in SW Riverside County, and I saw pricing going from $50k to $110k for a tract house with a pool for goodness’ sake. Made no sense, course 2021 and early 2022 didn’t make sense at all anyway. Some were paying the premium more than it would have cost to put their own pool in the backyard. To all the real estate agents out there be careful, one adjustment doesn’t fit all markets and at all times. Do your homework in your CMA and have some backup data to support your pricing. Will impress the seller since I am willing to bet money you might be the only one flashing data to support your pricing conclusions, good and bad. Great topic Ryan as always.
Hey Brad. I hope things are okay with family. I always appreciate your commentary, and I think you are spot on about how adjustments can be different based on the market.