The Luxury Of Private Pools: A Home Value Boost?

Whether a pool adds value to a house depends on a variety of factors. Pools are more likely to increase a home's value in places with warmer climates, such as Florida, Texas, California, Arizona, and Hawaii, where they can be used year-round. In cooler climates, a pool may be seen as a burden due to maintenance and heating costs. The presence of pools in the neighbourhood also matters – if most houses have one, adding a pool can increase a home's value, but if pools are uncommon, it may not make a difference or even decrease the value. The type of pool is another factor – in-ground pools are more likely to add value than above-ground pools, which are often seen as temporary structures. The design of the pool and the available space in the backyard are also important – a well-designed pool that doesn't take up the entire yard is more likely to be seen as an asset. Ultimately, the impact of a pool on a home's value depends on the specific market and buyer preferences.

In-ground vs. above-ground pools

When deciding between an in-ground or above-ground pool, there are several factors to consider, including budget, location, and desired features. Here is a detailed comparison between the two options:

In-Ground Pools

In-ground pools are permanent fixtures that require excavation and site preparation. They offer a wide range of customization options in terms of shape, size, materials, and additional features such as tanning ledges, waterfalls, or slides. In-ground pools are typically more expensive, with installation costs ranging from $45,000 to over $100,000, and they can take several weeks or even months to install. They also require more maintenance and have higher seasonal costs. However, they can add value to your home, especially in warm climates or high-end neighbourhoods where pools are common. In-ground pools have a longer lifespan, typically lasting 30 to 50 years, and can increase your property's resale value by up to 7%.

Above-Ground Pools

Above-ground pools are semi-permanent and sit on top of the ground or on a concrete slab. They are much more affordable, with average costs between $7,000 and $8,000, and can be installed in just a few days. Above-ground pools have limited shapes and sizes, and they may not have the same curb appeal as in-ground pools. They also have a shorter lifespan, typically lasting less than 20 years. While they are easier to maintain, they still have some of the same issues as in-ground pools, such as water evaporation. Above-ground pools generally do not add significant value to your home and may even be seen as a negative by potential buyers.

Key Considerations

When deciding between an in-ground or above-ground pool, consider your budget, the climate in your region, and the resale value of your home. In-ground pools are a significant investment and may be more suitable if you plan to stay in your home long-term and live in an area with warm weather. Above-ground pools are a more affordable and temporary option, perfect for those with a limited budget or who are not in their forever home. Additionally, think about the available space in your yard, as in-ground pools require a larger area. Finally, consider the time and effort you are willing to put into maintenance, as in-ground pools typically require more upkeep.

Location and climate

The impact of a pool on a house's value depends on location and climate. In warm climates, such as California, Florida, Arizona, and Hawaii, a pool can be an attractive feature for potential buyers. In these locations, a pool can increase a home's value by up to 10%. However, in cold climates where a pool cannot be used year-round, the added value is likely to be less significant, and buyers may view it as more of a liability than an asset.

The presence of pools in the neighbourhood also matters. If most of your neighbours have pools, not having one could decrease your home's value. On the other hand, if pools are rare in your area, adding one could increase your property's value.

The type of pool also makes a difference. Above-ground pools are typically not included in appraisals unless they are physically attached to the property. In-ground pools, on the other hand, can add significant value, especially if they are well-maintained and complement the design of the house and surrounding landscape.

Maintenance costs

The cost of maintaining a pool can vary depending on factors such as the size of the pool, the type of pool, and the materials used. On average, pool maintenance costs $180 per month during the season when the pool is in use. However, this can range from $80 to $1,050, with a national average of $270 for a complete pool cleaning service.

The type of pool you have will impact the maintenance costs. In-ground pools are typically more expensive to maintain than above-ground pools due to their larger size and permanent installation. Specialized pools, like indoor pools, have lower maintenance costs, ranging from $25 to $50 per hour, while saltwater pools require more distinctive maintenance and cost between $25 and $45 per hour to maintain.

The size of the pool also matters. Larger pools require more resources, chemicals, and effort to maintain optimal water quality and structural integrity. They also demand more powerful filters, resulting in higher electricity costs.

The material of the pool is another factor. Concrete pools are the most expensive to maintain, as they are prone to algae growth and require frequent vacuuming. Vinyl pools are prone to leaks and may need frequent liner replacements. Fiberglass pools, on the other hand, are the cheapest and simplest to maintain, only needing occasional resurfacing.

In addition to the cost of maintenance, there are also utility costs associated with owning a pool. On average, homeowners spend an extra $300 per month on electricity and $20 to $60 on water.

To save on maintenance costs, pool owners can opt for DIY maintenance or hire a professional for specific tasks. A maintenance kit costs around $35 to $50, while hiring a cleaning service or pool service may cost $25 to $150 per hour. Some maintenance tasks that can be done by the owner include skimming the pool, testing the pH levels, and vacuuming.

Other ways to save on maintenance costs include using a pool cover to reduce water evaporation and debris accumulation, investing in energy-efficient equipment, and buying pool chemicals in bulk.

Insurance and liability

Owning a pool comes with a unique set of insurance considerations. Here are some key points to keep in mind regarding insurance and liability:

Insurance Costs and Coverage

The presence of a pool, especially an in-ground one, will likely lead to an increase in your insurance premiums. The exact nature of this increase will depend on how your insurance company categorises your pool. If it is considered part of the home itself, the replacement cost value of your insurance policy will increase, leading to higher premiums. On the other hand, if your pool is deemed an external structure, you will need to list it as such and may need to raise your personal property limit accordingly.

Above-ground pools are typically considered personal property, while in-ground pools are usually classified as other structures. However, this can vary depending on the permanence of the above-ground pool and whether any land alterations were required for its installation.

It's worth noting that damage to in-ground pools is relatively uncommon, as they are not susceptible to wind, water, and fire damage like homes are. As a result, insurance claims for in-ground pool damage are rare.

Liability

Swimming pools are considered an "attractive nuisance" by insurance companies, which means they are seen as property that might attract and endanger children. As a pool owner, you are liable for any incidents associated with the pool, regardless of whether the person had permission to use it. This is an important consideration, especially if you live in an area with many young children.

The liability portion of your homeowners insurance will cover medical bills or lawsuits resulting from incidents in or around the pool, excluding the policyholder and their household. Most policies include at least $100,000 of liability protection, but some experts recommend purchasing additional coverage, either by increasing your personal liability limit or acquiring a separate umbrella policy, which would cover the cost of any liability claim up to the limit of the umbrella policy.

Safety and Maintenance

To reduce the risk of injuries and ensure compliance with insurance requirements, consider implementing the following safety measures:

• Install a fence around the pool with a lockable gate.
• Put up an alarm on any doors leading to the pool, ensuring it is loud and long-ringing.
• Teach swimming safety to children and supervise them when they are in the pool.
• Get CPR training to be prepared in case of emergencies.
• Keep lifesaving equipment, such as life preservers and rescue hooks, next to the pool.
• Remove or raise ladders for above-ground pools when not in use to restrict access.
• Regularly inspect the pool for signs of wear and tear, checking the liner and structure for damage.

In addition to safety measures, maintaining your pool is crucial. Proper maintenance can help prevent accidents and ensure your insurance coverage remains valid. Some insurance companies may not renew coverage for a pool that hasn't been properly maintained. Neglecting maintenance may also result in higher costs for repairs and resurfacing in the long run.

Additional Considerations

When it comes to insurance and liability, there are a few other factors to keep in mind:

• Diving boards and slides: Your insurance provider may not provide liability coverage for pools with these features due to the higher risk of injuries and medical expenses.
• Fences and enclosures: Almost all cities and towns require pool owners to install a fence or enclosure around the pool. Lack of a suitable fence may result in your insurance carrier excluding liability coverage for pool-related incidents.
• Renting out your pool: If you plan to rent out your pool separately from the house, you will likely need specific insurance coverage for this activity. Consult with your insurance company to ensure you have the right amount of coverage.

Target buyer demographics

The target buyer demographic for a house with a pool is likely to be affluent, older individuals without children or with older children. This is because younger children are often seen as a safety hazard around pools, and families with young children may be deterred by the additional financial burden and maintenance costs.

In addition, the target buyer is also likely to be located in a warmer climate, where the pool can be used year-round. This is reflected in the higher demand for pools in states like Florida, Texas, California, Arizona, and Hawaii. In these states, a pool is often seen as a valuable asset and can increase a home's value by up to 10%.

However, in cooler climates, such as Massachusetts, Connecticut, and New Jersey, pools may be seen as a burden and could decrease a home's value. This is because pools are not usable year-round in these areas, and the maintenance and installation costs may outweigh the benefits.

Therefore, when considering adding a pool to increase a home's value, it is essential to take into account the local climate, the target buyer's demographics, and the potential maintenance costs.

Frequently asked questions