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Will a Swimming Pool Increase The Value of My Home Or Make It Harder to Sell?

Last updated 03/14/2024 by

Rolla Bahsous
Are you thinking about adding a swimming pool? You’re certainly not alone. About 16 percent of homes have a pool, according to the Census Bureau. However, it is a big decision to make. Pools don’t come cheap. So you’re probably wondering “will a swimming pool increase the value of my home?” It’s smart to consider the return on investment of installing a swimming pool before you start writing checks.
percent of American homes have a pool.
Real estate expert Susan Bozinovic reveals several factors that clients should consider before installing a pool, especially if they’re looking to resell their property in a few years.

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Pool Return on Investment Varies by Location

The location of the property can affect its resale value when it comes to adding value with a swimming pool. Bozinovic says, “Some statistics say that pools, on average, add 7% to the value of the home, but I’m sure that average includes places where it actually subtracts value.”
She adds, “in locations like Florida, pools may add to value to an extent, and there may be more buyers looking for a house with it, so a resell might be easier.”
However, in states that experience more harsh winters like Michigan, “pools are, for a vast segment of home types, a deal breaker for a buyer. Most shun away from pools because of maintenance (cost and time), safety concerns, or because the pool takes away from the space of the backyard.”

How does home price affect a pool’s ROI

For clients wanting to sell an upscale, luxurious home, a swimming pool is an expected amenity and not having one would decrease the value of the house.
Some statistics say that pools, on average, add 7% to the value of the home, but I’m sure that average includes places where it actually subtracts value.”
“Luxury buyers want these amenities because the cost and time of maintenance is a small fraction of their income, but it adds to their status, or so they believe,” Bozinovic says. She explains that the location of the pool (having an indoor one, instead of an outdoor one) could also be an issue for some buyers.

Possible consequences of buying a house with a pool

From the perspective of the home buyer, every consumer is different. A buyer’s income and location will play a large role when deciding whether or not to buy a property with a pool.
Like other real estate agents working in areas with colder seasons, Bozinovic has had clients that will rule out homes with pools, even if all other checklist items fit. This could be due to concerns over long-term maintenance costs, especially if repairs are needed.
Some clients will consider how many months of the year they’ll use the pool and if it’s worth the potential long-term costs.

How to finance a pool and still get a positive ROI

Take time to calculate the overall cost of your swimming pool before you decide it’s a good idea for your home. Don’t forget installation costs and the cost of financing. This article provides a detailed guide on the cost of swimming pools. It also helps includes advice on how to save money by being smart about the materials and features you include in your pool.

Cost of financing a swimming pool

The average cost of a swimming pool is around $22,000. A personal loan with a 6% APR, will increase the cost by 13.79% over 5 years. That means an extra $3,519. If you get a home equity loan or line of credit with a 4% APR, estimate an additional cost of $2,310 over a 5-year term.
If you want a swimming pool, there are several ways to finance one. Some people borrow against their home equity. However, if this isn’t an option for you, taking out a personal loan may be your best bet.

Financing a pool with home equity

A home equity line of credit (HELOC) could be an option if you have a first mortgage. Most HELOC terms are up to 10 years and work like credit cards. However, it’s a less stable option, as HELOCs come with sliding interest rates that may result in increased monthly payments when the prime rate increases.
A second mortgage, also known as a home equity loan (HEL) is another option. It comes with a fixed rate and tax benefits. However, just like a HELOC, buyers may feel uncomfortable using their homes as collateral. Here’s where getting a personal loan may be a better option to buy a swimming pool.

Financing a pool with personal loans

Getting a personal loan may be a great option for buying a swimming pool. Since personal loans are unsecured, getting approval for a loan is based on your credit score. Different personal loans come with different rates, fees and requirements, so check out what the best personal loans are to ensure that you choose the best option for you.
In addition to banks and credit unions, there are many lenders that are vying for your business. Some of the top lenders for personal loans include LightStream, Prosper, and Avant.

Getting a swimming pool could be a headache-free experience if you plan correctly. Start by using SuperMoney’s loan offer engineto find the best option for you. Then, head on over to our personal loans review page to compare the rates and terms of each lender. Finding the right professional to install the pool is also important. HomeAdvisor ProFinder can help you find vetted pros in your area.

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