Does a Pool Add Value to a Texas Home?

It’s one of the questions I hear most, and the honest answer is: it depends. As a former appraiser, I can tell you a pool doesn’t automatically add a set dollar amount to a home. What it adds depends on the local market.

How appraisers look at a pool

An appraiser doesn’t start with what the pool cost to build. They look at recent sales in the area and compare similar homes with and without pools. If buyers in that market have consistently paid more for homes with pools, the appraiser can give the pool value. If the sales don’t show a difference, the pool may add little or nothing on paper, even if it cost a lot to put in.

In appraisal, price does not equal value. What a pool cost to build, or what someone paid for it, isn’t the same as what it adds to the home.

That’s why the same pool can mean very different things in two neighborhoods. In some areas, most homes have pools and buyers expect one. In others, a pool is rare, and the sales data may not show buyers paying extra for it.

When I was appraising in the South Florida luxury market, I saw pools that would likely add a quarter of a million dollars in value in today’s dollars. I also saw many that added nothing at all. The pool itself wasn’t the difference. The market was.

Even that quarter-million-dollar pool wasn’t worth more than it cost. These were elaborate, resort-style pools with grottoes, caves, a wet bar, and in one case a volcano. The market was weighing the expense of building a pool like that against what buyers there had paid for similar pools. The lot also has to be able to accommodate a pool like that. And the market generally won’t pay more for a pool than it would cost to put one in, so a pool that’s cheaper to install than the adjustment in question won’t earn that value.

Figuring out what a pool like that adds is a very data-driven process, and it’s far beyond the scope of what a Realtor can determine. That’s an appraiser’s job.

Appeal isn’t the same as value

Sometimes a pool is more about appeal than value. A beautiful backyard with a pool can draw more buyers to a showing and help a home sell faster, even when an appraiser can’t put a big number on it. In the Texas heat, plenty of buyers fall in love with a pool the moment they step outside.

If you want a pool, buy one that’s already there

Here’s something many buyers don’t realize: if you want a pool, buying a home that already has one is almost always cheaper than adding one later. You get the benefit of someone else’s investment, usually for less than it would cost you to build it yourself.

Some buyers don’t want a pool at all

On the other hand, some buyers simply don’t want a pool. They may not want the upkeep, the added costs, or the safety concerns, or they’d rather have the yard space. For those buyers, a pool can be a reason to pass on a home.

Practical things to keep in mind

• Condition matters. An aging pool that needs resurfacing or new equipment can work against a home. If you’re selling, have it clean, running, and repaired before you list. A green or broken pool scares buyers.
• Have a plan if the house is vacant. If you’ve already moved out, someone still needs to keep the pool clean and the equipment running the whole time the home is on the market. A pool service is usually the simplest answer.
• Timing and photos. Pool homes show best in warm months. If you list in winter, use photos from when the pool looked its best.
• Ongoing costs. Buyers should ask about maintenance, utility costs, and how a pool affects homeowners insurance.
• Safety rules. Many cities have fence or barrier requirements for pools. Check with the city if that’s important to you.

How to think about it for your home

If you’re selling a home with a pool, the question isn’t what you spent on it. It’s how pool homes have sold in your specific market. Ask your agent to show you recent sales of similar homes with and without pools, so you can see the difference for yourself.

If you’re buying, think about how much you’ll actually use a pool, and what it will cost to maintain. A pool inspection is also worth considering, so you know its condition before you buy.

Would you pay more for a home with a pool?

If you have questions about pools and your home’s market, I’m happy to help.