The Value Of Pools

by Darrin DeRoches July 31 - August 6, 2014

The idea of adding a pool and spending close to $50,000 once it is installed and landscaped is based on emotions, not economics. This time of year we all wish we could come home to a pool and we dream of having one installed. I have been thinking about it year after year and every time I try to justify it, economics win out over emotions. If I spend $50,000 on a pool and landscaping will it increase the value of my house?     The pool is just part of your landscaping and if it is just sitting there in the backyard all by itself then it really does nothing to add to the value of your home. If it is part of a great landscaped entertainment backyard, then it helps to sell your home, especially in the summer and fall. The emotions of a pool and the part that it plays in the landscape of a great yard will increase the value of your house but nowhere close to the tune of the total investment. It comes in around 10 per cent of the value of the pool if it is incorporated in a great back yard. Everyone who buys a home with a pool falls in love with it until it costs them money and this emotion helps sell a home.     If you had two exact homes in a neighbourhood — which is very common these days — with new builds and one had a pool, which one would you buy? Think about a finished yard with a pool and a totally landscaped yard that is priced higher than the competitor without the pool. If you could afford to buy the one with a finished yard with pool, your emotions would take over as well as your imagination of summer fun. If the agent explained the owners spent an extra $50,000 on the pool and yard but are only asking and extra ten or twenty grand, you would perceive its value and buy the house with the pool. The reality is that you would pay more for the house with the pool and they would get closer to their asking price than the house without a pool. This does not make you money, since you spent the $50,000 on the yard, but if you spent the same money on the kitchen, would it bring you the same return? A kitchen would bring you maybe an extra ten grand in return but you cannot swim in your kitchen sink!     The bottom line is that paint and flooring are the only two improvements you get a full return on its investment when it comes to improving your property. A pool can bring you years of enjoyment and in the end it will help sell your home, not hurt it! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.