There is no arguing that Arizona has a hot, hot climate – which makes having a backyard pool an ideal way to cool off and enjoy summer outdoors. In fact, some Arizona residents can’t even imagine living in the hot climate without a backyard pool.
Pools can enhance backyard appeal and increase the home’s value – but the extent of the increase in home value depends on several factors.
What Affects The Value Of A Backyard Pool
1. Location
In warmer climates where pools can be used year-round, such as Arizona, a pool is often seen as a desirable feature and can significantly increase a home’s value.
If you live in a neighborhood where pools are common, having a pool can help your home remain competitive in the market. Conversely, in areas where pools are less common or less practical, a pool may not add as much value.
2. Type and Quality of the Pool
In-ground pools generally add more value than above-ground pools due to their permanence, customization options, and overall aesthetic appeal.
High-quality materials, such as natural stone decking, along with additional features like heating, lighting, and landscaping, can increase the pool’s appeal and its value.
3. Maintenance and Upkeep
Buyers may be concerned about the ongoing maintenance costs and responsibilities associated with pool ownership. If the pool is well-maintained and energy-efficient, it may be more attractive to potential buyers.
4. Market Conditions
In a hot real estate market, a pool might add more value to your home, as buyers are willing to pay a premium for desirable features. In a slower market, the added value might be less significant.
5. Potential Buyers
The value a pool adds also depends on the preferences of potential buyers. Families with children, for instance, may see a pool as a major asset, while others might view it as a liability due to safety concerns or maintenance costs.
Measuring Increased Home Value
To truly know the value of your home if you add a pool, it’s a good idea to consult with real estate professionals or appraisers who are familiar with your local market.
Real estate agents generally agree that building a pool can add value to a home, especially in Arizona. However, the added value depends on factors such as the quality of the pool, the neighborhood, and buyer preferences.
Arizona realtor Jill DeBord weighs in, “A majority of prospective buyers prefer a home with a pool when making a purchase decision. Would they pay more? Not necessarily. Ultimately, the house itself, price and location are the most important to them. For a home with a pool, it’s important that sellers take the time to keep the pool looking attractive. A clean pool with working pool equipment and no broken decking are important to buyers considering a home with a pool.”
While a pool can make a home more attractive to certain buyers, it might not always provide a dollar-for-dollar return on investment.
Here is an example from Phoenix home appraiser, Steve Leavit to illustrate the difference of how much more your home might be worth with the addition compared to its value without it:
-
“Let’s say you spend $60,000 to add a pool to your home. This $60,000 is the cost of the pool. However, after the pool is completed, an appraiser assesses your home’s value and determines through accepted appraisal methods that the pool has increased your home’s overall market value by $40,000.
- In this scenario, the cost of the pool ($60,000) is higher than the value it added to your home ($40,000). This can sometimes happen, and it’s important to be aware that not all home improvements will provide a direct dollar-for-dollar return on investment.”
On average, a well-maintained pool in the right location might add 5-8% to the home’s value, but this can vary widely. Additionally, if you plan to stay in your home for several years and will enjoy the pool, the personal satisfaction and lifestyle benefits may outweigh the financial return on investment.
