How to value a pool comes up a lot in my work with buyers and sellers. Putting in a new pool averages about $80,000 but appraisers do not value pools based on their cost. Typically, if a buyer wants a home with a pool, it is more economical to buy a home that already has a pool rather than add one. Since we are in Florida, one might think that pool homes would be in abundance. However, finding homes with pools is not as easy as you might think in St. Pete.
Right now, there are 766 single family homes for sale in St. Pete priced under $500,000. 84 of these homes have an in-ground pool. Furthermore, only 33 of these homes are not in a flood zone. I had two different appraisers gave me their guide for making home valuation adjustments. For a home priced at $250,000, one appraiser gives $8,000 – $15,000. If the pool has a screened enclosure, they add another $5,000. Another appraiser’s guide stipulates a $12,000 – $25,000 adjustment and also another $5,000 for a screened enclosure.
Working with buyers and sellers, I have had a sense that pools are reflecting a higher value to buyers in the St. Pete market than just a $15,000 adjustment, so I took a closer look at the statistics.
In the last 6 months (October 2018 – March 2019), 111 single-family homes with pools that aren’t in a flood zone sold under $500,000.
Data calculated on all homes recently sold under $500,000 with an in-ground pool:
|Average sale price||Average sale price/SF|
|With pools – not in a flood zone||$299,000||$186.13|
|With pools – in a flood zone||$329,000||$198.13|
|Without pools – not in a flood zone||$204,798||$166.01|
|Without pool – in a flood zone||$248,500||$178.oo|
Pools homes definitely sell for more. Based on my analysis, in-ground pools add $50,000 – $80,000 to a home’s value.
This leads me to another point – homes in St. Pete that ARE in a flood zone sell for more. Obviously, waterfront property commands a higher price. However, many of the homes in a flood zone aren’t actually waterfront. Some of the nicer neighborhoods in St. Pete are close to the water. In those neighborhoods, you also find homes that were built later than their counterparts built in the 20s, 40s & 50s and these homes have larger square footage, garages and POOLS! The central parts of St. Pete tend to be older and were not built with pools.