SWIMMING POOLS: DO THEY INCREASE OR DECREASE A HOME'S VALUE?

Maybe the sweltering days of summer have you wishing for a pool as a backyard oasis.

Like Clark Griswold in "National Lampoon's Christmas Vacation," who fantasizes about buying an in-ground pool with his holiday bonus, you can see it already: The crystal clear water, the poolside deck, the floating raft just waiting for you to climb on and sunbathe.

You're not alone.

Some real estate professionals caution that a swimming pool can be a deterrent to some buyers when the home goes back on the market; having an in-ground pool in the backyard has the potential to dissuade an interested buyer with no desire for the feature or the maintenance it demands.

Still, Americans apparently can't stay away from buying personal water wonderlands, according to statistics compiled by the Association of Pool & Spa Professionals. It isn't just the pool itself, either; many times the backyard investment continues poolside with the installation of homey decks and outdoor kitchens.

In 2005, 176,500 in-ground pools were sold and installed, bringing the total number of those pools in the country up to 4.7 million, according to the association's statistics. About 4.3 million pools were sparkling throughout the country in 2002.

Also in 2005, 219,000 above-ground pools were sold, bringing the total number of them in the country to 3.6 million, the association found. About 3.4 million above ground pools were scattered throughout the country in 2002.

And in some areas of the country, a house's pool is more of a necessity than a flaw.

Smart swimming

In places where pools are common, "a house without a pool would be harder to sell," said Brian Van Bower, president of Aquatic Consultants Inc., a pool-design firm based in Florida.

Seven in 10 Arizona homes have pools, said Roger Soares II, president of Hydroscapes LLC, a pool-design and construction company based in Arizona. "In a lot of areas it's not a need, but here it's a necessity because it's so hot."

Often times, homeowners would rather buy a home with a pool than have to install it themselves, Soares said. If you do buy a home that already has a pool, make sure to get it looked at by a qualified pool inspector, said Suzanne Barrows, spokeswoman for the Association of Pool & Spa Professionals.

"We recommend that you have the pool inspected by a pool person, but in some cases home inspectors have taken education courses so they know what to do," Barrows said. "If the home inspector is a reputable inspector and he or she doesn't know how to inspect a pool, they'll say so, and the good ones will have names of people in the area who could do it."

But if you're already settled and are contemplating buying a pool for your home, it's best to think before you dive.

Above-ground pools traditionally don't add any value to a home come resale time, according to research from the National Association of Realtors. They also aren't much of a deterrent to buyers because they can be easily removed, said Wallace Perry, Coldwell Banker United, Realtors' president and chief operating officer for the Carolinas region.

"It's not enough of an economic factor to influence it (the sale) either way," he said. A seller might even take the pool down and bring it to their new home.

In-ground pools have a different story.

They do tend to add value to a home -- about 7.7%, according to National Association of Realtors statistics. Regionally, in-ground pools will add about 5% to the value of a home in the Northeast part of the country, about 6% in the Midwest and 7.5% in the Southeast and West. In the Southwest, a swimming pool will add nearly 11% to the home's value.

But because they're permanent, buyers who aren't interested in the upkeep or the energy costs of in-ground pools may turn away from a home with one, Perry said. Heated pools especially can run up a power bill, he said.

The feature seems to interfere more often in the sale of lower-priced homes -- homes with selling prices of less than $200,000, Perry said. On the higher end of the market, a pool doesn't seem to be a factor and will probably even enhance a home's appeal, he said.

In general, in-ground pools will usually return 50% of their original cost when the home is sold, Perry said. Depending on location, the age of the pool and maintenance given throughout its lifetime, the return could be even less, said Carolyn Helmlinger, president of Coldwell Banker Mid-America Group, Realtors in Des Moines.

Your own enjoyment, therefore, should be the primary reason for installing a pool.

"If you're going to put in a pool, you need to be comfortable that you're going to be there more than five years," Perry said.

Deep pockets

Another reason to tread carefully before buying a swimming pool: It's a big investment of money and time.

Again, above-ground pools aren't as permanent or as pricey, with many of them available for a couple thousand dollars or less.

Although there are still companies advertising in-ground pools around $16,000, the average price is more like $30,000 to $35,000, which would get its owner a water feature and possibly a spa, Soares said. Landscaping around the pool could cost anywhere from $3,000 to more than $100,000.

Then there's the maintenance once it's installed.

Running the filter -- assuming you have an efficient pump -- will cost an average of $20 a month if it's run all day, every day, Soares said. Chemicals could cost between $5 and $20 a month in the winter and anywhere from $20 to $100 a month during the summer. Pay someone to take care of the pool instead and the going rate is around $65 a month, he said.

Easier chemical distribution through automated dispensing has helped save time and eliminate some of the hassles of pool care, said Ed Kahn, editor of pool magazines including "Pool & Spa Living." Also popular: salt chlorination systems, which covert regular salt to chlorine and prevent pool owners from ever having to buy a chemical.

Emerging pool styles are tailoring to customers' needs as well. New, smaller pools, for example, are configured in a way to provide some of the benefits of hot tubs, Kahn said.

"It looks like a small pool, it has the propulsion system that creates a current in the water so you can literally swim in place as if you're swimming in a large pool," he said. On resting days, owners can use the pool for hydrotherapy.

Aquatic fitness centers produced by Vista, Calif.-based Dimension One Spas allow for vertical and horizontal exercises with less impact, said Bob Hallam, the company's president. They also take up less space.

The pools are so popular, the company is doubling production this year to meet demand, he said. Models run from $25,000 to $35,000, he said.

Why the surge of popularity for the product? "We're all aging, and a lot of people my age -- which is a baby boomer -- still want to keep in good shape," Hallam said. The warm water lessens impact on the joints.

Pool envy?

If the memory of a fun Fourth of July pool party at the neighbor's house still has you desiring your own aqua retreat, Barrows offers these questions to consider before heading to the show room or calling a builder:

• What do you want to use the pool for? Is it for exercise or to splash around in? Look around online for styles and prices. The Association of Pool & Spa Professionals' consumer site, www.poolpeopleusa.com, is a place to start.
• Who is going to use the pool? Adults? Children? The association also maintains a site for kids, www.splashzoneusa.com, that emphasizes pool safety.
• Do you want the design of the pool to mesh with the rest of the yard? Landscaping can be as simple as a small deck and as elaborate as an outdoor kitchen with fire pits and pizza ovens.
• What kind of pool do you want? In-ground? Above-ground? A swim spa? Consider what kinds of pools are in your neighborhood or talk with a local real estate professional if you have any concerns about what installing a pool will do to your resale value.

Above all, talk to pool owners before jumping into a purchase, Soares said. Ask them how they liked their builder. Do additional homework by checking a builder's references and finding out how long they've been in business.

"It's amazing how many people will not do that," he said.


-- August 09, 2006

By Amy Hoak
From Marketwatch