When considering getting an above-ground swimming pool, people will explore all angles to find the “pros” that they need to justify the purchase.
The mathematics of whether or not an above-ground pool adds value to their home is one of those rabbit holes.
Adding an above-ground swimming pool to your home does NOT add any official real estate value to the property. Adding permanent decking, outdoor lighting, and landscaping to the pool area can add value to the home though.
WHY AN ABOVE GROUND POOL DOESN’T ADD ANY VALUE TO THE PROPERTY
Anything added to a property that is not considered “permanent” will not add any value. This can be unfortunate as there are different types of above grounds, and some are quite expensive.
ARE SEMI-INGROUND POOLS CONSIDERED “PERMANENT”?
It has become hard to define what a semi-inground swimming pool is. This is because ALL above-ground pools can be placed partially in the ground, which makes them by definition, a semi-inground pool.
Some pools are sold as “semi-inground” though, and they are different from other above-ground pools. And even these sold as semi-inground can be different.
Above-ground pools designed specifically to go in the ground some are a lot more expensive. This is because the wall of the pool has to be more substantial so it can hold the ground pressure when it’s empty.
The most expensive semi-inground designs are very close to inground type pools with vinyl liners, but not quite. These pools (Radiant pools for example) require poured concrete to go all around their base, are made to last for decades, and will cost between 10k -20k to purchase and have installed.
Even though these expensive, hybrid, nearly inground, vinyl-lined pools will last for decades, they are NOT considered permanent, and therefore will not add any official value to the home.
WHY IT CAN MAKE BETTER FINANCIAL SENSE TO GET AN ABOVE GROUND POOL OVER AN INGROUND(EVEN THOUGH IT DOESN’T ADD VALUE TO THE HOME)
If you are bummed out about spending thousands on an above-ground pool and it not adding any value to your property, don’t fret too much. The truth of the situation is that compared to getting an inground pool(which does add value), it may still make better financial sense to get the much cheaper above ground.
Before getting into the numbers, let’s first be honest about a couple of things. First off, most people aren’t very good with math and even worse with their money.
This is why most can be convinced to make purchases that make no financial sense. It’s also why I would never listen to a timeshare pitch. Those guys are really good at showing you why it’s worth overpaying for a yearly week-long lease for a property you will never own that you pay the taxes, insurance, and upkeep on for the rest of your life.
People also make financial decisions based more on emotion than anything else. Emotional sense and mathematical sense very rarely parallel in the same direction.
Coming from a guy who has sold more than his share of above-ground pools, I can tell you that most get a pool based first on emotion, then financial. This is fine as pools are mostly purchased as luxury items, which should involve some emotion.
THE AVERAGE INGROUND POOL COST 50K WHILE THE AVERAGE NICE METAL-WALLED ABOVE GROUND POOL IS 8-10K
Some may think that it’s better to spend fifty thousand for something that adds value to your home versus ten thousand for something that adds no value. In some cases, it is. But in most cases, it isn’t.
The problem with inground pools in this regard is that an inground pool does add value to the home, but only between five and ten percent.
Let’s say that your home is worth 300 thousand dollars. Putting in an inground pool will add between 15k-30k to its value regardless of what you paid for the pool. And in most cases, the number is closer to the five percent(15k) than the ten percent (30k).
It’s not uncommon for most home values to increase to just less than half of the actual cost of the inground pool. So, if you pay 50k for an inground, your home will increase by 25k or much less.
Now, if your home is worth one million dollars and you spend 50k to add a swimming pool, then you are good and haven’t lost anything (5% of 1,000,000 is $50K). The reality of this though is that a one-million-dollar home will most likely have a much bigger and nicer pool built. In most cases, the pool built for a million-dollar home will be over a hundred thousand as it will compare to the home in size and luxury.
YOU CAN RECOVER ALL THAT YOU SPENT FOR AN INGROUND POOL, BUT YOU’LL HAVE TO WAIT A WHILE.
Over the long term, almost all homes rise in value. Where I live in Central Florida, real estate increases by just over five percent a year on average and has for the last thirty-plus years.
Other areas will have a little less and some a little more, but overall, everyone’s home increases in value over the long term. Period.
This is good news if you have bought an inground swimming pool and it only added thirty percent of what you paid to the home’s value. What you can do now is stay in the house and wait for its value to go up.
The average long-term annual home value increase in the US is between 3-4 percent.
There’s a lot of math here when calculating how long it will take for you to get all the money that you paid for adding an inground pool back in real estate value.
If you want to be very specific, then cool. Go now and find the right rabbit hole for your specific situation on this internet thing.
If you want just a point of reference though, then cool. The average time it will take for you to recover all the value for your inground swimming pool is between 15-20 years.
So, you will have to stay in your house for the next 15-20 years before its value is increases enough to get back all of that 50k you paid for your inground pool.
15-20 years is about how long it will take for your home to double in value. Keep in mind that any refinancing or equity grabs you take along the way will skew this timeframe and it will take much longer.
MOST BORROW THE MONEY FOR AN INGROUND POOL WHILE MOST DON’T BORROW FOR AN ABOVE GROUND
This is a big plus for buying an above-ground pool over an inground in terms of finances.
Most get equity loans to have an inground pool built. This can easily double the cost of what you pay for your pool. A 50k pool can then cost you 100k over a twenty-year (or less) period of making payments.
If someone is financing an inground pool, more than likely they will never recover the cost.
In comparison, most who get an above-ground pool don’t borrow the money for it. So, they may have spent 10k and won’t ever recover any from real estate value, but in the end, the loss is much less than compared to a financed inground pool.
PERMANENT DECKS, LIGHTING, AND LANDSCAPING CAN ADD REAL ESTATE VALUE
Above ground swimming pools and decks go hand and hand. I good percentage of above grounds have decks attached to them. Some of these will add value to your home.
Any deck added at ground level and is attached to the back of the home in some way will add value to the home. The longer-lasting pavers and concrete decks will generally add more value than wood decks.
If a wood deck is built high up, against the above-ground pool, and specifically for the pool may not add value to the property.
Asking yourself if the deck will still be useful if the pool was no longer there will help in determining if it has real estate value or not.
Also, any added electrical and/or lighting to the yard may add some long-term value. Again, if this lighting/electrical is still useful if the pool was no longer there will be helpful with appraising it as an added value to the real estate.
Any landscaping can add value to the home as well. Especially aged landscaping like older oak trees or established shrubbery.
THE SMARTEST FINANCIAL MOVE IF WANTING A SWIMMING POOL – BUY A HOUSE THAT ALREADY HAS ONE
Coming from a guy who has been 36 years in the swimming pool business in the second biggest pool market in the US, this is very sound advice.
Some existing swimming pools can be in absolutely horrible condition, so this isn’t a one hundred percent green light. But if you want a pool and want to pay as little as possible for it, buying a home with a pool is the way to go.
This is absolutely the case for inground pools, but for above grounds, it also makes sense.
Buying a home with an above ground is good in that you won’t be paying for it in the real estate price. It will be a freebie. So, even if it needs some work, you will come out better financially than if you buy and install from scratch.
There are always exceptions to every rule, so be careful and if you can, have someone inspect the pool (who knows about pools) before buying the home. It may have some major issue that can be negotiated in the home price.
OPTIONS FOR SELLING A HOUSE WITH AN ABOVE GROUND POOL
People selling a home with an above-ground pool have two options. They can take the pool down or make it look great.
In many cases, a real estate agent will suggest just taking down an above-ground pool for a house they are trying to sell. This is because there is no reduction in the value of the property by getting rid of it.
AND if it’s not there, then it can’t be a negative for potential buyers who don’t want a pool.
Also, anything with a home that can need work may ultimately reduce the price. If the above-ground pool needs some work, then it will be much better to just take it down instead of lowering the home price in order to fix things like replacing the liner or fixing the leaking filter.
The other thing that people do is fix their above-ground pool up for the sale of the home. Commonly, people will have a new liner installed, fix anything leaking or needing replacing, and re-staining/repair the deck if needed.
There is a weird dynamic with swimming pools and buying/selling real estate. Some are afraid of pools and won’t buy a house with one no matter what. For others, having a pool is an absolute must.
I have been paid to take above-ground pools in perfect condition because the house is for sale. And some will wait and see who is buying the pool and take it down before the closing if the new owner doesn’t want it.
THE STIGMA OF AN ABOVE GROUND POOL
I’ve been installing above-ground pools since the mid-1980s. At first, I installed pools mostly in lower-valued properties. I installed pools deep out in the country where the homes weren’t very nice, in a lot of trailer parks, and in lower-income neighborhoods.
This was in Central Florida, where the status symbol of having a swimming pool was only with inground concrete types. If you had an above ground, that was trashy.
Over the years, I have watched the above-ground pool market grow and expand to every type of income level.
There are more super cheap pools now than there were in the 80s because of the popularity of the Intex soft-sided pool from Walmart. At the same time though, there are more high-end semi-inground pool options costing in the 10k plus range.
In the south, above-ground pools have had a stigma to them while up north(where in-ground pools are rarer) they didn’t.
Today, the stigma of the above-ground pool still exists some, but not too much anymore. Some above grounds can cost tens of thousands and look stunning and permanent with being in the ground and having nice decks with beautiful landscaping.
This stigma is partly the reason for an above-ground not adding value to a home.
