Adding an inground pool to your backyard is a major investment. But like most major investments, it’s all about the return. Will an inground pool increase the value of your home?
The answer depends on a few factors, including your location, the quality and size of the pool, and how the pool fits into the backyard as a whole. Here is a closer look at how a pool could impact your home’s value, to help you decide if it’s a worthwhile investment for your family. Read through the end for some other backyard improvement ideas that could also add to your home’s value.
The Impact of an Inground Pool on Home Value
Knowing how an inground pool will affect your home value requires asking a few key questions.
1. Where do you live?
One of the most critical factors influencing whether a pool will increase your home’s value is your geographical location. In warmer climates where pools can be used year-round—such as the Phoenix area—an inground pool can be a highly desirable feature. Many families shopping for a home may even see a pool as a necessity rather than a luxury.
If you live in a warm climate, chances of getting a good return on investment for your inground pool are much higher.
2. What are the expectations in your neighborhood?
Understanding the expectations of potential buyers is key. If you live in a neighborhood where most homes have pools, not having one might put your property at a disadvantage when it comes time to sell. Still, even if you do have a pool, your pool might need to be extra special to stand out in such a neighborhood.
If you’re in an area where pools are rare, it’s important to understand why that is. Is it because people don’t want them, or because they can’t justify the cost of installation or upkeep? Before you install your own pool, make sure there’s not a good reason why others avoid adding them to their own backyards in your area.
3. How much will it cost?
An inground pool can cost anywhere from $35,000 to $100,000 or more, depending on size, materials, and additional features like heating, waterfalls, or lighting.
Some research suggests that a pool can increase a home’s value by almost 10%, although this can very greatly based on location and the pool’s features. Whether or not you can recoup these costs when you sell your home depends largely on market conditions and buyer demand.
4. What are the maintenance and insurance costs?
Installing a backyard pool is only the beginning of its cost. Pools cost a lot to maintain (think: cleaning, chemical balancing, and repairs), and adding a pool can sometimes increase the cost of your home insurance.
This is definitely something to consider for yourself, but it’s also something to keep in mind in regards to prospective buyers. They may be hesitant about a home with a pool due to these additional costs; they may not want to take on the extra expense and responsibility.
When Does a Pool Add Value?
It’s true that there are a lot of things that can impact whether or not a pool dramatically increases your home’s value. Generally speaking, however, there are a few things that make it more likely that your pool will add value to your home.
- If the pool is well-maintained and aesthetically pleasing
- If the home is in a warm climate where pools are common
- If the pool is integrated into a high-quality backyard design
- If comparable homes in the neighborhood also have pools
Although nothing is guaranteed, these qualifications make it more likely that your pool will be a worthwhile investment.
Other Backyard Improvements That Increase Home Value
If you ultimately decide that an inground pool isn’t the best investment for your home, there are plenty of other backyard upgrades that can boost your home’s value. Here are some popular options:
1. Outdoor kitchen and/or dining area
An outdoor kitchen with a built-in grill, sink, refrigerator, or counter space is a high-end backyard feature that usually appeals to buyers, especially those who enjoy entertaining. If a full kitchen is too expensive, even adding a covered dining area with a pergola or gazebo can make an outdoor space more functional and attractive, upping its overall appeal.
2. Professional landscaping
Curb appeal matters. Beautifully landscaped front and back yards can improve the impression your home makes on buyers. Think about things like:
- Utilizing native plants that require minimal maintenance
- Adding flower beds with seasonal color
- Installing decorative pathways and garden lighting
- Keeping your lawn well maintained, or adding turf for a zero-maintenance option
3. Deck or patio Installation
A spacious deck or patio extends your home’s living space into the outdoors, making the backyard more usable overall. Materials such as composite decking, stone pavers, or stamped concrete provide durability and aesthetic appeal, and contribute to the look and feel of your yard and home. Features like built-in seating or a fire pit can further enhance the space. Talk to a landscape design company to get creative ideas for the latest backyard improvements that could work well for your space.
4. Fire pit or outdoor fireplace
One very popular outdoor feature is a fire feature. A fire pit or fireplace can make your backyard usable year-round by adding warmth and ambiance. A built-in fireplace or a well-designed fire pit with seating are cost-effective additions that add to a home’s resale appeal.
5. Smart irrigation system
Water-efficient landscaping is increasingly appealing to homebuyers, especially in areas like Phoenix, where water conservation is a pertinent issue. A smart irrigation system that adjusts watering schedules based on weather conditions helps homeowners save on utility bills and maintain a lush yard with minimal effort. This makes these smart systems an attractive selling point for homebuyers.
6. Privacy enhancements
Fencing, hedges, or decorative privacy screens all make an outdoor space more inviting. Buyers appreciate a backyard that feels like a private retreat rather than an open space visible to neighbors.
7. Outdoor lighting
Nothing adds to the ambience of your backyard like lighting. Strategically placed outdoor lighting enhances safety and aesthetics. Pathway lights, LED uplighting for trees, and string lights for patios all contribute to a welcoming atmosphere and increase a home’s nighttime curb appeal.
8. Covered outdoor living space
A covered patio or screened porch can expand usable living space, especially in regions with extreme weather. Buyers appreciate shaded areas for relaxation and entertaining.
An inground can certainly increase the value of your home, under the right conditions. Still, because the cost of adding a pool is so high, it might not always be your best option. A pool may enhance your home’s appeal and marketability, but if ROI is a major concern, other backyard improvements can often provide similar returns at a lower cost. Before making a decision, evaluate your local market, consider the lifestyle benefits, and consult with a real estate professional to determine what additions will add the most value to your home.
