I have an opportunity very soon of buying a foreclosure that has an inground pool. The property is vacant, the house is fine, yard overgrown, and the pool half filled with green water.
The ARV is $110, 000 and I should be able to get it for $70K
I dont want to spend a fortune fixing up an old pool, has anyone ever filled one in? I was thinking of putting a deck over it or a flower garden, any ideas how to take care of this for a reasonable price?
get an estimate on fixing it up. it may need next to nothing.
Yes, I would check into repairs, It could be cheaper than building a deck over it and would bring more value to the home. Hopefully it just needs cleaning. Good luck.
Weldon
This is really a local question. In Houston pools are free. A house that sells for $110k with a pool will sell for $110k without a pool. You get no price bump for it. Another thing to bear in mind is that a person the wants a pool will buy a house without a pool (put it in himself), but a person the does not want a pool will not buy a house with a pool. The pool has just limited your market to those people that want a pool.
It’s kinda like that here, too…there is a house for sale similar to mine down the street that is the only one like it in the development with a pool. These are primarily “zero-lot-line”, low maintenance, high-end houses. The people that are interested are looking to down-size and simplify but want everything to be REALLY nice. These people don’t want the hassle of a pool. The house down the street hasn’t sold but it’s been shown scads of times…same reason - don’t want a pool! Mine would sell within 2 weeks, I believe…
Keith
Hey, I’m going to assume that this prop is in Charlotte, NC from your name.
That being the case, I can say that unless this prop is in a neighborhood where every other house has a pool, then it is NOT a bonus at all!!!
To an investor, a pool is a liability. As Blue said, a buyer that wants a pool will buy a property without one, but a buyer that doesn’t want a pool won’t even consider one with a pool.
As to repairs. It is almost always cheaper to have one filled in than it is to have one fixed, especially if it has been left unattended for one or more seasons (very likely from the sounds of it).
The one (and only) property that I ever bought with a pool had one that was half-full of green water. No prob, I thought. I good cleaning and it’s fine. 2 days after purchase, the water DISAPPEARED! What happened? At the bottom of the pool the liner and been torn apart. Finally (2 days after I bought it), after more than a year of neglect, the concrete split. $5K to repair, $2.5K to bust up the concrete, fill-in, and re-sow grass, $1.5K to fill in the hole and make a garden/play area/etc.
Pools are EVIL!!!
Raj
Bluemoon is correct. It’s really a local issue. My own home has a pool, and I just bought another with a beautiful pool that increased the price by $30K in my area when I turned around and leased it to my tenant/beneficiary. Of course, in my contracts the tenant has responsibility for maintenance and repairs so that affects my thinking. However, never buy a property with an above-ground or liner pool.
Da Wiz
…not to mention that you live in Arizona where it is somewhat of an anomaly to NOT have a pool, especially in a newer or higher end home!
My real issue with pools in my investment properties is the liability/risks involved. And, there is no real good way around it…you dig a hole, fill it with water, and then rent the property out. No amount of insurance will help you if it all “goes to Hell”…
For a private residence, I’m getting too old for the “pool hassle”…I’d probably wind up floating face down anyway…LOL.
My two cents…
Keith
Pools are definitely a local issue as to price, etc. Here, for example, for the average home, a pool is a hamper to value. It doesn’t increase the value at all, it reduces your buyers “pool” and increases your liability, especially in a rental situation.
Doc, I’ve got to ask, why do you recommend NOT buying a place with an above ground pool?
Liability-wise, you’re at risk just as much, if not more, with an inground as opposed to an above ground.
Insurance-wise, you’re going to have higher insurance with an inground.
It’s a heck of alot easier and cheaper to get rid of an above ground pool than an inground one if that is the desire.
As to maintenance/repair. It’s very common for the tenant/buyer to be responsible for repair. But being responsible for, and actually doing it, are two different things. More so, doing it correctly is another matter altogether. Personally, if I were going to rent/lease a property with a pool, I’d just add to the monthly payment the cost of having a professional company take care of it. That’d be cheaper in the long run than finding out that your tenant isn’t taking care of it, or doing it wrong. Pool repairs are expensive.
Raj
Keith,
Your concerns are legitimate. However, where I live in the Verde Valley area of Arizona at ab out 3500 ft. altitude, pools are rare and at a premium, believe it or not. Nine months of the year the temp never gets above the 80’s, but in June-August, watch out! Out of over 200+ homes listed for sale just in this town, three have pools. You are right about liability issues, but we both know I don’t rent the property and my trust and LLC setup covers that area.
Raj, you are correct and most tenants don’t do it. A pool maintenance company is always well worth it. However, I should really call my tenants “Live-in property managers” because they have a vested interest in maintaining the property – they will share in future appreciation.
Da Wiz
“live-in property managers” Cool term, can I borrow it sometime?
Truthfully though, and especially with pools, have you seen a drastic improvement on how people actually take care of the property?
I do the same type of vested interest/shared appreciation, and it always amazes me the way some people live.
I’ve had properties that are in better shape now than when the people moved in. However, I’ve also got properties that dumbfound me that people would choose to live like that. I can only think of what a pool would look like.
Actually, the property that I got with a pool was from a seller that had a T/B setup on a land contract. Vested interest, yet they still let their kids swim in a green sludge as opposed to actually taking care of the place (per the neighbors).
I think I’d still want the professionals to handle it.
Raj
I guess this can be a local question, but I don’t beieve it is really as you put it. As person that wants a pool may buy a property without but that doesn’t mean that they will put one in, and if they do they will want some type of consideration in the price.
In my opinion a pool always adds value, IF the yard has recreational space left over besides the pool. And also IF the climate is right. If it is freezing over half the year where ever you are, you may find trouble with a pool, but a hot tub ma be just what you need.
But since it is really a local issue, do some comps, and get an estimate.