Memorial Day weekend is nearly upon us, and that can only mean one thing: After months of complaining about the cold, we will all be seeking reprieve from the summer heat.
There’s no better way to do that than by lounging in a cool pool with a refreshing beverage and jamming to some great music.
That brings us to this week’s analysis. We wanted to understand how much value pools add in property transactions. Our data science team pulled numbers of the neighborhoods that saw the most transactions of detached houses with pools in 2016. (We focused on detached houses because attached homes comprise condos, high-rises, etc., and that would have made things more difficult to assess.)
Let’s jump in!
Houses with pools result in higher sales prices
So, first things first – let’s talk about how rarely detached properties with pools go up for sale. Residential Buckhead saw the most transactions of houses with pools last year, and there were only 122 sales. This was followed by 110 sales in an area of Alpharetta, 83 sales in one Roswell neighborhood and 67 transactions in an area of Douglasville.
While these transactions aren’t as common as properties without pools, they do result in a major premium for sellers when they do occur. Take a look.
In 2016, residential Buckhead—zip code 30327—had the most transactions of properties with pools with 122 sales. These sales came in at a median of $1,524,750. (Keep in mind that this area is probably the most affluent in Metro Atlanta.)
In comparison, we saw 213 sales of houses without pools, which brought in a median of $1,005,000. This tells us that houses with pools will yield local sellers a return of nearly 52% more.
We discussed Alpharetta zip code 30004 last week, and how it is among the hottest neighborhoods in Metro Atlanta. It also had the second-highest number of transactions of properties with pools in 2016. The area saw 110 sales last year, with the median price of homes with pools coming out to $765,000.
This is compared with 857 sales of properties without pools, which yielded a median of $439,000.
The premium was the highest here: Properties with pools garnered sellers 74% more than those without.
In Roswell (zip code 30075), some 83 houses with pools sold last year. The median price for these transactions came out to $559,850.
Let’s compare this to the median price of properties without pools that sold in 2016: $410,000. The premium for sellers isn’t as high as it is in other areas, but, with 36% more, it’s still a decent return.
Zip code 30135 in Douglasville experienced the fourth-highest number of pool sales in 2016, and it’s also happens to be the most affordable area to own a home with a pool. Last year, 67 houses with pools sold in this area of Douglasville. The median price of those transactions came out to $189,000.
Meantime, 967 houses without pools sold in the same area. At $159,900, the median price for these properties was 15% less than the houses with pools.
Ready to enjoy your upside?
So, it’s confirmed: Owning a pool results in a higher return when you’re ready to sell your property. We didn’t factor for property size in this report, so it is possible that houses with pools tend to be bigger and therefore cost more. Either way, homes with pools are attached to a pretty nice premium.
If you’ve been considering selling your poolside place, you might want to get the ball rolling before the busiest time of the year to transact: summer. To learn how your pool will increase your upside, check out the Knock strategy.