Homebuilders to the rescue


Acquiring a home, whether any type of residence, stands as one of the most momentous decisions you'll ever encounter. Opting for a home with a pool introduces an additional layer of careful contemplation into the decision-making process. The subsequent article delineates crucial information to grasp before embarking on the purchase of a residence with a pool.

For many individuals, the aspiration of possessing a residence with a swimming pool holds undeniable appeal. Pools not only provide an ideal means of relaxation, a refuge from the elements, and a venue for maintaining an active lifestyle, but they also contribute to the property's overall value. According to real estate experts, properties with pools typically command a higher selling price, ranging from 5% to 8% more than comparable homes lacking this luxurious amenity. Hence, if you aim to elevate your property's worth while indulging in the manifold advantages of pool ownership, opting for a residence with a pool could prove to be a judicious decision.

## Determining Whether a Pool Is Suitable for Your Needs
Choosing to install a pool should not be taken lightly. Below are key factors to ponder when deciding if a pool aligns with your lifestyle and needs:

Frequency of Use: Evaluate how often you and your family will make use of the pool. In regions with intense summers, like Las Vegas, a pool could be an excellent addition for those who enjoy swimming and entertaining. Conversely, in milder climates where pool usage might be limited to a few months each year, a second thought might be prudent.

Maintenance Commitment: Pools necessitate regular maintenance for cleanliness, safety, and overall appeal. Consider whether you're willing to invest the necessary time, money, and effort. Routine cleaning, chemical balancing, and equipment upkeep are indispensable tasks that require attention. If you're not ready for the commitment of pool maintenance, reconsidering the decision to buy a home with a pool may be wise.

Financial Considerations: Take into account the expenses associated with pool ownership. Building a pool involves a significant upfront cost, and ongoing expenses such as maintenance, repairs, and energy bills can accumulate. Exploring whether purchasing a home with an existing pool might be a more cost-effective alternative is worthwhile.

### Types of Pools

Every swimming pool is distinctive, not only in terms of its shape and size but also in its classification. When imagining your ideal home, explore the following pool options:

In-ground Pool: This classic pool style is a permanent fixture embedded into the ground. While in-ground pools boast timeless appeal, their installation and maintenance can be costly. It's crucial to assess your budget and commitment to ongoing pool care.

Indoor Pool: Enclosed indoor pools protect from outdoor elements, ensuring year-round usability while reducing maintenance needs and enhancing safety. 

Above-Ground Pool: As a more cost-effective alternative to in-ground pools, above-ground pools require less installation time and are budget-friendly. However, it's important to note that they typically don't significantly increase a home's value.

Filled-in Pool: Some homeowners choose to fill in their pool when it is no longer desired. If you're acquiring a property with a filled-in pool, inquire about the process and ensure it was executed by a qualified professional to avoid potential long-term issues.

Each pool type comes with its own set of advantages and considerations, so it's vital to choose the one that aligns with your preferences, budget, and long-term plans.

## Maintenance

While a well-maintained pool can enhance property value, it's essential to acknowledge the ongoing expenses and effort required to keep any pool in optimal condition. Proper pool maintenance involves a routine of weekly cleanings, consistent chemical treatments, timely filter replacements, periodic resurfacing, and a contingency fund for potential repair costs. Additionally, it's important to recognize that heated pools can substantially increase monthly utility bills. Neglected pools may become breeding grounds for mosquitoes or unsightly havens for algae, negatively impacting your home's resale value.

Potential issues encompass malfunctioning pumps, leaky seals, and burst water pipes, which, if not addressed promptly, can lead to sudden and significant expenses, potentially totaling thousands of dollars. According to Homeadvisor.com, the average monthly maintenance cost for homeowners with pools ranges between $80 and $150. Therefore, it's crucial to factor in these maintenance costs before finalizing your decision to purchase a new home with a pool.


## Costs of a Pool

In general, your homeowner's insurance policy typically extends coverage to encompass your swimming pool under the "other structures" clause. It's crucial to be aware that homeowners might be held responsible for injuries occurring in and around their pool, irrespective of whether the incidents occurred with or without permission. This is why insurance companies classify a pool as an "attractive nuisance," leading most homeowner's insurance policies to include a specific level of liability coverage tailored for pools.

The necessary amount of liability coverage for a pool may vary based on factors like your location and the type of pool you own. It's vital to understand any conditions outlined by your insurance provider to ensure your eligibility for liability claims. These conditions could involve installing a secure pool cover, maintaining a fenced-in pool area, or following proper winterization procedures. Failure to comply with these requirements may leave you susceptible to having your insurance claim denied, citing perceived neglect by the homeowner.

### Property Taxes and the Impact of Pool Additions

In numerous regions, when you increase your home's value through renovations or additions, local assessors reassess the property's worth and then apply higher tax rates accordingly. This principle also applies to the installation of pools. If an assessor concludes that a swimming pool adds to the augmented value of a property, it is likely that you will face higher property taxes when acquiring a home that includes a pool.

## Questions to Ask Current or Previous Homeowners About Their Pool

When considering a home with a pool, it's essential to gather relevant information by asking current or previous homeowners specific questions. Here are some inquiries to consider:

1. Maintenance History:

* How frequently did you perform maintenance on the pool?
* Were there any significant maintenance issues, and how were they addressed?
* Can you provide records of past maintenance and repairs?

2. Pool Age and Installation:
* When was the pool installed?
* Do you have documentation for the pool installation, including permits?
* Are there warranties or guarantees still in effect for any pool components?

3. Usage and Enjoyment:

* How often did you use the pool, and for what purposes (recreation, exercise, social gatherings)?
* What do you enjoy most about having a pool?
* Are there any aspects of pool ownership that you found challenging?

4. Utility Costs:

* Did you notice a significant increase in utility bills, especially for water and electricity, due to the pool?
* Is the pool equipped with energy-efficient features?

5. Neighborhood Regulations:

* Are there any specific neighborhood or local regulations regarding pool ownership?
* Have you encountered any issues with neighbors related to the pool?

6. Safety Measures:

* What safety features does the pool have (fencing, alarms, covers)?
* Have there been any safety incidents or concerns with the pool?

7. Upgrades and Enhancements:

* Have you made any upgrades or enhancements to the pool or its surroundings?
* Are there any future plans or recommendations for improving the pool area?

8. Seasonal Considerations:
* How do you handle pool maintenance during the off-season?
* Are there any specific steps you take for winterizing the pool?

9. Costs and Taxes:

* Did you experience an increase in property taxes due to the pool?
* What are the typical ongoing costs associated with pool ownership?

10. Local Service Providers:

* Can you recommend reliable local service providers for pool maintenance and repairs?
* Are there reputable pool professionals in the area that you have used?
* These questions can provide valuable insights into the history, maintenance, and overall experience of owning a pool in the home you are considering.


### The Disadvantages of Having a Pool

While having a pool can offer numerous benefits, it's important to consider the potential disadvantages as well. Here are some drawbacks associated with pool ownership:

__Increased Utility Bills__: Pools, especially heated ones, contribute to higher monthly utility bills. The energy required for pool pumps, heaters, and filtration systems can lead to increased electricity and water expenses.

__Impact on Property Taxes__: Adding a pool can increase the assessed value of your property, leading to higher property taxes. It's essential to consider the potential tax implications.

__Resale Value Impact__: While a well-maintained pool can enhance property value, not all buyers may be interested in owning a pool. This could limit your pool-equipped home's appeal in the real estate market.

### Average Pool Maintenance Costs

Maintaining a pool involves various tasks and expenses. Here's a breakdown of the typical costs associated with pool maintenance:

__Cleaning__: This includes routine water testing and chemical treatments but does not cover significant repairs to pool linings or filtration systems.
* DIY: $100 - $150 per month
* Professional service: $150 - $200 per month

__Energy Costs__: Running your pool's pump and filtration systems requires electricity, and you'll also incur costs for regularly topping off the pool due to evaporation.
* Annual cost: $300 - $400

Keep in mind that these are general estimates, and actual costs can vary based on factors specific to your pool and location. It's advisable to consult with local pool professionals to get more accurate estimates tailored to your circumstances.

Overall, Pools may be an enjoyable feature and sometimes the center of a home. I would rethink in the guise of the continued maintenance costs of something that large might not pay out in the long run. In the end, if a pool is what "you" are looking for, make it happen. If you think it will be beneficial in cost, I would truly reconsider.


Is A Pool Home For You?


We'll take an investigative look into what's keeping the inventory low and the prices high. 

Coming Soon.

Did you think prices would come down when rates went up?

Over the last few years, Americans have felt the inflationary heat. Everything has become more expensive and HOA dues are no exception. This has made home ownership that much more difficult for the average American. In 2023, According to the [Foundation For Community Association](https://foundation.caionline.org), there are over 365,000 community associations nationally with a whopping 75.5 million people living in these communities. This applies to almost one-third of America.

To understand why HOA fees would be going up we need to understand how HOA fees are collected for. With a national average of $191, and depending on the scale and size of communities the cost(s) can differ, we used a generic amount below:

| Fee | Description | Average (%) |
|:---| ---| --:|
| Maintenance | This covers the upkeep of day to day expenses of the shared parts of the community. | 15-20% |
| Insurance | This covers the insurance of the community. It provides protection against several potential catastrophes. | 25-30% |
| Utilities | Fees could include any shared resources like water, sewer and, trash | 15-20% |
| Landscaping | These fees usually are higher with communities with larger trees | 8-10% |
| Pest Control | Keeping your community free of pesky infestations | 5-7% |
| Amenities | This might be towards a gym and/or parks that are specifically maintained for community members | 5-10% |
| Staff & Security | For larger communities, you might have onsite staff that assist around the community. | 0-20% |
| Reserves | Just like any successful household, reserves are the "rainy day" funds when surprises arise | 5-10% |
| Management Fees | For those represented by offsite management or just the cost of doing business | 4-5% |



## Fees are on the rise

Costs are increasing from every angle. California for instance has seen a shot of costs to insurance premiums. Insurance companies have stated increases of up to 40% with no real explanation but wait there's more. The cost of utilities has jumped on average $86.51 on the West Coast. Material costs have increased affecting maintenance, landscaping and various other costs that require constant material spending. Labor has increased as well. Labor surprisingly has made the least impact but every bit adds up. According to the [Bureau of Labor Statistics](https://www.bls.gov/news.release/pdf/eci.pdf), Before 2022 increases in labor costs were sitting stable at under 3% year-over-year. 2023 we see a large labor increase closer to 5% nationwide. With higher costs reserves have seen increases to match the increased costs of unexpected and unforeseen costs.

### Flippers be aware
Prices are going up everywhere. We have heard of increases of up to 40% to face all fronts to cover the cost of higher expenses throughout. Home buyers are looking at avoiding these unforeseen costs which sometimes feel out of their control. When looking for flipper properties consider homes with no HOA dues. 



### Outweigh the cost

Some specific individuals admire the control and stability of an HOA. As for myself, I am no avid adventurer in gardening or landscaping. I understand the cost of things like pools and amenities like a personal gym aren't worth much to me but are nice to have if the costs of ownership weren't so high. Overall, there are many reasons to look into properties that have HOAs and I believe there are just as many that weigh against it. At the end of the day just remember HOA or not costs are going up. The property owner will eventually have to face the music of the high cost of living and ownership past 2023.