So I live in the energy corridor in Houston and pruchased a home in a new subdivision several years back. The lot my house is built on is ~3,800 sq. ft. I love the house however I would really like to install a pool sometime in the future but I simply don't have the yard for it. There is a lot next to my property that is vacant ~5,000 sq ft. I guess the question I have is how much can I expect my property value to increase if I were to purchase the lot, fence it in and install a pool?

The house currently is appraised at ~270k and the lot next door can be bought for probably around 50k. This would have me investing at a minimum 80k for this pool but also increasing my property size by ~5,000 sq ft.

Anyone have experience with this type of thing and can ballpark how much I can expect the property value to increase?

Thanks.

This post was edited on 3/31/10 at 7:55 am

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Posted by guttata

prairieville

Member since Feb 2006

22513 posts

Posted on 3/31/10 at 7:47 am to HoustonsTiger

You would probably lose money on an investment like that. My parents bought a house that already had a pool. The guy that owned it previous;ly said he spent $31k putting the pool in and when he got the appraisal, the pool appraised for $9k.

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Posted by arrakis

Member since Nov 2008

21168 posts

Posted on 3/31/10 at 9:00 am to HoustonsTiger

quote:
how much I can expect the property value to increase

Your tax statement doesn't break out the land and dwelling into separate items?

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Posted by I Love Bama

Alabama

Member since Nov 2007

37732 posts

Posted on 3/31/10 at 9:14 am to HoustonsTiger

The lot next door will lose value. If you decide to sell the lot down the road whoever buys it will have the extra cost of filling it in to prepare a suitable building area. You obviously will get an increase in value but it will not make up your cost.That said, if you LOVE that house and you don't see yourself moving in the next ten years then go for it. I would be surprised if your zoning ordinance allows the construction of a pool if none of your neighbors have one though.

I am an appraiser