When preparing a home for sale, most sellers focus on presentation elements such as staging, paint, landscaping, and repairs. While those details are important, there is one issue that repeatedly causes unnecessary delays, appraisal conditions, and even loan denials in Southern California: a green swimming pool.

In coastal and hillside communities like Palos Verdes, pools are a common feature and an expected part of the lifestyle. Buyers view them as an extension of the home’s living space. Lenders and appraisers, however, view pools through a different lens, one focused on safety, habitability, and risk. When a pool turns green, it is no longer considered a cosmetic issue. It becomes a potential health hazard, and that distinction can have serious consequences during escrow.

As the Top Realtor in Palos Verdes, I have seen transactions delayed or jeopardized over issues that were entirely preventable. A green pool is one of the most common and most easily corrected problems that can interfere with a smooth sale.

A green pool is a visible signal that the water is not properly sanitized. The green color typically indicates insufficient chlorine levels, which allows algae to grow and, more importantly, creates an environment where harmful bacteria and pathogens can thrive. From a public health perspective, green pool water is unsafe. From a lender’s perspective, it represents risk.

Pools that are not properly sanitized can harbor bacteria such as Pseudomonas aeruginosa, which is known to cause painful skin rashes, ear infections, and folliculitis. In more serious cases, bacteria like Legionella can be present. Legionella is responsible for Legionnaires’ disease, a severe and potentially life-threatening form of pneumonia that can be contracted by inhaling mist from contaminated water. The danger is not limited to swimming; even brief exposure can pose a risk.

In addition to bacterial concerns, neglected pools often become breeding grounds for mosquitoes. In Southern California, this raises legitimate concerns about mosquito-borne illnesses such as West Nile virus. A pool that has been left untreated or stagnant does not just affect the property, it can impact neighboring homes as well.

There are also more immediate safety risks. When pool water is green and visibility is poor, it becomes difficult or impossible to see the bottom. This creates a drowning hazard and makes emergency response far more difficult. For appraisers, limited visibility alone can be enough to classify a pool as unsafe.

These are not hypothetical concerns, and appraisers are trained to take them seriously. While appraisers are not pool inspectors, they are required to identify readily observable defects that affect safety, habitability, or marketability. A green pool is considered a readily observable condition. If the water is visibly unsafe, the appraiser may note it as a health and safety issue and condition the appraisal accordingly.

Once a pool is flagged in an appraisal, the issue shifts from being a seller preference to a lender requirement. Many sellers are surprised to learn that even if a buyer is comfortable purchasing a home with a green pool, the lender may not be willing to fund the loan until the issue is resolved.

This is particularly true for government-backed loans such as FHA, VA, and USDA financing. These loan programs have strict safety and habitability standards. Pools associated with these loans are generally required to be functional, sanitary, and free from conditions that pose a health risk. A green pool can trigger a lender condition requiring professional cleaning, proof of sanitation, or even repair work before final loan approval.

In some cases, if a pool is structurally unsound—with cracked shells, unstable walls, or significant leaks, the lender may require repairs or, in extreme situations, that the pool be permanently filled in. While this is less common, it underscores how seriously lenders view pool-related safety issues.

Conventional loans tend to be more flexible, but they are not immune to these concerns. Even with conventional financing, a severely neglected pool can raise red flags with underwriters, delay escrow, or require a re-inspection before funding. In higher-priced markets like Palos Verdes, where jumbo loans and portfolio lenders are common, underwriting scrutiny can be even more conservative.

Another common question sellers ask is whether the pool equipment must be working. While buyers may accept older or aging pool systems, lenders and appraisers often expect basic functionality. Pumps, filters, and circulation systems that appear inoperable can contribute to the perception that the pool is unsafe or poorly maintained. Even if the buyer does not intend to use the pool immediately, non-functioning equipment can still create issues during appraisal and underwriting.

The good news is that green pool issues are usually straightforward to resolve when addressed early. The most important step is recognizing that a green pool should never be ignored or minimized during a sale. Sellers should not allow anyone to swim in a green pool, as this exposes them to liability and health risks. The pool should be professionally treated, shocked with appropriate chlorine levels, and filtered until the water is clear and properly balanced. Clear visibility to the bottom of the pool is critical, particularly when an appraisal is involved.

Timing also matters. When pool remediation is done proactively before the home is listed or before the appraiser’s visit it often prevents conditions entirely. When it is done reactively, during escrow, it can still resolve the issue, but coordination becomes more important. In many cases, draining and refilling the pool with clean water prior to a re-inspection is sufficient to satisfy lender requirements, provided there are no underlying structural problems.

In Palos Verdes, these issues carry additional weight. Homes in Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, and Rancho Palos Verdes frequently involve higher price points, complex financing, and buyers who expect properties to be well maintained. A green pool can undermine the perception of the entire home, raising questions about deferred maintenance elsewhere and reducing buyer confidence at a critical moment.

This is where working with an experienced local Realtor makes a meaningful difference. As the Top Realtor in Palos Verdes, my role goes far beyond marketing. I help sellers anticipate appraisal and lender concerns before they arise. That includes walking the property with a critical eye, advising on cost-effective pre-market improvements, coordinating trusted vendors, and ensuring that issues like pool condition are addressed before they threaten the transaction.

I have guided countless sellers through escrows where proactive preparation made the difference between a smooth closing and a delayed or renegotiated deal. A clear, safe pool is not just about aesthetics it is about protecting your value, your timeline, and your buyer’s ability to obtain financing.

If you are preparing to sell your home in Palos Verdes, or if you are already in escrow and facing appraisal questions, addressing pool condition early is one of the smartest decisions you can make. Preventable issues should never stand in the way of a successful sale.

If you would like guidance on how to get your home truly market-ready, I am happy to help. My goal is to ensure that when your home goes to market, or through escrow, it does so with confidence, clarity, and no unnecessary obstacles.

Suzanne Dyer
Luxury Real Estate Specialist
Strand Hill | Forbes Global Properties

Over 1 Billion Dollars in Career Sales

Selling more homes in Rolling Hills Estates than any other Realtor

Top Realtor in Rolling Hills, Palos Verdes Estates, Rolling Hills Estates, Rancho Palos Verdes and the South Bay

310 528 7480 | [email protected]
DRE 01054310