Views are Value in RE
How do you put a value on a view?
What view is worth more? Is it the view of a beach or coastline looking out onto an open horizon, or is it a beautiful skyline shining like a diamond in the night, or is it a garden filled with colorful flowers and plants that are a constant reminder of your hard work and creativity?
There are so many factors that go into measuring the value of a view but the reality is...only you can determine that. A beautiful view is one of, if not the, most important factor in purchasing a home. The "Wow" feeling that you get when you step out on the patio or balcony is everything. Buying a home is all about emotion. Even if everything in the house is perfect...the floors consist of that eye-popping mahogany wood, the counter tops in the kitchen work in perfect harmony with the marble backsplash and cabinets, there is crown molding lining the entire house giving it that prim and proper look, but when you look out the window you see the back of an old, run-down, dirty brick wall...this, my friends, is a huge deal-breaker for anybody in the market.
Typically, an appraiser will go out to a property and come up with the market value of a home based on recent sales in the area called comps. He or she will take a look at the view and try to come up with a figure that represents what the same exact property without a nice view costs in comparison to it which has a stunning view.
Researchers Mauricio Rodriguez and C.F. Sirmans reject the notion that a view has no impact on home value. Their study, published by Texas Christian University, shows that a view adds between 5 to 8 percent to the market value of a home.
Just as there are stunning views, there are also some view that just kill the vibe like looking out onto a parking lot. An important factor worth noting in measuring the value of a view is also noting the orientation. Is the view near or far? Do you gaze out for miles in all directions or are you looking at the forest when you step out onto your back porch? Studies show that unobstructed water views add anywhere between 15-20% to the value of a home...and if the water view is of the ocean, it may add up to 30% value over a home without a view.