Will A Good View Add Resale Value To My Home?
Yes, being in a quiet area with a nice view will increase the value of your home. At least in most markets you will get a better resale value compared to other similar homes. Naturally, the type of view should be considered and where your home is located matters as well. If you are backing up to a busy road or an industrial area, it will not help. There is the age-old adage of home sales: “Location, Location, Location!”
Depending on what state you live in, you might have a different opinion of what a great view is. For some people the ideal view is a mountainside. For many it’s a water-view,
whether that’s a lake or an ocean. Many want to be higher on the hill or at the top of the apartment complex for an unobstructed view. Some people enjoy just open space or a park. Whatever you consider a good view and want for yourself will probably be good for the next buyer as well.
Real Estate professionals are at odds over how to place a value on the amenity of having this view. Some claim that there is no major premium for a view at this time because during a Seller’s market there’s such a shortage of homes that buyers will make bids quickly in the neighborhoods they want, with or without a view, for fear of missing out. Others say that a view can add up to 15 percent to the value of the home.
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 a view adds between 5 to 8 percent to the market value of a home.
They agree though that, as said earlier, views are challenging to measure, whether good or bad. Professional appraisers are given vague guidance by the Appraisal Institute that when valuing a property they must consider the view. A beautiful view can help. A distasteful view like a rundown building or an abandoned shopping mall can bring down the value of the property.
One interesting report was prepared for the American Appraisal Institute by Patrick Brown and Beverly McCabe regarding view orientation and the value to the home as a result. They claim that a close-up view is worth more than a faraway view; such as, the Golden Gate Bridge right outside your window is worth more than if the bridge were several miles away. (Not surprising!) “Then there is the orientation of the view from within the home. A view from the back of a house influences the home’s value more than a view from the front, according to the pair.”
“What really counts is the (ground level) view from the back, because that’s where people live,” Ernest V Siracusa, a Southern California real estate market analyst tells MSN.com”
“This is because almost no one spends much time in the front of a house; most of the ‘living’ goes on at the rear. Siracusa claims that he would give a view from the front of the home ‘zero view premium.”
Well, this is only one analyst’s opinion regarding a view in the back and, after reading the entire study, his work is to be respected. However, other home situations may be different. A house with a family room in back certainly is where most of the “living” is being done and the view is best there, the kitchen, dining room, or master bedroom. It could be different in a high-rise apartment building. That’s possibly also more expensive.
Without seeing the actual house in question, it wouldn’t be appropriate to assign exact dollar amounts to its view but studies vary and simply show bank appraisers assign values much higher with fabulous views — mostly near large bodies of water in neighborhoods in which homes are selling at high prices. In dry areas such as Arizona, mountainside views have some added values.
The best way to evaluate a view would be to find two identical homes, one with a view and one without. You can only compare prices. Better yet: A good local realtor can help with questions in your particular area. I’d lean towards feeling good about having your view. Even if it doesn’t command a huge dollar amount in this market, it will probably sell faster than the other homes. If you’re buying a home now, choose one that makes you happy. You’re the one that will be living there, view or no view. The interior upgrades that you do over the years will probably mean more overall but a view will certainly add value if you are lucky enough to also be living in the right location.