#HomeWithAView #HouseWithAView #RealEstate #HomePrices
The three most important things to consider when buying real estate, as the axiom goes, are location, location and location.
A house with a view of mountains, water, city lights etc., though everyone would like to have one, comes with a price.
Marilyn Lewis discussed this in an article for Nedwallet.com. It was also published in the April 16, 2018, edition of The Atlanta Journal-Constitution.
“Views are actually really difficult to quantify,” Lewis quotes Andy Krause, principal data scientist at Greenfield Advisors, a real estate research company.
A view is somewhat subjective, Lewis quotes Krause. There are, for example, lake “view” locations, which are different from, lake “front” locations. They also come at different prices.
There are city view locations, vs. panoramic city view locations, which allow you to see different parts of the city from every window in the house.
Then, there are views from different places. In Manhattan, a place that overlooks green space, say Central Park, costs much more than a green-space view in the countryside, Lewis quotes Mauricio Rodriguez, a real estate expert who chairs the finance department at Texas Christian University’s Neeley School of Business.
So, pricing a view is the difficult part. Here’s what Lewis attributes to Krause’s automated valuation models:
• Add 5 to 10 percent for a home on flat ground, with an unobstructed view of an open space or a park. If an identical home is worth $500,000 elsewhere in Seattle, this view could boost the price to $525,000 to $550,000.
• Add 10 to 30 percent for a home part way up a hill with a partially obstructed water view over neighbors’ rooftops. The degree of obstruction will vary the price.
• Add 30 to 50 percent if the above view is unobstructed.
• Add 50 to 75 percent for a hilltop home with an unobstructed cityscape or open-space vista.
• Add 75 to 100 percent for an unobstructed big-lake or ocean view.
In short, you have to decide, when buying a house, how much you are willing to pay for a view, particularly in expensive housing markets.
Also, if you have a location with a view, you need to find out whether that view is protected, the article says. In other words, if someone will one day be allowed to build something in front of you that will obstruct, or obliterate, your view, that’s worth less than a view that is protected.
The article also advises homebuyers to look for bargains, like a house in which a wall covers a nice view, or adding a deck to take advantage of the view. Those can be fixed with a remodel that will cost you less than the new value of your house.
All this comes down to money. We all want a nice view, but many are not willing to pay for it. Perhaps, instead of settling for less than you want, you need to find a way to make more money. There are many ways out there to do that, without interfering greatly with what you are doing now. To check out one of the best such vehicles, message me.
Regardless of what your situation is, if you are looking for a home, know how much you can reasonably afford. Also, look for homes in nice locations or neighborhoods, even without great views.
Remember, too, that a house is a house. A home is what you make it.