Depending on what state or country you live in, you might have a different opinion of what a great view is. For us in Maine, it usually has something to do with the ocean or a lake – and in some cases a mountain. Yes, we have everything covered.
But, how much is a great view worth? Well the quick answer is that it depends on the location but we just might be able to help you quantify the different types of views and how much additional value they bring to a home.
The best way to evaluate a view would be to find two identical homes, one with a view and one without. See how much one home sells for vs. the other and contribute the difference to the view and the view alone. Unfortunately, finding homes like this are one-in-a-million, so the only other way would be to come up with qualifiers that add a certain percentage to a home’s value, based on the view. So, let’s identify the different views available and then see just how much they can increase a home’s value.
Ground Level, Unobstructed View: This type of view means that you are located at the same level as many of the other houses around you but you have the advantage of having a view that allows you to see a large, non residential space, like the woods. These views are somewhat undesirable because they’re not jaw dropping but a good one can increase the value of your home by almost 3%.
Rooftop, Partially Obstructed View: A view from above would suggest that you can almost see over all of the other houses around you but there may be a few houses that partially obstruct your view. Generally the higher you are, the more value a view can bring to your home, so a rooftop’s partially obstructed view can bring in an additional 5%.
Unobstructed View from Medium Elevation: This category is primarily reserved for houses that reside on the top of a small hill. This particular view can see areas all around a house without any obstructions but aren’t high enough to see far beyond the community. Having an open area will always command more money than if you can only see a few houses down, so this type of view has the potential to add 8% to the value of your home.
Unobstructed View from High Elevation: Doing slightly better than the previous view, being able to see an entire city from the comfort of your own home can add significant value to it. The estimates you see are conservative depending on the city in which you reside as you can bet an Omaha unobstructed view will not be as valuable as a New York City one!
Unobstructed Water View: The biggest attraction of a view continues to be a large body of water. Whether it’s a lake, bay, river or ocean, the value of a property will certainly increase a considerable amount. This view needs to be unobstructed and the more rooms it can be seen from, the better. Depending on the body of water, the residence can increase in value up to 50%!
Pricing a view is certainly not an exact science but as more and more properties are constructed, the chances of finding a great view are becoming increasingly difficult. In just a few years, you may find the value of a great view to be double than what it is right now but only time will tell.