How much more is a home with a view worth? There is no disagreement within the real estate, lending and appraisal communities that a view can add value to a property, but there is no agreed upon formula or rule-of-thumb to quantify just how much more valuable a view property is than one without a view. If you’re thinking about buying a home with a view, here are some thoughts for how much a view changes the value of the property.
Downtown Austin Views and Hill Country Views
A sweeping panoramic view of the Texas Hill Country or a city lights view from a luxury condominium in Downtown Austin can add thousands to the price of the property that could otherwise not be attainable if either of those units were located on the flats.
Where You See the View from Matters
There are different kinds of views, for example, a home that fronts to an adjacent open space but backs to the neighborhood housing development would have little, if any, view premium. The view from the front is much less important than the views from the rooms that are most often used – kitchen, family and dining room, master bedroom. And if the view of the greenbelt was from the 2nd floor only, little value would be added.
Buying New Construction? Your View Might Change Drastically
In new, unfinished subdivisions, home buyers should be especially aware of what the view will be in the line of sight when the development is built out. Builders often build out subdivisions in a way that will make each lot more attractive as it stands at the moment. If you are considering buying a new home, find out what will ultimately be in your path of vision. What you see today may not be the same view when all the homes are built.
Views Often Mean Privacy and/or Status
The value we place on privacy and status must be factored into the equation. The quiet and pleasure we derive from view property is becoming increasingly important as space becomes more rare and privacy becomes harder to find. Owning a home at the top of the hill separates you from those below, and for many that offers a distinction with a very personal difference. In high-rise buildings the value increases as you go higher. There is an enhanced pride of ownership as one goes up the elevator.
Views Come in Varying Degrees and are Difficult to Assess a Dollar Amount
It’s no easy job to eliminate the differences between homes and isolate just the view’s contribution to value. It’s worth remembering that value is in the eyes of the beholder. Having said that the continuum below may be useful. Views come in a variety of quality.
What Views Are Worth More than Others?
With reference to single family homes on the scale of views, and all other things being equal:
- A ground level home with an unobstructed view of a park, green belt would be less valuable than…
- A home with sight lines just high enough to afford partially unobstructed roof top or “paristian” view would be less valuable than…
- A home with modest elevation yet unobstructed view of the surrounding neighborhood would be worth less than…
- A hilltop home with panoramic views of the city or surrounding countryside would be worth less than…
- A home with a spectacular unhindered water view of an ocean, large lake, or river.
A Stellar View Can Be Worth More than 25%
We have seen homes capture more than a 25% premium because they offer the owner a rare and unique vista. An uncluttered water view is the single most valuable contribution to value.
Waterfront Views Command the Most Money
Waterfront and water view property continues to be the most sought after and desirable in the Austin Hill Country. Today, particularly in the Austin metro area, view properties are scarce and the expectation is premiums will continue to increase for the most highly desirable view property.
Looking for a Home with a View in Austin?
If you’re looking for a home with a view in Austin and want an agent who knows the market and specializes in buyers, we can help! We have a combined 60+ years of experience representing buyers and know how to make offers in competitive markets. Check out our Austin Home Buyers page to learn more about our Austin home buyer representation program. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.