Homes that offer great views can draw a premium sale price. But what's the actual dollar value?
Andy Krause, principal data scientist at Greenfield Advisors explains, “Views are actually really difficult to quantify. It’s somewhat subjective. What makes a better water view? Do you want it to be wider? Do you want more of the water from a taller angle? Some of that is in the eye of the beholder.” Krause's automated valuation models analyzing home data estimates that a home on flat ground with a clear view of an open space or park can add 5 to 10 percent of value for a Seattle home seller, NerdWallet reports.
Frank Lucco, a residential real estate appraiser and consultant in Houston, once had clients with an expensive home who sued after a high-rise office tower went up across the street. The building disrupted their view and gave office workers a view of their formerly private backyard and their teenage daughters using the pool. The lawsuit was dismissed, Lucco says, and a bit of detective work could have told them that commercial development was allowed.
Advertisement
Related Stories
Affordability
How Much Must American Renters Earn to Afford Average Rental Prices?
US rents have increased 3.6% year-over-year, pushing the amount renters must earn to afford average rents to around $80K
Market Data + Trends
Survey Shows Confidence Drop in Multifamily Development in Q1 2024
Current sentiment has NAHB projecting that multifamily starts will decrease by 28% during 2024 as developer activity slows
Planning + Development
Developers Target Hotels for Adaptive Reuse Projects in Major US Cities
Of the growing number of adaptive reuse projects in 2023, hotel conversions stole the show, surpassing office-to-apartment conversions