Subject Views Any Value to Views? Do you make Adjustments for Views?

[Ray Miller]

Just got a call from A. Equity, wanting to know why I consider views and want my comparables to have similar views that the subject has.

Subject is on a ridge top and is setting east/west with view north/south. The highest ridge in the area, can see for miles.

This LO tells me not to consider the views because none of the other appraisers do. They just choose comparables based on GLA, bedrooms and baths garages, fireplaces and such. Why should I take the time to check the views. Just get the appraisal done, you already wasted time. I looked at the subject property Monday afternoon. Told the LO I didn't get in off the route till monday evening. repulled comparables and need to check them out for the views.

How many of you worry about the value of the view? Dose a view add any value to the property? Or am I off in space again?????????????

:new_2gunsfiring_v1: :new_multi: :new_2gunsfiring_v1: ​

 

[Pat Butler]

I just finished one yesterday of a unit in a townhouse complex. The subject property backed to a large open area with a walking trail and a pond. My comps all backed to other units in the complex. I made a view adjustment.

I would think that a view adjustment might be appropriate in your area. My wife and I have visited a bed in breakfast south of Madison and it was located high up on a ridge. The view was fanstastic, and I can imagine someone paying extra for that- at least for the purpose of a bed & breakfast.

 

[Restrain]

The prime example is a high-rise condominium. I've done a bunch of those, and you can measure the view easily by paired sales. The higher the floor, the higher the value. Further, the value can be affected by which side of the building the unit is on (are you looking at downtown, or across the suburbs).

Absolutely, view, where it is significant, affects value.

 

[Tater Salad]

There's a subdivision near the MO River, not far from here, where a handfull of the homes are on a high point that looks out over the MO River Valley. The value difference is marked and measurable. You can't actually see the river, but the views are awesome.

 

[Dave Smith]

View amenities and value.

Ray, I usually think of it as a location adjustment. The house on the hill will usually have a higher site value than the house down the hill in the woods by virtue of its superior view, all else being equal. Why did the lumber barons and the ship captains build their houses on the top of the hill? The view!

The house on the lake with usually have a higher site value than the house across the road inland by virtue of the water frontage view and location, all else being equal.

However, I have done the adjustment on either the location line or the site/view line at times, basing the adjustments on the "net site values" of the various properties, taking all aspects of the site characteristics into consideration.

It happens here a lot of the time with bluff top or water front lots. Two one acre lots can be hundreds of thousands of dollars apart in, depending on their location and or view amenities. That said, we always try to compare view sites to view sites and water front sites to water front sites. Even two view lots can have different values depending on size, terrain, compass orientation, municipal services, etc.

Stick to your guns.:new_2gunsfiring_v1:

 

[Tom Barclay]

Significant difference in this market. Ocean, bay, bridge, river, etc. Can be up to $200,000 difference for an ocean view vs. a neighborhood view for the same quality, age, SF. Relatively easy to prove here, but every market is going to be different.

 

[Kien Nguyen]

View adjustment

Definitely, but how much is the big question.


Condider two properties on the same street of Newport Beach, Laguna Beach, CA. One has panoramic ocean view, other has city light/mountain view. One must spend a lot of time to talk with local agents/brokers, residents to estimate and prepare to defend the amount of adjustments to UW's inquiry.

 

[Mary Tiernan]

In this situation, yes, Ray, I would have to try to find at least one comp with a panoramic or similar view and make adjustments, too. The underwriter is speaking in general terms, you have an unusual property and are going to provide an accurate report - not bow to the "usual" requirements.

Although someone is off in space, it is not you.

 

[Jason King]

They just choose comparables based on GLA, bedrooms and baths garages, fireplaces and such. Why should I take the time to check the views.

:new_2gunsfiring_v1: :new_multi: :new_2gunsfiring_v1: ​

Sounds to me like the LO thinks your an AVM and not an appraiser.

Views in my market of San Diego are pretty much in demand for the typical buyer (especially the ocean views)

While I'm sure it would have been nice for you to have a comp with the same view I would be inclined to guess that a prospective buyer would pay more to be king of the ridge.

 

[Ariba]

The prime example is a high-rise condominium. I've done a bunch of those, and you can measure the view easily by paired sales. The higher the floor, the higher the value. Further, the value can be affected by which side of the building the unit is on (are you looking at downtown, or across the suburbs).

Absolutely, view, where it is significant, affects value.

How do you adjust for the addition time spent in the crammed elevator for the higher floors. LOL

It is my experience that once you get above the tree line or the adjacent building the adjustments per floors get smaller, accept for the penthouse.

I recently visited Maimi and looked at two similar condominuim in the same building on the 16th floor. One with a view of the ocean and the other a view of the Miami. The difference in asking price was $200,000 for the ocean view.