View Adjustment Guidance and Opinion Help Please

[CaliforniaSD]

The subject property is facing a canyon across the street and there are two bedrooms on the 2nd floor level that have a view of the canyon if you stand up and look out the window. The listing agent is very adamant that this constitutes a view. I have no comparables in the subject neighborhood that have a similar situation. However, I do have comparables with views of a canyon / mountain that can be seen from the living room, kitchen, dining room, and the backyard.
I would like to get everyone's opinion on this matter. Do you believe the subject constitutes a view? If so, how would you approach extracting value for this view from only two bedrooms (while standing directly in front of the window)?

Thanks for your time everyone, I always appreciate everyone's great feedback.

 

[J Grant]

The subject property is facing a canyon across the street and there are two bedrooms on the 2nd floor level that have a view of the canyon if you stand up and look out the window. The listing agent is very adamant that this constitutes a view. I have no comparables in the subject neighborhood that have a similar situation. However, I do have comparables with views of a canyon / mountain that can be seen from the living room, kitchen, dining room, and the backyard.
I would like to get everyone's opinion on this matter. Do you believe the subject constitutes a view? If so, how would you approach extracting value for this view from only two bedrooms (while standing directly in front of the window)?

Thanks for your time everyone, I always appreciate everyone's great feedback.

That a tough one and we get that here with water views.

I call a view only visible from two rooms on upper story from standing level a limited view or partial view, and normally it carries less premium than a full view from major gathering rooms and both levels . I'd bracket subject with comps having just residential views and comps with the full canyon view and if you can find any older sales or competing area that have a partial view as a comp of a part view of a canyon or green space/lake -

 

[JeffSH]

Even partial views of certain features will have a significant positive impact. Sometimes it's weird how much people will pay for a crappy view of Lake Michigan.

Check out all the comps that advertise a view. I'm sure you'll find one that has a sub-par view. Unfortunately you have to look at the MLS photos to actually see the view. Realtors obviously talk up the view no matter what, but there are usually pictures even if the view is crappy.

 

[JeffSH]

The way to derive an adjustment: Find ~4 comps with partial views. Try to make the comps as homogenous as possible. Doesn't matter what year the sales are from if older data is better. Now find ~4 comps that are similar but have no partial views.

Put all these comps into a grid and adjust for the differences as if you had a subject property to analyze. Do all of the adjustments except for view. Hopefully - and with enough practice - the adjusted price range will demonstrate the view adjustments.

So comps 1-3 (the superior view comps) range from $450k-475k. Comps 4-6 (the normal comps) range from $425k-450k. This tells you that a reasonable adjustment is about 4%-6% of sale price.

The appraisal education gets hung up on paired sale analysis, but two data points are irrelevant. They never really explain that paired sale analysis doesn't have to be limited to just two comps. It's all about reasonable ranges.

 

[BRCJR]

I always consider "the view" from the front porch. The additional views may help or hinder marketability.

How would I know the views from the comps upstairs bedrooms? If you adjust for view should it not be from the upper level of comps to upper level of subject, in this case?

 

[J Grant]

sometimes you can tell from online photos or overhead map placement of house or condo relative to the view, other times have to call the RE agent and ask - they like to exaggerate on listings and just say "Ocean view", but if you call and ask specific questions was the view only from this level or room etc they will answer. They already sold the place so they can tell the truth lol

 

[Long Walk]

I always consider "the view" from the front porch. The additional views may help or hinder marketability.

How would I know the views from the comps upstairs bedrooms? If you adjust for view should it not be from the upper level of comps to upper level of subject, in this case?

This was a front-burner issue in NH assessing about 15 years ago. Views in the White Mountains are sought after. A regional assessor figured out a way to extract the contributory value of the view by having photos taken in the backyard of every property in each affected town they assessed in. Then they rated each view by degrees of width. Then, extraction was a big data problem. The result was called a view tax. Property owners sued. The NH Board of Tax and Land Appeals heard the most important appeals (generally 50+ property owners appealing together from a single town). The assessing company defended their methodology at the final hearings. The Board found the assessing company credible. This article explains the process and the fellow being interviewed is a legend in NH assessing: https://www.laconiadailysun.com/new...cle_94e8d13a-84ee-5c92-a356-ef48d6f22d49.html. The BTLA changed its search function, so I can't find the decisions I referenced above.

 

[lostinthezone]

It's something that you will have to analyze to see if it has a contributory value. If you don't, it will surely become an issue. Agree with what folks have said above in terms of approach, one other avenue that you may be able to pursue is a previous sale of the subject. If the subject has a previous sale, you might be able to look at other good comps from that time period to see if it had an impact then, and if so, what it was on a percentage basis and use that as support for an adjustment or no adjustment today.

 

[TerryRohrer]

This was a front-burner issue in NH assessing about 15 years ago. Views in the White Mountains are sought after. A regional assessor figured out a way to extract the contributory value of the view by having photos taken in the backyard of every property in each affected town they assessed in. Then they rated each view by degrees of width. Then, extraction was a big data problem. The result was called a view tax. Property owners sued. The NH Board of Tax and Land Appeals heard the most important appeals (generally 50+ property owners appealing together from a single town). The assessing company defended their methodology at the final hearings. The Board found the assessing company credible. This article explains the process and the fellow being interviewed is a legend in NH assessing: https://www.laconiadailysun.com/new...cle_94e8d13a-84ee-5c92-a356-ef48d6f22d49.html. The BTLA changed its search function, so I can't find the decisions I referenced above.

Without details and data, I won't opine on the credibility of the results, but I would say anyone near this business who makes statements like the following likely is a legend, at least in their own mind:

"Roberge said he knew that one slight view of blue water added $150,000 to the selling price of one home."

 

[Long Walk]

Without details and data, I won't opine on the credibility of the results, but I would say anyone near this business who makes statements like the following likely is a legend, at least in their own mind:

"Roberge said he knew that one slight view of blue water added $150,000 to the selling price of one home."

He had the data. You don't. He testified successfully and defended his methodology and values. I'll go with Mr. Roberge.