I listed a property the other day for a client who wanted to charge an additional $50,000 over the area market value simply because of the view. So this begs the question, how much is of you really worth?
The house is a simple 2000 square-foot, two-story home with a two-car garage. New flooring, freshly painted kitchen, and new appliances. It does have some outdated countertops and bathroom fixtures, but all in all, very move-in ready and attractive. It's a larger size lot in the neighborhood, fenced backyard, on a quiet street. However, the view is color! They have a view out of one side of the house that stretches throughout the entire city and beyond. It's quite an impressive view, but how impressive? Is it worth $50,000?
Many homes in this neighborhood have similar views. Some are obstructed by other homes and others have peekaboo views of the same scenery. However, this home has several unobstructed views, especially from the top floor.
What we need to do is look at similar homes and what they have sold for in the last 3 to 6 months. The market has changed in this particular neighborhood is somewhat over the last year and homes are sitting on the market a little bit longer than they did one year ago.
The key is to find identical homes, which is almost near to impossible since many of the homes in the area are brand-new, have been updated, or don't offer a view. I was able to research and find similar homes sold in the last 3 to 6 months. Some of them have partial views while others had none. My client would like to list at $449,000. Similar homes have sold in the area between $390,000 and $430,000. But again, none of them had quite the exact view that my client has.
There is a percentage method that we like to use if we really can't come up with a number and it also helps to show this to the homeowner so that you can back up your opinion with some facts.
A home with a ground-level, unobstructed view can add about 1% to 3% to the value of the home.
A rooftop or partly obstructed view can add up to 3% or even 5% to the value.
An unobstructed view from a medium elevation can add between 6% and 8% to the value.
An unobstructed view from a high elevation, such as a condominium or apartment building, can add up to 12% to the value.
And here's the kicker, and unobstructed water view can add between 15% and 80% of the value. So, what you do with that percentage range? Of course, the panoramic view is a view from all areas of the house and from every room, which this home did not have. We only had an unobstructed view from one side of the house.
We definitely wanted to price it more expensive than a similar property in the area without a view. These homes were going for around $420,000. And asking price of $450,000 would be to out of the range of acceptability, even though, $30,000 for a beautiful view may or may not appeal to a buyer. If the buyer loves the view, that will easily convince them. If a view is not their thing, it doesn't matter what the home is priced at, it just won't sell.
We went ahead and listed it for $449,000 and have gotten several hits on it. However, it was just listed this weekend so will see how it goes from here.
As a certified Realtor® for the top-rated Columbus Realty Firm - Vision Realty, with 32 years of dedicated real estate experience, I can help buyers, sellers, investors, short sale sellers and more find, sell or invest in the right property, at the right price, at the right time. Contact me anytime for updates and information on the Columbus OH Real Estate market.