There’s an old saying in real estate: ‘Location, location, location.’ The homes in the best locations as well as those with the most desirable building lots always go for a premium. So while you are thinking about building a custom home, here’s one of the questions you might want to ask yourself: Are you willing to pay more for a lot with a view?
How much is a view worth? The value of a scenic view is difficult to calculate. There is no ‘Blue Book’ formula that determines an esthetic value of a vista. It’s up to the buyer’s preference. Do you want an unobstructed view from the mountains?
Or maybe it’s a view of the ocean you are looking for? Perhaps you want to gaze at the lush greenery of your own backyard. For some, it’s the bright lights of the city off in the distance.
The answer really depends on how much a view matters to you and what your budget can afford. But there is no question a view will cost you more in the short run and will add value to your home in the long run (provided a neighbor doesn’t obstruct it).
Some buyers are willing to pay more for a lot with a view. One study of property in southern California found that a ground-level home with an unobstructed view was worth one to 2.5 percent more; a partially obstructed view added three-to-five percent in perceived value; and a full unobstructed view added six-to-eight percent.
If you’re eyeing a home atop a hill with an unobstructed view, there’s no doubt it will boost your home’s value by as much as nine-to-12 percent. Lake or ocean views can up the value of a home by as much as 25 percent and oceanfront property can cause a rise in valuation of 25-to-30 percent.
As you would expect, the closer to the water, the higher the home prices will be. Even partially blocked views will fetch a 10-to-12 percent premium. You want to make sure your floor plan maximizes the view from the master bedroom, the kitchen or living room.
So is it worth it to pay a little extra to have that dream view? If you plan on staying in your home for a long time and you are set on having a view, then you might want to spend a little extra to get that fabulous view you’ve always wanted.