Question: How do you factor in a view when you determine a home's value? And, what about balconies that have views; what does that add to a home's value?
Answer: A view is a wonderful thing! When you see a property on the MLS there are many choices of views to pick from: such as Pool View, Hills View, Mountain View, City Lights View, Canyon View, Catalina View, Panoramic View, Partial View and just plain View. Each of those categories gives you a different feeling for the value. A pool view means that the view likely doesn't go beyond the backyard. A partial view likely means you can see beyond your property to one side or the other or from the second story. A Catalina View or city lights view are usually high end views for a property and carry even more value. For example, if you are buying a new home and the lot is a view lot, you will pay a lot premium that could be very high. The value of the view is directly related to the value of the home. If you are selling a home valued over $1,000,000 and the view is extraordinary, it could easily add $1,000,000 to the value. In the same neighborhood and the same floor plan values could vary by $100,000 if all other variables are equal. As a Realtor, when we look at a property to list, we compare those properties to our subject property. A part of that analysis is considering the views. The best views command the highest prices and usually highly desirable to the prospective buyer. However, if the subject home is original in condition, has no pool or spa, but has a wonderful view, then it could be worth the same as a highly upgraded home with a pool and spa but without a view. Generally, I believe that an excellent view (Catalina view, city lights view, panoramic view) can add 5-10% to the value. The higher end of the value range applies to homes that people expect to have a view and the lower end of the range may apply to less expensive homes. In regards to the balconies with views, that is a bonus feature that adds value. If the balcony is off the master bedroom that is generally better than off a secondary bedroom or bonus room. In general, the more places the views can be seen, the greater the value. So much of selling a home is enabling the prospective buyer to see themselves relaxing and enjoying the amenities of the home and views are a major factor as they stand and enjoy the horizon and can imagine themselves sitting on the balcony with a glass of wine or a cup of tea staring off into the distance, or maybe taking in the fireworks at Disneyland later in the evening.