Home Selling in San Jose>Question Details

Nomeolvides, Home Buyer in San Jose, CA

Do better view and privacy increase value of the home?

Asked by Nomeolvides, San Jose, CA Sat Oct 20, 2012

We are thinking to buy a townhouse in San Jose CA in newly constructed community. We were lucky enough to secure a property which doesn't face the neighboring house. It has most of the windows and balcony on a side where there are single family homes, so we'll be looking over their roofs on the trees, plus a little bit of mountains on the corner.

In a future resale, will this increase a value of the property? For us the privacy and the option of not to face the neighbors and not to look into their windows was very important. Does it matter in the resale market, or it's just a personal choice?

Thanks

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I think I know the location you're talking about. If you consider yourself lucky to get that location and views, then there are plenty of others who would think so too. That would definitely play into getting your home sold faster if not for more later. Of course, you're especially lucky if the builder didn't capture some that value with a lot premium.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Fri Nov 2, 2012
Houses with better view sells faster than houses with your neighbor's house view. After you purchase that property make sure that you add vegetation that increase the privacy of your house.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
1 vote Thank Flag Link Sun Oct 21, 2012
It's a personal choice and is important to most buyers for the very same reasons it is important to you. I don't think it will add hundreds of thousands in value depending on market conditions but there is always value to privacy and views. Especially if you are selling and there is another comparable property in your complex also for sale but without the views, which one will the buyer pick? Probably yours.
Kind regards ~ Andrea Wince ~ RE eBroker Inc. ~ Lic. 01439761
0 votes Thank Flag Link Wed Mar 13, 2013
Better views and privacy do increase the value of a home. This is true for selling and buying. Since you mentioned you were buying, I would recommend you research the prices of the homes around yours and see how much you are paying in comparison to them. The percentage difference should hold true when it comes down to you selling the same home later on.

Good luck!
0 votes Thank Flag Link Fri Nov 9, 2012
Hi Nomeolvides

Yes, you will get a better resale value compared to other similar homes.

However, if you are backing up to a busy road, or an industrial area, it will not help.

Best regards
Perry
0 votes Thank Flag Link Sat Nov 3, 2012
Good Day. I agree with the previous comments. There is an old adage when it comes home sales, "Location, Location, Location!" Being in a quiet area with a nice view will definitely increase the value of your home.
0 votes Thank Flag Link Sun Oct 21, 2012
Absolutely--homes that offer both of these qualities will always sell faster and for more money than those that don't--at least in my market. The #1 criteria for most of the buyers that I work with is a home with a mountain view. No matter what the condition of the market, these are the homes that will go first.
0 votes Thank Flag Link Sun Oct 21, 2012
Thank you for your questions. Are you willing to pay more for this location and these options? And will an appraiser think this home has more value than others in the complex...in the future? Ultimately, buy a home that you will enjoy since you will be living there. When you sell the home, make sure you market the location (view, no facing neighbors) to differentiate your home from others that may be for sale at the same time.

There are many items to consider when selling your home...in the future. Condition of home, upgrades made, ease of access for potential buyers, external market conditions, to name a few. Your specific location is one more you can add to your list.

Sally Blaze
Alain Pinel Realtors
DRE 01856137
sblaze@apr.com
925-998-1284
0 votes Thank Flag Link Sun Oct 21, 2012
Personally, I don't believe privacy or view will increase the value, but it will appeal to more buyers in the future. I'm not sure if this helps or not, but just my opinion. Good luck!
0 votes Thank Flag Link Sun Oct 21, 2012
Typically yes with ocean view but it doesn't sound like you have a view worth an increase in value. It is a personal choice within your complex as your neighbor preferred no view, etc. I think yours will be more desirable by percentage wanting a better view than none when you decide to sale. I think the majority of choices have no view at all in any complex. As long as your happy with your choice, that is all that matters. Congratulations on your purchase, enjoy the view.

http://www.Under640FicoScoreLoans.com
http://www.FrankandSheryl.com

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Sun Oct 21, 2012
The answer has to be based on WHEN and WHY you finally sell.

If you sell in a NORMAL market and there are 1-2 other units in the same complex at the same time, then yours – because of the view and location – may sell first. In reality, it probably won’t sell for more than the other units, it will just sell faster. Although the view from your unit may be nicer than other units, it’s not the type of view that really generates significant extra value: you are not looking at the ocean, a spectacular vista of some kind or a city skyline – it’s not a “glamour” view. Here’s the ironic part: after your unit sells in a normal market, then your sales price will be the new bar for the development, regardless of where the other units are located. Your unit may sell first, but it’s possible the other units may sell for more, even if they don’t have as nice a view. In this case, interior amenities are going to matter a whole lot more than a “view.”

If you sell in a BUYER’S market, your unit may be the only one that actually sells. Again, the level of interior amenities is going to be critical. You may have a better view, but if another unit is upgraded significantly more than yours, then the other unit will sell – not yours. A buyer’s market is the only market where buyers spend a lot of time reviewing not only the price of previous comps, but the condition and amenities as well. In reality, because they are in the driver’s seat, they have more time to do a much more detailed analysis to ensure they don’t pay too much. In a normal or seller’s market, buyers tend to spend less time analyzing past sales because they are afraid they may lose the unit they want if they don’t get on it.

If you sell in a SELLER’S market such as the one we are currently in, then your view will make almost no difference at all. We are currently in a seller’s market because of lack of inventory. Therefore, when a nice unit goes on the market, it gets multiple offers over asking price and over the previous comps in the development regardless of its view, condition, etc. (Again, this is based on the view you state you have, not a “glamour” view, such as oceanfront property, a view of the bay, Golden Gate Bridge, etc.) And, as soon as a new unit comes on the market, it will sell for more than yours just did, regardless of location in the complex. Ironically, this is even true in part of the complex faces a busy street. Whereas street-front units have a hard time selling in a buyer’s market, they get snapped up in a seller’s market.

As to the WHY of selling, if you need to sell in a hurry, then location won’t be the determining factor, it will be price. That’s why short sales are usually priced under market, regardless of their location, amenities, etc. If you don’t need to sell and you set your price higher because of the view, you may sit on the market a long time, which will, in turn de-value your home.

The bottom line: if you like the view, GREAT! You are the one who will be living there. Don’t, however, expect to cash in big when you sell – the view you have, although nice and better than interior units, will likely not, in my opinion, fetch you a lot extra when you sell.
0 votes Thank Flag Link Sun Oct 21, 2012
of course, better view is always help to increase the value of the property. If you buy new construction, it is best to get a floor plan does not have a lot of stairs. multi-level townhome is not too popular when it comes to resale.
0 votes Thank Flag Link Sun Oct 21, 2012
It may increase the value but only by a small amount. It will however increase the desirability for many potential buyers when you go to sell it and depending on the market at that time this may be a factor that increases the price you're able to get for it.

As you've discovered not all locations within a neighborhood are equal, thouh in the case of townhomes these differences tend to be much smaller. Interior improvements you may make (updating fixtures, floor coverings, kitchen and bath) over time will likely have more impact but you need to be prudent and not over improve for the development.
0 votes Thank Flag Link Sun Oct 21, 2012
Hi Nomeolvides,

These can be very important options to some people. To others, it won't matter. It certainly doesn't HURT your resale value, but it probably won't help it a whole lot. But if all things are equal, it may be the deciding factor for someone.

When it comes to new construction, "outside" units will always be more expensive. If they are telling you it is for the view, don't believe it. It is just standard pricing practices. Negotiate with them and see if you can get the price down a bit.

Best of luck on your new home!

Brian Rayl
B&B Realty Group
Keller Williams Elite Dallas TX
214-699-1799
http://FindDallasHomesForSale.com
0 votes Thank Flag Link Sun Oct 21, 2012
Thank you for your question:

Yes.

As the others said, a better view and privacy certainly increases the fair market value of your property on resale.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes Thank Flag Link Sun Oct 21, 2012
As the other agents have pointed out YES it does!!! The reason is simple, you like it for those reasons so others will. Increased desirability will increase price.
Make sure you bring your agent with you when you sign in.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes Thank Flag Link Sun Oct 21, 2012
Yes, for the same reasons as yours, buyers will be interested in a home with better views and privacy. Also, there are only a few units with these factors whereas many facing other neighbors.
0 votes Thank Flag Link Sat Oct 20, 2012
Privacy and the view will make this unit more desirable for other people, the same way you liked it more than other units. Desirability translates in higher prices. You are doing well.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Sat Oct 20, 2012
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