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Asked by Joeldop, 80863 Thu Jan 12, 2012

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Answers

10
April DeNio, Agent, Woodland Park, CO
Fri Jan 13, 2012
I did ask a local appraiser this question to answer you correctly. I believe the information I see the other agents giving you is accurate. The appraiser said $5-10k in our area is reasonable. By the way, if you are inquiring about the home on 220 Highland, that is my listing and I can offer any other information you may need.
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Agents for H…, Agent, Boulder, CO
Fri Jan 13, 2012
Of course, the market value of the home is not what any individual buyer or agent believes it is, but in the end the perceived value of factors such as views or large lots or upgraded condition are controlled more by buyer perceptions than appraisers. When appraising a property for sale/loan purposes, the appraiser's job is less to say what the home is "worth" in some abstract, objective sense than to determine whether is a basis for the price that the buyer/seller have agreed on in the current market. If you contract on a house on an ordinary lot for $300,000, the appraiser will look to recent sales to see if that price can be justified by the sale prices of similar homes. If you contract on an identical house across the street with a great view at $330,000, they will do the same thing. If there other recent sales at or about $330,000 for similar houses...priced higher than the norm because they have great views or a large lot or are extensively upgraded...the appraiser won't have a problem justifying your price of $330,000...because other buyers have been willing to pay a premium for views...or other features that make the house stand out from the norm. If there aren't sales of some of these outstanding houses in the neighborhood...or comparable neighborhoods nearby...the appraiser won't be able to justify the 10% premium for the view. This doesn't necessarily mean the house isn't worth the $330,000, but it does mean that you won't be able to get a loan based on that price. And this "problem" arises more frequently in a market with dramatically reduced numbers of sales...like we've been experiencing over the past 3 years.
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Ken P. Rudy…, , Green Mountain Falls, CO
Fri Jan 13, 2012
Regarding appraisals. If you plan to get a loan then the parcel will have to appraise. So it is irrelevant what a buyer or real estate agent thinks a parcel is worth...the bank doesn't care what a buyer thinks or real estate agent thinks about value. They care about what a licensed appraiser thinks. Appraisers are required, if asked, to prove how they establish value for any given adjustment, including value assigned for a view. So buyers or agents can think a view adds $5,000 or $10,000 in value but, then, they are not the ones who have to prove it. Thinking or hoping doesn't make it so. Good agents who have experience selling these types of properties can usually make good estimates as to value a view will add, but in the end it is what the appraiser says that will count.
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Agents for H…, Agent, Boulder, CO
Fri Jan 13, 2012
The assumption built into your question that there may be a view premium that can be calculated as a percentage seems closer to me to the truth than the suggestion in most of the answers so far that there is a $5,000 to $10,000 amount. Further, I think the suggestion that the appraiser is the person to look for on this is almost precisely wrong. Given the rules they operate under, appraisers will almost universally undervalue subjective factors like views or a location backing to open space...or at the other end of the spectrum...negative features like a location on a busy street or with a lot of low flying airplanes. Buyers consistently place more positive and negative value on these factors than appraisers do...and the actual sales values of these houses reflect this. And while the appraiser doesn't necessarily include the full value of these as line items in the appraisal, the will look for comps that have similar features...and the increased/decreased value gets included in the appraisal that way.

My gut is that an outstanding view/location can easily add 10% to the value of a home... $25,000 for a $250,000 home and $100,000 for a $1,000,000 home. Particularly with very high end homes, the percentages may easily exceed this 10%.

The only way to pin this down would be to compare sale prices for houses on the view side of a street with those on the non-view side. In most cases, you'd have to go back 5 years or more to get enough sales to be useful, and then try to adjust for price changes over that period. One of the complicating factors will be that the houses on the view side of the street are often upgraded relative to the non-view side to begin with...and even if not...the people who own them probably put more money into them over time. So house quality will inevitably be conflated with view.
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Annette Law…, Agent, Palm Harbor, FL
Fri Jan 13, 2012
It's a great question and one professionals face daily.
Ask yourself, does any other homes in the area have the same view? If, for instance, every home in the community is waterfront or has a view of the mountain, you can expect the value of the view is factored into the recent comps since this is an attribute shared by all.

If however, this is the ONLY view, then the seller must decide whether to wait for the 'special' buyer who will fall in love with the view and purchase at what may be above appraised value. The appraiser will not include a 'view' premium that is out of sync with the community. The constraints on appraisers in a completely different topic.

Now, your real question, 'the percentage' can be suggested through local tax records in Florida and perhaps in Green Mountain also. Frequently communities have some homes sharing frontage on a sizable lake or golf course while other homes in the same community does not. Observer the land value index for the with and without homes. The percent difference in the index is a suggestion of the value the taxing authorities place of this attribute. Such granularity in establishing value often leads to overpricing. Keep in mind, it is a willing seller and a willing buyer that establishes value, everything else is busy work.

Joe, when you are using aggregate websites such as Truila you need to read all those user docs to attempt to understand how they calculate average price per sf feet? Is this figured on gross SF? Are all the sources of data coming into Truila using the same SF standard? Are they treating multi-level and detached structures the same way? Is the value calculated from homes for sale or sold? If you want real actionable data you need access to your local MLS. There is no shortage of Green Mountain agents willing to provide you FREE access.

Best of success to you in finding your new home
Annette Lawrence
Broker/associate
ReMax Realtec Group
Palm Harbor, Fl
Web Reference:  http://www.MyDunedin.com
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Ken P. Rudy…, , Green Mountain Falls, CO
Thu Jan 12, 2012
Joel,

The value for a view varies depending on if it is a view of mountains, Pikes Peak, a lake, a city, etc. Based upon the home you have identified I would guess it is the one on Highland Street here in Woodland Park. That home does have a good view and it certainly does add value for the right buyer. The added value really depends on what an appraiser will assign to it. I've seen appraisers add $5000 for a view like that with a home like that. But, it depends on the comparables the appraiser can find to support their estimate of value for the view. However, I have found most agents have done their homework before listing a property and have a pretty good grasp of value. Hope you find this helpful.
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W. Raymond R…, Agent, Peyton, CO
Thu Jan 12, 2012
Any property in this immediate area that has a 'vista' type view or a unobstructed view of Pikes Peak will command a premium. That amount can depend on a number of other factors. On a $250,000 home that number may be as little as $5,000 and as much as $10,000. Hi-end properties - a little more.
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Jason Roshek, Agent, Woodland Park, CO
Thu Jan 12, 2012
From looking at the property that you described, I am guessing that you are asking about the property on Highland Street. That view is really good. There is no percentage per say like per square feet. That is a total personal answer. I have seen an Appraiser give $10,000 but not much more.
Hope that was helpful
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Dan Tabit, Agent, Issaquah, WA
Thu Jan 12, 2012
Joeidop,
Views are like people, the come in all different shapes and sizes. A 180 degree unobstructed view is worth considerably more than a seasonally filtered view over the neighbor’s roof. To get a specific answer regarding your specific property you need an agent who can pull local comps and make adjustments for age, condition and quality of the view.
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Sally Grenier, Agent, Boulder, CO
Thu Jan 12, 2012
Unfortunately, you can't really put a price tag on a view. It's not like buying new construction where a builder has a "premium" for certain lots that back to open space, or for larger lot size. You really can only go by your agent's CMA (Comparative Market Analysis) based on recent sold properties.
0 votes
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