What is a View Worth?

Honolulu ViewRight up front, let me point out the obvious:  We live in one of the most view-rich places on Earth.  Almost anywhere you might live on Oahu has the potential to produce an outstanding view of the ocean, the mountains, the rainforest or the city.  But, what is a great view worth?  How much value can a view of crashing surf add to your property?

There is not doubt that views are valuable.  In the ranking of most desired amenities, home buyers put an unobstructed water view at number two, just behind a waterfront location.  And while being able to see water is most desired, great city views and mountain views are not far behind.

However, attaching a monetary value to a view is hardly scientific.  A view is worth whatever a willing
and able buyer will pay in addition to the value of the house to have it.  Logically, if you could find two homes that are identical, one with view and one without, that both sold recently, you’d have your answer.  But that situation is very rare in the world of real estate.Oahu View

Almost forty years ago, an appraiser working on his Masters Thesis, chose 94 vacant lots that had sold recently in three separate developments and considered them on a variety of criteria including lot shape, location and view.  In some cases, the view contributed as much as 50% to the value of the lot.

That has been informally verified by the estimates of real estate experts who seem to agree that a view – say, of a mountain – seen from a lower point – might add 1% – 4% to a property’s value.  The increase in value goes up as does elevation, so a hilltop view looking down on a panorama might add 6% – 12%.  Truly magnificent views – the ocean, the city from above – can add up to 50% and sometimes even more.

Strip ViewYou can test this idea yourself without selling your property.  The next time you take a vacation to a popular destination, be it a city or a resort, ask the hotel about the increase in room rate depending on view and floor.   In Las Vegas, for example, a Strip-view room located at the 20th floor or above will fetch a startling premium over one on floor five, facing a wall.

The best help you can get for assessing the value of your view is right here at Help-U-Sell Honolulu Properties.  We’ve been selling homes on Oahu for almost twenty years and have carefully tracked the progress of prices for homes with and without views.  When you ask us for a free, no-obligation opinion of value, we will come with all of the data on what similar homes have brought and our own informed  point-of-view about what an ocean, city or mountain view can add.

Help-U-Sell Honolulu Properties is a full service real estate company that provides exceptional service while charging less than ordinary Realtors.  We’ve been successfully helping buyers and sellers all over Oahu for more than 12 years and we’d be delighted to help you achieve your housing dreams.  Contact us at (808) 593-8811, or visit our website.