P.J. B

...premium for water views in luxury real estate.? I am specifically looking for figures that would help to establish a specific a percentage or monetary value that would account for spectacular water views. I am working on a project to establish a value for land that is so unique that finding comps in the area is impossible. This pertains to luxury real estate.

javajavgrl

You bet there is a value there but as to a dollar amount there are way too many factors in play to say how much without the expertise of a qualified appraiser. So many things contribute to value/price when it comes to real estate.

Sharon B

Of course you are going to have many factors, especially, Location,Location Location. I have two view properties. The properties I have had in the past with views seem to have the same rule...$100,000 more for a view. Regardless of the type of view, one property I have over looks all of Down Town LA from a far and the builder added $100,000 for the properties with the view. On the other hand, I have a property in Orange County that looks over Irvine and the Ocean and it was the same $100,000 more the builder added for the houses on the side with the view vs the neighbors accross the streets without the view. Hope this helps!

linkus86

Of course there is a premium for water (or other unique views available at specific locations). Instead of trying to find comps on luxury homes with water views, I suggest you compare the values of the non-luxury houses with water views to the ones nearby without those views and carry over the percentage difference to the luxury houses you are researching. Of course a view of any kind is completely subjective making all real estate unique.

don l

Yes there will be a premium for any type of view, the problem is trying to figure out what that premium is. Having been an appraiser I'll tell you how I would go about it.
The absolute best way is with matched paired analysis where you have a sold property with a view and the same basic sold property without one where the sales were at the same time. The difference in price would be the value of the view.
Since that hardly ever occurrs you need to find sales in a similar location and try to compare the views with non-views. There will be other differences in the properties that you will have to make adjustments for, also.
Something I used to do was go to all the sold property, in the area I was interested in, that had a view and ask the owners what they felt was the premium they paid for the view. If you get lucky and find enough of them you can get a pretty good idea.
Another thing to do is talk to someone in the property assessors office. If you can get the right person they can be a lot of help. You also might ask some of the local appraisers, again if you get lucky you'll get some good info.
If it is a fairly recently built property the builder premium amount might be of help.
I normally would start with what I thought the value was and try to prove or disprove my estimate.
There are other ways and this may help you think of them.
Good luck.
Don

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