What’s the value of a view? For many, it’s what ultimately sells a buyer on a specific property. In Colorado, there is a premium placed on real estate that offers mountain, city and park views. It’s all pretty subjective but there is no question unobstructed views sell.
Likewise, when you are seeking a hotel room or Airbnb property, views matter. For example, when perusing available rooms at a downtown Denver hotel, expect to pay at least 10% more for a room that features a view of the mountains or the city skyline. If on vacation in coastal areas, ocean views can demand upwards of 20% over that of a hotel room without a view.
Views do matter … but how much?
In a recent interview with Nerd Wallet, principal data scientist Andy Krause, of Greenfield Advisors, a real estate research company, admitted pricing a view is a very subjective area. But it doesn’t make it non-factor in pricing a property.
“Views are actually really difficult to quantify,” he said. “It’s somewhat subjective. What makes a better water view? Do you want it to be wider? Do you want more of the water from a taller angle? You know, some of that is in the eye of the beholder.”
Whether you are seeking a view that excludes your neighbors houses (i.e. lots of trees), one that overlooks a park or the Denver skyline, or the coveted mountain view, expect the price of a house or condo to reflect a price that takes that into consideration. Without a doubt, buyers value the privacy trees and shrubs afford, as well as enriching views of city lights, nature and landscapes.
Denver listings that reflect pricing relative to the view
Take for example two condominiums that are for sale in the Glass House, a popular high-rise development in the Riverfront Park neighborhood. One unit is 1700 Bassett #1013, which has two bedrooms, two baths, 1,399 square feet of living space and city views. It is priced at $669,400.
A similar unit on the 13th floor, just three floors up, also features two bedrooms, two baths, has less square footage (1,213) but is a corner condo boasting exceptional views of the Denver skyline. The asking price is $725,000.
In this case, although it’s not definitive, the views are coming into play to the tune of a 7.7% markup. In most cases, the higher the condo or apartment in any building, the more you’ll pay, especially if it’s a high rise in the city. Many people feel if you’re going to be living in Colorado, finding a home with a view of the foothills or the mountains is a must.
The view from 1700 Bassett #1013, for sale listing by Usaj Realty
Another example is the newly built Laurel Cherry Creek, a 12-story luxury condominium building that is set to open at the end of 2018 in the Cherry Creek neighborhood. It offers many high end finishes in all the units and similar floor plans. On the 11th floor, a 3 bedroom, 4 bath condo featuring 3,014 square feet (#1111) recently went under contract. The asking price was $3,964,000. It has a southerly view of Macy’s parking lot and the southern foothills. However, all the bedrooms have western views.
On the same 11th floor, #1115, another 3 bedroom, 4 bath with a little more square footage — 3,518 — affords a dramatic view of the Rocky Mountains, the Cherry Creek North neighborhood and its hundreds of mature trees and downtown Denver. It is priced at $4,988,000 (and is under contract). Assuming the ultimate sales price for both units stay close to the asking price, the latter home is commanding a 25 percent markup. Aside from the additional 500 square feet, one is lead to believe the vistas play into the pricing formula.
Obviously, the price of these types of homes make them off limits to the majority of homebuyers but it’s still an interesting perspective on pricing relative to the views.
Older homes in established neighborhoods can offer great vistas
Interestingly enough, there are many older homes in established neighborhoods around the Denver area that do in fact have mountain views. Anywhere there are elevation gains and drops, for example in Englewood from Broadway to Santa Fe, you can find small homes with dramatic views.
But finding those types of homes is often challenging. And the value of a view is extremely subjective, and difficult to price. Would you rather have a true mountain view from a distance? Or, does a vista of the foothills make more sense? How about living in the foothills and having a view of the city lights?
Another aspect to keep in mind is often times, views can be limited to upstairs rooms and not the common areas of a patio or living room. Is that worth the extra cost or should it even be reflected in the price? And what about the possibility that your view might disappear one day if a tall building is constructed?
Conclusion — contact a professional
These are some of the questions one must consider before setting “a view” as strict criteria in your home search. At Usaj Realty, we have knowledgeable brokers who can steer you in the right direction in your search. As a boutique real estate brokerage firm specializing in Denver’s most popular neighborhoods, we help our clients find everything from the classic vintage home to a more modern condo. For more information about buying or selling a home in Denver or its surrounding neighborhoods, please contact us.
