Recently I was asked to estimate the value of this beautiful property located on the rim of Lake Miramar in Scripps Ranch. The view is breathtaking as you can judge by the photo! My clients were interested to learn more about the home’s current value and so I started to research and compare similar properties in the area, however, there are absolutely no current comparables, or even any over the past year. And how much is the view worth? As you know, the more impressive and desirable the view, the higher the dollar amount!
Well, there is still a way to use comparable housing to estimate the value of a view using a more technical valuation approach. Here is how it works:
1- Find several sold comparable properties in the area with and without a view .You may even have to go back a few years in the records to get home prices with and without a view during the same period.
2- Determine the difference in the purchase price for a home with a view versus no view.
3- Finally, adjust the perspective asking price of the home (initially priced without a view) by adding the calculated value of the view from above.
Here some prices of homes in the area in 2003 (single story homes in the 3200 sf)
07/14/2003 : Home with a view of the lake – sold for $1,000,000 (3,255sf)
07/29/2003 : Home without a view – sold for $808, 200 (3,197sf)
08/11/2005 : Home with a view and a pool – sold for $1,412 500 (3,200 sf)
My conclusion for this home: The view was worth approximately $200,000 in July of 2003 based on comparable sales. What is today’s value of this home? The sale of this property is currently pending and its purchase price should be known very soon. Every location requires its own case study! Please contact me if you would like me to estimate your property value with a view!