How much premium to pay for home with a view. (Austin: sale, power lines) - Texas (TX) - City-Data Forum

homesick707 · 10-23-2011, 06:34 PM

So we have found a house we love in our price range that has all the criteria for being perfect. The catch is that it will be the biggest most expensive house in the "subsection" of the neighborhood. It would be one of the only ones with an amazing view in a culdesac. It's a new build, so no real comps. So the question is, and maybe some of the experienced realtors can shed some light on this, is what kind of premium per s.f. do we offer based on the view. We don't want to overpay obviously. If all other homes are sold for under $91/s.f. but none other has a view or the high-end finishout, what adjustments do we make to the price per s.f. so we're not underwater once we own it.

FalconheadWest · 10-23-2011, 07:13 PM

Views aren't a "price per sqft" thing. You have to put an actual value to it, and in a new community, the builder usually already has by putting a lot premium on it. Talk with your agent about what's typical in that area as each area is different. In my community, some lot premiums were $10k and others were over $50k and $75k also depending on the size of the lot. It depends on the view... it's very subjective.

texasgirl1 · 10-23-2011, 07:18 PM

What is the amazing view of? I've seen homes with views of Lake Austin asking $150k more than the house across the street from it. I've seen canyons views have a $90k premium...and these are lots 1/4 acre or less! Not sure what the actual "worth" is. I would say if you are planning to stay in this house for a long period of time, it depends on what the view is worth to you.

I would also be concerned about what the appraisal would come in at.

Pulzar · 10-23-2011, 07:55 PM

I thought the conventional wisdom was that you never buy the most expensive house in the neighborhood, if resale value is what you're worried about. They grow the least in value, and are first to drop, as there are no comparables to drive the price up.

It's like that pool that costs $50k to build, and adds $5k to the house value. It's definitely not "worth it", but you get to enjoy it every day.

10scoachrick · 10-23-2011, 08:54 PM

Certainly depends on the 'view'. Our mountain house in North Carolina is 'worth' about half of the value of the house across with a beautiful mountain view. That's $350K vs $700K at the last sale prices.(I'll stick with our house and take a walk for the view!

)

Austin97 · 10-24-2011, 10:43 AM

Quote:

Originally Posted by homesick707

So we have found a house we love in our price range that has all the criteria for being perfect. The catch is that it will be the biggest most expensive house in the "subsection" of the neighborhood. It would be one of the only ones with an amazing view in a culdesac. It's a new build, so no real comps. So the question is, and maybe some of the experienced realtors can shed some light on this, is what kind of premium per s.f. do we offer based on the view. We don't want to overpay obviously. If all other homes are sold for under $91/s.f. but none other has a view or the high-end finishout, what adjustments do we make to the price per s.f. so we're not underwater once we own it.

in our area (great hills) non-view lots were about 100K, canyon view (back up to greenbelt) lots were about 140K. On the lake non-view lots are like 50K, view lots are 100-200K and lake front lots are like 300k+ depending on ease of access etc.

homesick707 · 10-25-2011, 09:49 AM

Well it is a view of the hill country - beautiful right now but might not be so great after things get built as planned. But the builder is certainly asking for quite the premium on it. It's a spec home so I think there is room for negotiation. I just wasn't sure what would be a fair amount to add for the view, when no other homes in the area have a view.

10scoachrick · 10-25-2011, 10:48 AM

Quote:

Originally Posted by homesick707

Well it is a view of the hill country - beautiful right now but might not be so great after things get built as planned. But the builder is certainly asking for quite the premium on it. It's a spec home so I think there is room for negotiation. I just wasn't sure what would be a fair amount to add for the view, when no other homes in the area have a view.

That's a tough one. Our lot is a 'premium' lot in that it is slightly larger than others in the 'hood, backs to a greenbelt AND the house was nestled among a half-dozen very large old Live Oaks. The most important factor is the tree canopy. Second would be the greenspace behind. To me, those are more 'tangible' than a hill country view(unless it's a cliff-top view of the lake with no power lines, no ugly buildings, etc). If you're not sure of the development that might diminish the view, it would be even harder to put a dollar figure on it, except what premium YOU are willing to pay to enjoy the view 'now'.

infoseeker2010 · 10-25-2011, 11:46 AM

Quote:

Originally Posted by homesick707

So we have found a house we love in our price range that has all the criteria for being perfect. The catch is that it will be the biggest most expensive house in the "subsection" of the neighborhood. It would be one of the only ones with an amazing view in a culdesac. It's a new build, so no real comps. So the question is, and maybe some of the experienced realtors can shed some light on this, is what kind of premium per s.f. do we offer based on the view. We don't want to overpay obviously. If all other homes are sold for under $91/s.f. but none other has a view or the high-end finishout, what adjustments do we make to the price per s.f. so we're not underwater once we own it.

when we were home searching, our general experience was that builders are ready to waive lot premiums uptil 10K.. now ofcourse that varies for different builders, how much they mark up, your realtor's negotiating skills and demand..

buffettjr · 10-25-2011, 11:51 AM

I'll echo the sentiment that it's too hard to answer the question because it depends on the view. When I was first looking for houses closer to the downtown area I really wanted a house that backed up to the greenbelt. I was extremely surprised to learn that houses on the greenbelt sell for just $5,000 - $7,000 more than houses across the street. Buyers don't put much of a premium on it even though it was something I considered a huge benefit -- but this isn't with far flung views of canyons or lake, this was just of views of the trees and occasional deer in the backyard so the premium was much smaller.

When a friend of mine bought a house in one of the newer developments in Manor (oops) the lots that backed to the golf course and had golf course views carried $50,000 premiums before the house was built. I'll also echo the post that said it is a lot premium and not a per sq ft. premium.