The view's just one part of the package

Homebuyers are accustomed to the idea of paying a premium for a property with a view, like a “house on the hill” or an apartment overlooking the sea.

But just how much value does a view add? “In an area where most homes have views you’ll probably pay a smaller premium to have one than in an area where view homes are scarce,” says Berry Everitt, CEO of the Chas Everitt International property group.

“On the other hand, buyers will usually pay an extra premium for a view that is wholly unobstructed by any other homes, power lines or trees.”

However, he notes, even buyers prepared to pay extra for a view are unlikely to do so unless the property as a whole is in good condition and has facilities such as a second bathroom or proper garaging that warrant the higher price.

Writing in the Property Signposts newsletter, Everitt says a small, run-down home with a spectacular view will for example have limited appeal even to view buyers, because most of them will be reluctant to spend even more on renovations or additions.

“The local buyer profile will also affect the value equation. If most buyers in an area are looking for homes in which to raise children, but all the view homes available are tricky to access or have no gardens, those properties may actually be hard to sell and fail to command any premium at all.

“And of course no view can compensate for a neglected area at risk of going into a decline. In fact, it might even become a hindrance, since the view property you paid a premium for will be harder to sell than others if prices in the area start to fall.”

Article by: www.chaseveritt.co.za