Value of a View

Perhaps as important is the interior of a home, is the exterior scenic view the homeowner enjoys.  Personal taste dictates the type of view a home owner prefers.  A long or short view, directional exposure, trees, mountains, neighbors versus vacant land, unsightly buildings, etc. all can have significant impact on the daily enjoyment a homeowner experiences.  When an experienced Realtor interviews a buyer, he/she carefully listens for certain key comments that will help narrow the field of possible homes that buyer will find suitable.  For example, many homebuyers relocating to Colorado Springs will specifically indicate they want to see Pikes Peak or a view of the Front Range from their home; because this is a quality sought by the buyer, it a quality which they will gladly pay more for.  The challenge for all parties involved in the transaction is determining how much exactly is that view worth.

Scenic quality is important to not only to individual homeowners, but also municipalities.  Many municipalities have restrictive easements or building codes which limit development or even specify maximum height as to not interfere with the scenic quality.   In densely populated areas such as Singapore, extensive research has been done to determine what is a suitable view, how much a view should command monetarily and specific guidelines for developers to ensure the natural beauty surrounding the city is accessible to the largest number of residents possible.  Closer to home, Austin, Texas, specifies building height and slope to protect the view of the Capitol Building.  Colorado has beautiful scenic views and many communities impose zoning restrictions to protect those views for the larger population. For example, Denver limits construction in such a manner as to control mountain views from designated public spaces.   Colorado Springs and Monument seek to encourage growth and development in a manner that will similarly protect the view of the Front Range.  Development is restricted in such a way that there are zones of development and the protection of scenic interests is specifically cited in many El Paso County documents.  In a 2007 Cincinnati, Ohio, Scenic Study, twelve cities were cited for their efforts in the area of managing scenic interests with Colorado Springs being one of three Colorado cities examined.  What does this all mean for a homeowner in Colorado Springs?  The community strongly values scenic interests.

Trying to quantify the value of a scenic view is challenging.  A stunning view of the Front Range can easily add up to 25% to the value of a home or new construction lot.  This is plainly demonstrated in what is called a paired sale analysis; the examination of homes sold in a neighborhood, with all factors being equal and the only difference being view, the difference in final price is attributed to the view. In Colorado Springs, the attribution to value the view typically would add be 10% (minus or positive) within a designated neighborhood or geographic area.  This value can be widely expanded when comparing different neighborhoods such as Cedar Heights and Stetson Hills because what “mountain view” is defined as is very different by location.  In fact, the difference would be so great that comparison from an evaluation standpoint is generally limited to specific neighborhoods.    Another important point in the valuation of view, is the preservation of that view.  Overtime, a "stunning view" can become a "treed view" due to the maturing of landscape.  Trees grow taller and thicker with time.  Homeowners must take care that new plantings are strategic to protect the valued view.  New plantings can actually enhance a view by framing it appropriately and blocking view of less sightly objects.  Seasonal color can add dynamic interest.  Additionally, working with an arborist to appropriately thin tree growth is an investment which will pay dividends as it will protect and maintain an existing view.