The Value of trees in Colorado Springs Real Estate

To perfectly honest, this 10% positive value indication isn’t entirely “on the money” in its development. There must be an element of reason to how much value trees can contribute and buyers have dictated (through closed sales data) that 10% is reasonable. For example, a 2.5 acre lot in Black Forest, nicely treed could easily have 85 native Ponderosa Pines in varying stages of maturity. If a local nursery were to plant all of those trees for the landowner, the price would be tens of thousands dollars including labor. It would be very difficult to find an actual closing that demonstrated this sort of tree valuation in final price; typical would be 10% value increase for those trees; not the actual replacement cost of $45,000. If the lot were large enough that trees could be sold for timber, then income valuation of those trees would come into play and other market factors would come into play.

While there may not be an exact dollar valuation process for treed lots, there are special considerations that directly affect value. First and foremost, is the relationship of the trees important to the site? This could mean serving as a windbreak for the homeowner or livestock. Also, trees often are a critical element in the prevention of erosion. Secondly, what aesthetic contribution do the trees make to the site? Trees can provide a beautiful canopy, backdrop and cooling source for a home. This can have an actual monetary impact when considering air conditioning costs in certain areas of the country. A third consideration, but, of varying degrees of importance, is whether the species of tree found on the lot have special education, historical, or ecological value. This is not commonly an issue in the Pikes Peak region. Native landscaping such as Ponderosa Pines does receive recognition for value, though. Fruit trees may not increase the value of a home, but, will increase the attractiveness.

A fun question is whether a great view will command more than a treed lot. Surprisingly, market research doesn’t really support a clear winner amongst the two. The reason has more to do with individual buyer preference; i.e., some buyers just want trees and will pay more and some buyers just want a view and will pay more. The most fortunate are those who can find a home with trees and a scenic view through the trees.