Market Insights: How much is a view worth?
Great question, isn’t it? Over the many years that I have been a real-estate broker this question has come up from time to time. Last weekend a buyer was contemplating between the purchase of two nearly identical condos; one with a view of a river, the other with a deck that overlooked the parking lot of the complex. So I figured it was time to do the research and find out, to the best of my ability, the answer.But where should I begin the search? I figured the people to ask are the ones I respect the most in the local market. That was easy. I selected two appraisers and two other real-estate brokers. The answers from the appraisers were both indirect and vague. They would not provide the sort of an answer that I could “sink my teeth into.” On the other hand, the two brokers were very helpful. Dennis Johnson of Paffrath & Thomas Real Estate said, “Ten to 15 percent of the selling price.” I could tell from the speed of his answer it was a question he has put plenty of thought into over the past three decades as a real-estate broker. Another reason I trust Dennis’ judgment is that recently he was Realtor of the Year for the state of Colorado.Kirk Dice of Breckenridge Associates, another broker with decades of experience who has sold over $250 million of local real estate, took more time to answer me as he wanted to think about it. When he phoned me back he said, “In a market when properties are selling quickly (like the mid ’90s) a great view could be worth 10 or even 20 percent more, however, in the current market a view means the unit will be sold while the others linger without selling. So right now a view is worth maybe 5 percent more, at the most.” He continued on and it was his last sentence that hit home for me: “Right now is a rare opportunity to pick up great properties with outstanding views without paying a premium.” That statement sent me on a search for a property with a great view that is not overpriced as an illustration of the point. I searched and found a four bed/bath condo for $2,975,000 with a great view. Nope, seemed a bit on the overpriced side so I search more till I found 367 N. Fuller Place, Breckenridge, which is a four-bedroom, single-family home priced at $949,000. With a great room, a second living area, a two-car garage and several upgrades include a superb kitchen the price reflects a home without a view. However being located on the east side of the valley off Badly Mountain Road, it has commanding views of the Breckenridge ski resort. Is superduperoutofthisworldviews a word? To experience this home come by today and tomorrow from 11a.m. to 3 p.m.Daniel Webster Johnson is a Broker Associate at Resort Brokers Real Estate. He can be reached at (970) 393-3300, daniel@YourMountainBroker.com, on facebook, twitter or at http://www.YourMountainBroker.com
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