The Importance of Views
A: I want to re-iterate just how important views are when trying to get top dollar at resale. In my opinion, its #1 and ahead of location as the permanent feature worth going for when you look to buy; with the focus being on finding motivated sellers with a view apartment who doesn't have time to 'test the market' with a steep premium! Whenever I have a buy side deal that involves a property with spectacular views, I always am concerned that another bidder will come out of nowhere before we get a fully executed contract. I worry about this, because it has happened to me before.
The four permanent features that all buyers should focus on putting their money towards when deciding which product of the group to bid on continue to be:
a) views
b) location
c) natural sunlight
d) raw space
...as these property features generally do not change! The only item that can be changed is natural sunlight and views if you happen to buy a property with a view of a lot that may ultimately be developed; and therefore eliminating or altering your view and natural sunlight. Other than that one risk, your pretty safe. These are the features I focus on when I do consulting for my buyer clients.
But one feature stands above the rest in this fast changing marketplace: VIEWS, especially really good ones! I'm talking central park or river views here, as there is a larger concentration of properties that offer open city views. Having that park or river view really does put your property above the rest in terms of luxury and should allow you to price the apartment a bit higher than the group. The fact that it isn't easy to find these properties tells you something!
Now, this doesn't mean that views should demand $300/sft more than comparable listings in the building on a different line without views, it shouldn't. It does mean that a premium will be paid for the views and that marketing efforts should allow the selling broker to procure a much bigger and more serious audience; which in and of itself is something for getting more money in the end.
Your focus should be on finding these types of view properties that seem to be priced 'in-line' with other comparable line apartments in the building that do not have views! If you do find one, its a sign that the seller is probably ready to go, and advised the broker to skip the premium that is normally associated with view apartments because they want a quicker timeline to sell.
For example, lets say that the building has two main exposures:
Exposure A ---> gets park views
Exposure B ---> gets interior building / courtyard views
Now, lets say that there are similar property types (say a 1BR unit w/ same floorplan) on both sides of the building! One has Exposure A and the other has Exposure B. Now lets assume that these comparable, yet opposing units are around the same floor in height, thereby eliminating any significant premium for being on a higher floor. Pricing should be as follows:
1BR w/ Exposure A (park views) ---> aprox $900,000
1BR w/ Exposure B (interior views) ---> aprox $825,000
These numbers are for argument only to prove the point that the 1BR unit with park views should demand a premium over the similar 1BR with interior views. Your focus should be to find a property type that enjoys park views, but whose asking price is more 'in line' with the last comparable sale that did NOT have the luxury of that gorgeous view! Not an easy task, but a sign that the seller is motivated!
With that said, here are some apartments that I think exemplify what I mean by view apartments; yet don't necessarily mean they are priced to move! Having open city views are nice, but should be given a less favorable premium due to the higher concentration of apartments that enjoy this type of view. Add in more premium for river and park view properties! It's up to you to determine exactly how much premium is deserved.
635 West 42nd Street
PRICE: $1,850,000
SIZE: 1,017 sft
DAYS ON MARKET: 62 Days
45 East 89th Street
PRICE: $1,995,000
SIZE: N/A - 2BR/2BTH unit
DAYS ON MARKET: 7 Days
80 Central Park West
PRICE: $1,445,000
SIZE: 900 sft
DAYS ON MARKET: 13 Days
As always, if you want to see one of the above noted apartments, please contact the listing broker directly. Before bidding on any apartment, you should have your buyer broker do an analysis of where the building trades so that you can assign the proper premium to the property with views, in line with the most recent market values.
Posted by J$
Mon Oct 29th, 2007 11:24 PM
I'm not sure you can group city views all into one category as there are huge differences between views; I'd suspect a good view of the top landmark buildings (empire, chrysler, woolworth, etc) would command a higher premium than a generic cityscape view (like UES facing north let's say).
Posted by Steve
Tue Oct 30th, 2007 09:31 AM
I agree that when it comes to Manhattan the view is where it's at. No where else on earth can you get the views associated with a MANHATTAN skyline, that is what makes people smile in awe. Views of mountaintops and waterviews? yes that's nice too but there are ALOT of those. But a Manhattan view? Well there is only one place for that.
Posted by Noah
Tue Oct 30th, 2007 09:56 AM
great point J$.
Also, I should have pointed out a very important statement in this post. What I meant to say was that I am noticing many buyers consider locations outside their original zones, because they cant find the product they want and the price they can afford.
But when they find the product outside this favored zone, that has amazing view of park, river, or famous buildings, they are much quicker to raise their bid or bid more aggressively to get that product.
Of course I dont mean that location is meaningless and that someone who was once considering UES, will now move to E harlem because of a view. Just that people are more open to look outside their favored location these days.
Posted by Adrian
Tue Oct 30th, 2007 10:06 AM
So , you are saying we should all ideally move to Jersey City so we can get a view of Manhattan..don't think so , I will stay in Manhattan thanks.
Posted by Noah
Tue Oct 30th, 2007 10:11 AM
Adrian - NO! Where did I say that? You said that! All I said is that park and river views get top dollar at resale! More so than location in todays environment where many buyers consider locations outside their original areas.
If you are a buyer, Im sure you originally had a neighborhood you wanted to buy in. As you search, I promise you will start considering other areas. That dynamic diminshes the strength of location as a permanent feature that gets the most resale dollars!
All Im saying is try to find a property with a view that seems to be priced 'in line' with those apts that dont have the view.
"Your focus should be to find a property type that enjoys park views, but whose asking price is more 'in line' with the last comparable sale that did NOT have the luxury of that gorgeous view! "
But your prob a curbed reader and mis-interpret the point of the post.
Posted by sunchild
Tue Oct 30th, 2007 10:15 AM
I totally disagree. I recently left a high floor apartment downtown with the best views of Midtown I've ever seen. The view was entertaining for about the first month, and then I just took it for granted. Frankly, I'll take location and space over views, and as a buyer, that's exactly what I did. Also, in Manhattan, usually a good view means a high floor and I can think of plenty of reasons not to live 30+ stories above the ground.
Posted by Noah
Tue Oct 30th, 2007 10:18 AM
Sunchild - THANK YOU for a great comment! Finally! When you sold the apt with the great views of midtown, did you get top dollar?
or was that a rental? Curious to see if the apt with great views sold quickly and got your price?
Thanks for sharing your thoughts and real experience. I certainly can buy into that way of thinking and Im sure there is a percentage of buyers out there now that share those thoughts!
Posted by Jose Habib
Tue Oct 30th, 2007 10:10 PM
That second one has a nice view but for many people, that is cancelled out by being on a noisy highway.
Posted by blbernst
Wed Apr 16th, 2008 11:00 AM
What are your thoughts on a lower floor but treetop views which are quite nice, and produces a nice barrier of privacy - as opposed to staring into someones bedroom?
Posted by Noah
Wed Apr 16th, 2008 11:03 AM
blbernst - its a great question! I find that in general, lower floors are a bit harder to sell due to buyers concerns over security and noise/dust. So its hard to ask top dollar as a seller and be happy with traffic and expect strong bids.
But then there are a subset of buyers who want a lower floor (whether its religion cause you cant use elevators on Fri/Sat, or they have a pet and want to be closer to ground floor, or just prefer lower floors), who actually appreciate that kind of tree top view. Its a matter of getting the perfect buyer at the right time.
But in general, lower floor units are hard to price super aggressively simply because views are treetop.
Posted by Ethan
Wed Apr 16th, 2008 12:37 PM
Hi Noah-
As a recent buyer in LIC, we jumped on our 2bed/2bath apartment in a new condo because it has 680 sq/ft. private yard with patio and grass BUT the unit is on the second floor (parking garage on the first floor) and faces north so no direct sunlight and our "view" from all rooms is our yard. We knew these factors before we bought, plan on staying put for 6-8 years and are thrilled with our decision but I'm wondering how to price such outside space and does this make our unit more buyer specific? Without the outside space being taken into consideration at all, we're at $764 per square foot for our unit... but how would you come up with price per square foot with the yard included? Thanks for your work on the blog...
Ethan
Posted by views
Wed Apr 16th, 2008 01:23 PM
What are your thoughts on the pricing differential between a low floor unit that faces the street versus one that faces the back of another building (say a brick wall 10 feet behind the window)? If they both get good light, is the street view always preferable? I'm not sure people are more inclined to look out on crowds, traffic, noise as opposed to the back of a building.
Posted by Noah
Wed Apr 16th, 2008 01:44 PM
views - really depends on if the back view is dirty, and makes the apt dark & dreary..10ft is not much at all. Im sure some sun gets in, but not flooded by any means.
Tough to answer because its all in the eyes of the buyer and there is no formula for this.
Posted by Noah
Wed Apr 16th, 2008 01:49 PM
Ethan - I think the same way! My last apt had a 660 sft terrace and I loved it, on 2nf floor, and fully landscaped so that it was like a private backyard.
I ended up getting an extra $100/sft or so as a premium for that space. It was on market for 3 1/2 months, of course priced a bit high in beginning and I turned down an offer in week 1 that would have been a bit higher than what I accepted 3 months later (i did blgo about this), but I found that out of 40 buyers that came through, there were still concerns about 2nd floor.
In the end, I found about $100 premium for the space based on similar sales at that time.
Posted by views
Wed Apr 16th, 2008 02:22 PM
The case I'm thinking of is a pretty standard brick wall, not something particularly ugly (well not that a brick wall is attractive in any way). There's no formula for this, but my question was given two units that get the same amount of light, is it a definite market premium getting a street view over a brick wall view, or is it not that significant in terms of pricing?
Posted by Noah
Wed Apr 16th, 2008 02:46 PM
tough to answer because:
for a buyer who values quiet & privacy YES
for a buyer that wants to see life outside their window and get more sunlight YES
Me personally, I would prefer the 2nd floor tree top street view. But thats just me cause I dont like looking at walls.
Posted by brian
Wed Apr 16th, 2008 04:42 PM
Noah-I agree with your 2nd floor tree top views perspective. My wife and I decided on 3rd floor tree top views which are beautiful year round over 13th floor staring at the black top of another building-No Empire State views. The prices were fairly similar (a little premium on the higher floor-but we liked the views better). Security wasn't a concern in our doorman building, yes you get a little noise from the street now and then but as most will conlude-the noise blends in with everything else after time...look at all the cherry blossoms this time of year-much better than a brick wall.
Posted by James
Thu Apr 17th, 2008 09:07 AM
Noah - in your example, are you suggesting that there should be a $75K premium for the "view" - seems a little steep with everything else being equal.
Posted by Noah
Thu Apr 17th, 2008 09:21 AM
for almost a 700 sft private garden space, just under the size of the entire interior space, I think 50K-75K is in-line as a premium. Of course, I havent seen this space, but with very little money, you can fully landscape a terrace of that size to look amazing.
Posted by James
Thu Apr 17th, 2008 09:57 AM
I was referring to when you said:
"Now, lets say that there are similar property types (say a 1BR unit w/ same floorplan) on both sides of the building! One has Exposure A and the other has Exposure B. Now lets assume that these comparable, yet opposing units are around the same floor in height, thereby eliminating any significant premium for being on a higher floor. Pricing should be as follows:
1BR w/ Exposure A (park views) ---> aprox $900,000
1BR w/ Exposure B (interior views) ---> aprox $825,000"
Posted by Noah
Thu Apr 17th, 2008 10:27 AM
Well the piece was written originally in October, but I think the principal applies close to that level.
I would expect the park view property to sell at a 65-75K premium; park views are hard to come by and there is a subset of buyers who are willing to pay for that luxury.
Posted by Buyer
Thu Apr 17th, 2008 07:51 PM
I wonder if there is a difference between first and second or third time buyers on this.
The first place I bought had great open city views, even to the Empire State Building. But over time I "forgot" about the view, and only really wanted the light.
For my second place, consistent and protected light was essential, but I was not willing to pay a premium for a view - space, location, transportation and school district were the key factors.
Everything is a trade off, but location was still absolute tops for me, over view or anything. Lots of the "view" apartments are in weird locations (600's West 40's - where the heck is that? ), Sutton Place, East End Ave.. Far from transportation and not very amenity, restaurant, or shopping friendly places. Riverside Park and Central Park are nice, but I wouldn't buy a place there only for the view, given what the money might buy elsewhere.
Posted by Noah
Fri Apr 18th, 2008 07:31 AM
you raise a great point Buyer! That would be an interesting poll to see results of. However, I have found that in past few years, as prices skyrocketed, buyers put a bit less emphasis on location, and all of a sudden were willing to move outside their PRIMO location neighborhoods to get features like light/views at the same price that might otherwise wouldnt get in their top location choice.
Posted by New Condos For Sale
Mon Apr 20th, 2009 06:40 AM
it is a very useful for those person want to buy home when we are are ready to buy your own house, be sure we understand our rights as a home buyer. Knowing the process of buying a house prevents you from getting scammed. You can personally do your home work or seek for a knowledgeable person like a real estate agent or a broker. Make sure that the agent you hire is licensed and have a wide knowledge regarding the area.
Posted by Cabo Luxury homes
Mon May 4th, 2009 06:52 AM
Thanks for sharing your thoughts and your real experience.If you are a buyer, I'm sure you originally had a neighborhood you wanted to buy in. As you search, I promise you will start considering other areas. That dynamic diminishes the strength of location as a permanent feature that gets the most resale dollars.....
Posted by Brazil Condos
Mon Jun 8th, 2009 06:24 AM
Thanks for sharing such a nice information.I also want to provide you some information about Beach Condos.Planning a sea vacation to spend quality time with your family then buying or renting a condo on one of the beautiful beaches present along the Gulf of Mexico is the perfect spot for you. Gulf of Mexico is one of the largest water bodies on the planet. The beaches on Gulf of Mexico are so stunning that they are able to attract the eye of everyone. Taking a sun bath or strolling on the sand with your love besides you, enjoying the feel of water on your body, or looking at the sunset can make you forget about all the troubles of life. There are beaches, especially designed for families, where they are given the right opportunities to do different sort of fun stuff together and help to renew the family bond.
Condos located alongside the beaches on Gulf of Mexico can be considered as an ideal place for housing or staying for few days. They are ideal for couples or individuals, who want to take their time off from busy routine and enjoy their vacations in peace. They appeal to people because of their closeness to the ocean, beautiful weather and relaxing environment. If you want to own a place in some peaceful and calm location, with beautiful scenery all around you, then you should take out time to look at these Condos. You will absolutely love to buy it. They have low mortgages and are more affordable than normal houses. The overall prices are low as well.
Posted by Dominican Republic Condos
Tue Jun 9th, 2009 07:02 AM
Hi Noah Rosenblatt,
Its really nice information given by you.
The real estate gurus predict a rapid real estate appreciation within next five years. No wonder, Dominican Republic has emerged as the hottest real estate destination in the entire Central America and the best place to retire in style and in comfort.
Posted by Dominican Republic Condos For Sale
Tue Jun 9th, 2009 07:06 AM
Thanks,
Its really informative information that you discuss here.
The real estate gurus predict a rapid real estate appreciation within next five years. No wonder, Dominican Republic has emerged as the hottest real estate destination in the entire Central America and the best place to retire in style and in comfort.
Thanks
Posted by Dominican Republic Condos For Sale
Tue Jun 9th, 2009 07:09 AM
Hi,
Thanks for such informative post!
The real estate gurus predict a rapid real estate appreciation within next five years. No wonder, Dominican Republic has emerged as the hottest real estate destination in the entire Central America and the best place to retire in style and in comfort.
Posted by Nicaragua Condos For Sale
Mon Aug 24th, 2009 03:50 AM
It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough--just place an ad in the weekend paper and wait for buyers to show up. Although it may seem easy, real estate sales are extremely complicated transactions.
Posted by Nicaragua Condos For Sale
Mon Aug 24th, 2009 03:50 AM
It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough--just place an ad in the weekend paper and wait for buyers to show up. Although it may seem easy, real estate sales are extremely complicated transactions.
Posted by Mbt
Wed Jun 2nd, 2010 11:42 PM
I think another reason fees are not being paid and free months not offered is that prices have come down. Apartments are moving but part of the reason is that prices came down to a point at which they will move.
Posted by Mbt
Thu Jun 3rd, 2010 02:21 AM
I think another reason fees are not being paid and free months not offered is that prices have come down. Apartments are moving but part of the reason is that prices came down to a point at which they will move.
Posted by Homes Pinecrest for Sale
Sat Jun 5th, 2010 03:21 AM
Interesting real estate blog. I have bookmarked for future reference. Hope to see such good things again.
Posted by asics shoes
Sat Oct 9th, 2010 03:20 AM
I want to re-iterate just how important views are when trying to get top dollar at resale.
Posted by mbt sale
Sat Oct 9th, 2010 03:20 AM
with the focus being on finding motivated sellers with a view apartment who doesn't have time to
Posted by ugg australia
Sat Oct 9th, 2010 03:21 AM
that involves a property with spectacular views, I always am concerned that
Posted by coach purses
Sat Oct 9th, 2010 03:22 AM
another bidder will come out of nowhere before we get a fully executed contract.