By Markian Melnyk, Realtor

Two otherwise identical houses with and without a view will have substantially different prices. Of course, views vary, so the quality of the view significantly affects the price premium.

If a home without a view is the baseline, an open space or wooded view will give a moderate bump in price. A golf course view provides a higher price differential. And a water view earns an even higher price. A waterfront adjacent property with a view will see the highest increase in price.

Quantifying the price effect is tricky. An interesting study of a subdivision in Georgia sited next to a forest where a reservoir was later built gives us before/after data. The study by D. Wyman and C. Morthorp published in The Appraisal Journal shows that view premiums for residential properties after the construction of the lake increased by 165% for lake-impacted parcels with a pre-existing pond view and by 784% for lake-impacted parcels with a pre-existing forest view.

The wide range of values is surprising and likely indicates how much view quality can vary even within the same neighborhood. Another study of waterfront residential properties in Tampa Bay also found a broad range. Of all water view properties, those with bayfront views earned an average price premium of 107% followed by river (62%), canal (61%), lake (15%), and pond (3.1%) views, as compared to non-waterfront properties.

How can we think about view quality in shopping for or valuing our home for sale? Here are some factors that influence the price premium:

• Visibility. Unobstructed views are highly valued.

• Distance. The premium drops as the distance from the water increases.

• Rooms with a view. A view from the main living room is valued more highly than a bedroom view.

• Elevation. Elevated, panoramic views are more highly valued than flat, street-level views.

• Permanence. A view that is protected from future obstruction (e.g., because of a park) is more valuable than one that may become obstructed in the future.

Here’s a representative comparison of two similar homes in the Eastport neighborhood of Annapolis with and without a view.

Being close to the water is part of the charm of living in Annapolis. You can get the water-adjacent lifestyle by finding a home with a view but without direct water access. These homes are less expensive than waterfront homes and, as an added bonus, you avoid the higher insurance and maintenance costs of actually living on the waterfront.