“I price it like it is art”: Calculating the value of a good view

Expert says price can be determined by assigning value per inch of views from various rooms

Los Angeles /
Dec.December 18, 2017 02:15 PM
900 Stradella Road (Credit: The Agency)

How much is a good view worth? A survey of prices from around Los Angeles shows that’s not such an easy question to answer, at least depending on who you ask.

For some brokers and developers, there’s no way to put a price on stellar sight lines, according to a Hollywood Reporter feature examining view pricing.

The report found some indication of pricing differences using Zillow’s Zestimate feature, which doesn’t explicitly take into account views but does reflect differences in value between homes with desirable views and those without.

For example, a three-bedroom home on Stradella Road in Bel Air with a canyon view had a 25 percent higher price than a comparable home less than a mile away with a view of the city. Additionally, a pair of neighboring three-bedroom units in the Hollywood Hills — one with a southern-facing view and the other blocked by hedges — had a 4 percent price difference.

UCLA Associate Professor of Urban Planning Paavo Monkkonen thinks that the price could be calculated by assigning a value per inch of view from various rooms in a home, citing a study that did so in Hong Kong.

In practice, however, pricing seems more subjective.

Malibu developer Scott Gillen — who is building five homes on a bluffside tract in Malibu, all set for prices between $40 to 60 million — said he prices a property “like it is art. It either gets you or it doesn’t.”

The Agency’s David Parnes, who together with his partner James Harris slapped a $45 million price tag on a Bel Air home with an unparalleled 280-degree view, said it really depends on how much the potential buyer values the perch.

“That’s when emotion comes into play,” Parnes said. “And there is a huge link between value and emotional provocation.” [Hollywood Reporter] — Dennis Lynch


Related Articles

arrow_forward_ios
5012 Carbon Beach Terrace in Malibu (Redfin)
Sprawling Malibu spec house sells for $38M
Sprawling Malibu spec house sells for $38M
From left: Kim Kardashian and Cindy Crawford with 33128 Pacific Coast Highway
Kim Kardashian buys former Cindy Crawford home in Malibu for $70M
Kim Kardashian buys former Cindy Crawford home in Malibu for $70M
Chris Cortazzo, Larry Ellison, Grant Cardone and 22040 Pacific Coast Highway (Chris Cortazzo, Getty Images, photo courtesy Grant Cardone)
Carbon Beach home last sold in 1994 goes on market at $40M
Carbon Beach home last sold in 1994 goes on market at $40M
Nile Niami and The One (Getty)
Months after bankruptcy sale, The One spawns another suit
Months after bankruptcy sale, The One spawns another suit
33218 Pacific Coast Highway in Malibu and Cindy Crawford and Randy Gerber (Zillow, Getty)
Cindy Crawford’s former Malibu mansion sells at discount
Cindy Crawford’s former Malibu mansion sells at discount
Mark Burnett & Roma Downey with 23422 Malibu Colony Road in Malibu (Zillow, Getty)
Mark Burnett, Roma Downey seek to sell Malibu home
Mark Burnett, Roma Downey seek to sell Malibu home
Yvonne Niami and 301 Copa De Oro (Getty, Redfin)
Niami’s ex sells $27M Bel Air mansion
Niami’s ex sells $27M Bel Air mansion
Michael Weinstock with 23754 Malibu Road
Beach house in Malibu’s Colony lists at $34.5M
Beach house in Malibu’s Colony lists at $34.5M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...