There’s been a lot of back and forth discussion on the subject of how water affects property values, particularly from real estate brokers looking to sell/buy homes. Some state emphatically that a water feature adds absolutely nothing to the purchase price, but if it’s nice, may make the place more saleable. On the other end of the spectrum, some say that it can add between $5,000 and $10,000 to the sale price, depending on the feature. Well, let’s look at some other types of examples.
An 800-square-foot, ramshackle house for sale on the beach in Del Mar. Almost no space between it and the two much larger homes on either side. Asking price of over $6 million. Not just because it’s in Del Mar, but because it’s on the beach. Meanwhile, two to three blocks inland, just a short walk or bike ride away from the ocean’s edge, you could buy the same size lot and house for $2.5 million. A bit of difference. This is a great demonstration of the value of proximity. People want to see and hear water from where they sleep and eat.
Two apartments in LA. Same floor and identical in size and floor plan. One faces the city; the other faces the ocean. The ocean view is over $500K more than the other. People want to see water from where they live.
People pay large premiums to live on river front properties, despite having to put up with flooding, erosion, and the very real possibility of being wiped out by a storm. What are they really paying for? The ability to relax to the ambience of flowing water. Can we put a value on that amenity?
Even though billions of people live close to water, the supply of water-front property is extremely limited. This results in a perfect case study on supply and demand economics. So, what is the perceived value of having a view of water from your living room couch, kitchen counter, or dining table? Or having the sound of a babbling brook within range of where you lay your head at night?
We believe there is real value in the sound of a stream, the meditative ambiance of a pond full of lush aquatic plants and moving flowers (fish), or the view of a waterfall. If you can have this home improvement for less money (by far), and with far less risk and inconvenience than that riverside home you’ve dreamt of, doesn’t it make sense to invest in it? Just our humble opinion.
Ready to invest in a home improvement that will turn your home into your own private paradise? START HERE!
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