Property Grunt

Tuesday, January 16, 2007

Putting a price on a dying view

Views, especially in Manhattan play a piviotal role in the real estate market. Just one window or lack therof can make the difference of whether an apartment will go up or down in value. But how much can a once prestine view that has now been rendered impotent by a development impact the price of an apartment?

That very question has been raised by a reader who is experiencing the slow painful death of a view. Below is the question which has been edited to protect the identity of the reader.

We live in an UES apartment on a very high floor. We have several views, one of them being South which is currently phenomenal. I have floor to ceiling windows where I can see the Chrysler Bldg, Citicorp Bldg, Bloomberg Bldg and Empire State Bldg. After this 45 story bldg comes in, this part of
my view will be blocked.

Do you have any guess (%) how much money this view
blocker will cost us?

Below is my response.

Thank you for reading my blog. You are correct that this new development will have an impact on the value of your home. However how much of an impact depends primarily on the state of the market. About a year or two ago, pieces of crap were flying off the shelves because of the lack of inventory on the market. There was a one bedroom that I used to show and it was a complete rip off at 400k. Not only were the views horrible but it was practically next to the FDR and it was in horrible condition. But people were coming in droves because it was the cheapest thing on the market at the time and some sucker decided it was a great deal buy it.

Please do not think I am inferring that your home is a piece of crap. From your description it sounds like you and your wife live in a very lovely home.

Also it is a question of beauty being in the eye of the beholder. For some people that development will make their eyes bleed. For others who have had a brick wall in front of them for most of their natural lives, that development is not a bad thing. But then again you will have to see after the development is completed to determine how much of an eyesore it will be for you.

Unfortunately I am unable to guess how much of hit you may take. My best recommendation is to talk to an appraiser since they could probably present you with an educated guess.

This generous reader has given me permission to present his question to all of you.

Do you have any guess (%) how much money this view
blocker will cost them?

Bear in mind this is no ordinary view. We are talking Southern Exposure which is the most coveted compass point of all of Manhattan and a line up of the creme de la creme of the Manhattan Skyline.

All are welcome to participate!