Big Lots vs Scenic Views: Which Home Delivers Real Value?

The Eternal Dilemma: Big Lots or Breathtaking Views?

When it comes to real estate, two desirable features often stand out—large lots and stunning views. Homebuyers frequently find themselves contemplating which of these coveted characteristics holds more value. Ideally, you'd want both, but the reality rarely allows for such luxury at an affordable price.

Typically, homes perched on hills with picturesque views lack expansive adjacent flat land. Conversely, houses situated on spacious plots often miss out on scenic vistas, sitting instead in less visually appealing valleys or surrounded by neighboring residences.

Valuable Usable Land: A Hidden Gem

Recent trends reveal a fundamental truth: the land your home sits on often carries more weight than the structure itself. Homes in desirable neighborhoods with larger-than-normal lots can yield higher resale values, despite lacking panoramic views. For instance, in urban environments like San Francisco, properties exceeding 7,500 square feet can sell for over $10 million. This trend isn't isolated to cities of high cost; rather, it speaks to a broader shift in what constitutes a «valuable property» across various market segments.

Quality of Life: The Outdoor Advantage

In my own experience, I've lived in both types of properties—one with expansive ocean views and another with generous outdoor space but no sweeping vistas. While the ocean view was initially serene and beautiful, ideal outdoor activities were limited by the sloped lot with decks replacing usable yard space. Our current home, set on a larger, flatter plot allows for more engaging outdoor activities, including soccer games and family picnics, which my family cherishes.

Weighing Your Options: Lifestyle Considerations

Ultimately, the choice between a larger lot or captivating views boils down to your lifestyle needs. A home with an impressive view can provide tranquility, inspiration, and a beautiful escape from daily stresses. However, its often limited usable space and steep terrain can lead to impractical living conditions.

In contrast, large lots invite a lifestyle rich with activities and functionalities—from building an accessory dwelling unit (ADU) to adding a swimming pool and providing ample space for play. Yet, with increased functionality often comes the tradeoff of potentially less visually appealing surroundings.

Long-Term Financial Considerations

When evaluating resale values, scenic views and larger lots each contribute differently to property value. Homes with magnificent views can initially attract higher buyer interest due to emotional responses fueled by stunning landscapes. However, land provides long-term flexibility, allowing home expansion or development opportunities as urban landscapes evolve.

Revenue potential thrives in dense urban areas. With limited space for future development, properties with larger lots might not only appreciate faster but also gain added market viability, manifesting a blend of functionality and intrinsic value.

The Psychological Aspect: Taking Views for Granted

Despite the undeniable beauty of scenic vistas, there's a point of diminishing returns; after living with an ocean view for years, it became a mundane background rather than a constant source of joy. This underscores the notion that the more tangible benefits of outdoor living—a spacious yard for play and leisure—might yield greater satisfaction over time.

Your Life Stage: A Deciding Factor

Your personal circumstances should also influence this decision. Families with children might prioritize a larger lot, providing essential space for outdoor activities. On the flip side, empty nesters may favor the serenity and reduced maintenance of properties with stunning views.

Summarizing the Choice: Finding Your Balance

In conclusion, the real estate market often forces potential buyers to choose between big lots or captivating views. Both have their distinct advantages, with views delivering immediate emotional appeal while larger lots promise practical life-enhancements over time. Depending on your current life stage and aspirations for the future, a clear priority can emerge. After all, having either a spacious yard or a picturesque landscape is a step up from having none at all!

Consider Investing Personally or Passively

Regardless of your property preference—be it a home with sweeping views or an expansive yard, remember that property ownership inherently involves maintenance. Initiating or augmenting real estate investments can also offer exciting financial benefits. Firms like Fundrise allow you to engage in real estate ventures passively, presenting opportunities for those seeking to leverage property values without the exhaustive responsibilities of traditional homeownership.

So, which would you choose—a home with ample outdoor space for family activities or one with magnificent views? The demand for both features often elevates property values in and around your area. Take time to evaluate how much extra these types of houses command in your neighborhood!