This article will attempt to quantify the value of an Ocean View for a detached home, as compared to a detached home that does not have an Ocean View. In order to yield the most accurate results we have selected detached homes in the city of Laguna Niguel located in a regional area defined by page 971 of the area Thomas Guide map. The reason for this location selection, is that as homes get close to the beach or are beach front, the price of the real estate sky rockets due to the close proximity to the beach. So analyzing Ocean View homes in Dana Point for instance, would yield less accurate results. The closet that detached homes get to the beach in Laguna Niguel is about 2 miles. Therefore, we are more or less evaluating the value of just the Ocean View without the added interference of being beach front or bluff front.
In the past 12 months, home prices have not changed very much either up or down, so we will average prices over the past 12 months to yield more accurate results. In the past 12 months, there have been 43 detached homes that have sold that are located in Thomas Guide page 971 and DO NOT have an Ocean View. The median price of these non-ocean view homes is $1,195,000 and the average price is $1,266,000. The average price per square foot is $421 and the average home size is 2,756 square feet.
For detached homes in Laguna Niguel located in Thomas Guide page 971 that have an Ocean View, there were 38 such homes that sold and closed in the past 12 months. The median price for these Ocean View homes was $1,749,000 and the Average price was $2,190,000. The average price per square foot was $548 and the average sized homes was 3,903 square feet.
Using the just the Average price to evaulte the value of an Ocean View would yield less accurate results. Averages are skewed by a few homes that may be priced very high and don't represent the typical home as well as the Median price does. Also, the Median Price is not a perfect barometer, for as we can see, Ocean View homes tend to be larger in Laguna Niguel with an average size of 3,903 SqFt as compared to 2,756 SqFt for non-Ocean View homes. Therefore, we will use the Average Price per Square foot for our analysis.
Assuming a home in Thomas guide page 971 with 2,900 square feet, with NO Ocean View, the typical home that sold was $421 times 2,900SqFt or $1,220,900, in the past 12 months. Comparing this to homes with an Ocean view, yields $548 times 2,900 SqFt, or $1,589,200. The net result is that an Ocean View approximately adds $365,000 on average to the value of a detached home in Laguna Niguel, CA. We conducted this analysis on other cities and yielded similar results, as long as homes that are beach front or bluff front are excluded from the analysis.
If you would like to view all homes listed for sale in Laguna Niguel, please visit our website at: Laguna Niguel Real Estate. Fell free to call us anytime with questions at: 949-388-3396
