Is you $1 million view worth $100? Lakes Region of NH Real Estate Market Report 4/11/09

The residential home inventory in the Lakes Region of NH inched up to an even 1,000 properties on the market as of April 1, 2009. That is up about 60 homes from last month and represents about an 11% increase in homes on the market compared to last April. 1,000 homes translates to about 18 month's worth of inventory on the market based on the rate of sales over the past year.I just recently sold a home to a buyer from California. He was in the position to buy anywhere in the state and, in fact, anywhere in the country. But he chose NH primarily for tax reasons and after looking around the state he settled on the Lakes Region and bought a home in Gilford. His choice didn't necessarily have anything to do with the community or even the Lakes Region in general but had more to do with the value he saw in the property that he purchased (although I believe he will soon discover the benefits of the area and learn why so many people want to live here). Part of the value he saw in the property that he purchased was an astounding, panoramic view encompassing the Gunstock Mountain Resort, Winnipesaukee, and mountains beyond. It has one of the best views I have seen from any home in the Lakes Region. The design of the home maximized and framed the view from every level and just about every room in the house. The view was a huge part of the appeal and perceived value in this purchase.

 A property with a view of lakes and mountains will undoubtedly bring a higher sales prices than comparable properties without a view. How much more depends on the view itself and what that view is worth to any given buyer. Some buyers don't care about a view, but those that do will pay more for it. Thank goodness that the well worn phrase "a $1 million view" isn't taken literally because in NH the "tax man cometh". The debate over the controversial, so called, "view tax" in NH has been relatively quiet although it has received some press earlier this year.

The Department of Revenue Administration claims that there is no "view tax" in NH but that there is a "view factor" which translates into higher taxes for the homeowner that can gaze out at mountains or lakes even though he doesn't own what he looks at. So in reality, there is a view tax, they just don't call it that. The NH Assessing Standards Board readily admits that there are no standards set for determining the value of a view which makes the assessing process very subjective to say the least. So the value of the view could be affected by which assessor gets sent to look at a property, what kind of mood he is in, or even the weather. How much is that sunset really worth? Perhaps it is foggy, raining, or snowing that day and the view isn't quite as nice. And what if you look out at something undesirable. Say there is an ugly cell tower in the way of the view or junk cars in the neighbor's yard. Shouldn't you get a negative view tax credit? And with no real established standards for assessing views, it is unfair to all the taxpayers who make up the difference when some properties are under assessed.

The fact remains, however, that view properties routinely sell for more than non-view properties. So a buyer purchasing a home with a view should be well aware that he is going to pay more every year in taxes than his neighbor's comparable home at the bottom of the hill. It is no wonder there are many proponents of some other method of raising the required revenue to run our communities and state.

There are so many great views in the Lakes Region I thought I'd have a "view" contest and I'd pay the winner's next tax bill as the Grand Prize. After regaining my senses and rethinking that offer (the real estate market is bad you know and REALTORS aren't getting any bailouts) the contest would actually be mostly for fun and a $100.00 prize. Send me a photo of the view from your home along with your contact information to my attention at Roche Realty Group or email me at rsanborn@rocherealty.com. Yes, waterfront views are also views! I'll post them here on my website and on May 13th an independent panel of judges (I promise, no tax assessors) will pick the best view submitted. I know, the $100 won't pay your tax bill but it's a start...

 Residential Homes Available April 1, 2009

Data compled from the NNEREN as of 4/1/09.