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View and Print This Publication United States Department of Agriculture Forest Service Pacific Southwest Searching for the Value of a View Forest and Range Experiment Station Research Paper PSW-193 Arthur W. Magill Charles F. Schwarz Magill, Arthur W.; Schwan, Charles F. 1989. Searching for the value of a view. Res. Paper PSW~193. Berkeley, CA: Pacific Southwest Forest and Range Experiment Sta~ tion, Forest Service, U.S. Department of Agriculture; 9 p. Assessing the trade-offs between market and nonmarket products of wildlands poses a majorproblem fornatural resource planners and managers. Scenic quality is a resource that is not quantifiable in monetary terms. To determine if market values ofreal estate offering views could define relative dollar values for physical dimensions and objects in views, they were correlated to real estate prices for 13 recreation subdivisions in California wildlands. View variables were related to lotvalues in each subdivision, butthe specific view variables related to value varied greatly among subdivisions. Field experience and discussions with realtors and land appraisers suggested a strong relation between views and property values. To help identify more widely applicable means for relating views to lot values, natural resource professionals rated views for scenic quality using a five point scale. View ratings showed little agreement, however, with market value rankings established by realtors. Future research could considerhaving the public and realtors sample rate landscape views, and having realtors assign market values to the views. These views and values might then serve as benchmarks to guide assessment of view values. Retrieval Terms: esthetic values, view values, real estate, scenic quality, nonmarket value, trade~offs, view assessment, dollar values, landscape views The Authors: ARTHUR W. MAGILL is a research forester with the Station's Wildland Recreation! Urban Culture Research Unit headquartered at the Forest Fire Laboratory, Riverside, California. CHARLES F. SCHWARZ, a landscape architect, was formerly with the Unit. Publisher Pacific Southwest Forest and Range Experiment Station P.O. Box 245 Berkeley, California 94701 March 1989 Searching for the Value of a View Arthur W. Magill Charles F. Schwarz CONTENTS In Brief ii Introduction 1 Methods 1 Study Areas 1 Comparing Views and Prices 2 Expected Relationships 2 Analyzing Data 3 Results and Discussion 3 View Variables 3 Lot Prices and Sample Sizes 3 Problem Variables 5 Alternative Approach 5 Relation Between Judgments and Values 8 Summary and Recommendations 8 References 9 find consistent patterns. Also contributing to variability were sample sizes too small for most subdivisions, total variables too IN BRIEF ... large for the sample size, fail ure to consider variables that confound the analysis (such as golf courses, beaches, high­ ways), numerous indicator variables (either present or absent, but not quantitatively measured), variables that described con­ Magill, Arthur W.; Schwarz, Charles F. 1989. Searching for ditions other than views (such as blocked or filtered view, near the value of a view. Res. Paper PSW-193. Berkeley, CA: or far view), and the inability to compare subdivisions even Pacific Southwest Forest and Range Experiment Station, when they were relatively near each other (geographic variabil­ Forest Service, U.S. Department of Agriculture; 9 p. ity). Theresults suggestthat landscape components cannotbeused RetrievalTerms: esthetic values, view values, real estate, scenic as indicators ofthe value of views. That is, the value ofa view quality, nonmarket value, trade-offs, view assessment, dollar cannot bepredicted from the relation between asking or selling values, landscape views prices of view lots and the land, water, and vegetative elements that define landscape character. However, a strong relation Assessing trade-offs between marketandnonmarketproducts between views and property values were suggested by opinions of wildlands poses a major problem for natural resource plan­ ofrealtors and land appraisers, by the distribution ofcalculated ners. For example, timber and mineral production can be view value ranges derived from subdivision lot prices, and by appraised readily in dollars, butscenic quality is notquantifiable our opinion of the relative quality of views at each area. in monetary terms. Regardless, a standard that compares the To help identify more widely applicable means for relating value of economic products and scenic resources is needed. views to lot values, natural resource professionals rated views Situations do exist where scenery has market value. An for scenic quality based on a five point scale. View ratings example is real estate, where prices for lots are commonly showed little agreement, however, with market value rankings influenced by the presence of a view. With that in mind, we established by realtors. Thelack ofagreementwas thought to be posed the following question: Can the market values of real related to their differing perspectives: resource professionals estate offering views define relative dollar values attributable to evaluated views solely for scenic quality, but realtors were also the physical dimensions and objects in views? influenced by other values. Realtors establish prices in relation To answer that question, properties of landscape views were to poor winter access or proximity to a golf course, shopping correlatedto realestateprices for 13 widely separatedrecreation center, ski area, boat launching ramp, beach, lake shore, or open subdivisions in California wildlands. The view properties were space. described in terms of physical landscape features (such as A different approach is suggested for future research to mountains, valleys, and lakes), vegetative types (such as conifer establish relative values for landscape views. People generally or hardwood forests and meadows), and various constructed agree on the ordering of the scenic quality of natural scenes. features (such as roads, powerlines, and buildings) that might Therefore, public and realtor samples could rate photographs of influence view quality. These view variables were related to lot landscape views that are typical of landscapes surrounding values in each subdivision. subdivisions, according to their preference for the quality of the Each subdivision had a different set of view variables most views. Next a panel ofrealtors could establish a price premium strongly related to lot prices. Consequently, no consistent range for each photographed view for each subdivision. The pattern was revealed to universally define relative dollar values resulting views and values could then serve as indicator or for all subdivisions. Therefore we could not identify a set of "marker" scenes for use in identifying and setting values for view variables useful for defining relative dollar values for "like" scenes at other locations. This approach might provide views in general. the foundation for relative dollar values oflandscape views, for Widely varying prices oflots with about the same view were use in evaluating trade-offs between marketand nonmarket uses predominantly responsible for the failure of the regressions to of wildland resources. ii INTRODUCTION aintaining or improving renewable resource productivity Realtors regularly sell view property for a higher price than Mandpermittingcost-effectiveextraction ofresources with­ equivalent lots without views. Forexample, the San Francisco outsignificantly damaging scenery are basic resource manage­ Examiner (1983) reported that in Belmont, California, views of ment goals on federal lands. Meeting those goals is seriously hillsides increaseprice by $25,000 while views ofSan Francisco hampered by the lack of a basis for assessing and comparing Bay can add $50,000! Clearly, people pay large premiums for market and nonmarket natural resource products: generally better views; therefore, scenery possesses monetary as well as accepted dollar values are not available for intangible benefits intangible values. Weconcluded that the saleprice ofreal estate such as scenic quality. Adding some urgency to the perplexing with views ofvarying quality might be related to the landscape problem, Congress has directed federal resource agencies to components comprising views. Weanticipated thatthe relation­ plan and manage natural resources in a cost-comparative man­ ship might contribute to establishing monetary values for scen­ ner by making full use ofreal-dollar values or, alternatively, by ery-aresourcetraditionallyconsidered an intangiblecommod­ developing and using relative indices (88 Stat. 476,as amended, ity. Sec. 4(2); 16 USC 1602(2); 36 CFR 219.5(g)(9)(ii)) (U.S. Dep. This paper reports a study we began in 1982, to estimate Agric., Forest Servo 1983). relative dollar values for landscape views. We had four goals: But, how can you assess trade-offs between timber ormineral to isolate that portion ofasking orsellingprices for lots that were production and the protection of scenery? Timber and mineral attributable solely to thequality ofviews, to identify the relative production can be appraised readily in dollars. But can compa­ market value for different types and qualities of landscape rable units of value be attributed to the powerful beauty of views, to correlate landscapeviews ofestablished marketvalues Yellowstone Falls in Wyoming or the pastoral treasure of the with similarscenes on public wildlands, and to establish relative meadow surrounding Grass Lake at Luther Pass in California? monetary values
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