It is commonly known that certain features of a property, such as location, condition, views, etc., will affect its value. However, there are other not-so-obvious elements of a property that can significantly influence the perceived value of that property to the general public or to the individual home buyer in Hawaii. Here are a few examples:

Zoning

A property may have a single-family home on it, while the property’s zoning may allow for an apartment building or commercial use. The more flexible the zoning (i.e., the more types of improvements that can be built on the property), the more valuable the property.

Easements

An easement in your favor is the right for you to utilize a portion of someone else's property, while an easement encumbering your property is the right for a person or entity (like a utility company) to use a portion of your property. An easement in your favor could enhance the value of your property, while an easement encumbering your property (depending upon where it is located on your property) could detract from the value of your property.

Restrictive Covenants of the Neighborhood

Specific neighborhoods have rules and regulations that could enhance or detract from the value of the properties in that neighborhood. For instance, a view plane restriction could enhance the value of a home whose view is protected. The value of the property on which the view plane restriction is enforced, however, could restrict the buildable area and, therefore, may have a negative impact on the value of that property.

Past History of the home

If a famous person lived in the home in the past, it could increase the value of that property. However, notorious incidents such as past suicides or hauntings can detract from the value of the property.

Potential Road Widening

This allows another party (typically a government agency) to potentially take a portion of a property fronting the roadway to widen it. In certain instances, the amount of road widening can be substantial. Not only can a portion of the land be taken away, but it would significantly impact what can be built on the property in the future.

Are pets allowed?

For many people, a pet is part of their family. Many condos have limitations on pet ownership. If a condo association does not allow a Buyer to have their pet in the unit, it is unlikely that that buyer would purchase the unit at any price.

Flood Zone Classification

Flood insurance can be expensive depending upon the flood zone classification. An extreme flood zone designation, which typically leads to higher-cost flood insurance, can affect the desirability of the property.

These are just a few examples of not-so-obvious features of a property that can have a significant impact on the value of a property. It is important that the not-so-obvious features of a property are considered along with the more obvious features when determining an offer price on a property (if you are a buyer) and a list price on a property (if you are a Seller).

PART 1 - Things that affect the value of a property that are NOT so obvious