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Aesthetic value is a term that refers to a premium above a property’s value due to it having a desirable physical appearance or having luxurious views of the surroundings.
This is most commonly observed in property with unique architecture.
In a way, this is a value that cannot be quantified as different people might put different values on what the appearance of a property is estimated to be.
Some people loves scenic views so much that they are more than willing to pay generous premium in order to secure a house with such breathtaking views.
But in general, most people agree that such values are not on the practical side of things.
When aesthetic value causes a transaction price to go way beyond it’s market value, a lender is likely to finance the purchase on a loan-to-value based on it’s market value.
This means that a buyer will have to pay for the premium with cash.