Ideally, you want to find a home with both a big lot and amazing views. These are the two special features that most buyers covet the most, which create bidding wars and higher re-sale prices. However, they rarely coexist at an affordable price. Usually, when a home has amazing views, it’s perched on a hill that doesn’t have a lot of usable flat land.
On the flip side, a home with a big flat lot usually doesn’t have great views. It might sit in a valley or on a quiet side street surrounded by other homes. There’s often a tradeoff between functionality and aesthetics, between what you can do with your land and what you can see from it.
The only homes with both are typically perched on cliffs or flat ridgelines, and they’re unaffordable for most. For example, many homes in San Francisco with more than 7,500 square feet of land (three times the regular city lot size) trade for over $10 million. Even on the Gold Coast, where homes go for $20–75 million, it’s rare to see lot sizes larger than 10,000 square feet. Most of their lots don't have a lot of useable flat areas either, maybe 1,000 – 2,000 square feet in the back, at most.
So when you’re looking to buy your next home, remember: the land is often the most valuable part of the property. If you can find a home in a good neighborhood with much more land than normal, consider taking it down. At the same time, being able to find a home with amazing views is also scarce and highly desirable.
Two Years Of Owning A Home On A Larger Lot
Although my previous home was on a double lot, most of it sloped downhill and was unusable. Instead, I had multiple decks – one of which was relatively large, at about 700 square feet – that served as our “backyard” for the kids. The views of the ocean from all three levels were incredible, especially during golden sunsets over the Pacific.
Our current home, by contrast, sits on a large lot with a flat front and back yard, but has no panoramic ocean views. Instead, it has forest views with a small view of the Bay in the horizon. We miss the ocean views, especially during those quiet evening moments when you could just stare out and decompress. But after living here for more than two years, I’ve come to realize how valuable usable outdoor space really is.
If I had to choose between the two, I prefer a cozy home on a large, protected lot surrounded by trees. My family and I like to be outdoors as much as possible.
We don’t just want to be outside, we want to move outside. Kicking the soccer ball, playing catch, scooting around, having a picnic. It all makes us feel happier and healthier. The more room we have to roam, the more we use it.
Let's discuss the pros and cons of each, and which one to go for if you can only pick one.
The Tradeoffs Between Views And Land
When choosing between a large lot or an amazing view, it helps to think about how you’ll actually live day to day. Both are valuable, but they serve different purposes.
A home with a spectacular view offers a sense of tranquility and escape. It connects you to nature and can provide daily inspiration. However, these homes are often built on steep terrain with limited flat yard space. Decks replace lawns, and parking can be tight. You might have to climb stairs or drive up a narrow street just to get home.
A home with a large lot, meanwhile, gives you freedom and functionality. You can build an ADU, add a hot tub, or simply enjoy the space. It’s great for kids, pets, and outdoor enthusiasts. But the tradeoff is that your view may simply be of another residence, instead of the horizon.
Privacy And Noise
Privacy is one of the underrated benefits of having a large lot. With more land, you can create natural buffers between neighbors. Trees, fences, and distance help you feel more secluded and peaceful. You can host gatherings or let your kids run around without worrying about bothering anyone (as much). If every home in your neighborhood is on a large lot, then the buffering improves.
Hillside homes with views, on the other hand, often have neighbors directly above or below. Because sound travels easily up and downhill, you might hear more conversations or car engines. And with multiple levels of glass and decks, privacy can feel compromised, especially if the lot sizes are smaller. Hence, you will want a home that sits high enough so that when you look out while sitting down, you are looking as high over your neighbors’ roofs as possible.
Standard Lot Size And No View
I remember going to a house for an event. It was a row house on a standard lot with no view and only an inch of space between it and the next one. As I walked down the steps to the sidewalk, the neighbor did the same, just a foot away. It felt too close for comfort.
If you're considering a row home on a standard size or small lot with no view, at least have your neighbor's entrance be on the other side of your entrance.
And if housing is becoming more affordable due to your rising stock portfolio, then at least consider buying a home with a view or a large lot. Not having either is a shame if you have the funny money to pay for it.
Maintenance And Cost Differences
A large lot does come with more upkeep. There’s mowing, trimming, watering, and pulling weeds, often every week. I spend time tending to plants and trimming dead branches regularly, which I don’t mind because I can listen to a podcast and clear my mind. But not everyone enjoys yard work. If you don’t, you’ll need to hire help, which can add hundreds or thousands of dollars a month in maintenance costs.
That said, hillside homes with views have their own challenges. Erosion, drainage issues, and foundation movement can become expensive long-term headaches. So please inspect thoroughly before purchasing. You might need to maintain retaining walls or navigate tricky access for contractors and guests. Sometimes, you’re paying a premium for a view but sacrificing day-to-day livability.
At my old ocean view house, the neighbor downhill immediately asked me to cut down a tree at the bottom of my lot. He was worried it might fall into his yard, break his fence, or even damage part of his roof. Wanting to be a good neighbor, I hired a tree trimmer to lighten the load by cutting off some of the heavier branches. That cost about $700.
Resale And Appreciation Potential
Both views and land can drive property value, but in different ways. Views create more emotional value, while land creates more functional value.
Buyers often fall in love with a fantastic view instantly. It’s what sells the home and makes people say “wow,” or “that's a million dollar view!” I know it did for me when I bought our ocean view home in 2020.
When I sold the home in 2025, it was a breeze. It was on the market for 10 days, got in contract thanks to a preemptive offer, and closed in 13 days as the buyers paid all cash. Their #1 constant feedback was how they loved the views.
In comparison, it was a complete pain in the rear to sell my other home on standard lot with views of a building across the street in 2017. The escrow period was 45 days because the buyers had a loan issue. Further, I had no backup offers.
Land provides flexibility, where you start imagining how you could use the space. You can more easily expand your home or subdivide if zoning allows. Those possibilities add intrinsic and long-term financial value.
In dense urban markets like San Francisco or New York City, extra land can appreciate faster because it’s more scarce. You can’t create more land, but you can always remodel a house. The more buildable or usable land you have to expand your living area, the more optionality you have in the future for yourself or the next owner.
That said, it’s extremely hard to create better views. You can’t just pick up a building and move it. And if you do have the option to improve your view by adding another story, it’ll cost a fortune in permits and construction.
In San Francisco, adding a 1,000-square-foot floor can easily run $1 million. The whole process would probably take 2-2.5 years as well. No thank you, which is why I bought a fixer back in 2019 which already had another story built.
It’s Easier To Take The View For Granted After A While
Having a water view is amazing. It does wonders for your mental health. It calms you, provides perspective, and gives you a mental “reset.” When your boss is unreasonable or your kids are driving you up the wall, a good view can lower your stress almost instantly. The more rooms in your home with a view, the better.
But after nine years of living with an ocean view, I realized something surprising: I started taking it for granted around half way. Watching ships sail into the Bay used to be mesmerizing; over time, it became background noise. Even the birds, clouds, and sunsets began to fade into routine. Perhaps I also didn't appreciate the view as much because I found myself in a steady healthy mental state.
By contrast, I haven’t taken our current outdoor space for granted at all. The kids play outside every day. We have family picnics on the grass every weekend when it’s sunny. I practice soccer and tennis with them, activities that weren’t possible at our old house. Functional space gives us more experiences, not just scenery.
Will I someday take this land for granted too? Probably, as we humans get used to everything. But I don’t think I’ll ever stop appreciating its usefulness.
Choosing Based On Your Stage In Life
Your decision on buying a home with a bigger lot or a view may also depend on your stage of life.
If you have children under 18, I'd prioritize a home with a larger lot. You’ll use it every day – for sports, playtime, outdoor meals, and gatherings. Kids need more space as they get older too. More outdoor space increases the homes livability.
If you’re an empty nester or live alone, a home with a great view can be incredibly peaceful and fulfilling. There’s less to maintain, and you’ll appreciate the beauty each morning and evening without worrying about kids or pets needing space.
Land For Living, Views For Feeling
After owning both types of homes, I’ve realized that more land offers more consistent happiness, while views offer higher emotional joy that gradually fade over time. Both are valuable, but one is more practical.
If you want to live more, play more, and connect more, go for the land. If you want to reflect more, relax more, and feel more inspired, go for the view. Ideally, you’ll one day own a home with both. But if you can’t, focus on the one that best matches your lifestyle today.
Readers, what would you choose? A home on a large, usable lot? Or a home with fantastic views? How much of a premium do these types of houses command in your neighborhood? And for homes that offer both a big lot and great views — how much more do they sell for?
Invest In Real Estate Passively
Whether you prefer a home with sweeping views or one with plenty of flat land to play on, owning property always comes with maintenance — leaky gutters, peeling paint, overgrown weeds, you name it.
That’s why I’ve also diversified into private real estate through Fundrise, where I can invest in residential and industrial properties without any of the landlord hassles. Fundrise manages over $3 billion in assets for 350,000+ investors, focusing on long-term growth and income generation.
I’ve personally invested over $150,000 with Fundrise real estate to help grow my passive income. With a minimum investment of only $10, it’s an easy way to get real estate exposure without the physical work of owning a property.
Fundrise has been a long-time sponsor of Financial Samurai because our investment philosophies align.
First, thank you for your newsletter, it’s 1st on my list; just long enough, always done with humility and has both a consensus validation from some of our best thinkers, and a personal point of view, yours, that is always illuminating.
Regarding the house with a view. For most of my adult life, I’ve had properties, modest-sized, that had ocean and island view and a mountain view, which I actually find more interesting a good deal of the time. I thought I’d really miss that in the house I’ve been in for 15 years, but I don’t. I still see those views during my day-to-day errands, but what I’ve done at home makes up for the limited view of the mountains and the lack of ocean views.
I’ve created a setting. I have 15-foot hedges all around and beautiful plantings, sitting areas, furniture, fountains (3), and other eye-candy (bird houses, feeders, etc).
I find that to be quite enough. Focus on the micro environment. There are views everywhere if you appreciate wildlife, gardens, and landscaping.
For us, the acreage is more valuable than a view. Although we will have a nice view – just different.
Moving from PNW with ocean view to 50 plus wooded acres in upper Midwest (for less $!).
Ocean has been neat to watch over the last several years but like you said, after awhile it becomes meh. Sort of a “been there/done that” mindset creeps in. Further being right on water tends to be crowded!
Looking forward to being out in woods on a very quiet road!
It is important to remember that we here are all very fortunate people to even be able to contemplate topics like this!
This blog is so great. You take an interesting question that has many possible answers depending on the person and manage to boil it down to a couple different factors in a concise way. It is amazing. Thank you.
You’re welcome! Thanks for reading and sharing my work to people you think might find an interesting as well.
Life is beautiful and complicated. There are so many interesting dilemmas we face. It’s fun to think things through, especially if you have experience.
My family and I live on 10 acres in the Los Gatos Summit road area. Half of the land is flat and highly usable. We have a 70 fruit tree orchard and 1/2 acre hobby farm plot and a large chicken coop and run. Being 35 minutes door to door to work in down town San Jose we feel absolutely blessed with the land we have. We have been raising our two young boys here and I’m sure they take it for granted now. We did a complete tear down of the existing house and built small and just got permits in hand for the addition to expand. It doesn’t have an ocean view but it has mountain and towering redwood views and a tonne of privacy. The lifestyle, privacy, views and access to Santa Cruz, Los Gatos, and San Jose makes me question why anyone would choose to live on top of one another. Personal preference of course. It is near impossible to find a comp property on the market and I’m always looking out of curiosity not that I would sell but to better understand how the world would value what I have. This property is a lot of work but it teaches my boys a lot about life and value and return of hard work.
10 acres is truly massive. How much do you think the property would sell for today? It seems magical.
Today: 1.5-1.8. In loose talk conversations with an agent he threw out 1.5. I disagree but i’m biased of course. In conversations with an old boss who is a successful investor, entrepreneur and venture capitalist, with a strong ag/homsteading-organic food bent, he says the right buyer would pay a fortune for the property because they see the value of the ag-lifestyle. He guesses in the 2’s as is now. Story time; We bought in 2014 as a complete fixer-upper/tear-down for 470k and proceeded to drill a well, completely renovated the existing home into a new 1000sq ft house(had to lose sq footage due to unpermitted parts), complete rebuild of a detached conditioned 600sq ft workshop, extensive land improvements, and an impact diversion landslide wall the county required in order to expand the house. In our community – filled with other larger land holders – they show up stunned to see how flat and usable our property is, truly a rarer – yet not unheard of – find. After we complete our addition and upgraded septic system (+550k) I’d guess it would reasonably sell in the 2’s but what do I know. I acknowledge it is what would still be considered a small home but with the land, privacy, proximitty to the valley, and out-of-the-box homestead aspect provides a lot of value to the right buyer. It’s fun to talk about this, thanks for doing what you do, i’m a big fan.
Fascinating. That seems like good value.
10,000 sqft lots in SF are rare and all have homes between $20 – $75 million on them.
I lived in the same house for almost 10 years. It is a smaller lot but on a hill with views of the SF bay and airport. When I was younger, I didn’t appreciate the view. But now that I’m older, and stay at home way more, I definitely take time to enjoy the beautiful view at different times of the day. (Homebody!) I considered moving last year and earlier this year to another area such as the next town over with a bigger lot or a yard for my son to have a yard but it is hard to give up this view.
We have an 18,000 sqft lot in Orange County, CA in a cul-de-sac. When I saw it on the market I told my husband we had to buy it.
He wanted to keep looking but I said “This isn’t a used Honda Civic, there isn’t another house like this around the corner.”
The house also backs up to a park and green belt, so we have no neighbors at all behind us. And since it’s in a cul-de-sac the lots are pie-shaped so you’re not as close to neighbors.
To this day I can’t believe we got the house. Land is priceless, they aren’t making any more of it.
Ten years later we have privacy trees, fruit trees, a veggie garden, and a huge side backyard and side yard we could build an addition and an ADU on.
The big downside is that it’s more expensive to maintain. But at least we don’t have 5 neighbors breathing down our necks 6 feet away like most homes in SoCal do.
One of the houses we toured in Cody, WY had a million dollar view, but the house itself had so many deficiencies that it was “no go” for us. But dang, that view really was incredible. 180 degree plus view of the city below and the mountains. The house we eventually bought has a peek-a-boo- view of the mountains, so good enough I suppose. I agree though, a good view is spectacular. The house I grew up in as a kid in Seattle had a million dollar view. From our kitchen window we could see Mt. Baker, the cascades mountains and the University district. I loved the view, but never again had anything like it since. That was 45 years ago…
I go for view! I live in Florida with zero lot lines and a postage stamp size yard but I don’t have a fence so I look out onto the community lake which is beautiful and there are no other houses in the distance. I feel like I have a ton of land. Of course, I can’t use the land. But I don’t have young children or animals so all I want to do is Sit on my patio, read a book and look out at the lake. Even been better, my HOA takes care of mowing the lawn, so I don’t have to do anything.
Yep, different household formation will have different preferences for sure. It makes sense to go for the view if you have no kids.
We managed to snag a 17,700 sq. ft. level lot off-market house during the pandemic, next to a quiet 55+ single-story community. I never liked having a back yard that felt like a fishbowl, surrounded by two story homes.
I choose the bigger lot over the view, but I love to visit my friend in SF who has a beautiful view of Noe Valley, Sutro tower, downtown and the Bay bridge. It is good to have friends! There will always be demand for both types of property, but a view is the wow factor. Or just install marble countertops if you don’t have a view. Buyers are so short-sighted, in my opinion.
In California we are blessed with great weather and the outdoor space can be utilized cheaply (and maybe no permits) with pergolas, arbors, firepits and gazebos. Hardwired landscape lights add instant luxury. Put some curtains around your structure to block breezes on cool nights. Light some candles and open a bottle of wine.
I have a section for my fruit trees and a small Zinfandel vineyard and space for my hobbies and winemaking equipment. We have only a small, intentional amount of turf for play and pets. We call it the putting green. The rest of the space is mulched and designed with low-maintenance shrubs and succulents. There is still some work, but it is mainly focused on my rose garden.
I know that new buyers will probably still see this outdoor space as “a lot of work”. I did this all for me, not potential buyers.
That’s a huge lot! What city are you in? Installing the fixed lights is a nice touch.
We live in south San Jose. We definitely got lucky with the purchase because we know the previous owner. But, the house, she’s a project, and the old girl is being polished slowly.
Homes with a spectacular view often are difficult or impossible to DIY, you need an engineer and an architect to change it. So, there goes the owner sweat equity. I am handy with tools and am learning the “decorative arts”. Landscape lighting is high ROI, as can be fruit trees. The rule of lighting: if you cannot see the space, it does not exist in the mind’s eye. So light your shadowy corners and the perimeter and your space feels instantly bigger.
That’s a fascinating lighting tip! Thanks!
Excellent analysis on a fun dilemma. My experience in SF is that properties with sea views carry a huge market premium (in my building I have seen more than 50%!) due to the initial WOW factor…that eventually fades out. With that money you will probably get a much larger home that will effectively make your life much better on a day to day basis. With that said, in my experience (not a ton of data, just what I saw following properties I liked through cycles), views hold value better
Views hold better value than homes without views. But the dilemma we were talking about here is a home with a view versus a home with a large useable lot.
And based on my experience buying and selling homes, it is actually even more rare to get a usable, triple or a quadruple size lot and a big city at a affordable price compared to a home with ocean views. That said, both are wonderful. It’s hard to go back if you have experienced one or both.
What a fun thought process. I tend to lean toward bigger lots too. Views can change over time because of new buildings or other obstructions, and that feels more common than a view actually getting better as the years go by. Land is just easier to control. Even if it gets overgrown, you can always hire someone to clean it up. But when a view gets blocked, usually there’s not much you can do. You can remove a tree sometimes, but that depends on local permitting laws and whether it’s even on your property. A bigger lot just gives more reliability and flexibility over the long run.
In my neck of the woods, the houses all sit on similarly sized lots, but the ones that back up to the golf course have great views. Since there are no neighboring houses in the line of sight, it gives the illusion of having tons of space. There is the small inconvenience of golf balls landing in your backyard (and perhaps shattering a window or two), but having a golf course in your backyard offers such a nice view, especially during the fall or when it snows. The premium is typically 10% more, but that 10% is totally worth it IMO.