Author Topic: Waterfront Acreage pricing w/o comps?  (Read 523 times)

GreenEggs

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Waterfront Acreage pricing w/o comps?
« on: April 13, 2018, 12:33:14 PM »
My brother and I own adjoining waterfront lots in a prime location and a very hot market.  Combined our lots total almost 2 acres, which is very rare in this location.  The only shortcoming is the view, which isn't the ideal long-range sunset view.

We can subdivide them, to create a 3rd lot.  For simplicity let's say they would be worth $1-1.2M each.  We'd prefer to offer it as one lot to somebody wanting to build a large home.  (There are a handful of very large homes,  20,000-30,000 sf, nearby).  We are trying to decide where to price it.  My brother is nervous about asking too much, but I feel that there isn't a "too much" for people that can build a 30,000 sf home. 

In 2011 two lots were combined nearby creating a 1.4 acre lot with an impressive view, for $3.4M. 

If we sold our 2 lots separately I think mine would likely sell for $1.3-1.4 and my brother's would go for $1-1.1+.

We've discussed pricing and settled on an asking price of $3.4M.  He's afraid that if we ask too much we won't get any offers.  I'd rather ask more and see what kind of offers we get. 

If there's no interest we plan to make 3 lots and try again.  The risk there is we could end up sitting on a lot or two for a while.  (His, mine, and a shared lot)  So, that would be more complicated and likely more time-consuming.

Can any of you with experience offer some advice?

thanks,


Another Reader

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Re: Waterfront Acreage pricing w/o comps?
« Reply #1 on: April 13, 2018, 12:42:53 PM »
Ask the local real estate brokers for value estimates with comps.

GreenEggs

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Re: Waterfront Acreage pricing w/o comps?
« Reply #2 on: April 13, 2018, 12:51:01 PM »
That's the problem, there aren't any 2 acre lots to compare it with. 

That's why I think it should be worth more than 3 individual lots.  Even an appraiser would have to make a guess.


Another Reader

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Re: Waterfront Acreage pricing w/o comps?
« Reply #3 on: April 13, 2018, 01:04:29 PM »
There are always comps.  It's the adjustments and the basis of the adjustments that make the appraisal.  Someone that sells the area, is familiar with the current market, and is interested in your business should give you an opinion with some support.

If there is a market for larger parcels or someone is looking for a larger parcel, you will find that out.