Unique Private Lake property valuation justification

[Mr Rex]

I have the most beautiful property in 3 counties. There are none that compare. Think its worth a brazillion dollars?

 

[AnonApprsr]

If it hasn't sold within a year perhaps your home isn't worth what you think it is. I don't know the typical marketing times in your area but a property on the market for more than 300 days around here usually means it's either overpriced or ineffectively marketed.

 

[Webbed Feet]

<....snip.....>Webbed Feet - in a perfect world, I would find a cash buyer or one with a hefty down payment and carry the note. But we've been trying to sell this for a year, and have not had a single offer.
Thanks for all of your input. We appreciate the information.

A typical marketing time, even in what one might call a "good" market, for your property could be over one year. Then, I'd wonder about the actual "marketing" that has taken place. If marketing has only been what we might call ordinary, combined with the nationwide poor markets, your property could easily take a couple of years to result in a market sale.

It is very possible the land is under-improved as well due to your comment regarding house sizes being twice or more of yours at a competitive lake.

Perhaps you should reconsider selling. I've begun to question if the highest and best use of the land is single family residential, hence the marketing issues versus the results. There is a lake attraction with no attraction facilities to make the lake an accessable enjoyment stop for the public. I'd be asking if the location is prime for the regions highway routes for some sort of public attraction making it an income property. Perhaps you don't need a home owner, you need an investor with vision.

 

[CANative]

A typical marketing time, even in what one might call a "good" market, for your property could be over one year. Then, I'd wonder about the actual "marketing" that has taken place. If marketing has only been what we might call ordinary, combined with the nationwide poor markets, your property could easily take a couple of years to result in a market sale.

It is very possible the land is under-improved as well due to your comment regarding house sizes being twice or more of yours at a competitive lake.

Perhaps you should reconsider selling. I've begun to question if the highest and best use of the land is single family residential, hence the marketing issues versus the results. There is a lake attraction with no attraction facilities to make the lake an accessable enjoyment stop for the public. I'd be asking if the location is prime for the regions highway routes for some sort of public attraction making it an income property. Perhaps you don't need a home owner, you need an investor with vision.

If there was a higher and better use (i.e. an "enjoyment stop" for the public) one would think they would have sold the property already.

"Real" lakes typical have HBU's for bigger houses because the value of the lakefront land will support larger and more expensive houses.

In the appraisal example I posted the improvements consisted of a 100 year old 1400 sf residence (in good but not particularly modern) condition, a "bunkhouse" in not so good condition, a small barn, and some storage buildings. The 200 acres was probably worth about $500k. If it sold for $1.75 million what does that place the contributory value of the private lake at?

 

[Lake Lizton]

CANative - I think your example is the type of thing I was looking for. If houses are 'rings', ours is one with a gemstone (the lake). I need the justification of the value of that ring and gemstone. While everyone may realize the gemstone has value, I don't want our property compared to simple rings, or compared to a ring with a 1 carat stone when ours has a 5 carat stone (if lake size were carats).

 

[CANative]

http://lakehouse.com/search.php?cid=1464&s_res=AND

 

[JSmith43]

UAD pop quiz: What is the UAD style of the house on the lake? The style of the 2nd house?


I'd have a water quality report, depth finder readings mapped on the lake sketched onto a plat or from a blown up arial photograph. How does it look on Google Earth Pro?

For all we know, the marketing has been spectacular. Sometimes the "fishing" (for metaphorical buyers)*isn't good no matter what, unless you drop a stick of dynamite into the water.

 

[Lake Lizton]

CANative - our house is on page 4 of the link. All of these are spread all over the state, and I don't know how far a distance you can use as a 'comp'.
Mentor - UAD? Not familiar with that term. Primary house is a lodge style ranch. Fieldstone and cement siding exterior with a metal roof. Secondary house is a 1935 era two story farmhouse with a full basement.

 

[CANative]

The difference between your property and others nearby is the private lake. The appraisal problem to be solved is figuring out (developing an opinion of) the contribution the lake makes to the market value of the property.

A good appraiser would look at all of those listings (and try to find sales) in all of those areas and compare their pricing to similar homes in those areas with no lake. He could then infer the contributory value of large, private lakes and apply that to the valuation of your property.

 

[Craig in Oregon]

I think CAN and Webbed are on the right track for this. . .
you have privacy, exclusivity, rarity to sell
the FSBO listing might point that out in capital letters though it does mention not having to share a lake with 500 of the riff raff on holiday weekends lol

Maybe the current Realtor can do some specific marketing to his/her big city counterparts, you know, the Chicago high rollers. . . also maybe, corporate, church, private school retreat?

Best wishes