• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Island Sales

Status
Not open for further replies.

A. P. Grice

Sophomore Member
Joined
Apr 24, 2003
Professional Status
Certified General Appraiser
State
Virginia
Well, since my last post - an appraisal of an historic tunnel - didn't elicit any responses, maybe this one will.

I have been asked to update a two-year old appraisal of a barrier island. What is unusual (what's new??) is the fact that this island is the third most mobile piece of real estate in the entire nation. The island is moving west at an historic (1952-1998) average speed of 18 feet per year. (The most mobile island is the next island north, which is moving so fast, it is being torn apart; second most active is a 'spit' of land at the north end of the subject.) Needless to say, there isn't a whole lot of topography. The highest point on the island might be 10 feet. Not a nice place to be in a storm...recently-built cottages have been found two miles away from where they were originally constructed, beds still made, dishes in the cupboards....

The subject is the only barrier island in Virginia still privately-owned. All others are owned by fish & wildlife, the Nature Conservancy, the state, or some other conservation organization.

Any recent sales along the eastern or gulf coasts would be appreciated. Large lot sales on barrier islands accessible only by boat would be helpful, too.

Cheers
 

Walter Kirk

Senior Member
Joined
Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
How do you get these assignments? I wonder if anyone has written anything on the appraisal of portable land.
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I think I remember the hisotric tunnel post. Now a mobile island.
I'd be curious to hear more details, but I have never done anything so umm, "exotic" so can't be of much help. ;)
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Come on LA(Lower Alabam) and panhandle folks. Aren't there some island sales down there? I think I have seen them advertised when I have looked through the real estate guides during vacation. Might try call in a few agents here.

http://www.destin-sales.com/

Baldwin County AL, has a good real estate MLS. I couldn't find it.
 

A. P. Grice

Sophomore Member
Joined
Apr 24, 2003
Professional Status
Certified General Appraiser
State
Virginia
When I took the original assignment several years ago, I considered using the Hoskold Premiss, a technique used in the valuation of depleting assets, like a quarry or mine with know or proven assets. Couldn't get enough data. Did gather sales of 12 islands along the southeast coast, most being in "the low country" of South Carolina and Georgia.

The island was actually subdivided three times. Originally in the 1800's, it was divided into smaller and smaller tracts until it wasn't worth anything to anybody and the entire island was escheated back to the state. Developers bought it in 1950 and subdivided it into 1,963 50' lots. Dubbed Ocean City, Virginia, some of these lots are now 2,700' out to sea. Only a handful remain, none buildable. Another developer sliced it up into island-wide lots in the early-mid 1980's and originally did a brisk business. Virtually all the purchasers were from the beaches in New Jersey and New York, where the cost of a 5+ acre lot in Virginia wouldn't buy space to park a car in Jersey. The state eventually enacted a barrier island policy that made development virtually impossible: flood insurance was not available, thus, mortgages weren't available. Most owners actually fortunate enough to get a mortgage simply walked away when the ocean took their cottage. Needless to say, no bank is willing/stupid enough to throw money into the sea...though from some of the 'deals' I've seen lately, this probably isn't exactly true.

State law requires any building to be situated 20 times the annual rate of erosion back from the primary dune crest. With an historic rate of about 18', this setback is almost 400'. (The island has lost as much as 200' a year and 100' in one event.) Few lots have dunes and even fewer have the required depth. Virtually every aspect of construction is regulated, even access to the site. For instance, ATVs are prohibited for fear of harming indiginous wildlife, like nesting sea turtles. I've never encountered where federal, state and local regulations are as restrictive. Still, people try to build. It is oceanfront, after all.

The landowner (a non-profit organization) will sell the lots to fish & wildlife, most likely.

The tunnel is another puzzler. Here, the most likely valuation method will be value in exchange vs. value in use. The tunnel could save a pipeline of fiber optic cable company a ton o' money by going under as opposed to over the mountain. R/W acquisition costs, plus the physical costs of digging a trench and layin' pipe would be expensive, to say nothing of the fact that a national park and a politically-connected family own the mountain above.

The nice thing about such special purpose properties, is who is to say you are wrong? No one else knows what it is worth, either!
 

Paul Ness MAI

Member
Joined
Jan 14, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
My first thought was, what is the highest and best use? Who would be the most likely buyer? ... probably the state or a conservancy as you said in your last post. There’s got to be some protected flora and fauna, not good for much else than coastal conservation. My suggestion would be to contact coastal state agencies and any private conservancies and ask them if they have any comps and what they would pay. Any comps you use would have to also be non-development conservation type islands.
 

Kathy in FL

Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Florida
I believe there's an island for sale in Steinhatchee, in Taylor County, on the Gulf Coast of Florida. (Call me if you want it and I'll try to dig up the broker's name who was showing it.)

I believe there was an island sale of a small (boat access only) island off of the Horseshoe Beach Coast a couple of years ago. I think the purchase price was in the $300K range.

Let me know if you need more,
Kathy in FL
 

A. P. Grice

Sophomore Member
Joined
Apr 24, 2003
Professional Status
Certified General Appraiser
State
Virginia
That would be great...and if you need island sales (albeit 2 yr. old now), I've got twenty or so from Virginia to northern Florida.

There was some activity since the original appraisal on Cumberland Island. National Park Service acquiring acreage for expansion of a proposed national park site. I didn't use any of those sales, as Cumberland was so far superior to the subject (a mile or more wide and up to 60' high as opposed to spittin' distance) that it didn't seem comparable.

Also, heard rumors that the state DEQ was in the process of acquiring properties at the southwest tip of Florida...mostly mangrove swamps and whatnot but some upland acreage as well....

Trivia time: the subject property is Cedar Island in VA...on the Homann map of the coast dated 1722, it was the olny island to actually have a name - Teach's Island. All the rest were unlabeled/unnamed.

One Edward Teach, AKA, Blackbeard, was known to have used the island for cover during his numerous "trading voyages" along the coast. However, the island of Blackbeard's time is a half mile out to sea. Was it named for him? No one knows....

Cheers
 

Rick Wood

Freshman Member
Joined
Feb 14, 2003
Professional Status
Certified General Appraiser
State
Florida
I know a guy in Delaware that may be able to help you with some information, call me off line at 813-901-0098 or email me at [email protected] and I can hook you up.

Also, thanks for the assist on the airport appraisal I did last year. B)

I like doing the strange, controversial or unusual assignments!!

Rick Wood :D
 

Steve Wyrick

Member
Joined
Aug 15, 2003
Professional Status
Certified General Appraiser
State
California
I like unusual and interesting also, but this one is great.

Question - What is the highest and best use?

20 years ago the fellow that taught me told me something that I have never forgotten when doing some of these more unusual land parcels. He said, "All land has value, sometimes the only value is that it is holding the rest of the world together."

Good luck, would be interested to hear the outcome of this appraisal.

:rolleyes:
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks