Water Frontage adjustments

[timindp]

Does anyone adjust for water frontage? Here in South Florida homes with larger water frontage or canal frontage are typically worth more than homes with smaller water frontage. House I have is well over $5,000,000 though the water frontage is the smallest compared to most of the comps. Usually I do not adjust for water frontage because in the past most were similar. But in this area it seems that it is a huge premium to have a lot of water frontage. Trying to figure out the correct calculation. Can't find many land sales with similar site area.

 

[Tawfik Ahdab]

I do a lot of water frontage and in my own case rarely is there a direct connection between frontage foot and price. But that’s just my market area.

My suggestion is to look at the few sales that you do have And derive a price per square foot as well as a price per lineal foot of water frontage. If you see a pattern then you’re onto something. Otherwise you might not have it as much support for an adjustment based on site or lineal frontage alone.

In my case there are several other factors. Quality of frontage is one, depth of water at the dock , Topography, orientation of water frontage, access, overall site shape, quality of view, distance and slope From the residence to the water, and other factors can come into play.

 

[timindp]

Thank you for the insight. Very helpful.

 

[CANative]

Water frontage contribution is mercurial, at best. IMO

 

[J Grant]

Pretty much along lines of post # 2... a very difficult adjustment to derive, but you see houses selling for much higher premiums for this area of subject, put them all on grid, adjust for everything else, water front feet is left, make a rough adjustment to comps for water front feet to narrow down the price range, then you can see a $ per sf from there and refine adjustment. Any other support is good but this is a method that works for me.

On some waterfront properties I adjust for Sf linear along waterfront, others I do not....it;s what the market shows either way.

 

[bnmappraisal]

Here in South Florida homes with larger water frontage or canal frontage are typically worth more than homes with smaller water frontage.

I'm on the other coast, but yes, I find this to be true here as well

Generally speaking, a 9,000 sf waterfront site is not always the same ...
1 might have 50 ft of frontage and the 2nd may have 150 ft of frontage ...
Generally speaking, the 150 ft of frontage sells for more

Sometimes canal vs open water is the difference
Sometimes deep water vs non is the difference

You have to get to know your waterfront market(s) and along the coast(s) it can vary greatly, sometimes within blocks!

 

[bnmappraisal]

Timindp, your screenname shows CA, but you mention south FL (I believe I remember you stating you've recently moved to FL)

If you are in FL (I believe you are), I would recommend getting in touch with some waterfront agents who have a lot of experience with the market(s) you're dealing with

This can be a great insight/tool regarding the affects on value different waterfront sites may have on value

And btw ... welcome to the Sunshine State!

 

[Mejappz]

If you send me your data in a spreadsheet format. I may be able to help you out.

 

[Terrel L. Shields]

Wonder why frontage is so valuable when Al Gore promised us that oceans would be 10' higher in 10 years....or did I miss that since he said it about 2005 or so?
Here I suppose our lakes won't be higher by 10' anytime soon but the value of a lake front property over a lake view property eludes me since you cannot develop beyond the Corp of engineers line on most of the Corp lakes here... and boat docks are generally issued on the basis of application and allowables rather than if you have frontage. Dad's lake front lot couldn't have a dock because, in part, it would have encroached on the parking and picnicking area around the boat launch. He could have moved it around to a cove around the corner and anyone who held the frontage there couldn't have stopped it if the Corp issued the permit...In reality the "frontage" never gets to the lake but they still bring a premium even though some of the lots far up the hill had a far better view of the lake.

 

[timindp]

Timindp, your screenname shows CA, but you mention south FL (I believe I remember you stating you've recently moved to FL)

If you are in FL (I believe you are), I would recommend getting in touch with some waterfront agents who have a lot of experience with the market(s) you're dealing with

This can be a great insight/tool regarding the affects on value different waterfront sites may have on value

And btw ... welcome to the Sunshine State!

Yea I live in Fort Lauderdale now. Can't figure out how to change my location under my screen name.