Lake shore propery values are sometimes based on a price per foot, say $2,500.. Doesn't the depth of the lot or the house on it matter?

Asked by Maryonearth, Roseville, MN Wed Jan 15, 2014

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Christopher…, Agent, Bloomington, MN
Thu Jan 16, 2014
Those are all important factors that determine value. A professional Realtor can help you as a buyer, and determining value is one of our very important functions. We don't cost anything to work with, so check out some of us on Trulia and give it a try!

Good Luck

~Chris Block
651-307-7663
chris.block@imetroproperty.com
0 votes
Christine Ro…, Agent, Coon Rapids, MN
Thu Jan 16, 2014
Most lake shore properties do have a price value based on the lake shore footage. This changes between lakes the slope to the lake and several other factors. All these are after considering the value of the home and lot size. Need help connect with me.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Thu Jan 16, 2014
Mary,
You have left out too many variables, some of which are subjective.
And that is the issue, attempting to convert subjective elements to objective measures.
Such efforts require a shield of many words.
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100 linear feet of lake shore does not have the same value as 50 feet of lake shore if the latter presents a 190 degree view of the lake while the former is concave with a view of the neighbors dock and boat.
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Navigable and shallow have bearing also. Property located near a tributary will be the first to experience sediment issues that will influence water depth from issue or storms occuring upstream.
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The lot size value is not difficult to determine and does have significant influence. Usually the value is directly related to the size of the home that can be built, or the size and quality of the home that does exist, and the view that can be created or preserved.
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Your question which is basically referring to the value of the common dirt does not represent a significant role in the value of a developed property. Perusing the property assessors data base should reveal that to you very quickly.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://FirstLookHomes.us
Palm Harbor University High School distirct
http://annettelawrence.mfr.mlxchange.com/?Page=-1
0 votes
Rick Thram, Agent, Savage, MN
Thu Jan 16, 2014
While the simple answer is "of course that can't be true! A 100 feet of lakeshore with a mansion most certainly will sell for more than that same 100 feet with a shack!" The deeper question is where do you hear the $2500 per foot of lakeshore? You hear it when talking about a comparison between two similar homes. If two homes are similar and one has 100 feet, the other has 90, the reality is that all things being completely equal, the home with 100 feet should sell for more than the one with 90. Would it sell for $25,000 more? That's where you have to put the theory to the test. Really, the cost per linear foot of lakeshore is not an absolute, bankable number, but instead a guide, for preparing a comparative market analysis, or even an appraisal, between the subject property and other similar, yet never identical, properties.

If you need a CMA of a property you're considering selling or buying, I'd be happy to provide one.

Rick Thram
Re/Max Advantage Plus
952-451-2900
Web Reference:  http://Www.bluhausteam.com
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Jan 15, 2014
Maryonearth,
Price per square foot is only one factor to consider when looking at homes. Comparisons must be made based on the same age, quality, lot size, location, finishes etc. to be very meaningful. Don't rely on this alone. Find a great local agent with experience to assist you in determining the value of a home and an offer strategy.
0 votes
Cameron Piper, Agent, Forest Lake, MN
Wed Jan 15, 2014
Mary,

Many people naively talk about price per foot, but we did a study 8 years ago to analyze the topic. We pulled all of the sales off of Forest Lake for that year and found that there is absolutely no truth to the theory.

We found that the more frontage a property had, the lower the price per foot, which is the opposite of what you'd expect if frontage was a reasonable indicator of value. The biggest factor we found was the house on the lot, and not the lot itself.

Cameron Piper
Keller Williams Premier Realty
Web Reference:  http://www.CamPiper.com
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