I recently analyzed the Fort Morgan/Gulf Shores Bay front market for a recent tax dispute. (effective date 9/30/2007) I had 2 lots, one much greater than 100FF, and one was 50FF.
Here are my conclusions:
With the market as slow as it has been and so few sales, we have been forced to use any and all sales available if limited to a time frame. All waterfront sales in Fort Morgan and Gulf Shores were analyzed to compare to the subject lot. The only available bay front lot to sell within the assessment period is the 50 foot lot that sold for $260K. This is inferior to the large lot, but an excellent comp for the 49 foot lot. Since this is the only bay lot and is inferior to the large lot, I am forced to compare to superior locations. The smallest gulf front lots (50FF) are used for comparison. In a market where there are limited or no comps, historical paired analyses are performed with past sales in order to determine a current market value. The following is a paired sales analysis of vacant waterfront sales in Gulf Shores/Fort Morgan from 2005, when sales were more abundant.
Bay Front Sales
Address Lot Info Sale Date Sales Price Price/FF
Hwy 180 100FF 7/05 $735,000 $7,350
W Hwy 180 84 FF 6/05 $575,000 $6,845
Choctaw Rd 50FF 3/06 $310,000 $6,200
Gulf Front Sales
W Hwy 180 50FF(Deep lot/Sup) 3/05 $900,000 $18,000
Ponce De Leon 75FF 12/06 $800,000 $10,667
W Beach Blvd 50FF 2/05 $1,100,000 $22,000
Recent Waterfront Sales
W Beach Blvd,38A 50 FF 6/07 $667,500 $13,350
W Beach Blvd,38B 50 FF 6/07 $667,500 $13,350
W Seashell Dr 68FF 7/07 $670,000 $9,853
Ponce De Leon 65FF 7/07 $850,000 $13,080
W Hwy 180 50FF 10/06 $260,000 $5,200
The subject lot fronts the Bay with approximately 300FF. This is superior to the older bay front sales with 100FF and 150FF. There are no sales available that are comparable to the subject lot. With limited Bay front sales, and none comparable, it must be compared to a superior location, and smaller lot, such as the gulf front sales. Using a paired sales analysis of the bay front sales and the gulf front sales in 2005, it is my opinion that the subject is closer in value to the 50FF and 65FF gulf front sales on W Hwy 180 and the 75FF gulf front sale on Ponce de Leon in 2005. Comparing these lots to the sales in the assessment period, it is my opinion that the subject has a value somewhere between the W Seashell Drive and Ponce de Leon sales.
I recently evaluated a bay front lot in OB. The following is a paired sales analysis using Ono canal lots (the only recent available waterfront sales in OB), and lagoon lots in Gulf Shores.
From this paired sales analysis, the data shows that the value of waterfront sites is no longer determined by waterfront footage, as this factor is inconclusive. With very few sales available, past sales, as well as current listings, and expired listings, must be analyzed in order to determine current value. If you or your client would like a valuation of their property, contact us for an educated opinion of current market value.
Paired Sales Analysis:
Lot 8 W. Perdido Av OB** 50 FF Bay 8/05/2005 $638,400 $12,768
5337 Bay Dr OB* 50 FF Bay 4/27/2006 $590,000 $11,800
0 River Road, Ono 80 FF Canal 5/24/2005 $520,000 $6,500
0 River Cove Dr, Ono 80 FF Canal 6/01/2005 $599,000 $7,488
0 Sandpiper Ln, Ono 93 FF Canal 6/24/2005 $599,900 $6,450
222 Sunrise Drive GS 65 FF Lagoon 8/22/2005 $550,000 $8,462
26902 Martinique Cr OB 69 FF Canal 5/22/2006 $699,000 $10,130
26399 Carondelette OB 80 FF Canal 9/29/2005 $625,000 $7,812
Lot 1 Martinique Cr OB 60 FF Canal 4/02/2007 $425,000 $7,083
0 Shoalwater Dr, Ono 80 FF Canal 5/04/2007 $400,000 $5,000
32355 River Road, Ono 80 FF Canal 12/14/2006 $430,000 $5,375
0 Ft Morgan Rd, GS 84 FF Bay 4/22/2005 $425,000 $5,060
0 Sandpiper Ln, Ono 96 FF Canal 4/11/2008 $280,000 $2,917 Comparable 1
33231 River Road, Ono 80 FF Canal 1/28/2008 $250,000 $6,500 Comparable 2
226 Sunrise Drive GS 120FF Lagoon 9/12/2008 $207,500 $1,729 Comparable 3
0 Ft Morgan Rd, GS 50 FF Bay 6/27/2008 $200,000 $4,000 Comparable 4
0 Ft Morgan Rd, GS 50 FF Bay 12/21/2007 $200,000 $4,000 Comparable 5
The sales above represent comparable sales for the subject over the past 4 years in the extended market of Orange Beach, Ono Island, and Gulf Shores. *The last bay front sale comparable to the subject in Orange Beach was in 4/06 for $590,000. Since this time, the market has seen a great correction in prices. A similar lot as the subject on the subject's street is currently listed for $349,900. This lot has been listed for 278 days. The sales above were studied to determine current market value for the subject using canal front sales on Ono Island, and lagoon front sales in Gulf Shores.
The comparables used in this report were also studied to find similar site sales during the time period of the last bay front sales in Orange Beach, including a sale on the subject's street**. The last sale on a canal in Orange Beach was in 4/07 on Martinique Dr. This sale was compared to similar sales within the time period of Ono Island canal lots. The Martinique lot compares to a similar sale on the same street from 5/06, which also compares to the *Bay front sale on the subject's street in 8/05.
In order to find more comparable sales, the market was extended to Gulf Shores. A recent lagoon front sale on Sunrise Drive was compared to a sale of a lot on the same street/water from 8/05, which was then compared to the Bay front sale on the subject's street from 8/05. Although comps 4 and 5 are located a great distance from the subject, they were included to show recent bay front sales in Gulf Shores, although they are inferior in location. The data for the sale on Ft Morgan Rd in 4/05 is an outlier and is inconclusive on current value. Also, in the past, waterfront valuation has been done by using 'per front foot' of waterfront. This information is inconclusive and was given little weight. The paired sales analysis indicates the subject has a current market value similar with recent sales of larger (per FF) Ono Island canal lots.
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