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:
Address Lot Info Sale Date Sales Price Price/FF
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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