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11-20-2011 06:07 PM
11-20-2011 08:51 PM - last edited on 08-30-2012 11:03 AM by SheilaM
From an architect's perspective, there could be added value in having a teardown house already on the property. Assuming things are well sited and functioning, there could be value in reusing the foundation, utilities, driveway and access, etc. If the existing house is nonconforming as to setbacks (perhaps closer to the water than currently allowed), you may be grandfathered in and can keep some of that value. All of these things are "maybes", and you'd want someone to review the specifics of the property you are interested.
11-21-2011 07:41 AM - edited 11-21-2011 07:45 AM
Valuing waterfront property is hard, there are usually not a lot of comparables and the homes/lot size/views/exposures vary so widely. A quick, simple way to determine waterfront raw land value is to look for recent waterfront sales in the neighborhood you are looking. Try to find one that has some similarities (lot size, view, and/or exposure) to your home. You might have to go back further than 3 months of past sales and adjust later for market trends. Next, determine how much each comparable house might have sold for if it had NOT been waterfront and if it was on a very small lot. Then back that price out of the sold price of the home. Of course, this is just a rough estimate but can give you a basic ball park of land values.
As EFArchitects said, there may be some value in the existing home as the foundation, utilities, access may be reusable--you might give that some value, if YOU value it.
Hope this helps!
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11-22-2011 03:57 PM - edited 11-22-2011 07:56 PM
The house as you describe has no value other than liability $$$$$ (lead, asbestos, demo etc.) Having built a few homes on the water, please be VERY careful. You are, as stated, limited to a $1million. The sensitivity and environmental issues on the water along with the cost of design and engineering will crush you if your not financially ready. Waterfront land and architecture will push the "have to have it" agenda ($$$$$). I can assure you, unless you are buying and building this with unlimited (not limited as you describe) resources, be sensible. I'm quessing your good luck came from hard work as well. The journey getting to the upside will eliminate your "lucky" feelings especially if the market doesn't appreciate your beautiful home.
12-07-2011 04:51 PM - last edited on 08-30-2012 11:04 AM by SheilaM
I'm confused on how the home could prove to have environmental considerations or limitations. Are you saying that, after the current homes is torn down, it could cost a lot more to ensure the asbestos doesn't hurt the environment? It just seems like that would be a simple process that a construction company could take care of. It seems like the larger risk would be the lower valuation fo the land in 1-2 years.
12-07-2011 05:27 PM
Either way new or remodel....This original thread buyer will spend a multiple of what they state they have available for the improvement.. With that said, waterfront can be a outstanding investment/lifestyle oppurtunity. It's just not cheap.