In this segment, we explore the issue of Location as a Waterfront Value Driver. Location is always important when it comes to real estate, but it is important to understand how Location affects waterfront property values.
The most important characteristic of Location for waterfront properties is the subject property's proximity to the Gulf of Mexico. Obviously, if a property has direct beach frontage on the Gulf of Mexico, I think it's fair to say that it doesn't get much better than that.
However, from a boater's point of view, there simply aren't any boat docks on the beach, so a boater will want to own a property that is as close to the gulf as possible. Why? Why not! Having your boat in the back yard is about convenience, and close proximity to the gulf equals quick gulf access. A common question from waterfront buyers is, "How many minutes to the gulf by boat?" Boaters pay a premium for a shorter commute to the gulf by boat.
Another value driver for boaters is proximity to open water whether that happens to be a bay or river. There is a pecking order for canal properties ranging from the lots closest to, and farthest from, open water. Most every boater would choose a property one lot in from open water as opposed to a lot that might be a mile up the canal. Buyers pay a premium for lots closer to open water.
People love brand names whether they are buying shoes or waterfront property. The waterfront community you choose makes a statement about yourself and your perceived status. Have you ever heard of "Port Royal?" There are premiums associated with each different waterfront community brand name.
If you are considering building a new home on the water, would you prefer a street where there are already several new homes? Or, would you prefer to be the first to build a new home on the street? There is a reason why those new homes have already been built, and yes, there is a premium for lots adjacent to those new homes.
Surrounding neighborhoods also drive waterfront values. Would you be willing to pay more or less for a waterfront property with a manufactured home community next door? What types of properties do you pass on the way to your waterfront property? Some streets simply feel better than others.
If you pay particular attention to the location details of a specific waterfront property, you will better understand the market value. Trae Zipperer, your Waterfront Authority, WaterfrontAuthority.com