April 9, 2009
Water Versus Road.
Here’s a few facts and thoughts about undeveloped shore land values in the Lake Vermilion real estate market.
Lake Vermilion is a large lake that offers two types of undeveloped lakeshore properties… water access and road access. A common question from serious buyers is, “What is the typical price difference between a road access and water access building lot?”
They are two separate categories with separate value ranges.
Over the last (approximately) 5 years Lake Vermilion road access lot sales reveal an average selling price of $278,000 (with an overall price range of $40,000-$603,000) and water access lot sales show an average selling price of $182,000 (with an overall price range of $85,000-$490,000). Does this mean that a comparable water access property will sell for 35% less than it’s road access equivalent? Not necessarily.
It would be a mistake for anyone trying to establish value on a individual property to factor in the overall averages. Each and every lake shore lot is unique and value must be determined by using the specific features of that property.
But, I imagine everyone already knew that.