In real estate, two identical homes can be listed for different prices. Typically homes are valued based on recent sales comps in the area, homes currently listed on the market, the condition of the home under consideration, and additional features the home has. But, how much does location play a part in the final price, and more specifically how much value does being located next to a body of water, add to the value of a home? Whether your home is located on or near a body of water, you may benefit from an appreciation of value in the property.
While living near water is often a dream for many, it might not be in their budget. On the south side of Lake Wilcox, specifically Sunset Beach Road, the homes are much larger and enjoy long stretches of the shoreline. These homes also come with a larger price tag. Not only does the owner automatically receive a great view, but they also get tranquility, privacy and automatically buy into the waterfront lifestyle with these properties.
But waterfront living isn’t always overpriced. Communities like Lake Wilcox often have areas with smaller lots that offer less privacy and a localized area for access to the water. Both the north, east and west sides of Lake Wilcox offer buyers just that lifestyle. While there is a mix of new construction, old cottages, and development opportunities, the pricing is still competitive but much less than what it is on the south side of the lake.
While the location is one of the biggest factors of waterfront property, pricing is also heavily contingent on the basic laws of supply and demand. To put it simply, if there is little demand but a large supply, prices will be lower; but if there is higher demand and little supply, prices will be much higher. Waterfront property, in this case, on Lake Wilcox, is considered the most desirable property to own and can often be priced based on this trend.
Ultimately, the value of waterfront property is subjective and will increase the value of a lot or home by 20-50%. The location of the property on the lake, its proximity to different activities, and recent sales activity in the area will also help determine the property cost. Whether you are planning on buying or selling waterfront property, it is important to consult the expertise of a real estate broker.
For more information on properties in Lake Wilcox and the surrounding area, please visit Mehran Redjvani’s RE/MAX West brokerage page.