In my beach resort market, the intrinsic value is in the dirt. You can build a multimillion dollar house in Idaho or New Zealand. What you can’t get everywhere is the Gulf of Mexico and our beautiful beaches. Naturally, and logically, properties close to the Gulf of Mexico command higher prices. This is normal.

Here’s what is happening with 30-A gulf front lot sector in Santa Rosa Beach.

The data period is from 11/1/2012 through today. There have been 23 gulf front MLS lot sales. Below is a simple spreadsheet I created to give folks an idea of what’s happening in the gulf front lot sector along 30-A:

Notice the REO sale. Did this lot sell below market? Just because it’s an REO or short sale does Not mean it isn’t a market value transaction.

Notice the ‘As Is’ sale. Was it a market value transaction?

Notice the median price per gulf front foot is $18,750 pwf.

Notice the buyer name witheld. Odd. Because Florida is a disclosure state. I can disover who the buyer is before the deal closes if I want.

Notice that two of the lots sold with additional lots. No. There were other factors that affected the sale price. Point: The cash equivalent sale price may not be accurate. This happens frequently. Hire Mims.

Notice the average is $22,115 pwf. The average is usually higher and most often skewed. Because all it takes is one very large, or very small, sale price resulting in misleading interpretation.

The higher sale prices are for gulf front lots located in premium PUDs – with a few exceptions. Notice the lot with the least amount of gulf frontage commanded the highest price. Location. Amenities.

Yes, there are some gulf front lot sales that did not sell through the MLS. One, they are very few if any. Two, they were not exposed for a reasonable time in the open market giving folks a chance to compete. As a result, they may not qualify as market value transactions.

Notice the agent comments. I’d be exited too! The commission is typically 2.5% to each broker (5% total). So a 1.8 mil sale generates $90,000 commission. I’ve personally sold several multi-million dollar properties earning big commissions. It was great and I was very thankful for the opportunity. Does an agent really “earn” these large commisssions? Not really. At least not in the sense that most buyers and sellers think agents earn. Kind of crazy when you think about it. Just show you a couple of lots… spend a few minutes looking. Glass of wine, some lunch. Bada bing bada boom. Earn $90,000.

Maybe spend 30 or so hours looking at gulf front lots. That’s $3,000 per hour. But the commissions are what they are; it is what it is here in our area. And many of these transactions require many hours. By example, one multi-million dollar deal I worked on included over 300 emails. I can tell you this. With Mims, we will work very hard, with and for YOU, to earn that commission.

How do you really know if we will work hard for you? For evidence and a true story, read my prior post regarding the $10,000 commission my wife Jennifer gave to a young first time buyer. I can blow your mind with overwhelming data specific to your property, or bore you to death with it. You tell me what YOU want. Read our client recommendations. We’ll put you in touch with them if you ask. We will deliver.

So from $6,800 pwf to $56,400 pwf. Extreme wide range. That’s why you need a detailed and deliberate strategic advisor. Someone who understands valuation and real property characterisitcs. Moreover, a professional who can intepret the data and render supported opinions for YOU to consider. Someone who will give YOU princpled advice always. Mims.

I’m Bob. Bob the appraiser. Bob the broker. Bob the instructor. Bob the expert witness. And I know what the heck I’m talking about.

BBQ: “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
Andrew Carnegie – Scottish businessman and philanthropist

BLT: Mother Ocean by Jimmy Buffet