Many buyers and sellers will analyze a property’s value by comparing it to other properties that have sold on a dollar per square foot basis. That can lead to a false value because unlike a sub-division in say, Florida, where properties are cookie cutter, every property on Nantucket has unique aspects. Take these two sold properties for example:
177 Eel Point Road and 4 Lavendar Lane. Although the properties have different street addresses, they abut.
177 Eel Point Road has 5 bedrooms, 5.5 baths and 3,839 sf of living space on 1.84 acres.
4 Lavendar Lane has 6 bedrooms, 6.5 baths and 4,334 sf of living space on 1.84 acres.
177 Eel Point Road sold for $1.75mm on 10/19/12.
4 Lavendar Lane sold for $3.2mm on 5/29/12.
Why a $1.45mm price difference for what seems to be very similar properties that sold in almost equal markets? Because, 4 Lavendar Lane sits high on a knoll with sweeping water views and 177 Eel Point Road sits low in a valley with peek-a-boo water views at best.
This was an example with an obvious reason for the price discrepancy, but many times there are subtle reasons why adjustments need to be made for each property’s good and bad unique aspects. Cranberry to cranberry comparisons on Nantucket are very hard, so don’t get too bogged down by this approach. Just talk with your JPFCO real estate broker, they can turn anything into a cranberry;-)