What’s a waterfront property really worth?
A prime waterfront location can significantly increase the value of a home. The question is, by how much? The common joke made by real estate agents, “They don’t make waterfront properties anymore” is actually no joke. Due to limited availability, there’s simply not enough waterfront land to go around.
This makes the waterfront properties that do exist extremely valuable. The UK-based real estate firm Knight Frank recently released results of its annual waterfront property index on what waterfront homes are really worth. In the report, prime waterfront properties in the UK were found to be worth 71 percent more than their inland counterparts.
What is the value of a waterfront property in the US?
Nationally, waterfront homes can be worth more than double of the value of homes overall. According to Zillow, the most expensive waterfront homes are located in Hawaii, California, and along the coast of Long Island Sound. While the largest waterfront premiums are typically found along the Great Lakes and in Florida, Florida is also known to have the least expensive waterfront homes. Nationwide, this premium for waterfront homes has increased year over year.
What’s the difference in value between a lake view and an ocean view?
Studies have found that the highest-quality ocean views increased the market price of an otherwise standard home by almost 60 percent. For lake views, researchers found that a waterfront view overlooking Lake Erie increased home values by a range of between 56 and 90 percent. Overall, the value of a lake view versus an ocean view can vary based on the location and what else is available.
Are there any waterfront location factors to be aware of?
Waterfront locations can be differentiated by two different amenity factors:
- Consumptive factors: including the recreational use for boating, swimming, and other activities associated with properties directly on the water.
- Non-consumptive factors: including scenic views, sea breezes, and other features not related to physical activities.
In Florida, which is very flat, it is less common to find a waterfront view unless the property is directly on the water. In comparison, areas with higher elevations can enjoy the view for a farther distance.
What are the waterfront premiums in Florida?
The largest waterfront premiums in Florida cities can be found in the Riviera Beach and Sarasota areas, with premiums over 1,000 percent. Tampa (733 percent) and Lake Worth (573 percent) also make the list of large premiums.
Based on research, the short, not-all-that-scientific answer to the question “How much does being on the waterfront increase a home’s value,” is “a lot.” It will depend on the area and the actual waterfront view and amenities, but the difference between a house on the water and one that is inland is substantial.
If you currently own a waterfront property, you can expect to receive a great return on your investment compared with your inland counterparts. And if you’re looking to sell you waterfront property in the near future, let Encore Realty help. We strive to pursue optimum results on behalf of our clients and, with over 30 years of experience in the Southwest Florida area, we have a full understanding of your house’s value.
Contact us today to learn more about your home’s value and how we can help with all your realty needs.