Its a month later and 4 of the 13 Parcels of land under $1M are under agreement or sold, plus one new listing is U/A. 115 Surfside Rd sold on 6/7 for $900,000 which I hadnt noticed. A new listing on 2 acres at 5 Felcon Dr for $795K went under agreement immediately on July 4th after being on the market less than one day. Its kind of like putting a market order in to sell stock at lower than the going price, it will sell immediately. Also 20A York, 24 Field Ave, and 10 Alexandia have gone under agreement.
New on the under $1M list are lots off of Bartlett Rd on a new road called Grey Lady Ln (cool name!). This whole thing was recently for sale for $4.2M as a subdividable 54 Bartlett Rd (although its on the town map as 52R Bartlett Rd). As crazy as $4.2M for anything on Bartlett Rd sounds (predominantly a year round neighborhood), it is nearly 2 acres and is subdividable into 13 lots. $4.2M divided by 13 equals $323,077 each. All of a sudden it makes sense!
There were no takers, however, so the owners, with some help from a local broker (now a partner by the looks of it), have changed the game by dividing it themselves and selling the lots off individually. They took one lot off by including a community pool and pool cabana, nearly an identical plan as Finback Ln across the street (although Finback has much more green space which every lot borders). The first 6 lots are for sale for $675K each (3), one for $725K and 2 for $650K each, or $4.05M total...so far...thats only 6 of the 12 lots. It doesnt stop there because there are 4 more lots labeled "Golf Course Lots" because they border the Miacomet Golf Course. These lots havent been listed yet but one would surmise they would be listed higher than the $725K lot because of the view across the golf course. How much more? I dunno, guessing $795K? There are also 2 more lots (lots 1 and 2) on the left as you pull in, which would be lower priced lots ($650K?). The last lot sale on Finback was $525K about a year ago and home sales ranging from $1.6M in 2014 to $2M recently. So one could estimate similar prices here. So we have an approximate total of $8,530,000 minus the cost of the road, sewer, water piping, sidewalks, curbing, pool, and pool cabana. All this, with permits, engineering, etc, etc could cost around $600-$700K, so a net profit of "only" about $3,630,000. Even if I'm short on the expenses, they are still doing very well here. That $4.2M isnt looking so bad now, is it?
Update 7/28/17 The rest of the lots are now listed with the "Golf Course" lots 875K and 895K, which brings the grand total of all asking prices on Grey Lady Ln to $8,845,000.
The $675K lots would be a 28.5% jump from the last lot sale 15 months ago on Finback and 32.5% of a $2M final value. This is right about where the spec builder I talked about on the old site that built 1 Long Pond Rd paid for his next lot at 48A West Chester St ($885K is 32.8% of the beginning $2.695M asking price, while at 1 Long Pond his land cost in Sept 2014 was 27.5% of his beginning asking price and 30.1% of the final sale price...land costs are creeping up!). While these might sell for a little less (All else being equal I would prefer Finback over Grey Lady since there is much more green space), they will still make a bundle on this...eventually. The guy who owns this (since 1974 if the town record is correct) will be a perfect candidate for a 1031 exchange (or 12 of them).
3 Mary Ann Ln, out by the Airport, has been reduced from $475K to $444K.
A lot off Old South Rd at 31 Pine Crest Ln (not far from the 3 Mary Ann above) has come on the market for $459K.
A lot at 3 Tetawkimmo has come on the market for $950K which is an expensive 47.5% of the usual $2Mish sale in this neighborhood, although there is some promise of higher sales in the future. It is the first lot on the right so you have every other lot owner driving by (23 of them with 5 more possible, which is why I always prefer to be at the end of the road rather than the beginning) and it is across from the old sandpit which has created complaints of noise and dust in the past. You also get a fair amount of airplane noise here as this is sort of in line with Runway 6/24 which is only .9 miles away. Its not directly in line but many flights "curve in" to the runway. You should go hang out for a while on this lot on different days with different wind directions if you are interested in this lot. The last lot sale in here was in 2014 for $605K and it took forever to sell (a little bit different of a market now though!). Still, I'd give a value of about $650K here, $950K just seems too high to me (which probably means someone is typing up a $900K offer as I type this).
There is also a $775K lot at 31 Madaket Rd which is part of a small farm that is being split up and sold. You can still buy the whole thing though if you want.
Monday, July 17, 2017
Wednesday, July 12, 2017
Gone in 60 Seconds
A large 2 acre lot came on the market at 5 Felcon Dr, which is off South Shore Rd (Sewer Bed Rd) in what looks like a used-to-be large family plot that has been subdivided. Its about 1/2 mile from the waste water treatment plant, so not as much of a "sniff factor" as the 24 Field Ave lot I talked about. The price? $795,000 (134.7% of assessed, a little below last years average sale of 136%, so a low starting point). Ding! Gone in 60... well, one day, or some fraction thereof. If a good deal comes up, you need to move on it immediately, especially with vacant land.
I also noticed a new listing at 6 & 4 Seven Mile Ln in Sconset for $2.85M for both. There is a house on #6 as well as the vacant lot at #4 that I talked about earlier and liked. This is not a bad deal! The house is OK-Nice, could use a little updating or nicer finishings but certainly a great start. This all borders hundreds of acres of conservation land out the back door. A 95% offer is $2.7M Not a bad deal, I dont expect this to last long.
Another development in the Land for under $1M is the listing of 3 Friendship Ln. This sold a while back (9/8/14) for $390,000. The buyer added HDC approved plans and sold it for $480,000 on 9/8/16 (yes exactly 2 years later). The present owner is trying to get $710,000, or a 47.9% profit in 10 months. At this price it is a very expensive 59% of the approx $1.2M upper end value for this neighborhood. It will be interesting to see what it goes for this time.
Another interesting listing demonstrating how people are making $$$ (or at least trying to) is 1 Jefferson Ln in Town for $1,500,000. This is the rear 1 BR 1 BA 776 sq ft cottage to 55 Fair St and because it is 50 years old it can be subdivided off the original house. Also because it is not an antique, you can take the cottage to the dump on Sunday. The sale comes with plans for your new residence AND accessory cottage, all on a 3626 sq ft "spin-off" lot. Your lawn mower guy sure isnt going to take long! The original house, which originally included this cottage, sold on April 28, 2017, or 3 months ago, for $2.25M. In other words if they get their $1.5M, the original house will have only cost them $750K, which they can then sell for around $1.5-1.6M, so a total gross profit of about $750K, or 33.3% in less than a year (only 3 months if they sold it tomorrow). A $1.5M sale here would represent 156% of the assessment of the land. This is yet another example of buy the original dividable property and spin off the "dividend", lowering your cost of the main.
I also noticed a new listing at 6 & 4 Seven Mile Ln in Sconset for $2.85M for both. There is a house on #6 as well as the vacant lot at #4 that I talked about earlier and liked. This is not a bad deal! The house is OK-Nice, could use a little updating or nicer finishings but certainly a great start. This all borders hundreds of acres of conservation land out the back door. A 95% offer is $2.7M Not a bad deal, I dont expect this to last long.
Another development in the Land for under $1M is the listing of 3 Friendship Ln. This sold a while back (9/8/14) for $390,000. The buyer added HDC approved plans and sold it for $480,000 on 9/8/16 (yes exactly 2 years later). The present owner is trying to get $710,000, or a 47.9% profit in 10 months. At this price it is a very expensive 59% of the approx $1.2M upper end value for this neighborhood. It will be interesting to see what it goes for this time.
Another interesting listing demonstrating how people are making $$$ (or at least trying to) is 1 Jefferson Ln in Town for $1,500,000. This is the rear 1 BR 1 BA 776 sq ft cottage to 55 Fair St and because it is 50 years old it can be subdivided off the original house. Also because it is not an antique, you can take the cottage to the dump on Sunday. The sale comes with plans for your new residence AND accessory cottage, all on a 3626 sq ft "spin-off" lot. Your lawn mower guy sure isnt going to take long! The original house, which originally included this cottage, sold on April 28, 2017, or 3 months ago, for $2.25M. In other words if they get their $1.5M, the original house will have only cost them $750K, which they can then sell for around $1.5-1.6M, so a total gross profit of about $750K, or 33.3% in less than a year (only 3 months if they sold it tomorrow). A $1.5M sale here would represent 156% of the assessment of the land. This is yet another example of buy the original dividable property and spin off the "dividend", lowering your cost of the main.
Saturday, June 17, 2017
1031 Exchanges
Here I'll explain some of the basic principles of the IRS sect 1031 tax DEFERRED (NOT tax FREE) exchange program. I had a few people call about the lot that had "1031 money they had to get rid of". If you are selling a property that you have a big cap gain on, you may want to consider doing a 1031 exchange. While there are some very strict unbendable rules and deadlines in the beginning, the back end of the exchange is, well, apparently sort of vague.
I'm not a lawyer nor tax attorney, so take this for what its worth. There is a lot of info online but I found a lot of it was ...not exactly correct. I got bad info from real estate agents that have been involved in 1031 transactions and lawyers, and homeowners who have done exchanges themselves! It seemed if you asked 10 people, you got 10 different answers. If you want an 11th wrong answer, call the IRS directly. The people who really know are the exchange intermediary companies, which are the companies that hold and disburse your money.
Some basic bullet points.
- First thing is, you have to use an exchange intermediary company. I used the one recommended by my lawyer since she had used them before and no one was sent to jail. This means the money from your sale goes directly to them, NOT to you. Its like an IRA rollover, the money never touches your hands. So, unless you take cash out up front (which you can but you will have to pay taxes on it), you walk out of closing with some paperwork with numbers on it and no money. Some company you have never dealt with (nor probably heard of) has all your money. Yea thats a little freaky.
- The intermediary company I used charged $1200 which included the first replacement property. There was a $200 charge for each additional property. I bought 4 properties with my proceeds so the total charge was $1800. I'm sure there are cheaper companies out there, but this wasnt something I was willing to "Dollar Tree". Doing the exchange allowed me to keep enough money working for ME (rather than the IRS) that I was able to buy another rental house (call it the 4th purchase). Net income after property taxes and insurance on that home pays that $1800 about every 2 months. If you look at it on a ROI basis, thats a 600% annual return on your money (the $1800) every year, not including appreciation in the underlying real estate. If you have a large cap gain, you are probably crazy not to do this.
- These are "like kind" investment exchanges, real estate for real estate, collector cars for collector cars, etc. As you can imagine, the definition of "like kind" could garner some confusion...or argument with the IRS. Basically, you cant sell your $1 million baseball card collection and buy real estate, but you CAN buy improved property (house or commercial) to replace unimproved property that you sold (land), or real property for real property. Its "like kind", not "exact kind" since no two pieces of real estate are exactly alike.
- If you are selling a house that was your primary residence, keep in mind that this is for "investment property" for "investment" property, NOT your primary residence. Besides unless you have a $250K gain if single, $500K if married, you arent paying any cap gains on the sale of your house anyway (as long as it was your primary residence 2 out of the last 5 years), so a 1031 is likely moot. If you are buying a home with this money (or some of this money)that will be your primary residence, you will need to take that money out of the exchange and pay taxes on it. In other words if you are buying a $200K house, you will need $266K to pay the taxes and have the $200K left for the house.
An interesting question for a tax accountant would be if you lived in the house 2 out of the last 5 but rented it out the last 2 years, could you treat it as both your primary, get the $250/500K deduction AND treat it as an investment property for a 1031 exchange for the profit over the $250/500K? Hmmm! While this would be an unlikely scenario in "America" because you would have to have a very large gain to make it worthwhile, I could certainly see this possibility on Nantucket.
This brings up another often heard rule with these that is incorrect: You have to spend ALL the money on the replacement property...this is FALSE...with a "but".
- You DO NOT have to spend ALL your proceeds from the sale on replacement properties. BUT, the money you do not spend is called "Boot" and IS taxable. So if you want to buy yourself a house, or treat yourself to a new car, you will need to take MORE than the cost of those things out of the exchange so you have the money to pay the taxes on that money (unless you have a bucket of cash hanging around, of course). So if you want that $50,000 Lexus, take out $66,666 so when you pay your 20% federal and 5% Mass tax (25% total), you have the $50K for the car plus the $16,666 (25% of $66,666) for The Man. You might as well take out the sales tax if you live in Mass ($4166 which includes the 25% tax. Yep, thats tax on tax! Isnt that just lovely?). If you live in SC the max sales tax on a car is $300 (YES its $3866 cheaper to buy your $50,000 Lexus in SC than in MA, isnt that just lovely too?).
- If this was your principle residence for 2 of the last 5 years, you dont pay any cap gains for the first $250,000 of profit if you are single, $500,000 if you are married. So if this is the case, chances are you are not going to have any tax liability anyway, so moot point. For me it was land that I was selling, so I didnt get this break even though I owned it for 17 years. Doing the 1031 in my case made the difference in buying an additional property that pays the cost of the exchange company's fee every 2 months, so it was a no brainer for me. If you are lucky and have property on Nantucket thats worth a bundle, your situation may make mine look like a lemonade stand.
- This is an investment exchange. That means you are selling "investment property" and buying replacement "investment property", so like a trade. It does NOT mean you have to buy anything from the buyer of your property. I sold my land in MA and bought property (4 actually) in SC from 4 completely different people.
- You will need to have language in your contracts (both buying and selling) that state this transaction is part of an IRS 1031 exchange and buyer or seller agrees to cooperate in. Sometimes it will state at the exchanger's expense (if there is any). Some people are worried it will complicate matters for them, or cost them something. It really doesnt.
- You have 45 DAYS (calendar days including weekends and holidays) from the sale of your property to identify (meaning fill out and sign a form) possible replacement property or properties. This is BY FAR the most important part of these exchanges. This 45 days goes FAST. If you dont identify ANY properties by this date, the exchange is over and the entire amount of the gain in your sale is Boot and is taxable. You should have done a lot of research on properties you are interested in before yours even closes so you can hit the ground running. I did 10 years worth LOL.
- You have 180 days (not 6 months! 180 calendar days!) to CLOSE on those properties. Since you are now a cash buyer, closing is usually not a problem (I had all my replacement properties closed in 70 days). The exchange company I dealt with wanted only 2 days notice for disbursements, so you could literally close in a few days. Dont do that though! Use that due diligence time (note: 10 BUSINESS days is better than just "10 days") everyone puts in contracts so you can get inspections and to allow for a title search, etc. If for some (ANY) reason you dont close on your identified properties within that 180 day time frame, that amount becomes Boot and is taxable. So, if you close on that $200,000 house on day 181, you might be liable for a $50,000 tax bill! For this reason, I would stay away from things that can drag on like foreclosures and especially short sales!
- You can identify up to 3 replacement properties of ANY VALUE. In other words if your property sold for $1M, you can identify 3 $1M properties, etc. OR:
- You can identify up to SIX replacement properties so long as the TOTAL value of those properties does not exceed TWICE the value of what you sold. This is known as the 200% rule. So if you sold that property for $1M, make sure the total value of your identified replacements doesnt add up to more than $2M if you identify 4, 5, or 6 properties. There is a form you fill out where you list your selections, and you can stipulate how many of those properties you intend to purchase. When I was getting close to the end of the 45 day period, I already had closed on 3 properties, with one more to go that was going to close after the 45 days were up, so I picked 2 more properties as a safety net in case something blew up with the last deal. Once that 45 days is up, you cannot go back and change anything on that list! I stipulated that I intended to buy only 4 of the 6 listed properties, so once I closed on the 4th property, the exchange ended and any leftover money came to me (as Boot and it is taxable, of course). Had I not stipulated that I was only buying 4 of the 6 properties I identified, I would have had to wait until the natural expiration of the exchange (180 days from the sale) to get my residual cash, which at this point was nearly 4 months away (actually its July 2, 2017, hasnt even come yet and all this seems like years ago already).
- There are ways you can identify more than 6 (95% rule) but it gets pretty complicated and probably applies to nearly no one so I wont get into it here.
- Cost Basis Pro ration. You will, of course, need to figure your cost basis for the property you are selling. This will be what you paid for it (or what whoever gave it to you paid for it), what you put into it for improvements, property taxes, etc. Once you have that, it gets transferred to the new replacement property (ies). That is now the cost basis for the new property. If you buy more than one replacement property, the cost basis gets assigned to the new properties according to their proportion of the proceeds that were used to buy them. In other words if the cost basis of your $1M sale was $100K, and you bought 3 properties costing $300K, $400k, $200K and say you took $100K out in cash, the cost basis would get doled out at $30K, $40K, $20K and $10K respectively. So your 100K cash-out would actually be figured on 90K because 10% of the cost basis gets assigned to it. You will notice you now have big cap gains in the new properties just like you did on the original property. You didnt avoid it, you deferred it. I initially hoped I could assign my cost basis anywhere I wanted, like the cash-out so I wouldnt have to pay taxes on it...(yes that would have put a near zero cost basis on the rental properties I bought), but thats not how it works (Bummer! It will have to be a used Lexus...actually I like old Mercedes, early 70's models like the 280SEL).
- Fixer Uppers. There is a provision for putting improvement costs of the new (replacement) properties in the exchange, BUT you cannot close until after they are finished (set up some trust with your lawyer? I dunno), and the 180 Day rule still applies. This almost NEVER works out and I would completely avoid it. If your replacement property needs repairs, use out-of-exchange money to do it rather (which makes it cost more in order to pay the tax on it) than risk a tax liability on the entire purchase price of the house. This will likely limit the "fixerupperness" of the properties you might buy. It caused me to avoid them completely.
- Can you EVER live in any of your replacement properties? The ambiguous answer I get is "They like to see at least a year...or two... of investment income before you claim it as a principal residence."
Hmmm. So I can, after a year....or two...move in and call it my primary residence? Stay there for 2 years, then sell it capturing the tax FREE (not deferred) $250K/$500K, which would wipe out any cap gains tax at all (in most properties anyway)? Its not spelled out, and like I said above it is vague, but apparently thats what some people are doing. So I guess the answer is yeaIguesssomaybesortofbutnotofficially.
I'm not a lawyer nor tax attorney, so take this for what its worth. There is a lot of info online but I found a lot of it was ...not exactly correct. I got bad info from real estate agents that have been involved in 1031 transactions and lawyers, and homeowners who have done exchanges themselves! It seemed if you asked 10 people, you got 10 different answers. If you want an 11th wrong answer, call the IRS directly. The people who really know are the exchange intermediary companies, which are the companies that hold and disburse your money.
Some basic bullet points.
- First thing is, you have to use an exchange intermediary company. I used the one recommended by my lawyer since she had used them before and no one was sent to jail. This means the money from your sale goes directly to them, NOT to you. Its like an IRA rollover, the money never touches your hands. So, unless you take cash out up front (which you can but you will have to pay taxes on it), you walk out of closing with some paperwork with numbers on it and no money. Some company you have never dealt with (nor probably heard of) has all your money. Yea thats a little freaky.
- The intermediary company I used charged $1200 which included the first replacement property. There was a $200 charge for each additional property. I bought 4 properties with my proceeds so the total charge was $1800. I'm sure there are cheaper companies out there, but this wasnt something I was willing to "Dollar Tree". Doing the exchange allowed me to keep enough money working for ME (rather than the IRS) that I was able to buy another rental house (call it the 4th purchase). Net income after property taxes and insurance on that home pays that $1800 about every 2 months. If you look at it on a ROI basis, thats a 600% annual return on your money (the $1800) every year, not including appreciation in the underlying real estate. If you have a large cap gain, you are probably crazy not to do this.
- These are "like kind" investment exchanges, real estate for real estate, collector cars for collector cars, etc. As you can imagine, the definition of "like kind" could garner some confusion...or argument with the IRS. Basically, you cant sell your $1 million baseball card collection and buy real estate, but you CAN buy improved property (house or commercial) to replace unimproved property that you sold (land), or real property for real property. Its "like kind", not "exact kind" since no two pieces of real estate are exactly alike.
- If you are selling a house that was your primary residence, keep in mind that this is for "investment property" for "investment" property, NOT your primary residence. Besides unless you have a $250K gain if single, $500K if married, you arent paying any cap gains on the sale of your house anyway (as long as it was your primary residence 2 out of the last 5 years), so a 1031 is likely moot. If you are buying a home with this money (or some of this money)that will be your primary residence, you will need to take that money out of the exchange and pay taxes on it. In other words if you are buying a $200K house, you will need $266K to pay the taxes and have the $200K left for the house.
An interesting question for a tax accountant would be if you lived in the house 2 out of the last 5 but rented it out the last 2 years, could you treat it as both your primary, get the $250/500K deduction AND treat it as an investment property for a 1031 exchange for the profit over the $250/500K? Hmmm! While this would be an unlikely scenario in "America" because you would have to have a very large gain to make it worthwhile, I could certainly see this possibility on Nantucket.
This brings up another often heard rule with these that is incorrect: You have to spend ALL the money on the replacement property...this is FALSE...with a "but".
- You DO NOT have to spend ALL your proceeds from the sale on replacement properties. BUT, the money you do not spend is called "Boot" and IS taxable. So if you want to buy yourself a house, or treat yourself to a new car, you will need to take MORE than the cost of those things out of the exchange so you have the money to pay the taxes on that money (unless you have a bucket of cash hanging around, of course). So if you want that $50,000 Lexus, take out $66,666 so when you pay your 20% federal and 5% Mass tax (25% total), you have the $50K for the car plus the $16,666 (25% of $66,666) for The Man. You might as well take out the sales tax if you live in Mass ($4166 which includes the 25% tax. Yep, thats tax on tax! Isnt that just lovely?). If you live in SC the max sales tax on a car is $300 (YES its $3866 cheaper to buy your $50,000 Lexus in SC than in MA, isnt that just lovely too?).
- If this was your principle residence for 2 of the last 5 years, you dont pay any cap gains for the first $250,000 of profit if you are single, $500,000 if you are married. So if this is the case, chances are you are not going to have any tax liability anyway, so moot point. For me it was land that I was selling, so I didnt get this break even though I owned it for 17 years. Doing the 1031 in my case made the difference in buying an additional property that pays the cost of the exchange company's fee every 2 months, so it was a no brainer for me. If you are lucky and have property on Nantucket thats worth a bundle, your situation may make mine look like a lemonade stand.
- This is an investment exchange. That means you are selling "investment property" and buying replacement "investment property", so like a trade. It does NOT mean you have to buy anything from the buyer of your property. I sold my land in MA and bought property (4 actually) in SC from 4 completely different people.
- You will need to have language in your contracts (both buying and selling) that state this transaction is part of an IRS 1031 exchange and buyer or seller agrees to cooperate in. Sometimes it will state at the exchanger's expense (if there is any). Some people are worried it will complicate matters for them, or cost them something. It really doesnt.
- You have 45 DAYS (calendar days including weekends and holidays) from the sale of your property to identify (meaning fill out and sign a form) possible replacement property or properties. This is BY FAR the most important part of these exchanges. This 45 days goes FAST. If you dont identify ANY properties by this date, the exchange is over and the entire amount of the gain in your sale is Boot and is taxable. You should have done a lot of research on properties you are interested in before yours even closes so you can hit the ground running. I did 10 years worth LOL.
- You have 180 days (not 6 months! 180 calendar days!) to CLOSE on those properties. Since you are now a cash buyer, closing is usually not a problem (I had all my replacement properties closed in 70 days). The exchange company I dealt with wanted only 2 days notice for disbursements, so you could literally close in a few days. Dont do that though! Use that due diligence time (note: 10 BUSINESS days is better than just "10 days") everyone puts in contracts so you can get inspections and to allow for a title search, etc. If for some (ANY) reason you dont close on your identified properties within that 180 day time frame, that amount becomes Boot and is taxable. So, if you close on that $200,000 house on day 181, you might be liable for a $50,000 tax bill! For this reason, I would stay away from things that can drag on like foreclosures and especially short sales!
- You can identify up to 3 replacement properties of ANY VALUE. In other words if your property sold for $1M, you can identify 3 $1M properties, etc. OR:
- You can identify up to SIX replacement properties so long as the TOTAL value of those properties does not exceed TWICE the value of what you sold. This is known as the 200% rule. So if you sold that property for $1M, make sure the total value of your identified replacements doesnt add up to more than $2M if you identify 4, 5, or 6 properties. There is a form you fill out where you list your selections, and you can stipulate how many of those properties you intend to purchase. When I was getting close to the end of the 45 day period, I already had closed on 3 properties, with one more to go that was going to close after the 45 days were up, so I picked 2 more properties as a safety net in case something blew up with the last deal. Once that 45 days is up, you cannot go back and change anything on that list! I stipulated that I intended to buy only 4 of the 6 listed properties, so once I closed on the 4th property, the exchange ended and any leftover money came to me (as Boot and it is taxable, of course). Had I not stipulated that I was only buying 4 of the 6 properties I identified, I would have had to wait until the natural expiration of the exchange (180 days from the sale) to get my residual cash, which at this point was nearly 4 months away (actually its July 2, 2017, hasnt even come yet and all this seems like years ago already).
- There are ways you can identify more than 6 (95% rule) but it gets pretty complicated and probably applies to nearly no one so I wont get into it here.
- Cost Basis Pro ration. You will, of course, need to figure your cost basis for the property you are selling. This will be what you paid for it (or what whoever gave it to you paid for it), what you put into it for improvements, property taxes, etc. Once you have that, it gets transferred to the new replacement property (ies). That is now the cost basis for the new property. If you buy more than one replacement property, the cost basis gets assigned to the new properties according to their proportion of the proceeds that were used to buy them. In other words if the cost basis of your $1M sale was $100K, and you bought 3 properties costing $300K, $400k, $200K and say you took $100K out in cash, the cost basis would get doled out at $30K, $40K, $20K and $10K respectively. So your 100K cash-out would actually be figured on 90K because 10% of the cost basis gets assigned to it. You will notice you now have big cap gains in the new properties just like you did on the original property. You didnt avoid it, you deferred it. I initially hoped I could assign my cost basis anywhere I wanted, like the cash-out so I wouldnt have to pay taxes on it...(yes that would have put a near zero cost basis on the rental properties I bought), but thats not how it works (Bummer! It will have to be a used Lexus...actually I like old Mercedes, early 70's models like the 280SEL).
- Fixer Uppers. There is a provision for putting improvement costs of the new (replacement) properties in the exchange, BUT you cannot close until after they are finished (set up some trust with your lawyer? I dunno), and the 180 Day rule still applies. This almost NEVER works out and I would completely avoid it. If your replacement property needs repairs, use out-of-exchange money to do it rather (which makes it cost more in order to pay the tax on it) than risk a tax liability on the entire purchase price of the house. This will likely limit the "fixerupperness" of the properties you might buy. It caused me to avoid them completely.
- Can you EVER live in any of your replacement properties? The ambiguous answer I get is "They like to see at least a year...or two... of investment income before you claim it as a principal residence."
Hmmm. So I can, after a year....or two...move in and call it my primary residence? Stay there for 2 years, then sell it capturing the tax FREE (not deferred) $250K/$500K, which would wipe out any cap gains tax at all (in most properties anyway)? Its not spelled out, and like I said above it is vague, but apparently thats what some people are doing. So I guess the answer is yeaIguesssomaybesortofbutnotofficially.
Deal Of The Isle 6/17/17
Here I'll post what I think are the best deals on Nantucket. This doesnt mean they are huge bargains nor the cheapest properties on the market, everything is relative. But, these are some properties I like. I'm not working for or represent any island brokers, and generally any agent can show you any house, so who you pick for your agent is entirely up to you.
If you copy and paste into google "Nantucket LINK xxxxx" the listings should come up.
307 Polpis Rd Nantucket LINK 80890 I found this to be the best deal in land because of its price and large compound potential. This, along with the long listing time (2 years) make this ripe for an offer. (UPDATE under agreement 6/23/17)
62 Washington Ave, Madaket, $1.090,000. Nantucket LINK 83291 There arent too many old cottages left on Nantucket, and while I wouldnt call this an antique and probably wouldnt be classified as "Old Madaket" in its truest sense, its still kind of "oldish". Probably a bit of the value here is potential second floor water views, but I like the little ole cottage as it is. Yea its a little cottage and yea its $1M... yea its Nantucket. That said I think the price is OK and will probably sell quick for anywhere over $900K, with an upward bias because there is Jack Squat as far as properties around $1M. Judging by the asking price I would say they are hoping for $1.05M, would probably take $1.0M, with the question being would they take $950K? You dont know until you shove the offer in their face.
20 Miacomet Rd $2,300,000 Nantucket LINK 83332 I like the post and beam architecture (I almost built one on 2 Camelia and still may on the marsh front property I bought down here in SC), and I like the large 2 acre lot, which seems huge to me maybe because it is 16 times the size of the lot I sold! The price here looks good to me, its a lot of house and a lot of lot for the money.
4 Quidnet Rd $2,895,000 Nantucket LINK 82835 This is an old wireless internet customer of mine. I've always liked this house and how it is set way back from the road (the driveway is actually off of Polpis). The cottage in back with its separate entrance could be rented out and you would never see them, its like an entirely separate property. This has been for sale for a while and is about $1M off its original asking price. I'm surprised that its still available, especially at this price.
1 West Chester St EXT $8,750,000 Nantucket LINK 82652 This also was a wireless internet customer at one time. Love the house, love the barn, love the space. This was originally on 30 acres until they sold some off to the Land Bank. I was surprised the Land Bank bought it since it already had a conservation restriction on it, so there was never going to be anything more built on it anyway.
I also think this was called 21R Crooked Lane, or something like that since the entrance was right next to the animal hospital which is numbered 21. This has been on the market quite a while, so maybe its time for someone to make a bid and see what happens. Even at its current price, I'm surprised its still available. There simply aren't many properties like this on Nantucket.
30 Orange St $18,975,000 Nantucket LINK 75078 The link ID should give you a clue as to how long this has been on the market (6 years and 5 days to be exact, starting at $25M on June 12, 2011). I cant imagine what the Maury People have spent in ad space over that time frame. While this is one of my all time favorite homes on Nantucket, it is no "Deal of the Isle" by any means. When I moved to the island in 1993 this was owned by a Texas man who owned the largest privately owned grocery chain in the US (it was started by his grandmother in the 20's with 25 cents, or something like that). He decided to sell, and as far as I remember started it at $4.5 or $5M. He couldnt find a buyer to save his life and eventually sold it for around $2.6M to a former CEO of a company we would all recognize in 1994. Now right at the time he bought it, he also sold the side yard (was a separate lot) for a little more than he officially paid to someone else with the stipulation they couldnt build on it for 5 year. 5 years came and went and then 32 Orange was built. While this lowered his cost of the house as you see it for sale today to just $1.6M (really cheap even for then) this always pissed me off a bit since it was breaking up a grand old property that gracefully topped the hill on Orange St (the house is named "Long Hill"). My thought was (as I was lugging a mail bag looking up at it) dude, if you cant afford the house without breaking it up, you arent worthy of it. So some 20 years later he's trying (and trying and trying) to get $19M out of it. While there are numerous examples of this kind of appreciation in the past 20 years, I'm afraid he's still $6-$9 Million over the mark here. Assessment is $13M, which is about where I would put the ask on this, looking for an offer in the $10-$11M range. I guess we will see...someday. Still, its one of my favorite homes on the island.
If you copy and paste into google "Nantucket LINK xxxxx" the listings should come up.
307 Polpis Rd Nantucket LINK 80890 I found this to be the best deal in land because of its price and large compound potential. This, along with the long listing time (2 years) make this ripe for an offer. (UPDATE under agreement 6/23/17)
62 Washington Ave, Madaket, $1.090,000. Nantucket LINK 83291 There arent too many old cottages left on Nantucket, and while I wouldnt call this an antique and probably wouldnt be classified as "Old Madaket" in its truest sense, its still kind of "oldish". Probably a bit of the value here is potential second floor water views, but I like the little ole cottage as it is. Yea its a little cottage and yea its $1M... yea its Nantucket. That said I think the price is OK and will probably sell quick for anywhere over $900K, with an upward bias because there is Jack Squat as far as properties around $1M. Judging by the asking price I would say they are hoping for $1.05M, would probably take $1.0M, with the question being would they take $950K? You dont know until you shove the offer in their face.
20 Miacomet Rd $2,300,000 Nantucket LINK 83332 I like the post and beam architecture (I almost built one on 2 Camelia and still may on the marsh front property I bought down here in SC), and I like the large 2 acre lot, which seems huge to me maybe because it is 16 times the size of the lot I sold! The price here looks good to me, its a lot of house and a lot of lot for the money.
4 Quidnet Rd $2,895,000 Nantucket LINK 82835 This is an old wireless internet customer of mine. I've always liked this house and how it is set way back from the road (the driveway is actually off of Polpis). The cottage in back with its separate entrance could be rented out and you would never see them, its like an entirely separate property. This has been for sale for a while and is about $1M off its original asking price. I'm surprised that its still available, especially at this price.
1 West Chester St EXT $8,750,000 Nantucket LINK 82652 This also was a wireless internet customer at one time. Love the house, love the barn, love the space. This was originally on 30 acres until they sold some off to the Land Bank. I was surprised the Land Bank bought it since it already had a conservation restriction on it, so there was never going to be anything more built on it anyway.
I also think this was called 21R Crooked Lane, or something like that since the entrance was right next to the animal hospital which is numbered 21. This has been on the market quite a while, so maybe its time for someone to make a bid and see what happens. Even at its current price, I'm surprised its still available. There simply aren't many properties like this on Nantucket.
30 Orange St $18,975,000 Nantucket LINK 75078 The link ID should give you a clue as to how long this has been on the market (6 years and 5 days to be exact, starting at $25M on June 12, 2011). I cant imagine what the Maury People have spent in ad space over that time frame. While this is one of my all time favorite homes on Nantucket, it is no "Deal of the Isle" by any means. When I moved to the island in 1993 this was owned by a Texas man who owned the largest privately owned grocery chain in the US (it was started by his grandmother in the 20's with 25 cents, or something like that). He decided to sell, and as far as I remember started it at $4.5 or $5M. He couldnt find a buyer to save his life and eventually sold it for around $2.6M to a former CEO of a company we would all recognize in 1994. Now right at the time he bought it, he also sold the side yard (was a separate lot) for a little more than he officially paid to someone else with the stipulation they couldnt build on it for 5 year. 5 years came and went and then 32 Orange was built. While this lowered his cost of the house as you see it for sale today to just $1.6M (really cheap even for then) this always pissed me off a bit since it was breaking up a grand old property that gracefully topped the hill on Orange St (the house is named "Long Hill"). My thought was (as I was lugging a mail bag looking up at it) dude, if you cant afford the house without breaking it up, you arent worthy of it. So some 20 years later he's trying (and trying and trying) to get $19M out of it. While there are numerous examples of this kind of appreciation in the past 20 years, I'm afraid he's still $6-$9 Million over the mark here. Assessment is $13M, which is about where I would put the ask on this, looking for an offer in the $10-$11M range. I guess we will see...someday. Still, its one of my favorite homes on the island.
Thursday, June 15, 2017
Nantucket Land for sale $1M-$2M 6/15/17
OK now for available land between $1M and $2M. At present there are 16 listings.
Among other posts I'm considering:
-1031 Exchanges
-Deal of the Isle - The property I think is the best deal on Nantucket.
-Demo Derby - A (probably only partial because it is so lengthy) list of the homes bought only for the land. In order to understand the land market on Nantucket, you also have to have a good view of whats going on in the demo market because its a significant and growing part of the land market.
OK, on to Land $1-$2M.
Takeaways:
-9 out of the 16 lots are located in Sconset, leaving only 7 lots $1M-$2M in other parts of the island, with one of them being kind of irrelevant (6 Cathcart portion).
-The lots just over $1M seem like they should be just under $1M
-The lots in the mid $1M rage seem like with a little downward tweak they would make much more sen$e
-The lots at the upper $1M end need a more significant price improvement before they make sense.
-The best deal in this range is 307 Polpis Rd at $1.7M (Under agreement 6/23/17)
5 Hawks Circle, Sconset $1,195,000 This street is next to all those Cannonbury lots that were for sale. When all those lots were listed for $1.55M each, this didnt look too bad in comparison. Now that Cannonbury might be sold, and a steady stream of spec homes forthcoming, it doesnt look as good! A 33% land to value ratio would mean a $3.6M property and I dont know if that is doable here. I would think $3M tops and more like $2.7M especially with the unknown near future on Cannonbury. 33% of $2.7M is $900K. 25% which spec builder like to see (which is becoming increasingly difficult and basically no longer exists) would be 675K, so in between those numbers, closer to the 900K side. Again I would want to know what is going on on Cannonbury first. If a developer gets all those lots on the cheap and is therefore able to sell the finished homes cheaper (especially the first few to get some cash flow going), you may be able to have the same home on Cannonbury for significantly less (~$500K?) than if you built that same house on this lot after paying even 900K for it, or even 800K for it.
139 Polpis Rd $1,199,000 This 1.22 acre lot evidently has a preservation restriction on the first 200 feet of it with a permitted building envelope at the back of the lot. I dont see a problem with this since thats where I would want to put the house anyway, back off the road. It has about a 2000 sq ft of permissible ground cover which translates into a 4000 sq ft 2 story house, so not too bad there. A 4 bedroom 4.5 bath 2646 sq ft house with pool on the lot next door is for sale for $2.095M which actually looks like a decent deal while causing this lot to look a bit expensive. The assessment on the house is $575K more than the asking price and the Town web site says it was built in 1920, so maybe condition of the house is the reason for the price. So in looking for a lot, you may find a decent deal on a house instead, funny how that works. Access is by a dirt drive on the side of the house that is for sale to the rear of the lot that also provides access to 135 Polpis (so there is an easement which is in the buildable envelope). There is a pond mostly on the property next door that might require a setback that could eat a little more of your buildable envelope, I would check before you make an offer. There is still room for a house, but there are some restrictions here. There are quite a few $2+M sales in this area but most are from 2014, which I would think is about 30% ago, so I would put the potential here at about $2.7-3M which puts this lot value around the 900K mark in my opinion, with 800K even better because of all the limiting restrictions.
17 Ellens Way $1,295,000 Most of the homes on this street are quite similar and have sold for between $2.685M (2015) and $3.0M (OCT 2016). Using a $3.0M completed value figure (#13 is for sale for $2.795M and #14 for $3.095M), this lot at $1.295 is a bit expensive at 43%. A better 30% figure would work out to a price of 900K for this lot. To figure what value for a property you would have to have in order for the land to be 30% of the final value just take the land price and divide by 0.3. If that number is too high for that neighborhood (not accounting for some big difference caused by a better view, etc), then the price is likely too high. $1.295M divided by 0.3 = $4,316,666 which is WAY to high for this neighborhood. Also there are 19 lots on this road and only 6 houses ( with 2 of them for sale), so there are 12 more lots besides this all owned by the developer, which means years of construction traffic left to go (maybe a decade at the rate they are going, this development is already 11 years old).
4 Windsor Rd, Sconset $1,300,000 (down from $1.495M) 1.26 Acres out in the Wilds of Sconset not far from the 1.5 Acre "Rear Plainfield" lot that sold in Dec 2016 for $1.5M. Other than the .25 acre difference, this lot is limited to 1 dwelling whereas Rear Plainfield was not. So I guess you can still have your house, pool and pool cabana, you just cant have a 2nd dwelling, or cottage. Is that worth a $200K discount from Rear Plainfield? I'd say yes. $1.1M or $1.2M would be a better fit though. The fact its been on the market for 734 days also says 1.1-$1.2M would be a better fit. Add 40K for a septic in this area.
10 Plainfield Rd, Sconset $1,395,000 1/2 acre lot with 2500 sq ft of available ground cover. Not far from the 4 Windsor lot above (about 1000 ft away). With 4 Windsor's 2.5 times the area and 2.74 times the amount of ground cover makes this lot look comparatively expensive. Add 40K for a septic in this area.
85 N Sankaty Rd and 85 S Sankaty Rd $1,340,000 and $1,400,000 respectively. These 2 lots are capable of a house, cottage, pool, etc. 85 S with its 1100 more sq ft of ground cover is certainly worth the $60,000 difference. The question is it worth $1.4M? Using our handy divide by 0.3 tool, that gives us a finished value of $4.666M which I think might be a tad high. I would peg the potential of these lots closer to $4M, so a $1.2M lot price. So the asking prices are not far off.
25A Clifton St, Sconset $1,400,000 This 1/2 acre lot is not far from the 4 Windsor Rd and Plainfield Rd lots and like the 10 Plainfield lot looks a little expensive. The potential here looks to be about $3.5M (the house for sale at 14 Clifton for $3.545M also supports this), so a 30% land cost would be $1.05M, which is very close to the $1.095M sale two lots down at 63 Burnell St (which is now 2 years old). I think that sale at 63 Burnell was a little ahead of its time, so I'm sticking to my $1.05M for this lot although it will probably sell for a little more ($1.2M is my official guess).
5 Black Fish Lane, Sconset $1,550,000 Sales on this street have recently been $3.2M to $4.25M. The sale at 20 Black Fish was an expansive 6200 sq ft home with pool, etc etc. Figuring every one of those 6200 sq ft at low $450 gives a building value of $2.79M. Subtracting that from the $4.25M gives a residual of $1.46M. If this was the land cost, it would leave zero profit at a land price of $1.46M. The $3.2M sale at #15 was 5423 sq ft. Figuring that at $450/sq ft would leave only $759K as residual. I'm finding it difficult to justify the $1.55M price here. 30% of a $4.25M sale would be $1.275M so thats about what I would put as the max price for this lot. $1.15-$1.2M is more like it.
21 Black Fish Lane, Sconset $1,995,000 While this might bring a little more than the 15 Black Fish above (100K or so) because it is at the end of the road, its the same deal as #15. This lot is basically the same as #20 that sold finished for a deal at $4.25M, just at the opposite side of the cul de sac, making this lot a very expensive 47% land cost.
49 Sankaty Rd, Sconset $1,600,000 This 0.4 acre lot can support 4000 sq ft of ground cover, so quite a bit! Not far from the 85 Sankaty lots above (which are about twice the size), this lot has about the same potential as those but is priced significantly higher. I could see a little higher than the #85 lots as it is closer to Sconset Village, but the 30% rule brings the value to $5.333M which I think would be difficult here. This has been on the market 647 days, pushing two years, so I guess I'm not off base. I'm thinking about $1.2M here.
6 Cathcart Rd (portion) $1,650,000 This seller apparently has an oversized lot and is trying to sell off a piece of it to lower his $5M purchase cost. The problem is this piece is not big enough to be a standalone lot, so the only two people on planet Earth that it makes sense to buy this are the two neighbors on either side. What confuses me is why is this listed with a broker? Since your market is TWO, go to each next door neighbor and knock on the door. "Hey, like, you wanna buy this piece of land and make your yard bigger?" You have now completed your marketing campaign. Why pay a broker $82,500? Nothing in this listing makes sense, including the price.
307 Polpis Rd $1,700,000 3 Acres in Polpis! 3900 sq ft of ground cover! This looks to have a small house built in 1955 that they are apparently assigning no value to since they dont even mention it in the listing. Nice sized lot with views across the cranberry bogs to the rear. There are some wetlands at the back of the lot so you will have a setback from that, but no big deal because of the size of the lot. This was listed at $2.1M in July of 2015, nearly 2 years ago and periodically reduced to its present $1.7M (with 2 $100K reductions in the past 4 months alone, a sign they are ready to sell!) Honestly I dont have a problem with this price since it could support a $6-$7M compound, meaning a $1.8M to $2.1M land value at 30%. A really good 25% land cost would yield a price of $1.5M to $1.75M. This is a very fairly priced lot, especially if you can get it a little cheaper since its been on the market so long. So far this is the best deal in Land as far as I'm concerned. Oh, add $40K for septic and well (more if you are building a big compound). ***Under agreement 6/23/17 after 697 days on the market***
20 Pippens Way $1,899,000 This 1.12 acre lot is priced significantly above what other lots in this development have sold for. It may have some 2nd floor distant harbor views, but it doesnt say so in the listing. This has LINK #79545 attached to it which means its been on the market a LONG time (they are in the 83300's now, think about how long it takes to go through 4000 listings on Nantucket). A better comparative deal would be the nearby lot at 57 Shawkinno Rd, 2.76 acres, distant harbor views, $1.95M, although at 246 days on the market this looks like it needs a price reduction as well. Figure ~40K for septic on either lot, although they have been expanding sewer in this area in recent years, so check with the DPW. It would suck to have to connect to the sewer 15 minutes after you spent 40 grand on a septic (although 2 or 3 weeks of summer rentals would pay for it).
65 Westchester St $1,998,000 Honey lets buy it, its less than $2M! Its a much better deal than if it were $2M! Well its not a good deal. There have been several $5M+ spec sales nearby and this might support something like that, but the numbers have to make sense. At 30% land cost would be $1.575M on a $5.25M sale. In order for the $1.998 asking price to equal 30% of your project, it needs to have a final value of $6.66M, which is about $1.4M higher than recent nearby sales. There is a $5M+ spec house on Madaket Rd that has a $980K land cost (so like 20% land cost!). If they are making ~$1M on that, it simply doesnt make sense to pay $1M more for the next lot (although they will be forced to pay more than that $980K, that doesnt exist anymore). At that point they might as well go blue fishing off the beach until things make sen$e again. At an attractive and just about impossible to find anymore 25%, this lot becomes $1.312M. I dont think it will ever get that low, but I do think this needs to come down $300-$400K in order to move. I think the recent $1.44M sale of a smaller lot at #59 was someone paying a bit too much, and that $1,.6M sale at Pilgrim Rd (2 sales in 2 weeks!) was someone paying way too much. Dont get me wrong, if the owners of this lot can get someone to pay too much, hats off to them. But so far after 412 days on the market no such luck. It should also be pointed out the listing broker has a lot of development experience on the island so if it were such a good deal why isnt he buying it? Even more overpriced is the nearby 5 Pilgrim Rd lot at $2.495M. You just arent going to have a $8.3M (30% land cost) property there. Same goes for the lot (or lots) at 9 Pilgrim Rd.
Among other posts I'm considering:
-1031 Exchanges
-Deal of the Isle - The property I think is the best deal on Nantucket.
-Demo Derby - A (probably only partial because it is so lengthy) list of the homes bought only for the land. In order to understand the land market on Nantucket, you also have to have a good view of whats going on in the demo market because its a significant and growing part of the land market.
OK, on to Land $1-$2M.
Takeaways:
-9 out of the 16 lots are located in Sconset, leaving only 7 lots $1M-$2M in other parts of the island, with one of them being kind of irrelevant (6 Cathcart portion).
-The lots just over $1M seem like they should be just under $1M
-The lots in the mid $1M rage seem like with a little downward tweak they would make much more sen$e
-The lots at the upper $1M end need a more significant price improvement before they make sense.
-The best deal in this range is 307 Polpis Rd at $1.7M (Under agreement 6/23/17)
5 Hawks Circle, Sconset $1,195,000 This street is next to all those Cannonbury lots that were for sale. When all those lots were listed for $1.55M each, this didnt look too bad in comparison. Now that Cannonbury might be sold, and a steady stream of spec homes forthcoming, it doesnt look as good! A 33% land to value ratio would mean a $3.6M property and I dont know if that is doable here. I would think $3M tops and more like $2.7M especially with the unknown near future on Cannonbury. 33% of $2.7M is $900K. 25% which spec builder like to see (which is becoming increasingly difficult and basically no longer exists) would be 675K, so in between those numbers, closer to the 900K side. Again I would want to know what is going on on Cannonbury first. If a developer gets all those lots on the cheap and is therefore able to sell the finished homes cheaper (especially the first few to get some cash flow going), you may be able to have the same home on Cannonbury for significantly less (~$500K?) than if you built that same house on this lot after paying even 900K for it, or even 800K for it.
139 Polpis Rd $1,199,000 This 1.22 acre lot evidently has a preservation restriction on the first 200 feet of it with a permitted building envelope at the back of the lot. I dont see a problem with this since thats where I would want to put the house anyway, back off the road. It has about a 2000 sq ft of permissible ground cover which translates into a 4000 sq ft 2 story house, so not too bad there. A 4 bedroom 4.5 bath 2646 sq ft house with pool on the lot next door is for sale for $2.095M which actually looks like a decent deal while causing this lot to look a bit expensive. The assessment on the house is $575K more than the asking price and the Town web site says it was built in 1920, so maybe condition of the house is the reason for the price. So in looking for a lot, you may find a decent deal on a house instead, funny how that works. Access is by a dirt drive on the side of the house that is for sale to the rear of the lot that also provides access to 135 Polpis (so there is an easement which is in the buildable envelope). There is a pond mostly on the property next door that might require a setback that could eat a little more of your buildable envelope, I would check before you make an offer. There is still room for a house, but there are some restrictions here. There are quite a few $2+M sales in this area but most are from 2014, which I would think is about 30% ago, so I would put the potential here at about $2.7-3M which puts this lot value around the 900K mark in my opinion, with 800K even better because of all the limiting restrictions.
17 Ellens Way $1,295,000 Most of the homes on this street are quite similar and have sold for between $2.685M (2015) and $3.0M (OCT 2016). Using a $3.0M completed value figure (#13 is for sale for $2.795M and #14 for $3.095M), this lot at $1.295 is a bit expensive at 43%. A better 30% figure would work out to a price of 900K for this lot. To figure what value for a property you would have to have in order for the land to be 30% of the final value just take the land price and divide by 0.3. If that number is too high for that neighborhood (not accounting for some big difference caused by a better view, etc), then the price is likely too high. $1.295M divided by 0.3 = $4,316,666 which is WAY to high for this neighborhood. Also there are 19 lots on this road and only 6 houses ( with 2 of them for sale), so there are 12 more lots besides this all owned by the developer, which means years of construction traffic left to go (maybe a decade at the rate they are going, this development is already 11 years old).
4 Windsor Rd, Sconset $1,300,000 (down from $1.495M) 1.26 Acres out in the Wilds of Sconset not far from the 1.5 Acre "Rear Plainfield" lot that sold in Dec 2016 for $1.5M. Other than the .25 acre difference, this lot is limited to 1 dwelling whereas Rear Plainfield was not. So I guess you can still have your house, pool and pool cabana, you just cant have a 2nd dwelling, or cottage. Is that worth a $200K discount from Rear Plainfield? I'd say yes. $1.1M or $1.2M would be a better fit though. The fact its been on the market for 734 days also says 1.1-$1.2M would be a better fit. Add 40K for a septic in this area.
10 Plainfield Rd, Sconset $1,395,000 1/2 acre lot with 2500 sq ft of available ground cover. Not far from the 4 Windsor lot above (about 1000 ft away). With 4 Windsor's 2.5 times the area and 2.74 times the amount of ground cover makes this lot look comparatively expensive. Add 40K for a septic in this area.
85 N Sankaty Rd and 85 S Sankaty Rd $1,340,000 and $1,400,000 respectively. These 2 lots are capable of a house, cottage, pool, etc. 85 S with its 1100 more sq ft of ground cover is certainly worth the $60,000 difference. The question is it worth $1.4M? Using our handy divide by 0.3 tool, that gives us a finished value of $4.666M which I think might be a tad high. I would peg the potential of these lots closer to $4M, so a $1.2M lot price. So the asking prices are not far off.
25A Clifton St, Sconset $1,400,000 This 1/2 acre lot is not far from the 4 Windsor Rd and Plainfield Rd lots and like the 10 Plainfield lot looks a little expensive. The potential here looks to be about $3.5M (the house for sale at 14 Clifton for $3.545M also supports this), so a 30% land cost would be $1.05M, which is very close to the $1.095M sale two lots down at 63 Burnell St (which is now 2 years old). I think that sale at 63 Burnell was a little ahead of its time, so I'm sticking to my $1.05M for this lot although it will probably sell for a little more ($1.2M is my official guess).
5 Black Fish Lane, Sconset $1,550,000 Sales on this street have recently been $3.2M to $4.25M. The sale at 20 Black Fish was an expansive 6200 sq ft home with pool, etc etc. Figuring every one of those 6200 sq ft at low $450 gives a building value of $2.79M. Subtracting that from the $4.25M gives a residual of $1.46M. If this was the land cost, it would leave zero profit at a land price of $1.46M. The $3.2M sale at #15 was 5423 sq ft. Figuring that at $450/sq ft would leave only $759K as residual. I'm finding it difficult to justify the $1.55M price here. 30% of a $4.25M sale would be $1.275M so thats about what I would put as the max price for this lot. $1.15-$1.2M is more like it.
21 Black Fish Lane, Sconset $1,995,000 While this might bring a little more than the 15 Black Fish above (100K or so) because it is at the end of the road, its the same deal as #15. This lot is basically the same as #20 that sold finished for a deal at $4.25M, just at the opposite side of the cul de sac, making this lot a very expensive 47% land cost.
49 Sankaty Rd, Sconset $1,600,000 This 0.4 acre lot can support 4000 sq ft of ground cover, so quite a bit! Not far from the 85 Sankaty lots above (which are about twice the size), this lot has about the same potential as those but is priced significantly higher. I could see a little higher than the #85 lots as it is closer to Sconset Village, but the 30% rule brings the value to $5.333M which I think would be difficult here. This has been on the market 647 days, pushing two years, so I guess I'm not off base. I'm thinking about $1.2M here.
6 Cathcart Rd (portion) $1,650,000 This seller apparently has an oversized lot and is trying to sell off a piece of it to lower his $5M purchase cost. The problem is this piece is not big enough to be a standalone lot, so the only two people on planet Earth that it makes sense to buy this are the two neighbors on either side. What confuses me is why is this listed with a broker? Since your market is TWO, go to each next door neighbor and knock on the door. "Hey, like, you wanna buy this piece of land and make your yard bigger?" You have now completed your marketing campaign. Why pay a broker $82,500? Nothing in this listing makes sense, including the price.
307 Polpis Rd $1,700,000 3 Acres in Polpis! 3900 sq ft of ground cover! This looks to have a small house built in 1955 that they are apparently assigning no value to since they dont even mention it in the listing. Nice sized lot with views across the cranberry bogs to the rear. There are some wetlands at the back of the lot so you will have a setback from that, but no big deal because of the size of the lot. This was listed at $2.1M in July of 2015, nearly 2 years ago and periodically reduced to its present $1.7M (with 2 $100K reductions in the past 4 months alone, a sign they are ready to sell!) Honestly I dont have a problem with this price since it could support a $6-$7M compound, meaning a $1.8M to $2.1M land value at 30%. A really good 25% land cost would yield a price of $1.5M to $1.75M. This is a very fairly priced lot, especially if you can get it a little cheaper since its been on the market so long. So far this is the best deal in Land as far as I'm concerned. Oh, add $40K for septic and well (more if you are building a big compound). ***Under agreement 6/23/17 after 697 days on the market***
20 Pippens Way $1,899,000 This 1.12 acre lot is priced significantly above what other lots in this development have sold for. It may have some 2nd floor distant harbor views, but it doesnt say so in the listing. This has LINK #79545 attached to it which means its been on the market a LONG time (they are in the 83300's now, think about how long it takes to go through 4000 listings on Nantucket). A better comparative deal would be the nearby lot at 57 Shawkinno Rd, 2.76 acres, distant harbor views, $1.95M, although at 246 days on the market this looks like it needs a price reduction as well. Figure ~40K for septic on either lot, although they have been expanding sewer in this area in recent years, so check with the DPW. It would suck to have to connect to the sewer 15 minutes after you spent 40 grand on a septic (although 2 or 3 weeks of summer rentals would pay for it).
65 Westchester St $1,998,000 Honey lets buy it, its less than $2M! Its a much better deal than if it were $2M! Well its not a good deal. There have been several $5M+ spec sales nearby and this might support something like that, but the numbers have to make sense. At 30% land cost would be $1.575M on a $5.25M sale. In order for the $1.998 asking price to equal 30% of your project, it needs to have a final value of $6.66M, which is about $1.4M higher than recent nearby sales. There is a $5M+ spec house on Madaket Rd that has a $980K land cost (so like 20% land cost!). If they are making ~$1M on that, it simply doesnt make sense to pay $1M more for the next lot (although they will be forced to pay more than that $980K, that doesnt exist anymore). At that point they might as well go blue fishing off the beach until things make sen$e again. At an attractive and just about impossible to find anymore 25%, this lot becomes $1.312M. I dont think it will ever get that low, but I do think this needs to come down $300-$400K in order to move. I think the recent $1.44M sale of a smaller lot at #59 was someone paying a bit too much, and that $1,.6M sale at Pilgrim Rd (2 sales in 2 weeks!) was someone paying way too much. Dont get me wrong, if the owners of this lot can get someone to pay too much, hats off to them. But so far after 412 days on the market no such luck. It should also be pointed out the listing broker has a lot of development experience on the island so if it were such a good deal why isnt he buying it? Even more overpriced is the nearby 5 Pilgrim Rd lot at $2.495M. You just arent going to have a $8.3M (30% land cost) property there. Same goes for the lot (or lots) at 9 Pilgrim Rd.
Nantucket Land for sale <$1M 6/15/17
After some catching up, we have made it to present day (6/15/17)! Here I'll comment on some pieces of land presently for sale on the island. First of all, there ain't much of it. So if you're trying to find land in the $700-$800K range with a total investment of $1.5 to say $1.8M hoping to end up with a property in the $2-$2.5M range, the pickins are extremely slim. I'll first comment on land under $1M which is 14 of the 43 parcels presently on the market.
Takeaways:
-4 Seven Mile Lane seems to be the best deal here, especially if you can get it a little lower, although 24 Field Ave can be a contender if it passes the smell test. (Under agreement 6/26/17)
-I have a very detached analytical approach, so things sometimes sell for more that I think they will. Its what typically happens when there is something in high demand with virtually no supply.
- Its 6/26 (11 days after the original post) and 3 of these are already under agreement.
2 and 4 Seven Mile Lane. $995,000 and $925,000 respectively. These are located off Milestone Rd on the right (almost across Milestone from the troubled Hydrangea Ln). These border conservation land to the rear which is nice. I would definitely lean toward #4 because it is set further back off Milestone and is $70,000 cheaper than #2 (which comes with plans but they are probably not worth $70,000 and may not be what you want anyway!). Since these have been on and off the market for a couple of years, I would think an offer of $850K for #4 should get some movement, 875K would be ok for this. This is certainly $2M+ territory and quite likely getting toward $3M, so these prices arent terrible at all, just maybe a little downward tweak is all they need.
18 Mount Vernon St $980,000 This has been on the market since Sept 2016 and as I've commented before, I feel it is overpriced by about $200,000 or more. At $800K it would be 33% of a probable $2.4M final value, at $750K ($230,000 less than present ask) it would be 31%. Keep in mind 2 Camelia, which is similar in size and the same zoning, and which will produce a similarly valued property, sold for $695,000 in Jan 2017. Dont be fooled by the recent nearby $3.8M sale at 5 Joy St, that is a much bigger lot in different zoning that allows for a pool (this was heated salt water with pool cabana, etc), whereas OHD (Old Historic District) zoning does not (you can have a "Spa" though, which can be up to 1000 gallons). OHD zoning does provide for 50% ground cover while the R1 zoning at 5 Joy is only 30%, but since its a much bigger lot (roughly twice the size), you can do more with 5 Joy than you can with 18 Mount Vernon. They are really different animals.
10 York St $950,000 This is the crazy listing I talked about that is worth about $450K. The listing at 20A York St (see below) is a better deal (and much better set back spot) by $200,000 but it too is over priced for the neighborhood.
115 Surfside Rd $925,000 (SOLD 6/7/17 $900,000, looks like the market caught up with this!) Listed nearly 2 years ago, 8/5/15, this just short of an acre this lot is about a 5 minute bike ride to Surfside Beach. I'd put this in the "maybe up to $2M" finished range which makes the lot expensive. I would think a price closer to what 2 Camelia Ln sold for, around $700,000 might cause this to move, with $600-650K more like it. The market has been slowly catching up to these longer listings but so far not this one, I think because this one still has a ways to go (see the recent 8 Nonantum sale at $830K (and previous $675K sale the same month this was initially listed), which although much smaller, is just steps from Surfside Beach).
33 Okorwaw $865,000 (reduced from $950K) .92 acre lot in Surfside over toward the airport. While not right along the airport fence like 1 Monohansett, its only about 800ft from the Monohansett lot, and only 1500 ft from the run-up area (where they warm up their engines) of Runway 6. There does seem to be about a $2M potential in the neighborhood, so a $700-$750K price is not out of the question, making the $865K asking price a little high but not crazy. I think taking the $65K off would help bring an offer (that they should probably take).
134B Main St $849,000 This is an interesting spot on Main St. There are 2 other structures in the back that it looked were "condoed" at one time. I dont know if it is because this has an old garage on it brings it into the 81L category (looks that way), but regardless, its a 4296 sq ft lot right off Main St. Its a little strangely shaped and has a parking easement for the front house, so it is a bit limited (and tight!) in there. OHD zoning gives you 2148 sq ft of ground cover but because of the parking easement and the odd shape, you might have trouble using it all. Still you can put a decent sized house here, its just really crowded in there! Its right at 1/2 mile walk to the Hub on Main St. Although they are trying to get $3.695M for the front house (3866 sq ft), I think you will be limited to about $2M potential here because its so crowded, so I put the value similar (or a bit lower) to 2 Camelia's, at $650-700K.
20A York St $750,000 As discussed above and elsewhere, my feeling is for a 500-550K value here. The original house is under agreement as of 6/16/17 so it will be interesting to see what it goes for, if it can break the concrete-like $1.3M barrier of this street. This is an extremely busy cut through one way street which forces you into "5 corners" every time you leave the driveway, which I'm sure is the driving factor limiting this to a $1.3M street. UPDATE: 6/23/17 this lot is Under Agreement. Seeing this along with HDC action for demo of the garage along with the original house going under agreement in recent days makes me wonder if the 2 buyers are the same. Either way it looks like the owners made a good profit here because of that old garage! We'll see soon enough!
4 Hydrangea Lane $725,000 As discussed at length, this neighborhood seems to be having problems bringing $2M for a finished house. If it cant do that, then 700K becomes a problem for the lots. Also there are multiple lots for sale (#9 at $719K and $1.269M for both 6 and 9, or $634,500 each). I'm not sure what the answer here is but it seems it will contain the word "cheaper", or "price improvement".
24 Field Ave $695,000 (apparently raised from $675K although Zillow still says $675K) This was under agreement and was going through HDC and I figured it had been sold but apparently it fell through and is back on the market. Field Ave is off of South Shore Rd which is affectionately called "Sewer Bed Rd" since the wastewater treatment plant is at the end. Since this lot is down the end of Field Ave, it is about 1700 feet to the east of the sewer beds. I have no experience in this area, but I would want to spend some time sniffing around on the lot during a westerly breeze before I made an offer. Otherwise it is about a 2000' walk down a dirt road and path to the beach, which lands you just west of Surfside Beach (nice!). There is a recent (Oct 2016) $1.57M sale across the street with a smaller house, so it seems there could be higher potential here, just bring your nose first. This is a nice lot if it passes the smell test. UPDATE: Under agreement 6/26/17 and "pending Sale" on Zillow.
4 Perry Lane $650,000 This is off Bartlett Rd and is geared more toward a residential/commercial type use which puts the price rather high in my opinion. The assessment is only $264,700, and was sold on 5/13/14 along with 6 Perry Ln for $750K (which I thought was awful high at the time). That would leave him with the lot at #6 for only $100K, not bad if he can get it. I dont think he's going to get it. I would put the value at about what he paid for it, about 1/2 the $750K, or about $375K.
55 Goldfinch Dr $599,000 Lot with plans (Huntington modular). As discussed elsewhere, this appears to be someone who was going to build a spec house but has decided instead to sell the lot with HDC approved plans. Unfortunately due to the price they paid for the lot, they will be lucky to break even. Even is still better than losing though! Although this neighborhood will likely appreciate over time, it is a very well defined and enclosed development of 190 homes. It is very difficult to do "something more" (like a bigger than average house) in a place like this and do well. I think thats where the mistake here was. Its also more difficult to do cheaper spec homes because there isnt much margin for error. The market can correct $500K (or even $1M) on a $5M spec home and you're still not going bankrupt. You're not going to be happy, but when you think of what else will be happening in the markets to cause that correction on Nantucket, breaking even will be a lot better than if you had that money in the markets. With a lower end spec you dont have that kind of safety net.
3 Mary Anne Dr $475,000 5000 sq ft lot in year round res/comm area near the Airport. Most of the sales in this area have been in the $500-700K range....with buildings. So $475K for the land seems a bit high. It is owned by a broker who wants to do a 1031 exchange. I did a 1031 with 2 Camelia and for the buyer this means virtually nothing other than signing something that says you understand it is a 1031 exchange. It doesnt require any expense on part of the buyer and doesnt mean the seller has to buy any property from the buyer. I'll write up a 1031 info post at some point since nearly all the info I got from real estate agents and even lawyers was wrong.
10 Alexandia Dr $399,000 This lot is located in a predominantly year round area and has quite a bit of development potential for rental units or employee housing. I'd like to see the price closer to 300-350K though. UPDATE: Under Agreement 6/20/17
Thats it! All the land under a Million! Didnt see anything you liked? You're not alone! I guess its over a million we go...
Takeaways:
-4 Seven Mile Lane seems to be the best deal here, especially if you can get it a little lower, although 24 Field Ave can be a contender if it passes the smell test. (Under agreement 6/26/17)
-I have a very detached analytical approach, so things sometimes sell for more that I think they will. Its what typically happens when there is something in high demand with virtually no supply.
- Its 6/26 (11 days after the original post) and 3 of these are already under agreement.
2 and 4 Seven Mile Lane. $995,000 and $925,000 respectively. These are located off Milestone Rd on the right (almost across Milestone from the troubled Hydrangea Ln). These border conservation land to the rear which is nice. I would definitely lean toward #4 because it is set further back off Milestone and is $70,000 cheaper than #2 (which comes with plans but they are probably not worth $70,000 and may not be what you want anyway!). Since these have been on and off the market for a couple of years, I would think an offer of $850K for #4 should get some movement, 875K would be ok for this. This is certainly $2M+ territory and quite likely getting toward $3M, so these prices arent terrible at all, just maybe a little downward tweak is all they need.
18 Mount Vernon St $980,000 This has been on the market since Sept 2016 and as I've commented before, I feel it is overpriced by about $200,000 or more. At $800K it would be 33% of a probable $2.4M final value, at $750K ($230,000 less than present ask) it would be 31%. Keep in mind 2 Camelia, which is similar in size and the same zoning, and which will produce a similarly valued property, sold for $695,000 in Jan 2017. Dont be fooled by the recent nearby $3.8M sale at 5 Joy St, that is a much bigger lot in different zoning that allows for a pool (this was heated salt water with pool cabana, etc), whereas OHD (Old Historic District) zoning does not (you can have a "Spa" though, which can be up to 1000 gallons). OHD zoning does provide for 50% ground cover while the R1 zoning at 5 Joy is only 30%, but since its a much bigger lot (roughly twice the size), you can do more with 5 Joy than you can with 18 Mount Vernon. They are really different animals.
10 York St $950,000 This is the crazy listing I talked about that is worth about $450K. The listing at 20A York St (see below) is a better deal (and much better set back spot) by $200,000 but it too is over priced for the neighborhood.
115 Surfside Rd $925,000 (SOLD 6/7/17 $900,000, looks like the market caught up with this!) Listed nearly 2 years ago, 8/5/15, this just short of an acre this lot is about a 5 minute bike ride to Surfside Beach. I'd put this in the "maybe up to $2M" finished range which makes the lot expensive. I would think a price closer to what 2 Camelia Ln sold for, around $700,000 might cause this to move, with $600-650K more like it. The market has been slowly catching up to these longer listings but so far not this one, I think because this one still has a ways to go (see the recent 8 Nonantum sale at $830K (and previous $675K sale the same month this was initially listed), which although much smaller, is just steps from Surfside Beach).
33 Okorwaw $865,000 (reduced from $950K) .92 acre lot in Surfside over toward the airport. While not right along the airport fence like 1 Monohansett, its only about 800ft from the Monohansett lot, and only 1500 ft from the run-up area (where they warm up their engines) of Runway 6. There does seem to be about a $2M potential in the neighborhood, so a $700-$750K price is not out of the question, making the $865K asking price a little high but not crazy. I think taking the $65K off would help bring an offer (that they should probably take).
134B Main St $849,000 This is an interesting spot on Main St. There are 2 other structures in the back that it looked were "condoed" at one time. I dont know if it is because this has an old garage on it brings it into the 81L category (looks that way), but regardless, its a 4296 sq ft lot right off Main St. Its a little strangely shaped and has a parking easement for the front house, so it is a bit limited (and tight!) in there. OHD zoning gives you 2148 sq ft of ground cover but because of the parking easement and the odd shape, you might have trouble using it all. Still you can put a decent sized house here, its just really crowded in there! Its right at 1/2 mile walk to the Hub on Main St. Although they are trying to get $3.695M for the front house (3866 sq ft), I think you will be limited to about $2M potential here because its so crowded, so I put the value similar (or a bit lower) to 2 Camelia's, at $650-700K.
20A York St $750,000 As discussed above and elsewhere, my feeling is for a 500-550K value here. The original house is under agreement as of 6/16/17 so it will be interesting to see what it goes for, if it can break the concrete-like $1.3M barrier of this street. This is an extremely busy cut through one way street which forces you into "5 corners" every time you leave the driveway, which I'm sure is the driving factor limiting this to a $1.3M street. UPDATE: 6/23/17 this lot is Under Agreement. Seeing this along with HDC action for demo of the garage along with the original house going under agreement in recent days makes me wonder if the 2 buyers are the same. Either way it looks like the owners made a good profit here because of that old garage! We'll see soon enough!
4 Hydrangea Lane $725,000 As discussed at length, this neighborhood seems to be having problems bringing $2M for a finished house. If it cant do that, then 700K becomes a problem for the lots. Also there are multiple lots for sale (#9 at $719K and $1.269M for both 6 and 9, or $634,500 each). I'm not sure what the answer here is but it seems it will contain the word "cheaper", or "price improvement".
24 Field Ave $695,000 (apparently raised from $675K although Zillow still says $675K) This was under agreement and was going through HDC and I figured it had been sold but apparently it fell through and is back on the market. Field Ave is off of South Shore Rd which is affectionately called "Sewer Bed Rd" since the wastewater treatment plant is at the end. Since this lot is down the end of Field Ave, it is about 1700 feet to the east of the sewer beds. I have no experience in this area, but I would want to spend some time sniffing around on the lot during a westerly breeze before I made an offer. Otherwise it is about a 2000' walk down a dirt road and path to the beach, which lands you just west of Surfside Beach (nice!). There is a recent (Oct 2016) $1.57M sale across the street with a smaller house, so it seems there could be higher potential here, just bring your nose first. This is a nice lot if it passes the smell test. UPDATE: Under agreement 6/26/17 and "pending Sale" on Zillow.
4 Perry Lane $650,000 This is off Bartlett Rd and is geared more toward a residential/commercial type use which puts the price rather high in my opinion. The assessment is only $264,700, and was sold on 5/13/14 along with 6 Perry Ln for $750K (which I thought was awful high at the time). That would leave him with the lot at #6 for only $100K, not bad if he can get it. I dont think he's going to get it. I would put the value at about what he paid for it, about 1/2 the $750K, or about $375K.
55 Goldfinch Dr $599,000 Lot with plans (Huntington modular). As discussed elsewhere, this appears to be someone who was going to build a spec house but has decided instead to sell the lot with HDC approved plans. Unfortunately due to the price they paid for the lot, they will be lucky to break even. Even is still better than losing though! Although this neighborhood will likely appreciate over time, it is a very well defined and enclosed development of 190 homes. It is very difficult to do "something more" (like a bigger than average house) in a place like this and do well. I think thats where the mistake here was. Its also more difficult to do cheaper spec homes because there isnt much margin for error. The market can correct $500K (or even $1M) on a $5M spec home and you're still not going bankrupt. You're not going to be happy, but when you think of what else will be happening in the markets to cause that correction on Nantucket, breaking even will be a lot better than if you had that money in the markets. With a lower end spec you dont have that kind of safety net.
3 Mary Anne Dr $475,000 5000 sq ft lot in year round res/comm area near the Airport. Most of the sales in this area have been in the $500-700K range....with buildings. So $475K for the land seems a bit high. It is owned by a broker who wants to do a 1031 exchange. I did a 1031 with 2 Camelia and for the buyer this means virtually nothing other than signing something that says you understand it is a 1031 exchange. It doesnt require any expense on part of the buyer and doesnt mean the seller has to buy any property from the buyer. I'll write up a 1031 info post at some point since nearly all the info I got from real estate agents and even lawyers was wrong.
10 Alexandia Dr $399,000 This lot is located in a predominantly year round area and has quite a bit of development potential for rental units or employee housing. I'd like to see the price closer to 300-350K though. UPDATE: Under Agreement 6/20/17
Thats it! All the land under a Million! Didnt see anything you liked? You're not alone! I guess its over a million we go...
Present Land Pipeline 6/15/17
As far as land goes, the present pipeline (those either with an accepted offer or under Purchase and Sale) are as follows:
Cannonbury lots (38 of them at $1.55M Each). Accepted Offer 5/14/17. I went into these extensively on the Old Site. It was all on one listing, which is now off market. I dont know if that means there is an accepted offer for all of them or just one. I think I figured I wouldnt pay over $500K each in a buy-it-all deal (which is still a sizable $14 Million initial investment). They were grossly overpriced at $1.55M. I think the greatest enemy of the buyer will be himself. Thats a lot of inventory for one specific out of the way area. I hope he's young! Like I said, $500K Ea for the lot of them thar lots. I guess we'll soon see whats going on here.
17 Berkeley St in Tom Nevers $539,000 This lot was on the market for quite a while (608 days) and is currently under P&S (since 3/27/17!) This is in a $1.2M or so neighborhood making it about 45% of a likely completed value, kinda high. I think that combined with the spec builders concentrating on higher ($5M+) places left this to the end user 2nd homeowner market. 2 Camelia suffered from this as well to a certain extent but there are a few builders out there doing $2M+ spec homes but their job is becoming harder by the day due to the complete lack of land in a price range that would support a spec house in the $2M-$2.5M area. At one point this was the next available lot down the price ladder from 2 Camelia, with nothing between $539K and $749K.
1 Monohansett $995,000 under contract after 253 DOM. This is a big lot (2.3 acres) but it borders the airport (as in one of your lot lines is the Airport fence). In the aerial picture they used for the listing, you can see the end of runway 6. Nantucket Airport is the 2nd busiest airport in New England in July and August. There are a few days it does more flights than Logan, making it the busiest in New England. You can build a nice spread here but it goes without saying you will have to be tolerant of jet noise, as well as fumes on occasion. If you are looking for peace and quiet, this is NOT the place unless you are only going to be there on foggy days. Aside from this, lots in this area are usually larger and have been selling for $900,000 ish. This has also been under contract for a while (since 3/22/17) which may mean they are seeing if they can get their plans approved before nailing down the purchase. These "long in the tooth" contracts seem to be more prone to kick back since they usually have more conditions put on them, so we will see. Anyway, $1M (to start, they havent built anything yet!) to be on the Airport Fence is pretty amazing to me.
31 Youngs Way $695,000 Offer To Purchase after 68 Days on the market. This is in the area of Bayberry Lane (whose lots are typically 4 times the size of this) but on a residential/commercial street, thus the RC zoning (50% ground cover so you can put a lot of stuff here!). Other recent sales of these lots have been in the $450K range. This lot being at the end of the road (alongside Ticcoma Way) would make it a little more valuable, but not this much. Regardless, it has an accepted offer and we will soon see what someone was willing to pay.
18 Bishops Rise $1,275,000 Under Contract (otherwise known as P&S or Purchase and Sale) Nearly 2 Acres. In the Dionis area, some of these lots are on a hill and have views to the north over Nantucket Sound. #14 is on the market (built in 1994, renovated (and I mean RENOVATED!) in 2015) for $3.995M with a cottage and pool, etc. Nearby 28 Swift Rock Rd sold for $4.1M in Nov 2016 but is subdividable into 2 lots. Another interesting nearby sale is 54 Eel Point Rd, sold 11/20/15 for $3.5M, a lowball offer from a $4.995M ask (which started way back in 2011 at $5.95M!). It was also subdividable and the extra lot is now for sale for $2.75M which I doubt they will get but it would make the remaining house really cheap at only $750K for a ~$2.5M house! Most other sales have been in the $2.4-2.7M range. In the end I'd like to see this lot at 18 a little cheaper, closer to $1M, but we will see what it goes for. (Update 6/28/17 SOLD $1,200,000 or about 40% of a $3M project.)
Cannonbury lots (38 of them at $1.55M Each). Accepted Offer 5/14/17. I went into these extensively on the Old Site. It was all on one listing, which is now off market. I dont know if that means there is an accepted offer for all of them or just one. I think I figured I wouldnt pay over $500K each in a buy-it-all deal (which is still a sizable $14 Million initial investment). They were grossly overpriced at $1.55M. I think the greatest enemy of the buyer will be himself. Thats a lot of inventory for one specific out of the way area. I hope he's young! Like I said, $500K Ea for the lot of them thar lots. I guess we'll soon see whats going on here.
17 Berkeley St in Tom Nevers $539,000 This lot was on the market for quite a while (608 days) and is currently under P&S (since 3/27/17!) This is in a $1.2M or so neighborhood making it about 45% of a likely completed value, kinda high. I think that combined with the spec builders concentrating on higher ($5M+) places left this to the end user 2nd homeowner market. 2 Camelia suffered from this as well to a certain extent but there are a few builders out there doing $2M+ spec homes but their job is becoming harder by the day due to the complete lack of land in a price range that would support a spec house in the $2M-$2.5M area. At one point this was the next available lot down the price ladder from 2 Camelia, with nothing between $539K and $749K.
1 Monohansett $995,000 under contract after 253 DOM. This is a big lot (2.3 acres) but it borders the airport (as in one of your lot lines is the Airport fence). In the aerial picture they used for the listing, you can see the end of runway 6. Nantucket Airport is the 2nd busiest airport in New England in July and August. There are a few days it does more flights than Logan, making it the busiest in New England. You can build a nice spread here but it goes without saying you will have to be tolerant of jet noise, as well as fumes on occasion. If you are looking for peace and quiet, this is NOT the place unless you are only going to be there on foggy days. Aside from this, lots in this area are usually larger and have been selling for $900,000 ish. This has also been under contract for a while (since 3/22/17) which may mean they are seeing if they can get their plans approved before nailing down the purchase. These "long in the tooth" contracts seem to be more prone to kick back since they usually have more conditions put on them, so we will see. Anyway, $1M (to start, they havent built anything yet!) to be on the Airport Fence is pretty amazing to me.
31 Youngs Way $695,000 Offer To Purchase after 68 Days on the market. This is in the area of Bayberry Lane (whose lots are typically 4 times the size of this) but on a residential/commercial street, thus the RC zoning (50% ground cover so you can put a lot of stuff here!). Other recent sales of these lots have been in the $450K range. This lot being at the end of the road (alongside Ticcoma Way) would make it a little more valuable, but not this much. Regardless, it has an accepted offer and we will soon see what someone was willing to pay.
18 Bishops Rise $1,275,000 Under Contract (otherwise known as P&S or Purchase and Sale) Nearly 2 Acres. In the Dionis area, some of these lots are on a hill and have views to the north over Nantucket Sound. #14 is on the market (built in 1994, renovated (and I mean RENOVATED!) in 2015) for $3.995M with a cottage and pool, etc. Nearby 28 Swift Rock Rd sold for $4.1M in Nov 2016 but is subdividable into 2 lots. Another interesting nearby sale is 54 Eel Point Rd, sold 11/20/15 for $3.5M, a lowball offer from a $4.995M ask (which started way back in 2011 at $5.95M!). It was also subdividable and the extra lot is now for sale for $2.75M which I doubt they will get but it would make the remaining house really cheap at only $750K for a ~$2.5M house! Most other sales have been in the $2.4-2.7M range. In the end I'd like to see this lot at 18 a little cheaper, closer to $1M, but we will see what it goes for. (Update 6/28/17 SOLD $1,200,000 or about 40% of a $3M project.)
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