First those that I featured on the old site that have sold, going backwards in time:
June 2017:
86 Hummock Pond Rd, SOLD $625,000 which is above the last $598K ask. This is the lot that I questioned the buildability of because it is almost entirely wetlands (leaving only a 1400 sq ft foot print...not enough room for a septic system) and while it is in the sewer district, there is no sewer in the street yet. "3-5 years maybe" is what I was told as a possible timeline on the sewer extension. Maybe. The Town web site still lists it as unbuildable with a scant $135K assessment. Interesting.
11 Bayberry Ln $695,000 (UPDATE 6/17/17 SOLD $633,500 He may have made about $50K here) This lot sold on 9/21/15 for $541,000. The owner got through HDC with a large Huntington modular home with pool, etc then apparently changed his mind. This is now under contract. If he's getting anywhere near his asking price, he's making some $$$ here. This is about a $1.5M neighborhood (#18 Bayberry just listed for $1.695M), so a $695K land sale here would be kind of expensive (40% of a $1.7M sale giving a $10K credit for the plans).
May 2017:
33 New St "B" SOLD $775,000 This is where the old Sconset water tank used to be. The Town sold the original double lot for $885,000 on 11/12/14. Their cost for lot "A" is now just $110,000. How do you get a lot on Nantucket for $110,000? You buy it from the stupid Town of Nantucket, thats how. Why the Town didnt subdivide the property first, I dont know, they were handing this buyer a big pot of cash ($665,000) by not . Duh.
9 Swain St SOLD $1.8M This is interesting as this property was recently sold along with 7 Swain in May 2016 for a total of $2.35M. The new owner shifted the lot lines around and now has basically sold 1/2 of it for $1.8M leaving a $550K lot cost for the remaining lot, not bad for Brant Point! Although this $1.8M seems REALLY high to me, if you assume they could get the same for the remaining lot, they could have a gross profit of $1.25M, or a 53% return in one year without banging one nail. This is similar to what the buyers of 11 Union St did. Now they can build a spec house on the remaining lot and add another million (maybe) to their profit margin.
APRIL 2017:
9 Pilgrim Rd $2,512,685 (that must have been quite the negotiation!) This is a portion of the the lot (originally with 2800 sq ft home) that sold for $3.15M on 9/25/14. I cant tell what portion of the lot it is, but it appears they are dividing it up into 3 lots. This is right next door to the 5 Pilgrim lots that someone is still trying to make some $$ from without actually building anything.
FEB 2017:
8 Nonantum SOLD $830,000 from an ask of $955,000. This was for sale for a while along with the neighboring house that was renovated, 154 Surfside Rd, which also sold in Feb for $2.32M . More often than not, when things sell at the same time, its the same buyer. Both the house and the lot sold from the same owner, to the same buyer, to apparently another same buyer again. The flippers bought the house in 12/13 for $870K and the lot in 8/15 for $675K for a total INITIAL investment of $1.545M. Total sales were $3.15M, or a PRE-RENO profit of $1.605M ($155K from the lot). I doubt they spent that much on the reno, so it looks like they made some $$ on this venture, probably around $800K if I were to guess.
If you are seeing a pattern here, you are not alone! Speculators are buying properties that can be subdivided into 2 lots and are selling off the 2nd lot to lower their cost on the original. Interestingly they are NOT DEVELOPING the 2nd lot but only using it to lower their cost of the project on the first one. 11R Union is another example of this. The original buyer of 11 Union is trying to get $2.895M for the renovated house they paid only $435K for after selling off the 2nd lot. The buyer of 11R Union is trying to get $3.495M for the new house they built on the 2nd lot (11R) they paid $1.1M for. See the "Old Site" post for an extensive listing of recent sales on Union St. I think its the first mouse getting the cheese on this, as I see both these houses selling in the $2.4-$2.6M range, in which case the 11R people may not make much profit, if anything at all..
10 Seikinnow PL SOLD $550,000 This lot was on the market only 50 days this winter. Anything in the range sells quick. The neighborhood value is in the $1.2-$1.4M range making this between 39 and 46% of the likely finished value. The days of 25% land cost are long gone unless you find something subdividable, which is getting more and more difficult along with the prices going up. Sellers of subdividable land know the potential value (except for the Town, that is).
Jan 2017 2 Camelia Ln $695,000. This is the lot I sold. Altogether I think the buyer got a good price, along with the timing was good for me. We were going to close Dec 29 but I thought why not push it into a new tax year especially with the possibility of Tax Reform and lower rates. How about the first business day in 2017, the 3rd? It was the buyers birthday. Perfect. One of the 4 properties I bought with the proceeds is a 7 acre marsh front property with dock and a marsh island, a property I had been watching for TEN YEARS. It came back on the market just at the right time and at greatly reduced price. I had it under agreement within 24 hours of it being listed for just 31% of the asking price in 2007 (and only 87% of what he paid in 2005 not including 550 ft of dock, 1600 ft of water service and a registered survey and septic permit!). Had my sale been at any other time, I would have missed it. Meanwhile his project on Nantucket is well along in the framing stage. Although I probably could have got a little more had I been willing to wait, I would have missed this sunset. Sometimes the stars align and everything just makes sense.
Dec 2016
18 Parsons Ln in Tom Nevers SOLD for $995,000 after being on the market for 284 days. I may be wrong but I think this was listed before. Some of the higher priced lots are selling because the inventory under $1M has been, and still is Jack Squat.
9 North Point, Warrens Landing, SOLD $560,000 from a $579K ask after being on the market for 469 days. I used this as a comp to 2 Camelia, not that is was directly comparable (really nothing available was), but to demonstrate what a good value the extra cost was in buying my lot. The extra $135,000 the buyer paid for my lot will likely net a $1M higher value property. Now he will likely spend more on the house than this guy will, but thats still a pretty good land cost to higher value ratio for the difference, at just 13.5%.
Rear Plainfield $1.5M from a $1.695M ask. This higher priced lot was on the market 367 days. It is interesting that it seems that while there were quite a few higher priced lots on the market for quite a while, they are starting to sell and at pretty close to their ask. Its also interesting that the sellers of these lots were willing to wait for it.
Nov 2016
14 Pippens Way SOLD $1.35M/1.395 ask 841 DOM, 16 Pippens Way SOLD $1.575M/1.595 Ask 403DOM, in OCT 6 Pippens Way SOLD 1.375M/$1.45 Ask 863 DOM. More higher priced lots selling after long listing times very close to the asking prices.
12B Oak Hollow SOLD $765K (795K ask) after 240 DOM (Days On Market). Lot A sold in September for the same $765K price (these buyers were obviously watching the market and knew what the first lot sold for, which was a good indication of what the seller would let this one go for)
OCT 2016
7 Gardner, portion $675,000 ($950K ask). This was one of those "81L" lots in that it had a structure (garage) that had been on the lot for 50 years, which made the lots subdividable regardless if it had the proper square footage required by zoning. It seems crazy to me that this can be done, but people are taking advantage of it. 10 Weymouth (spin-off lot sold for $700,000 and 11 Union (spin-off sold for $1.1M) are other examples of this. This spin-off lot at 7 Gardner sold to the same people who bought the house. It is unknown to me what their plans are. I used all these as comps to my lot since they were the only other lots in Town, plus they were 1/2 the size of mine but priced significantly higher. Aside from the 11R Union, they ended up selling at a good discount to ask, but very close to what 2 Camelia sold for.
SEPT 2016
48 Westchester St SOLD $885,000 (ask was $895K). It seems this is one of those "Hey you have a double lot there, want to sell the side yard?" type of things. This is the degree to which the island is being scoured for vacant land. This was purchased by the same spec builder that build 1 Long Pond Dr, which I used extensively as a barometer for building costs. This has just come up on the market nearing completion for $2.595M. He seems to have a good knack for mid range ($2M area) spec homes that are well done, well priced and sell quickly. I expect no different here. This lot is about the same size as 2 Camelia and a similar distance to Town, but sold for $190,000 more. When finished, 2 Camelia will have a very similar value to this. Like I said, the buyer of 2 Camelia got a good price.
59 Westchester St $1,440,000 ($1.495M ask) This .23 acre lot was on the market for 415 days. The nearby lot at 65 Westchester is still on the market for $1.998M. This area has seen significant buildup over the last few years and home to a few successful $5M+ spec sales. Although the lot at 59 is smaller and wouldnt fall into the $5M category, the lot at #65 could. However, $1.998M is 40% of $5M, so it still seems a little high (especially to spec builders), which is apparently why its still on the market.
FEATURED ON THE OLD SITE AND STILL FOR SALE:
16 West York Ln $595,000. Although apparently off market as I write this, this lot has been on the market for 2+ years. I havent yet seen anything that indicated it is under agreement, so I wouldnt be surprised to see it come back. While it is nearby to 2 Camelia, it is in different zoning that gave 2 Camelia a 60% ground cover advantage. Also the neighborhood sells for around $1.25M, half of what a completed 2 Camelia would be worth. 2 Camelia's location was also superior, so I had no problem being priced higher than this lot. A lot of people who called asked about this lot because it was nearby, similar in size, but priced $150K less than mine. Once I explained the difference, they understood why.
Hydrangea Lane lots. I used these as comps because they were about the only lots on the market that would barely produce a $2M property (I was thinking a $2.5M final value for 2 Camelia, but given what the new owner is doing, its probably a bit more). 2 Camelia also compared favorably due to the zoning which gave 2 Camelia about a 1000 sq ft ground cover advantage over these lots. I'll have to look, but I still dont think any of these lots have sold. See the "Old Site" post for discussion of this neighborhood. I dont know what it is, but it seems awful difficult to sell anything on this street. #6, #9 (you can get a deal if you buy both) are still for sale. #4 is as well, as well as the house at #2 is still available for $2.25M (reduced from $2.495M). If you are on Zillow, dont get excited at the listings on the street for $1.3M as they are on Hydrangea Lane in Chatham Ma, not Nantucket!
10 York St $950,000. This listing is back on Zillow (and not on Nantucket LINK) with the same Boston broker. I dont know if it is a friend or relative of the owner, but all I can say is that 7 acre marsh front piece of property with the island I watched for 10 years was listed by an out of town broker. I dont care if its your identical twin brother or sister, dont list with an out of town broker. Oh, the other thing is dont list it at more than twice what its actually worth! On the "Old Site" post I demonstrate the firmly planted $1.3M selling price of this street, making this lot an astronomically high 73% of probable final value. In other words you will lose your shirt at this price. If this sold at the same ratio 2 Camelia did, the selling price would be $361,400. Thats how far out of whack this is. This is probably the most overpriced property on Nantucket. UPDATE 6/16/17 The house at 20 York is under agreement!
20A York St $750,000. This wasnt on the market before, but since its 3 doors up from #10 I'm including it here. This original house sold on 6/4/13 for $1.255M. Because it had an old garage, it can be subdivided! Crazy! I guess they fixed the house up and are trying to get $1.425M for it, plus $750K for the back yard (which by itself is 1600 sq ft bigger than 10 York St). A nice return if they can get it. Now all things being equal, I would rather be tucked in off one of the busiest streets on the island, never mind the 1600 sq ft bigger lot (and thus 800 sq ft bigger foot print you can have) , and never mind the $200,000 better price. Still, at $750K, you are still dealing with a $1.3M street price, or a 57.6% land cost. We will see what the house sells for, a 90% offer would be 1.282M, right in the selling spot for this street. So while the house is properly priced, the lot is still expensive, even though it is $200,000 less than the crazyness at #10. This is yet another case of "buy a subdivedable property and spin off the extra lot" instead of developing it. I guess if you can get enough for the lot that you wouldnt have made that much more in developing it, especially if you can reap the SAME without hammering a nail, then you might as well sell it and cash in now. What this means is the 2nd guy doesnt do as well.
55 Goldfinch Dr $599,000 This is lot still on the market with HDC approved plans for a Huntington modular. This price represents 46% of the usual current max price of $1.3M in this neighborhood, so still a little high if you ask me. They bought it 7/31/15 for $512,500 so when you figure what they are going to actually eventually get for it, plus the cost of the plans ($10K?), $10K Land Bank fee, with 5% commission, they arent going to be making a lot, if any. In fact if the above assumptions are correct, their break even is around $560K. I noticed the house is pretty big for the neighborhood, maybe they should scale back the house and build it, although at 2000 sq ft and a sale price of $1.2M they barely break even there too. In the end what this looks like is they overpaid for the land.
18 Mount Vernon St $980,000 This is still on the market without any budge in the price. It is comparable in area (and zoning) to 2 Camelia but is still $285,000 more than what 2 Camelia sold for. Like I said, I probably could have gotten a little more for my lot had I waited, but nothing like this more! At the time I thought 2 Camelia compared very well against this lot, both in price and in its more private location. This lot is located across from a cemetery, so no one is going to be building there, but it is on a "V" of 2 streets, so you have traffic on 2 sides of you. Its not a terrible spot by any means, but the only parameter that can be changed here is the price, and I think that needs to change before this property moves. My official guestimate on where this will move is in the $800,000 area.
2 Seven Mile Lane $995,000 (with HDC Plans), 4 Seven Mile Lane $925,000 These lots have been on and off the market for a while with no movement. They are just outside of Sconset and border hundreds of acres of conservation land, so a nice view out the back balcony. They are also down a short dead end lane which means hardly any traffic. These are certainly in the 30% land cost to finished value range, so I dont see these as terrible overpriced. With people effectively paying over 2x assessed value for land because they bought a house just for the lot, I dont see these being on the market too much longer. Maybe a little budge in the price will attract a buyer. I would think #4 will sell first since its further down the lane and I'm not sure the plans for #2 are worth the extra $70,000 (Especially if those plans are not what you want!).
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