As the threshold of the 2007 hurricane season is before us, the allure of waterfront property remains unchallenged. As with diamonds, automobiles, and art, waterfront real estate comes in a variety of size, quality, and features. In the Ocean State, salt water front is the finest, most valuable waterfront. What is most intriguing is the breath of value of salt waterfront. Moreover, the least expensive salt waterfront among the states from Maine to Virginia is here in Rhode Island. The stats are fascinating and also reflect the difference in value between ocean front and bay front.
We studied MLS closed sales of single family properties from January 1, 2006 until May 28; 2007.Waterfront varies direct with the ‘quality’ of the water:
Town/City: ........# Sales...........Range.............. Median Price......... Cost/Sq ft.
Warwick.................34.......... 159.9-1500.k .......488k....................... $290
East Providence ......14........... 247.-860.k.......... 433k.................... $306
Cranston.................. 4 ..........575-875 k.............. 702k................... $357
Warren.................... 5.......... 305-2,440.k.......... 1,123k................... $437
N. Kingstown......... 34........... 430-2,200.k ........1,037k ...................$442
Barrington............. 10 ..........330-2,700k...........1,189k ...................$449
Bristol .....................9..........275-3,275k.............1,051k ..................$470
Tiverton................ 11...........408-4,400k ............1,331k.................. $495
Portsmouth............21............280-5,800k........... 1,254k .................$533
Newport.................. 3...........1,295-17,150k........ 7,115k .................$540
Little Compton......... 1............. 2,800k..................2,800k................$636
South Kingstown.....12..............622-1,145k ..........1,734k.................$659
Narragansett ..........16 .............465-2,415k ..........1,117k..................$681
Jamestown............... 8...........1,460-2,975k.......... 2,182k.................$812
Charlestown............15............. 625-4,350k............1,952k...............$1016
Westerly ................10............ 600-6,800k............3,408k...............$1255
Information is from the STATEWIDE MLS and is deemed reliable but not guaranteed.
Numbers are numbers and statistics are statistics. The question is what do they tell us?
First waterfront is limited with a high demand.
Second, ocean front waterfront is more valuable than bay front.
Third the range of sales price is from $159,900 in Warwick to $17,500,000 in Newport.
What is fascinating is the range of value on a cost per square foot basis from $290 in Warwick to $1,255 in Westerly. The sample may in fact be somewhat small for absolute conclusions, but generally, Rhode Island is the best value for Salt Waterfront in the Northeast and Warwick is the best value in Rhode Island. So if you are looking for waterfront for less than a million dollars, Rhode Island is THE option. Sometimes the best opportunities are right in your own neighborhood. Celebrate the gift of waterfront in the State. And if so inclined, purchase waterfront.
If you do purchase waterfront, complete your due diligence. Obviously, with all real estate you need to have contingencies for building inspection, financing and clear title.
With waterfront you should also check on the availability/cost of insurance, particularly flood insurance, any building violations, particularly with the Coastal Resources Council, and waterfront features, particularly the seawall. If you are buying waterfront, make sure to look at comparable sales. While list prices are informative, closed sales are true comparables. Make certain to look at the closed sales and acknowledge the difference from one community to another. As with all real estate purchases, having representation is not a luxury, it is a necessity. If you are looking to sell, price reasonably. Price is the single most influential element in this market.
Celebrate the Ocean State and enjoy owning waterfront!
No comments:
Post a Comment