Whether you are looking to sell or buy a Florida waterfront property in Lake Nona, it is important to know how to price it. When you understand the valuation process, you will be able to better estimate how much your property could be worth. If you’re buying, you’ll be able to make a competitive offer.
Our team is happy to give you the information you need to price your house accurately. We are also proud to be able to offer you guarantees about buying and selling a Florida waterfront property in Lake Nona that you will not find anywhere else. To learn how to value your Florida waterfront property, read on for all the information you need to know!
Why Is It Important to Properly Value Your Florida Waterfront Property?
When it comes to Florida waterfront property, it is not always easy to determine its current market worth. In order to value your Florida waterfront property, you must know what factors affect it and what the various methods of valuation are. Once you have a clear understanding of its worth, you can adjust your expectations for the future sale of your property.
Home buyers who are looking to invest in a waterfront property in Lake Nona will be doing their research. They want to know how much they should plan to pay for their dream property. If you price your property too high or too low, according to current market estimations, buyers will overlook it. To sell your property fast and get the highest possible price for it, be sure to know precisely how to value your Florida waterfront property in Lake Nona.
Factors that Affect the Value of Your Florida Waterfront Property
There are a variety of important factors that affect the value of your Florida waterfront property in Lake Nona. Not all waterfront properties are equal. Different factors may change your home’s current market worth. Here are some of the most common factors that will affect how you value your Florida waterfront property in Lake Nona:
- Location in Lake Nona
- Proximity to the water
- Type and size of the body of water (ocean, sea, river, lake)
- View of the water from the home
- Accessibility to the water from the home
- Waterfront features (docks, boathouse, sea wall)
- Community amenities
The assessment will include all of these factors. Once you have your property valued properly, you can rest assured that your listing will be accurate, reasonable, and profitable. It will also attract legitimately interested home buyers who are ready and willing to pay top dollar..
Types of Valuation Methods
When your value your property, there are three basic methods for assessment. These include: comparative market analysis (CMA), cost approach valuation, and income approach valuation. To ensure you are fully informed of these approaches, we will discuss each below.
Comparative Market Analysis (CMA)
One of the three valuation approaches is the comparative market approach. The CMA is a home valuation method which estimates the worth of a home based on the sale prices of similar properties, or “comps,” which have been recently sold in your area. A realtor who uses the CMA will use this information to set listing prices and ensure that home buyers can make competitive offers.
The CMA will use factors such as location, size, age, style, condition of the home, construction, and others. When a realtor is asked to complete a comparative market analysis, the following steps will be taken:
- Evaluating the neighborhood for its general quality. Things such as HOA rules, amenities for the community, school proximity, and other factors will all be taken into consideration for this evaluation.
- Gathering details about the property through an in-person visit. Of particular note will be the size of the home, style, construction, age, finishes, landscaping, upgrades, and more.
- Selecting comps which are similar in all respects to the house, especially if there are unique features such as the view or location on a waterfront
- Making adjustments for differences between the home being evaluated and the comparable homes. A great realtor such as ours at Your Home Sold Guaranteed Realty - Florida Waterfront will be able to determine a price for those differences and adjust the value of the comp. A good example would be the addition of a bedroom in the comp home that would raise its price. Our realtor would deduct a certain amount from the comp home for the extra bedroom so that the comparison can be equal.
- Determining the price per square footage after adjusting for the differences. There are a few more calculations that need to be done before your realtor can ultimately estimate its price. Our team is happy to discuss these calculations with you in detail.
While the CMA is a great indicator of a property’s price range, it is not as accurate or considered as legitimate as a professional appraisal.
Cost Approach Valuation
A second valuation method is the cost approach. In this method, the price a home buyer should pay is based on the cost for building an equivalent structure. To determine this property value, the cost of the land and the total costs of construction are added together. Then, the depreciation is subtracted from that total. When a property is brand new, the cost approach method is the best way to determine an accurate market value.
There are two types of cost approach methods: reproduction and replacement. In the reproduction method, the cost of building a replica of the property would be considered. And special attention is given to using original materials. On the other hand, the replacement method focuses on new materials, current construction methods, and design updates. It assumes that the new structure has the same function as the original.
It should be noted that most residential appraisals do not utilize the cost approach. This is because the CMA method is usually more appropriate. The cost approach method can be used for special use properties like schools or churches. Or, new construction, insurance appraisals, and commercial properties such as office buildings and retail stores.
Income Approach Valuation
The third valuation method is the income approach. With this method, also known as the income capitalization approach, investors estimate the value of a property based on the income generated by the property. You complete the process by taking the net operating income (NOI) of the rent collected through the property and dividing it by the capitalization rate.
It is a difficult and quite involved process that someone uses when an investor is purchasing a rental property. The investor will also consider the condition of the property, and any necessary large repairs will likely cut into future profits. The efficiency of the property’s operations are also considered, and properties in which the rent collected is less than the current expenses will probably be passed over.
It is wise to discuss the income approach with a realtor if you are looking to buy or sell a commercial property so that you better understand the income approach valuation.
Special Considerations for Florida Waterfront Properties
Unlike other types of properties, Florida waterfront properties in Lake Nona have special considerations. Some of these unique issues that can affect your Florida waterfront property value include:
- Hurricanes and other natural disasters common to Florida
- Rising sea level and quality of the water
- Insurance costs of requirements related to waterfront properties
These issues can seriously impact the value of your property in Lake Nona, so it is important for you to talk with our realtors about these considerations. Our team is happy to evaluate your property and make sure that you get the best value assessment for your waterfront property so that it can sell quickly and for the highest possible price.
Contact Us to Find out How to Value Your Florida Waterfront Property in Lake Nona
If you are looking to buy or sell a Florida waterfront property in Lake Nona, be sure to work with an experienced realtor such as ours at Your Home Sold Guaranteed Realty - Florida Waterfront to understand the value of the property. Our team is here to help you achieve your real estate goals.
When you need to value your Florida waterfront property in Lake Nona, give us a call at 407-307-2617 or fill out the form below with the requested information to receive a detailed response from one of our experienced realtors. We look forward to helping you with your Lake Nona, FL, waterfront property transactions.