Wednesday, November 21, 2012

Vacant Lake Lots Snatched Up

     Over the last year there had been no vacant lots sold on Delavan Lake.
     Over the last two years there had been no vacant lots sold on Delavan Lake.
     Over the last three years there had been no vacant lots sold on Delavan Lake.

     You get the picture.

     This was true until two parcels, each with 100 feet of lakefront just recently sold.
     And the price for each, $600,000.

     You would think that would then set the value for 100 feet of lakefront on Delavan, however, there is more to the story.

     The first lot, located at 1713 South Shore, had 100 feet of frontage, about an acre of land, but was next to the Village Supper Club.  Not that there is anything wrong with the Village Supper Club.  Quite the opposite, they have great food and a killer fish fry.  But, in general, people don't want to build a million dollar house next to a supper club. This had an effect of reducing the value by 25 percent or $200,000.

     The second lot, located at 3117 South Shore, also had 100 feet of frontage, three acres of land, but had an easement from the sanitary district along the east side of the property.  The easement included access for the district to come down the driveway, a lift station and a pumping station.  All these blemishes also created a discount.  This time in the range of 30 percent or $300,000.
View from 3117 South Shore Drive


     So with four vacant lots still available on Delavan Lake, what is the value for a 100 foot lot?  Based on recent sales a 100 foot lot with one acre of land has a current value of $800,000.  Additional land will add additional value; location and slope of the frontage will take away value.
     It is nice to see, however, new construction taking place around the lake.  Along with these two lots, we have also seen two homes torn down on the south shore this year and rebuilt as modern lakefront estates.