I recently had a client interested in finding out how I valued property on Lake Osoyoos because all of the other agencies had priced the properties with no continuity. So I showed them the correct way to value properties on a specific body of water. This is how I do it, first I locate the three highest valued comparable sales. (Here are the highest sales as of 09/14/2008, these will be good for another 3 months)


Comparable #1

Sale Price: $999,900.00
Sales Date: 07/15/2008
Improvement Sq Ft: 1622
Acreage: 0.08 acres
Address: Veranda Lot #82
New Owner: Kennedy
Tax Parcel ID #9105008200
Amount of Lakefront: 75'

Comparable #2

Sale Price: $890,000.00
Sales Date: 06/06/2008
Improvement Sq Ft: No Improvements
Acreage: 0.50 acres
Address: 19 Champerty
New Owner: Gallagher
Tax Parcel ID #4780110000
Amount of Lakefront: 140'

Comparable #3

Sale Price: $750,000.00
Sales Date: 07/16/2008
Improvement Sq Ft: No Improvements
Acreage: 0.16 acres
Address: Veranda Lot #111
New Owner: Kosior
Tax Parcel ID #9105011100
Amount of Lakefront: 72'

In this example here is a property we will value based on the above comparables:
Subject Property
Sale Price: To Be Determined Below
Sales Date: Not sold yet
Improvement Sq Ft: 3500
Acreage: 0.70 acres
Address: TBD
New Owner: "Alex"
Tax Parcel ID #TBD
Amount of Lakefront: 100'

New construction value on Lake Osoyoos is currently running $200.00 per square foot. I am assuming your property improvements have depreciated approximately 50%.
The depreciated value of the home separately would be: $350,000. (3500 sq ft home)
All other comparable properties have water and sewer so we won’t adjust for these improvements.

Comparable #1 Improvements: $324,400.00 No depreciation (brand new house) leaving Land value at $675,500.00

Comparable #2 Land Value: $890,000.00

Comparable #3 Land Value: $750,000.00

The first thing we do with valuing land is to give the non-lakefront portion of the land value. Based on comparable sales we would give the non-lakefront portion value at $125,000. per acre.

Comparable #1 Land Value Non-lakefront: $125,000.00 X .08 acres = $10,000.00 Then you would subtract $10,000. from $999,900.00 leaving $989,900.00 then subtract the improvement value (above) $324,400.00 equals $665,500. to calculate lakefront value. Then $665,500.00 divided by 75’ equates to $8873.33 per lineal foot.

Comparable #2 Land Value Non-lakefront: $125,000.00 X 0.50 = $62,500.00 Then you would subtract $62,500. from $890,000.00 leaving $827,500.00 to calculate lakefront value. Then $827,500.00 divided by 140’ equates to $5,910.71 per lineal foot.

Comparable #3 Land Value Non-lakefront: $125,000.00 X 0.16 = $20,000.00 Then you would subtract $20,000. from $750,000.00 leaving $730,000.00 to calculate lakefront value. Then $730,000.00 divided by 72’ equates to $10,138.88 per lineal foot.

Taking these three per-lineal-feet figures and adding them together then dividing them by three gives us an average per-lineal-foot figure.

The average per lineal foot price is $8307.64 based on these figures.

Now we reconstruct the subject property as follows:
Non Lakefront land value: $125,000. X .70 acres equals: $87,500.00 We have already established the improvement values at: $350,000.00 The per lineal lakefront value is $8307.64 per foot X 100’ equals $830,764.00 Leaving the actual Value based on Comparable sales in the last 6 months at: $1,268,264.40

I specialize in Lakefront sales and I would love to market your property for you, let me know if you would like to list your property! To see the properties I have sold in the last 3 years go to:
Ryan's Sales

To see the properties I currently am actively marketing go to:
Ryan's Listings

To see information on the lakes in our area go to:
The Lakes of Okanogan County
-Ryan