When I wrote to tell you about Solar Lane earlier this spring, I told you that the property was unique in that it allowed the new owner flexibility. The flexibility, I argued, was what made this property worth pursuing. The flexibility was the rare piece to this otherwise typical lakefront property. If there’s one thing that separates the sales from 2021 from the sales of 2019, it’s the lack of flexibility. In case you’ve forgotten, it goes something like this: Buy a nice house for $5.2M. That house would have been worth $4.7M two years earlier, but you’re not a time traveler, and so you have to buy in the present. You buy that nice house, and then what? The house is far from perfect, so you need to remodel or renovate or otherwise improve. But have you just taken a $4.7M house and paid $5.2M for it and then put $800k into it? You probably have. Is that a good idea? Maybe, but maybe not.
The Solar Lane lakefront that I was pleased to represent closed last week for $4,395,000. This was my fifth lakefront closing of 2021, bringing my 2021 sales volume to more than $49,000,000. That’s a pretty nice start to the year, but the market has a lot more to say before 2021 is finished. But enough about me, let’s look back at Solar Lane. At the print price, the new owner has now found the rarest of all 2021 attributes: Flexibility. The new owner could renovate the two homes on the property, and find an all-in number sub $5M. The new owner could tear down and rebuild someday, finding a future valuation in the $7M range. The property allows those outcomes, in large part because the home itself lacked the fancy bits that might have pushed the current valuation up into that price range that eliminates future flexibility.
We’ll get into a full market report in time for Memorial Day Weekend, along with the launch of a fantastic new lakefront on Friday. Summer is coming, but for the new owners on Solar Lane, it’s already begun.