South Florida Home Prices: Bang for your Buck
As I always advise, educating yourself about the Market should always be the first step of your Home search. This is A MUST so that you can have a realistic understanding of the Market and be able to determine if appropriate Homes are available within your desired price range.
When searching for Homes, it’s VERY important to know that in the Ft. Lauderdale area and other areas of South Florida, Waterfront (Ocean access) properties and those that are located East of I-95 have SIGNIFICANTLY higher Land values than those that are located West of I-95, non-Waterfront, and farther away from the Atlantic Ocean and Beach.
What this means to you is that, on the West side, you get more House for your money and, on the East side, you get more location for your money (“more location” meaning Waterfront and closer proximity to the Beach and Ocean). Several West locations in Broward County offer many Luxury Homes and Gated Communities, but are undesireable to those who want to be within walking distance of the Beach or no more than 5 miles away from the Beach, instead of driving ~20-30 minutes from a West location.
I work with many Waterfront Buyers and those who are unfamiliar with the market are often surprised about the smaller Home size, smaller Lot size, and older condition of the lowest priced Waterfront Homes. Many expect to find in Southeast Ft. Lauderdale a $1,000,000 House that’s equivalent to a $1,000,000 House located West or in other Waterfront areas of the County. Often, Buyers who live in West areas of Broward County, but are starting their Home search for East or Waterfront properties in the entry level price range have difficulty adjusting to the reality of smaller Home sizes and others features that they find undesireable. By “entry level price rangel” for Waterfront locations, I’m referring to the $500,000 price range. I always say that the term “Luxury” is relative when it comes to East and Waterfront properties since Land value and location is such a significant part of the price. The entry level price range buys location, NOT the most beautiful, spacious Home or one that would be considered a luxury Home.
Also note that there are significant differences in Waterfront property prices for Southeast Ft. Lauderdale locations vs. Northeast Ft. Lauderdale and Broward Cities such as Pompano Beach, Lighthouse Point, Deerfield Beach, Hollywood, and Hallandale. Southeast Ft. Lauderdale’s Waterfront prices are higher than prices in the other Cities that I mentioned.
Visual examples are great, so I included information below about 3 Homes purchased within the last 30 days in Broward County, one located West, one located Southeast, and one located Northeast. I selected properties that are average representatives of Homes purchased within their price point in their areas. All are normal Sales (not Short Sales or Bank Owned Foreclosures).
Home in Plantation Acres
- Purchase Price: $1,200,000
- Purchase Date: December 21, 2009
- City: Plantation, FL (West of I-95, adjacent to Ft. Lauderdale)
- Subdivision: Plantation Acres
- Home details: Non-Waterfront, built in 2004, 6,109 Total Square Feet, 5 Bedrooms, 4.5 Baths, 3-Car Garage, Pool, private Tennis Court
- Lot size: 1 Acre
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Las Olas Isles Home
- Purchase Price: $1,150,000 (average entry level price in the Community is $900,000)
- Purchase Date: January 7, 2010
- City: Ft. Lauderdale
- Subdivision: Las Olas Isles (Southeast Ft. Lauderdale, less than 5 minutes from downtown Ft. Lauderdale/the Las Olas area, and the Ocean + Beach)
- Home details: Built in 1956, 2,352 Total Square Feet, 3 Bedrooms, 2.5 Baths, 2 Car Garage
- Waterfront: 100′ of Ocean Access Waterfront on a wide Canal without Fixed Bridges, very close to the Intracoastal
- Lot size: 1/4 Acre
The lowest priced Waterfront Homes are often sold at prices that aren’t significantly more than their Land value alone and are often considered to be “Teardowns” (there are VACANT Waterfront Lots that are selling for $1,000,000+ IN THE CURRENT MARKET). The following remark from the property description for the Home above highlights this fact perfectly:
“…this is a beautiful property for a new Home. “
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Lighthouse Point Waterfront Home
- Purchase Price: $1,280,000
- Purchase Date: 12/8/09
- City: Lighthouse Point (adjacent to Pompano Beach and Deerfield Beach)
- Subdivision: Coral Key Villas
- Home details: Built in 2005, 5,151 Total Square Feet, 5 Bedrooms, 4 Full Baths, 2 Half Baths, and 2-Car Garage, and Pool
- Waterfront: 80′ of Ocean Access Waterfront on a wide Canal without Fixed Bridges, very close to the Intracoastal and close to the Beach (Deerfield Beach)
- Lot size: 1/4 Acre (note the significantly smaller Lot Size than the Home sold in Plantation Acres)
Over time, East and Waterfront locations typically increase more significantly in value than West and non-Waterfront locations and hold their value better, however, they’re not immune to current market conditions and most are available at prices that are significantly reduced from peak prices of several years ago.
Related Information: