Real Estate Confidential is a weekly chit chat about new listings, sales, or other insider info on the Martha’s Vineyard real estate market, by Fred Roven, Martha’s Vineyard Buyer Agents. It appears each Friday in The Minute.
When I prepared a statistical model a year ago of properties that were prime for negotiation, I looked at extended days on market (DOM), which I still believe is a valid criteria, but also considered properties that were assessed at or below their asking price. Although those properties remain good values, they may be as low in price as a seller can consider. I changed my formula this year and in addition to DOM, I looked at properties priced much higher than their assessed values would indicate as the current value and without any apparent reason. I selected properties from that group this year because I believe they provide the most room for negotiation.
Although assessed value of any individual property may not be a good indicator of current value because of many subjective characteristics, an average of the ratio of sales price to assessed value and then weighting those properties with days on market may well give (statistically) an idea of the level of opportunity.
Now is a good time to buy a vacation or investment property. According to the Investment & Vacation Home Buyers 2018 Report by NAR(National Association of Realtors):“72% of vacation property owners and 71% of investment property owners believe now is a good time to buy.” It’s time to take advantage of the equity in your home. Over a quarter of Americans who have a mortgage would be able to use some of their home equity to make a significant down payment toward a vacation home, and many are doing just that! According to the same report by NAR: “33% of vacation buyers purchased in a beach area, 21% purchased on a lakefront, and 15% purchased a vacation home in the country.” Martha’s Vineyard offers all of these purchase opportunities.
Might as well start with my favorite, 20 Leona Lane. Located in Nat’s Farm, the community was founded with this Declaration of Purpose: “…believing that the structures and activities of man should mildly enhance the dominant open, natural, scenic, and agricultural features of the land, to maintain open spaces, to preserve views from the public road and on the land, to provide pedestrian and equestrian paths from the parcel, to preserve the character of the landscape, and to require practical, energy efficient design and construction techniques for the residences planned for the land.”
The home is a sunny contemporary with open kitchen/living area with cathedral ceilings, fireplace, wood floors and lots of glass looking south. As part of Nat’s Farm, there is a private trailhead to access State Forest trials. Also, ball field and tennis courts are across the street at West Tisbury School.
The most interesting opportunity in this group because of location is 4 Peases Point Way in Chilmark. In it’s quiet location down an idyllic country lane sits this traditional expanded Cape with an en suite first floor master bedroom plus a renovated kitchen including new appliances, updated bathrooms and a new roof. In addition to the advantage of Lucy Vincent and Squibby on the south shore you are close to Great Rock Bight and hundreds of acres of conservation land to hike. You will be just minutes from Menemsha for an early morning swim or idyllic sunset lobster dinner.
The best statistical value (based on my own statistical model) in this grouping is 100 Mitchell Road in West Chop. It is a renovated Cape in a very private setting with all the amenities Mink Meadows has to offer-A nearby sandy, association beach with views across Vineyard Sound to the Elizabeth Islands and Woods Hole, Mink Meadows Golf Club, the West Chop Community and a relaxing walk to the Vineyard Haven Yacht Club and town. The home is ideal for a summer vacation, a rental investment or a comfortable home for a growing island family
For many second home buyers, the best of Vineyard style living is this classic colonial in Edgartown with easy access to the village, Morning Glory Farm, the bike path and South Beach. The home at 14 Bold Meadow is highlighted by open-designed living spaces and oversized windows which fill the home with natural light. The gourmet cook’s kitchen boasts stainless appliances, stylish granite tile countertops and a built-in coffee bar. One of the 4 bedrooms, located above the garage, is a perfect guest suite for visiting family and friends. This property has been rented during the summer season for $5,000/week and there is plenty of room to add an in-ground swimming pool!
Click here to view additional properties that I feel, with some negotiation, could be among the best values for investment, summer or year-round use. They are all priced between $875,000 and $1,495,000.
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