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Originally Posted by Acrossamerica
The list price of 1.2 mil does not include the business nor any equipment. Now to an actual value, we have 24 feet of lake frontage at $5,000 a foot for raw land. That work out to $120,000. However one would need more waivers than found at a fourth of July parade. There is a cabin directly behind the main part of the building and that has the bulk of the footage on the lake and that is not part of the deal for the 1.2 mil. Further the right of way for the access to that cabin and for the big Victorian next door runs directly down the center of the parking lot. And who knows if the former gas station was ever checked out for possible environmental issues. A new buyer would have to have this checked before any bank would agree to a mortgage.
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So the lake access and frontage for which the real estate agent has convinced the seller the property is worth is really not a factor in its economic value. No docks, patios etc. could be built without agreement from the abutter and lots of variances.
So we have only the possible rent from the building to provide an economic base. Remember 90% of all retail in downtown Wolfeboro is not profitable for better than six months of the year and close to 30% of all the restaurants including the Yum Yum shop close every winter due to a lack of business. so rents higher than $1,000 - $1,500 a month are not workable unless one has a trust fund or a significant other that will allow you to run a hobby business. Then value has nothing to do with the situation.
True value for that building is around $500,000-$600,000.
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I wonder why the business and equipment are not part of the sale. The implication to me is the owners want to sell the real estate and open the business at a different, likely less expensive, location. Any thoughts?