In Palm Beach County, empty lots can be worth millions of dollars. Just ask the coffee mogul Robert Stiller. After buying one of the empty Palm Beach lots, Stiller learned first-hand how valuable the land could be. His lot wasn’t the only one with the potential to make money. Find out just how valuable lots are in the area and why they have so much value.
Making Money Off of Empty Palm Beach Lots
When the billionaire Robert Stiller bought a piece of lakefront land in Palm Beach, he didn’t know what would be the outcome. The founder of Keurig Green Mountain Inc. bought two pieces of lakefront land for about $8.65 million in 2011. He left both properties vacant and bought a home next to one of the properties. Recently, he sold the empty lot next to his home for $4.7 million to 235 Via Vizcaya LLC. Stiller also sold his adjacent home for just under $13 million. Although Stiller made a profit off of his sale, he wasn’t the only one. 235 Via Vizcaya LLC flipped the land for a big sale.
After purchasing the lot, the company didn’t keep the property for long. They immediately sold the lot for $5.5 million. In a quick flip, the company was able to make an $800,000 profit.
The person who bought the lot is County Down Trust. According to the documents, Andrew W. Regan is the trustee. In July of 2017, Regan and the trust bought Stiller’s adjacent house for just under $13 million. Buying the lot ensured that the trust has a large property as well as the 9,435 square foot home that they bought from Stiller.
Not surprisingly, 235 Via Vizcaya decided to purchase another let. They paid about $5 million for a different lakefront property. Located north of the property they sold, the lot also has potential to sell. Each lot was only about one-third of an acre each. While the first property had 112 feet of property on the lake, the second has 153 feet of lakefront property.
Why Are Empty Palm Beach Lots So Valuable?
For six years in a row, the taxable property value in Palm Beach County has been on the rise. This shows that the value of property is also on the rise. For homeowners and landowners, this is good news. Property in Palm Beach County is a hot commodity. This is especially true of empty Palm Beach lots.
There are a few reasons that the price of empty Palm Beach lots is so high. For one, there’s the limited availability of waterfront land. Everyone wants a property on the water. Whether it’s on the ocean, a lake, or a canal, waterfront property is highly desired. However, it’s also hard to find. There are only so many lots in Palm Beach that are on the water. Unfortunately for buyers, many of those lots are in the hands of people who don’t want to sell.
Another reason for the high value of the lots is the location. With many million dollar homes in the area, Palm Beach County is an affluent area. Many people are willing to pay high prices to own land in such an affluent area.
Home Values Also on the Rise
Of course, when home values rise, the value of empty lots also rise. And the value of homes in the area is and has been increasing for quite some time. In the county, the median price of a single-family home increased to $335,000. Only one year before, that value was $327,000. In one year, the median value rose by 7.9%.
Many of those homes were in the $600,000 to $999,999 range. Over the year, there was a 45.1% increase in home sales in that range. For homes that cost over one million dollars, there was an increase in sales of 19.8%. Homes that cost over $600,000 in Palm Beach County seem to be what the buyers want.
Although some buyers would prefer to buy a home, others prefer to start from scratch on a lot. This is especially true of the mansions that some of the rich and famous want to own. While pre-existing homes can have unusual styles and features, a new build is custom-made. For that reason, empty lots can be a great opportunity. They give a seller an opportunity for a quick sale, and a buyer an opportunity for a custom build.
Buying or Selling Land in Palm Beach County
If you want to buy one of the empty Palm Beach lots, then you need to act quickly. There is only so much land available. To find out more about what’s available, contact your real estate agent.
Likewise, you should contact your agent if you want to sell your empty lot now. In real estate, there are no guarantees. While the market is hot today, it could go cold tomorrow. Contact your real estate agent and find out if now is the time to sell your empty lot.