Planning a wedding on Fire Island? Bridezillas need not apply.

Over the last few years, we have met a number of couples determined to have their wedding on Fire Island. Getting a wedding together on Fire Island requires a determination far exceeding the requirements for any mainland service and celebration. 

The first and perhaps most important challenge is to acknowledge that some, most, or all of your family and friends may not share your passion for having your wedding on Fire Island.  After all, they will have to get here, park their car at a ferry terminal, walk to the terminal and then find you once they disembark in the appropriate community. The logistics can be daunting for older relatives and friends. 

Appraisals: A Buyer’s Guide
Why should we care about falling real estate values in the Hamptons?  Why do potential Fire Island buyers and tenants feel compelled to share the Hamptons’ dire real estate information and insight? It must be envy. A comparison of Fire Island real estate values with those in the Hamptons is meaningless, but what does Fire Island have in common with the Hamptons? They are both popular Suffolk County summer vacation destinations. The comparison begins and ends there.
Real estate valuation, whether in a rising or falling market, has always been a very tricky calculation.  As it has been sadly demonstrated over the past year, it is hardly an exact science. And over-estimating value can have devastating consequences. There are a number of factors that enter into determining the correct worth of your home, and there is wisdom in the saying that it is worth exactly what someone is willing to pay for it. That wisdom, however, can be misleading.  Hindsight is much more instructive, and a buyer or renter’s hesitation over an asking price may put them at a disadvantage. People who ignore “conventional wisdom” when they are willing to assess value based on their individual requirements (what requirements?) are often the ones who step in and make the best long-term investments.
An initial proper pricing is an essential first step to the successful sale or rental of your summer home. A buyer or tenant’s ability to recognize and/or accept the correct pricing or appraisal is the second phase to a successful transaction. An appraisal is an opinion of the value of a property as of a specified date. It is a professional judgment based on various data collected in the relevant marketplace. When markets behave erratically and the equilibrium of the marketplace is disrupted, however, it becomes much more difficult to appraise the value of any given property.
The process itself starts with an examination of relevant recorded sales or known rental prices.  These comparable sale or rental prices (“comparables”) are the single most important indicator of value. The sale prices are public record and can be found at the Suffolk County Recorder’s office.  Services are available that provide monthly sales reports for Fire Island, and most real estate brokers and appraisers subscribe to one or more of them. The more specific the target area, the more relevant the reported sales prices are.  Where sales figures reflect a non-homogeneous area, it may be impossible to evaluate the community framework for the sale, and those prices are inapplicable. Specificity is the key.
As part of an active real estate community, local brokers and appraisers generally know exactly what has transpired during any given real estate transaction. They know the sales price for all recorded sales transactions in their community. Brokers and appraisers are also familiar with the location and layout of the house, its condition, the size of the property and the difference, if any, between the asking price and the actual sales price. They know how long the house has been on the market, and they know whether there have been interim price reductions. They know if similar houses are on the market and, if so, how long they have been listed and at what price.  They also understand the various limitations to building on Fire Island and they know whether or not those limitations might negatively impact a sale of a specific property, and why.
Unfortunately, active Fire Island appraisers, for all of the above-stated reasons, are aware that there is really no such thing as a comparable on Fire Island. Every house is different; every location is different. When evaluating the sale price of homes, an appraiser searches for a recently-recorded sale of a property in the community. They look for a similar location, similar home style and lot size.  The date of the comparable sale and any special conditions of sale are also taken into account. A house’s condition is generally not used as an indicator for bank appraisals, but it is a significant consideration for the real estate brokers’ determination of value for sales purposes.
If the appraiser or real estate broker is unable to find at least three recently closed sales that are sufficiently comparable to support a given value estimate, other factors must be taken into consideration.  At this point it becomes a professional best guess.  Recorded prices of earlier sales, contract prices in current, but not yet closed, transactions, and sale prices in similar communities are all examined.  If comparable sales are sought outside of a specific community, it is important to consider the social, economic and environmental conditions of the neighboring town or village to support its comparability.  As a last resort, listing prices of comparable homes are considered.
On Fire Island the sluggish sale and rental market is ending.  In some instances sale and rental prices are adjusting, but these adjustments are minor.  There is no clearly-defined difference between 2008 and 2009 sale and rental prices. The expression, “last year’s prices,” is meaningless.  The true value of Fire Island homes includes the uniqueness of the environment.  We pay a premium here for the convenience, the water, the fresh air, and the quality of our lives.  We are the fortunate few.

Linda Cahill heads Barrier Beach Properties, Inc., a New York State Licensed Real Estate brokerage firm located in Saltaire.  She can be reached at (631) 583-7600

or through her Web site www.barrierbeachproperties.com