Two listings hit the market on the same day this week and immediately entered the top tier of the Seven Mile Island market.
One is a bayfront estate in Stone Harbor listed for $14.95 million. Hours later, a bayfront lot in Avalon came to market for $13.7 million.
The spread between them is $1.25 million.
The difference in what a buyer receives is substantially larger.
By the Numbers
- Stone Harbor: $14.95 million, finished bayfront residence, south-facing
- Avalon: $13.7 million, vacant bayfront lot, west-facing
- Difference in asking price: $1.25 million
The Stone Harbor property offers a completed luxury residence. The design work is finished, the capital has already been invested and the home can be used immediately.
The Avalon property offers something different.
The west-facing bayfront parcel gives a buyer the opportunity to design and build a custom waterfront residence on one of the Shore’s most desirable sunset-facing sites.
One listing reflects a series of decisions that have already been made. The other preserves the ability to make them.
What Makes the Comparison Unusual
- The asking prices are separated by only $1.25 million.
- One property can be occupied immediately.
- One requires a second round of multimillion-dollar investment.
- One largely removes construction risk.
- One places that responsibility on the buyer.
At most price points, a completed luxury home commands a significant premium over vacant land.
At the very top of the market, waterfront location and future development potential can approach the value of a finished residence.
The dynamic reveals two distinct approaches to luxury real estate.
One buyer values a finished product with proven execution.
Another values the ability to shape the outcome.
At the very top of the market, both appear willing to pay nearly the same price.
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