Things To Consider Before Buying A Waterfront Home

Furthermore, beachfront houses are usually in great demand and have higher rental rates. This means you should be able to rent yours out if you’re just going to be there for a short period of time. Although no investment can be guaranteed, a riverfront property is an investment with a view, and that’s something worth betting on.

ENSURE YOU HIRE A KNOWLEDGEABLE INSPECTOR

If there’s one thing you should know before buying a waterfront home, it’s to stay away from the water. While the water is lovely, you must ensure that the property is up to code.

To ensure that your waterfront home is in good working order, conduct surveys, elevation certifications, water quality testing, wetlands delineations, bulkhead inspections, and other land and water-based inspections.

Remember that many waterfront properties will be in flood zones or wetlands, which might make construction more difficult. If you want to develop on the property, make sure you know what you’re getting yourself into.

INSURANCE REQUIREMENTS SHOULD BE CONSIDERED

Because waterfront properties are frequently subject to floods, insurance can be prohibitively expensive. Get a quotation for your home as well as any additional coverage you may require from a qualified insurance provider. This is an important step to take before buying a waterfront home.

In regions where there are waterfront properties, flood insurance is frequently necessary. Your real estate agent can assist you in determining the best course of action in terms of insurance.

WHEN IT COMES TO FINANCING, YOU SHOULD BE PROACTIVE

You’ll almost certainly need to qualify for a specialist loan category because waterfront property is often more expensive than other raw land parcels. Be proactive with your financing because these loans take longer to underwrite, and the time it takes to receive one could endanger your ability to buy the property.

YOU SHOULD BE ON THE LOOKOUT FOR HIDDEN FEES

If you’ve never bought a waterfront property before, you might not be aware of all the hidden charges that could end up costing you money when buying a waterfront home.

Here are a few things to keep in mind:

• Lots leased – Did you know that when you buy a lake house, you could have to lease the land as well? This is because the lake and the shoreline are occasionally owned by the municipal or federal government. You must enter into a long-term lease with the owner if you buy a home on leased land.
• Taxes on real estate – Property taxes on waterfront properties are frequently higher.
• Insurance – Homeowner’s insurance is frequently increased due to the greater exposure of your waterfront property to the elements. If you live in a flood-prone area, you’ll almost certainly need flood insurance as well. This is usually distinct from a standard homeowner’s policy.
• Bulkheads – If you’ve never bought beachfront property before, you might be surprised to learn that you’re often responsible for the bulkhead’s upkeep and maintenance (or the barrier between the water and the land). Before you buy a beachfront home, make sure you get a professional bulkhead inspection.
• Docks for boats – A dock for your beachfront property can be a costly undertaking. Before you buy a house, make sure you know how much it will cost to build a dock or repair one.
• Utilities – Because waterfront houses are often located in distant and rural places, power, water, cable, and other services may be expensive, assuming they are even available. Developing wells and septic systems for a property without access to public services is one of the most significant hidden costs.
• Homeowners’ associations (HOAs) – HOAs are sometimes seen on waterfront properties. There are fees associated with these organizations that you may not be aware of.

YOU SHOULD CONFIRM THAT THE DOCK (AND ANY OTHER ATTACHMENT) IS PERMITTED PROPERLY AND LEGALLY

Those who have never lived on a waterfront property may be surprised to learn that just because a dock comes with the property does not guarantee it was lawfully permitted. It also does not imply that property owners are permitted to use it.

Investigate the dock (or other attachment) on your property. Was it legal to do so? Will you be able to use it if you buy the property, or does the dock belong to someone else? It’s worth your time to include this in your due diligence so you don’t end up with a feature that’s completely useless!

WHAT UTILITIES ARE AVAILABLE

Depending on where you buy your beachfront property, utilities may or may not be included. If there isn’t currently a house on the property, you’ll need to make sure there are water and sewer hookups, as well as other electrical utilities.

This is an important component of your due diligence, and if you don’t conduct it right during the purchase process, it can make your task much more difficult than it needs to be. Remember that installing utilities to a property is typically more difficult than you think. It’s probably worth reconsidering a home that doesn’t have utilities, no matter how lovely it is.

CHECK TO SEE IF YOUR WATERFRONT HOME EXTENDS TO THE WATER’S EDGE

The lot lines for waterfront properties often do not extend all the way to the water’s edge. It’s possible that there’s a strip of land between your house and the water that belongs to someone else. Examine the legal description in your deed as well as the plat map to determine where your property formally stops. You could also have your lawyer investigate this for you.

THE HISTORY OF THE SHORELINE SHOULD BE RESEARCHED

Let’s be honest. It’s only because you live on the water that your beachfront home is cool. Are you certain it will remain that way indefinitely? The environment is changing these days, notably as a result of climate change and rising sea levels.

It’s worth it just to learn about the history of your seashore for this reason. Your house could be a quarter-mile away from water and still require a flood insurance policy. It is critical to research the area that you are looking before buying a waterfront home.

AS A WATERFRONT HOME OWNER, YOU SHOULD BE AWARE OF YOUR RESPONSIBILITIES

That’s correct! It’s not all fun and games having a waterfront property. Determine whether your home will be part of a homeowner’s association (HOA) or a property owner’s association (POA). If that’s the case, you’ll have to keep your property in a certain condition and follow certain rules.

If you’ve never had a HOA or POA before, you can be limited in what color you can paint your house, what kind of fence you can put up, and how you should plant your grass. An HOA/POA isn’t something that everyone wants to be a member of.

Before you buy a property inside its boundaries, read the laws and regulations of the one you want to join. You might also discover that the association has an access easement on your property, allowing other property owners to access the water through it. A title company or a lawyer can assist you in your search.

CHECK TO SEE IF YOUR HOUSE WAS BUILT TO SURVIVE ON THE WATERFRONT

Waterfront homes, especially those that are exposed to seawater, must be built to withstand the elements. Water evaporates when salt is flung into the air, causing rust and oxidation. This might degrade your home and produce problems in the long run. Whenever possible, choose stainless steel (grill, gate hardware, nail on the siding, etc.).

Other additions that assist protect our property from the elements, such as storm shutters or a higher foundation, might also be a worthwhile investment.

WHEN BUYING A WATERFRONT HOME YOU SHOULD SEARCH FOR A DEAL

When folks have excess cash, they buy a waterfront property. This might be a bit of a splurge for you. It’s possible that it’ll be your vacation house. It could be something you’ve been fantasizing about for years. If that’s the case, kudos to you! You’ve worked hard for it, and it’s nice to see it finally pay off.

Nonetheless, you should go into the market with some suspicion. Not everyone wishes to possess a beach house or a lake house (isn’t that surprising?). Some folks are eager to get rid of their property or do not want their lovely coastal land. 

Use the fact that the seller is in a haste to sell to your advantage! You can still get a deal if you don’t project your dream onto someone else.

SUPPLY AND DEMAND SHOULD BE TAKEN INTO CONSIDERATION

If, on the other hand, you’re starting to see a lot of nice offers, it might be time to talk to your waterfront real estate specialist. It can be a symptom of a sluggish market if there are too many houses on the market at ridiculously low prices.

Of course, this does not rule out the possibility of purchasing, but act with caution. Make sure you speak this topic over with your partner and that you’re making sound financial decisions.

HAVE A STRATEGY WHEN BUYING A WATERFRONT HOME

Why are you so interested in this seaside property? Are you seeking a place to live either full-time or part-time? Your response to this question can aid you in developing a strategy for locating the ideal house.

You should carefully consider building a house to serve as your primary residence. You won’t need to buy “two of everything” if you make your lakefront property your regular abode, as you would for a vacation home.

You’ll also get the greatest bang for your buck because you’ll be there all year. However, not everyone wants to leave their current location. You might want to seek a house that you can use part of the year and easily rent out the rest.

The cost of ownership will be kept low as a result of this. You can also filter your search by thinking about what you want to get out of the water:

• Do you want saltwater or freshwater, for example? Some people enjoy the smell of salt water, while others would never consider swimming in anything other than a freshwater lake.
• Do you want to bring your “toys” out on the water with you?
• Boats and jet skis?
• Do you want to be able to mix your passion for sports and your love for the water? If that’s the case, a lake property is definitely a better choice.
• If you desire peace and quiet, though, a smaller body of water (that wouldn’t be well-suited for these “things”) or something on the beach might be a better option.

WHEN BUYING A WATERFRONT HOME CONSIDER MAKING IMPROVEMENTS

Will you be able to add features to the property that it doesn’t have now? Property on the water is most desirable when it can be used for a variety of recreational activities. Regrettably, not every city allows for all of your desired purposes.

• Will you be able to get a new dock or pier if necessary, for example?
• Is there enough water to float a boat?
• Are there any restrictions on the types of vehicles that can be used on the water?
• Will you be able to clear brush and trees to improve the property’s views?
• Are fishing licenses required?
• Do you intend to construct anything additional that would require clearance, such as a pool or tennis court?
• Are there any restrictions on the size, location, or height of a home?

While checking ahead of time may be time consuming, it will be worthwhile if you learn that you won’t be able to achieve what you want with the property in the long run.

CONTACT YOUR FUTURE NEIGHBORS

Speaking with your neighbors may appear to be a risky move. Not everyone enjoys conversing with locals, especially if they are unfamiliar with the area. However, if you’re wanting to buy a beachfront property, this could be one of the greatest options.

After all, who knows more about the neighborhood than the people who live there? Take what you’ve heard into account (although, take it with a grain of salt if you need to).

• How long have your neighbors been living on this piece of land?
• Is it a full-time or part-time residence for them?
• What kinds of problems do they have to deal with?
• Is there anything you wish you knew about them?
• Do they have any knowledge of your property?
• What kind of activities are permitted?
• Do you know how to swim?
• Are there any restrictions or rules?
• Is there a HomeOwners Association?

Your neighbors might know something about your possible acquisition that could make or ruin it. If at all possible, avoid skipping this step!

YOU SHOULD WORK WITH AN EXPERT

Because waterfront property is frequently expensive, you may want to hire a professional to assist you. Your typical real estate agent lacks the in-depth information required to assist you in finding the best house in the suitable price range. Take the time to discover someone who can assist you.

They’ll know what questions to ask, when there’s an issue with the property (like oyster beds that make it difficult to get your boat in and out), and when it’s time to haggle on the price.

A waterfront property expert will act as your champion and guide you through any areas of the process that you are unsure about, such as title concerns, structural challenges, and the market’s particular perspective on the property.

Summary: Things to consider before buying a waterfront home

Waterfront real estate is unlike any other kind of real estate. Because you get land and water at the same time, it has a unique beauty and versatility. It is, however, more difficult to purchase than land-locked real estate.

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