THINGS YOU SHOULD KNOW BEFORE YOU BUY A WATERFRONT PROPERTY!!

Waterfront homes are naturally appealing to buyers. Who wouldn’t want to live right on the water?  Buying waterfront property is the ultimate real estate experience. Perhaps more than any other type of purchase, buying a waterfront home or home site is as much about a lifestyle as it is a real estate investment. Owning a property on the waterfront is a lifelong objective for many buyers. But this ownership dream can quickly become a nightmare for those who don’t complete their research on waterfront property before they buy. There are a number of factors to consider before settling into a home by the water and we’ll tell you all you need to know to make the transition comfortable and for the long-term.

·         FIND A WATERFRONT SPECIALIST REAL ESTATE AGENT: Fortunately, real estate agents who regularly deal with waterfront properties know the ins and outs of this process. Professionals with experience in this unique real estate area can help you understand your maintenance requirements as a waterfront homeowner. They can help you understand how the elements might impact your ownership experience. And they can also help you select that ideal waterfront home within a prized location.

·         CAN YOU GET A LOAN: Waterfront homes are often considerably more expensive than a similar home in a regular neighborhood. Because these homes are pricey, they require bigger loans. Lenders are not apt to give out bigger loans to any but the most qualified buyers. Before you start getting your hopes up about buying a lake house or beach house, check to see that you can get the money to do so. If the location in which you are looking in is fairly pricey you can expect that a jumbo mortgage will be needed. Jumbo loans are used by those who will be taking out a large mortgage. As a buyer you ought to start this process before you start looking for the waterfront property because a Jumbo loan can take a lot longer than a regular home loan.

·         CONSIDER THE PROPERTY MORE THAN THE STRUCTURE: Oftentimes, people fall in love with a house, but after they buy it, they realize the swimming is mucky, the view’s not very good, it’s difficult to get down to the water, or the place is not very private. You can change the house, but you can’t change the location, so buy a property that you really love. When you look at a property, verify that it actually extends to the water. You also need to clarify who has use of your property along the water’s edge, and what roads, docks and other areas might be used by people other than you. The vision you have of owning your own private beach may not be realized in many areas. You will need to look at a survey of the land, a plot map and talk to your Realtor – and possibly a real estate attorney – to get completely clear on what you are actually buying.

·         HOME OWNERS ASSOCIATION: Many waterfront properties are part of a homeowner’s association. If you are considering buying a property governed by an association, it is important that you understand what that association expects of you. You will be obligated to meet requirements for owning a home in the area, requirements that may or may not be OK with you. The last thing you want is to be stuck in a place you are not happy with. This can happen when proper research is not done on what you are getting yourself into.

·         EVALUATE HOW THE PROPERTY MIGHT CHANGE WITH THE SEASONS: While that waterfront home might look great in the peak of the summer, the winter could present its own set of ownership challenges. But buyers should also consider the factors involved in year-round waterfront property ownership. For example, how does the home respond to changing water levels from winter to spring? Does the water quality level change from spring to summer? These are important factors to review when speaking with a specialist about waterfront property ownership.

·         MAINTENANCE COST: Because waterfront environments can cause increased wear on a structure, you can probably expect to pay extra for ongoing maintenance. You should ask what the yearly maintenance costs are, and consider those costs in your purchase. Things like pipes, attachments, roofs and siding may all need to be replaced more regularly on a waterfront home. Even if you can afford to buy the home, can you afford to keep it up so that it remains a good investment and a dwelling that you can depend on?

·         INSURANCE COST: Another important question to ask before buying a waterfront home is if there are any unusual insurance expenses.  Look into this early to make sure you know what you’re getting into. Because waterfront homes are often at increased risk of being damaged by natural disasters, such as hurricanes or floods, they are also typically more expensive to insure. You will also need to include these increased insurance costs in your overall calculations for the cost of ownership. 

·         TALK TO NEIGHBORS: Get insider information from neighbors by asking if they enjoy living in the community, if they have any issues with the property you’re thinking about purchasing, or if there are any waterfront-related problems. They may give you valuable information about what it’s like to work with the homeowner’s association, as well as how the water is used by the area community. Those that live in the local community may also be able to inform you of any bad eggs living in the area. For example you may not enjoy living next to a bunch of teenagers who are constantly buzzing around your backyard on their jet ski’s while you are trying to enjoy a lazy afternoon in your canoe. Or maybe you are the one that loves jet or water skiing and won’t want to bother the old man living next door. You should always have a good understanding on who you will be living with, when sharing a waterfront home. While it does not necessarily pertain to living on a waterfront area, some people like to check if there are any sexual predators living in the general area, especially if they have kids.

·         CONSIDER THE SAFETY ISSUES: For those moving into waterfront property with their families, it’s important to consider the safety issues that are unique to waterfront property ownership. For example, you might have to install a fence surrounding the yard to prevent young children and pets from falling into the water.

·         CHOOSE THE PROPERTY THAT FITS YOUR LIFESTYLE: In the excitement that comes from knowing you can buy a waterfront property, it is sometimes easy to lose sight of why you would want to live on the water in the first place. For instance, a home on the beach may be a long distance from any docks where you can store and use your boat. If you love going out on the boat, but it takes over half an hour to get to it, will you be likely to use it regularly? You may be able to find a home that is not on the water, but that is close to the docks, that gives you better access to the thing you love to do most. Maybe sitting in a canoe or on your dock going fishing in a peaceful environment is your idea of lakefront living. If this is the case the thought of jet skis and other motor boats buzzing by your home might not be up your alley. Focus on the activities you’re passionate about and choose a property accordingly.

The waterfront home ownership experience can help fulfill a life-long dream. To speak with one of our trusted waterfront property agents directly to learn more on moving forward in the property ownership process call 416-371-3737.

Editor: Neha Charan