Considering a waterfront home? Performing a little homework pays off in the end. Activity on the water can range from the very active to the actively relaxed. Surfing, fishing, boating and sunbathing – just about anything you could want is available to you.
9 complications to protect yourself from when purchasing a waterfront home
So it’s really no surprise that so many people would like to purchase their dream of buying waterfront property. And while there are actually definite deals to be had, as a result of demand, waterfront real estate generally has a higher price tag.
In addition to the increased price, there are also more factors and variables that could complicate a waterfront transaction. So keeping that in mind, listed here are our nine most typical mistakes made when purchasing waterfront property.
1. Not getting bulkheads inspected
A bulkhead is a barrier wall that separates the water from the property. The buyer may be responsible for building or repairing a bulkhead, so you’ll want to hire a certified bulkhead specialist to inspect any bulkhead, or area where a bulkhead ought to be, to have a concept of what costs are associated.
For a large bulkhead, the price can be in the tens of thousands or higher.
2. Not being proactive with financing
An average waterfront property will be more expensive than a similar property that’s landlocked. For this reason, many lenders will place waterfront property in the specialty loan category.
These loans will typically take more time to underwrite, so waiting until the last minute to obtain financing will drag the sale out and may even jeopardize the deal altogether.
3. Buying a house that’s not built to withstand the waterfront
Homes on the water take twice the abuse of a regular home. Homes on the ocean have it especially rough. The salt actually gets thrown into the air once the water evaporates, causing massive rust and oxidation.
A few things to keep watch for: Anytime you see metal outside at all, it should be stainless steel (the grill, the gate hardware, the nails on the siding, etc.).
Keep an eye out for features which can help protect the property from weather like storm shutters and homes with a taller foundation.
4. Neglecting to consider flood insurance
Flood insurance can be downright expensive. You should consult a qualified insurance provider to obtain a quote on flood insurance prior to making an offer on a property.
Nick & Cindy Davis who specializes in waterfront property know several good insurance agents to pick from.
Also, be aware of whether the sea level in the area is rising. Will the home require flood mitigation? Understand that flood insurance premiums will probably be rising.
5. Neglecting to find out if buyers can make improvements to the property
Part of the appeal of waterfront real estate is being able to use the property recreationally. But research should be done to find out what the city will allow regarding construction.
When a waterfront home needs a new dock, but water isn’t deep enough to float a boat, you may well be in a hopeless situation.
Check and make sure brush and trees can be removed if you would like improve the views. And if you are planning on install a pool or a tennis court, it might be a good idea to check with the city for approval first.
6. Not speaking with neighbors
Speaking with neighbors might not seem like an obvious choice, however you may want to consider the opinion of someone who has lived on the same water and understands the problems associated with it.
Neighbors could possibly have some information regarding a home that you are looking at that may make or break a deal. Find out if it is possible to swim in the water and partake in activities that interest you.
7. Not looking into utilities
The majority of us take our little luxuries for granted. We buy a house in the city or suburbs and expect adequate sewer, water and electrical services in addition to others.
If you are considering a property on the water in a rural area, a tremendous part of your research really should be inquiring about the access of these basic utilities.
A septic tank is generally required by a lender, and a new tank can cost thousands.
8. Not knowing the responsibilities of a waterfront homeowner
If the home is part of an HOA (homeowner’s association) or a POA (property owner’s association), homeowners will have certain responsibilities that are expected of them.
Some of these include what color they are able to paint the house, whether or not they can put in a fence and just what type of landscaping is acceptable.
An HOA is not for everyone, so make sure to read the regulations and rules.
9. Not pulling permits on docks and outbuildings
Just because a dock conveys with the property does not mean that it was permitted and doesn’t necessarily mean that homeowners may use it.
Another big part of due diligence is making sure the dock and any attachment to the land are properly (and legally) permitted.
Invest time to do your research, and you’ll be well on your way to find the home of your dreams.
Don’t you want someone who knows what to look for to assist you with the single most expensive purchase of your life. Nick & Cindy think so and ensure you don’t wind up in a situation you do not want to be in. To get started give us a call at 813-300-7116 or simply click here and we will be in touch.
See the Waterfront homes for sale here