Waterfront Property: The Definitive Buying Guide

Millions of Americans plan to buy homes in the coming years. Though potential buyers have different images in mind when they think of their perfect homes and properties, many people’s visions include close proximity to a lake, river, or ocean. Waterfront properties are in high demand, and with good reason. After all, quite a few people head to the lake or beach to get away from everyday life. Why wouldn’t they want to live in a home that offers that type of escape as a part of everyday life?

Factors to Keep in Mind When Buying Waterfront Property

If you’re one of the many people interested in buying a waterfront home, knowing what to expect going into the process is essential. Waterfront properties are a bit different than others. That’s true in terms of financing, ownership requirements, and long-term considerations. As such, certain factors need to be kept in mind when shopping around and purchasing this type of property. 

Get Approved Ahead of Time

One of the first measures to take is obtaining pre-approval for a mortgage. Waterfront properties are often more expensive than standard homes and lots due to their benefits, appreciation rates, popularity, and scarcity. That means being approved for a mortgage loan ahead of time will give you an idea of whether you can afford to purchase the property you’re interested in. You’ll be able to narrow down the possibilities to a list of those that might be in the cards and avoid getting your hopes up over those you aren’t likely to be approved for. 

Know the Insurance Requirements for Waterfront Properties

You also need to know what types of insurance coverage will be required for the property you’re thinking about buying. Coverage requirements for waterfront properties typically extend beyond standard homeowners’ policies. You may need to purchase additional wind damage and flood protection as well as other types of coverage. This can drive up the long-term cost of ownership, but it’ll also protect your best interests should things take a turn for the worse. 

Understand Additional Costs of Ownership

Extra insurance coverage is only one expense to consider when purchasing a waterfront property. A great deal of maintenance and repairs may also be necessary. That includes upkeep for a boat dock and the bulkhead that protects the property from the water. At the same time, close proximity to water can take an added toll on a home and other structures on the property. Those are some of the main factors to remember when calculating the long-term costs that may be involved.

Be Aware of Your Rights

Additionally, you need to understand which rights you’re entitled to as a waterfront property owner. Is the beach area private or public? If it’s public, you may end up with more uninvited guests than you bargained for. That could limit your ability to make changes to the property as well. Furthermore, it may alter your responsibilities as a landowner.

At the same time, be sure you understand whether your property actually extends to the water. Some people have purchased waterfront properties only to find out later on that they didn’t own quite as much as they thought. As a result, they didn’t have the same level of access to the water they’d hoped for. 

Being Informed Before Buying Waterfront Property

These are some of the most important factors to consider when purchasing a waterfront property. Overall, know exactly what you’re buying and which costs and responsibilities may arise along the way. That’ll empower you to make the most of your investment and prevent unpleasant surprises.