Lake Property for Sale: How To Buy a Waterfront Home By Realtor.com

Imagine feeling like you’re on vacation every day. With a waterfront property, this can become your reality.

Whether you’re a retiree or simply longing for your own slice of paradise, lake homes might be on your radar. These types of properties may also be worth exploring if you’re an investor looking to diversify your portfolio.

Let’s take a closer look at how to buy a waterfront home, so you can decide whether it makes sense for your unique situation. 

How to buy a lake property for sale near you 

If you’re interested in a waterfront property, the first step is to zero in on exactly what you’re searching for.

“Spend time in the markets that interest you first. Visit several times and explore," suggests Glenn Phillips, CEO at Lake Homes Realty & Beach Homes Realty. "Get a feel for the area, and a feel for the differences in these markets with the seasons.”

Understanding the area will give you a better glimpse into what your lake life will look like. For instance, lake water levels stay constant year-round at some lakes and drop during the winter at others. It's up to you to decide what's important to you and what you can compromise on.

Another consideration: Homeowners associations. Some lakefront communities include them and therefore charge fees. Is having an additional monthly fee that could potentially increase over time worth living near the water?

Once you figure out your budget as well as your wants and needs, find a local real estate agent who has a proven record of many successful transactions in that specific market. You can also search for waterfront properties specifically online.

Looking for a lake lot 

Depending on your situation, you may choose a vacant lot to build on, rather than an existing home near the water. “The biggest difference between these two options is that there can be more unknowns about the land,” explains Phillips.

For example, if a waterfront home has already been built, then questions about sewer and septic systems, lake access, and the shoreline have likely been answered. For a vacant lot, you’ll need to perform far more due diligence as it's more of a mystery. Therefore, it may take you longer to find a lake lot than a lake home.

The logistics of lakeside living 

Before you move forward with a lake property, be sure to consider its pros and cons. The greatest benefit of homes on the water is that they often create an environment that fosters fun and relaxation. In addition, neighborhoods with waterfront properties tend to hold value better than those without them.

When it comes to drawbacks, waterfront homes require additional care and maintenance that can be costly and time-consuming. Plus, there might be special rules you’ll need to follow as the property owner. Also, if you decide to sell a lake home, prospective buyers probably won’t be local, making the marketing and sales process more difficult. 

In addition, unlike primary residential real estate, the time frame of buyers can span much longer, even years.

“Why? No one 'has' to buy a lake or beach home," Phillips points out. "It is a discretionary property, and so the buyers can be picky and wait until they find the home that they really want."

Lastly, climate changes can be particularly problematic for lakefront properties in places like North Carolina. Unfortunately, you can’t control or predict extreme weather conditions and events that may wreak havoc on your home and reduce the value of your investment.

What is the ROI on a lakefront property? 

Fortunately, lakefront properties are known to appreciate significantly over time, due to their scarcity and desirability. This is great news, whether you plan to buy one for yourself or invest in one to earn passive income. As long as you shop around and find a fairly priced deal on a waterfront home, it will hold similar or, in some cases, greater value to other residential homes. The goal is to make sure you don’t overpay.

“During the COVID-19 pandemic, there was a frenzy of lake home purchases, often paying premium prices," says Phillips. "This set of homes that were purchased out of urgency that were overpriced will likely sell at a decent price, but it may not be the purchase price."

To maximize your investment, it’s a good idea to hire a skilled contractor who can help you maintain your waterfront property. They can reduce the risk of costly issues and ensure it remains in optimal shape. Also, consider adding amenities like docks, pools, hot tubs, fire pits, outdoor kitchens, and anything else that will take the space to the next level.

"Call Eli Torres at (832) 430-2107, for your home buying and selling needs."

Source: www.realtor.com