Lake Real Estate

COURTESY OF THE NATION’S LARGEST LAKE-FOCUSED REAL ESTATE COMPANY AVOIDABLE DANGERS 10 WHEN BUYING & SELLING LAKE REAL ESTATE Every type of real estate has some surprises for the uninformed. In niche real estate, such as lake homes, beach homes, and other unusual property, there are often unusual “gotchas” you should anticipate. Lake Homes Realty’s expertise makes buying or selling a lake home a smooth process. Life at the lake is fantastic, and none of these so-called “dangers” should be deal-killers for the buyer or seller. Buyers should simply be informed, and sellers should make sure their real estate agent is correctly proactive in marketing and helping prospective buyers. 1. Fooled By Value “Estimates” Technology has made a wealth of real estate information available for the public to access online. However, not all you read online is always accurate, particularly websites that “estimate” the price or value of real estate. This accuracy problem is far worse with lake property. A subdivision near a city may have dozens of similar residential homes, all with similar value. Meanwhile, at most lakes, it is common for neighboring homes to vary significantly in design, size, features, age, upkeep, water access, and land value. While this wide variety of homes provides for wonderfully unique lake properties, it is a nightmare for computers trying to estimate a home’s value. ADVICE: Eventually the algorithms and data will get better at value estimates, but for now, remember that the online values are rarely accurate for lake homes, and the error can easily be in either direction (too high or too low). 2. Misunderstanding Land Value’s Price Influence Many times when someone begins shopping for a lake home for the first time, they are hit with sticker shock. “$450,000 for this home that is 3 bedrooms and 2 baths?! This home would only be worth $300,000 in my neighborhood!” They’re right. What most first-time lake home buyers fail to account for is the value of the land at the lake on which the home was built. A lot in the middle of the suburbs may not be overly expensive, but land with 200’ of shoreline on a gorgeous lake has tremendous value. ADVICE: If you want a lake home comparable in design, size and features of a home in the suburbs, remember to add the additional significant value of the lakefront land to the price. 3. Surprised by Water Levels Many lakes have seasonal water levels, meaning that in the summer the lake is “full,” but in the off-season (which ADVICE: Don’t feel can start as early as September) the lake is lowered for you must avoid lakes flood management, maintenance, or other similar reasons. with seasonal low water What this can lead to: It’s summer, and you’re looking for levels, but be sure you your new lake home. You’ve found a home you love and understand water depth make the purchase. and seasonal levels so Six months later, you find out that you can no longer you don’t get surprised access your dock by boat because your area of the lake after a purchase. drops 10 feet in the winter. 4. Unexpected Seasonal Views When shopping for a lake home in the cooler While you may be able to easily see the lake or months, pay attention to the view, particularly other scenic vistas in the winter, how will this the trees and foliage. same view look when spring rolls around and the trees are no longer bare? ADVICE: Remember that it is not uncommon for summer foliage to partially or fully obstruct views of the water from a lake home. 5. Forgetting to Consider Bridges Bridges on some lakes can be restrictive. pass through to other areas of the lake. For instance, when you have only 10 feet of Like to sail? Pay careful attention, as the mast clearance from the water to the bridge there can impose tight limitations on where your will be some boats that simply cannot fit and boat can sail. ADVICE: Carefully consider the size of your boat (or boats you aspire to own or use) and any access limitations created by bridges and other lake features. Real Estate Agents and Their Understanding of Lake Real Estate When it comes to buying a lake property, you will “That property is 45 minutes from a grocery store. benefit from a true lake expert real estate agent. On this one, the water drops 8 feet in October. That While your friend or family member may be a real section of the lake is leased land only, and the local estate agent who closes 100 properties a year, bridge restricts you to only the northeast section of knows the ins-and-outs of contracts like the back the lake.” of his hand, and negotiates like a politician, that is An expert lake agent knows the nuances of buying only half of the process. and selling lake real estate and will help you A true lake expert will not only be adept at the navigate the unique challenges. closing process but will also know the lake and its The lake expert can help sellers find remote buyers many surprises. for listed lake homes and help buyers understand Want to see a listing? A lake expert will tell you the lake real estate market and opportunities. what to expect. 6. Forgetting Watercraft Rules Almost all lakes have some form of restriction on watercraft allowed on the water. For smaller lakes, this could even be as limiting as no motorboats allowed at all. For larger lakes, it is generally a restriction on boat or engine size. If you’ve been around lakes before one thing you will notice is you don’t see very many 50’ yachts cruising around. ADVICE: Understand these rules in advance of a lake home purchase, and you’ll be much happier with both your watercraft and what your neighbors have on the water. 7. Assuming Dock & Boat House Rules The entities that own the lakes are typically also who manage the shoreline (even if you own the property) and they can set regulations that restrict or prohibit docks, piers, and boathouses. Some lakes have a set number of dock permits and once that number is reached, it can be very hard (or impossible) to obtain permission to build a new dock. Other lakes may have updated their regulations but leave unique scenarios. For instance, on some lakes, new boathouses or docks are prohibited, but if a property already has such a structure, then it may remain (i.e., the structure is “grandfathered in”) under certain conditions. ADVICE: Remember that even if you see boathouses, piers, or docks all around a lake, it does NOT mean you are guaranteed the right to build, upgrade, or replace one on your new property. Be sure to ask and get the answer in writing. 8. Ignoring Public Access Some lakes have an abundance of public boat ramps, but that is not always the case. ADVICE: Know that Maybe you purchased a lot and built a house, but are on a public access can result in waiting list for a dock permit. In the meantime, you will have to the lake being more crowded use the public lake access, which on the map is very near your than you may have noticed house, but in reality, it is a 35-minute drive. during the winter months, or Likewise, during the summer, the water on lakes with an compared to other lakes with abundance of public access areas can be very inviting to lake less public access. visitors that are not lake homeowners. 9. Misunderstanding Leased Lots Most lakes in the Southeast are managed by a power company (Alabama Power, Duke Energy, etc.), the TVA, or the United States ADVICE: Don’t let leased Army Corps of Engineers. lots scare you away from a In some cases, these entities not only manage the lake but also great lake home. At many own the lake and its shoreline outright. lakes, these are common and practical arrangements, just In these situations, you are not purchasing the property; you are not something first-time lake leasing it from this owner. These leases can range from 30 to 99 home buyers have seen before. years, depending on the lake and location. The help of a knowledgeable Some of these leases come with a guaranteed opportunity to developer or lake-focused real renew while others do not. estate agent is invaluable in Keep in mind that any improvements made to the land (which understanding a lake’s leased include building a house/dock) will transfer back to the lot arrangements. landowner when the lease expires. 10. Lake Homes Can Be Hard To Find Lake homes can be remote, and while that can map programs. be part of their charm, it makes buying and Searching for lake homes listed for sale selling difficult. is typically very different than cruising Not only are they often remote, but in some subdivisions looking for the “For Sale” signs. areas, the roads are narrow, not well-marked, Some lake communities do not even allow and may not show up on GPS devices and “For Sale” signs. ADVICE: For lake home sellers, understand the importance of proactive and targeted marketing to find buyers, including those active buyers who may be several states away. For buyers, utilize the internet plus consider a local lake expert agent to locate properties that genuinely match the criteria for your dream lake home.

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