One of the true luxury items that you can purchase is a located near the water. Waterfront Homes command a premium price and are highly sought after. However, anybody who has ever owned waterfront property is well aware that they are both risks and benefits to owning it and making a decision to buy a home located near the water is something that requires serious consideration.
Risks of Buying a Home near the Water
When one thinks about the major risk associated with having a home near the water it can only be a flood. When you consider the impact that a flood can have you will understand the risk on your home. Homes located near the water are prone to flooding despite the preventative measures that are taken by homeowners sessions utilizing stilts and other modes of home protection.
Flooding can cause significant damage to your home leading to property damage, mold, electrical fires, and damage to the structural integrity of the home and potentially lower the homes value. Beyond that, the risk of flooding can also lead to higher insurance premiums and, in certain areas that are significantly susceptible to flooding, the inability to obtain flood insurance of any kind. This can make it impossible to get a home mortgage as most require insurance to protect their loan principal.
Benefits of Buying a Home Near the Water
If you are searching for a waterfront home for sale, you may be envisioning cabo real estate, or a lakeside cabin in Minnetonka, but you are likely looking for a beautiful view of the ocean or lake that you enjoy waking up to every morning. You can engage in various backyard activities that makes owning a waterfront property truly special. If you have a boat, and if you live on property next to the water you should, you can quickly experience the benefit of jumping onto your boat and exploring the ocean with little effort. Many homeowners can enjoy fishing from their backyard which is a fringe benefit That cannot be overstated. There is also a level of seclusion associated with living near the water and a higher status class associated with doing so as well.
Premium Pricing of Waterfront Homes
When you look up the price of homes in an area generally speaking most expensive homes are located right next to the water. You should be prepared to pay a premium price for a waterfront property due to the benefits noted above, but fortunately that premium has been shrinking steadily. However, keep in mind that there are many homebuyers who will specifically avoid buying a home that is located next to the water for the risks noted above. Having a solid real estate investment strategy can be advantageous.
The exact premium that you pay for the waterfront property will fluctuate wildly based upon the neighborhood and the size of the home. However, considering it to be likely that you will pay almost 1.5 times as much for waterfront property over a home that is not located nearby the water. In addition, you may want to avoid homes that are located near but not directly on the water as they have the risks of flooding without the significant benefits that waterfront property offers.
Many people with small kids are fearful of living near the water because of the risk of having your children fall into the water and beach around here or you can simply a fence on your property this is a step that may diminish the benefits of living on the water.
Protecting Your Home
Having a waterfront comes with some added maintenance and preventative costs. Have a disaster recovery plan in place and items at hand that can help you to protect your home, such as sandbags and a sump pump. Further, go for flood insurance to protect your assets and be sure to keep your precious goods elevated and away from rising water levels.
A waterfront property can be the best real estate out there. But it will require special care when you are going to buy a home or sell a home due to the added risks and home buying considerations needed.