Owning a home on the water is a dream for many people, and waterfront homes are typically considered very desirable. If you are in the position to purchase a waterfront home, you will need to be prepared and understand the differences between a waterfront home and a normal home. Whether you're looking for property for sale on a lake, river, or ocean, avoid these common mistakes when buying a waterfront home:
Failing to Have Financing in Place
Since waterfront homes are very desirable, they often have a much higher price tag than similar homes that are not right on the water. Even if you know that you can afford the mortgage on a waterfront home and you are confident that you will qualify for a loan, it is essential to have all of your financing in place before you begin to look at waterfront properties for sale. Getting approved for a large mortgage loan can take longer than a standard loan, so begin the loan process well in advance.
Neglecting to Factor in the Cost of Flood Insurance
In many cases, mortgage companies require loan holders who own property on the water to carry flood insurance. Even if your mortgage lender does not, it is important to have flood insurance to protect your investment. It is important to note that flood insurance is not covered by your homeowner's insurance policy. You will need to purchase a separate flood insurance policy through the National Flood Insurance Program. Make sure you find out how much flood insurance will cost for a property that you're interested in, and determine if you can comfortably afford the premiums.
Considering a House that Has Not Been Designed and Built to Withstand Being on the Water
While waterfront homes have beautiful views, a house on the water is also under a lot of stress due to its proximity to the water, especially homes on the ocean. When searching for a waterfront property, it is important to look for homes that were specifically designed and built to withstand the waterfront. Quality waterfront homes often have taller foundations and should be outfitted with storm shutters. Any metal fixtures on the exterior of the house should be stainless steel to help prevent rusting and corrosion.
Forgetting to Look Up Permits for Outbuildings and Docks
Many waterfront property listings say that the dock conveys with the property, but it is up to you to look at the permits and find out if the current dock attached to the property is permitted. The same goes for any outbuildings on the property or along the water. Avoid waterfront homes with docks and outbuildings that are not permitted, as they may not be up to code.
Contact a company like Davis Driver Group RE/MAX PLATINUM LIVING for more information and assistance.Share