Buying a Waterfront Home? What You NEED To Know

Buying a Waterfront Home?  What You NEED To Know

waterfront homes

What to Expect When Buying a Waterfront Home

Are you searching for a new home? Why not consider purchasing a home or property on the water? There are many benefits and luxuries associated with waterfront living, and homeowners who purchase homes near the water live a different lifestyle than typical homeowners.  Living on the water can even reduce stress and provide a healthier lifestyle!  If you are in the market for a new home and want to know more about what to expect when buying a waterfront home, this article is for you. Read further to find out more about what waterfront living will look like for you.

Life on the Water

If you’re thinking that living in your dream home near the water would be a fun and relaxing experience, then you are correct! Living near the water comes with many advantages. For one, you have nonstop access to the water and all of the water-related activities you can think of.

You can kayak, paddleboard, swim, fish, ski, snorkel, take out your boat, and more!  In some cases, you can even keep your boat and kayak on your own personal dock. You will be able to enjoy all that the water has to offer without the inconvenience of parking fees, dock fees. etc. You can simply walk out your door and step right into the water! And think of the views! You can enjoy your water view without the high price tag of a luxury waterfront hotel. Enjoy beautiful sunsets and sunrises right from the comfort of your own home.

You can also expect a sense of tranquility and peace by living near the water. The air quality is naturally cleaner near the water as well. You can also expect more privacy with your waterfront home, as part of your home will face the water instead of someone else’s backyard.

You likely won’t have to worry about noisy neighbors or dealing with new homes being built and ruining your view. Waterfront homes often have the added benefit of enjoying the outdoors in general. From hiking the woods in a lake residence to strolling the beach in an oceanfront home, if you love the outdoors, waterfront living is for you.

Maintenance for Waterfront Homes

wrightsville-beach waterfront homesYou can expect the maintenance for waterfront homes to be a little more extensive than that of homes that are not located near the water. For example, you might want to consider adding in additional maintenance checks and precautions depending on where you live. If you live near the ocean, the salt from the ocean can do damage to certain materials, so preparing for that prior to building or purchasing is essential. Of course, flooding can occur, high winds, etc. While the upkeep might be a little more taxing, most waterfront homeowners find the extra work well worth it.

Finding the Right REALTOR

Just like with anything, you are better off when using an expert.  In this instance, we strong recommend using a real estate agent that has a specialty in waterfront properties. With all of the unique aspects of the sale that come with buying a waterfront home, having a real estate agent with experience in representing buyers for this type of property is critical.

For instance, many waterfront homes for sale have a bulkhead installed – this is the man-made barrier where the water meets the land.  Bulkheads can get extremely expensive to install or repair – we are talking up to $500 per linear foot – your agent should be able to connect you with the proper home inspector for such a project.  Bulkheads are just one example of the uniqueness of purchasing a waterfront property, there are many things that an agent who specializes in waterfront properties will be able to help with.

Insuring Waterfront Homes

The insurance for waterfront homes is typically more costly than other homes as well. This is due to the increased risks such as flooding, hurricanes, etc. that are often associated with waterfront living. Flooding, hurricanes and other storm-related damage are not usually covered in general homeowners insurance. And by living on or near the water, your home is more susceptible to these types of risks and damages. Therefore, you will likely be required to purchase wind, flood, and general homeowners insurance for a waterfront home.

Finding out the price of these insurances before choosing a waterfront home will help you understand how much you can afford as far as a monthly payment is concerned. Chances are the insurance could push you over the limit you set for yourself for mortgage payments, so that figure is important to know beforehand. As with the maintenance and upkeep for waterfront homes, most homeowners find the extra cost of insurance for waterfront property to be well worth the investment.

Beachfront Homes

Owning a beachfront home is generally something that most people consider to a factor of the Lifestyles of the Rich ad Famous.  Truth is, if you want to own your own little piece of beachfront real estate, a condo may be a way to make your dream come true.  Condos can be a very cost-effective way to live not only on the water…but on the beach!

Affordability of Beachfront Condominiums

When you purchase any condominium, you are buying into “shared ownership” with the other condo owners.  This lets the major costs of living on the beachfront be shared with your neighbors.  The bulk of the cost in living on the beach is the land itself – which in the instance of a condo, is split between all owners.  This means that owning a beachfront condominium is by far the most cost effective way to have a beachfront abode.  Of course there are unique aspects to purchasing a condo, so once again, we recommend a condo expert. One of the biggest differences between buying a condo and a single family property is the reviewing of the condo documents.   One of the hottest and most affordable destinations for beachfront condos is Panama City Beach  With the huge influx of tourists who travel to #PCB for vacations and Spring Break – many people rent out their condo’s and turn them into Vacation Rentals.

Learn About Condo Docs

 

Waterfront Homes Are Always in Demand

Another benefit that you should consider when purchasing waterfront property is the resale value. If you think about it, there are only so many waterfront properties available, and because of this limited supply, the homes located on waterfront property are much more valuable and desirable. If you ever consider selling your home or even renting it out as a vacation home, you will probably bring in top dollar for it. So in the grand scheme of it all, your waterfront property could serve as a great investment for the future.

If you are looking for a waterfront property, consider all of the benefits that waterfront living has to offer. Now that you know more about the waterfront lifestyle, you can begin your search for the perfect waterfront home!

 

New Orleans Real Estate Market

New Orleans Real Estate Market

New Orleans Home Prices Begin To Level Off

The cost to own or rent a home in the City of New Orleans, LA has been rising for years, but the trend of being priced out of the city is beginning to change.

Prices have been rising since the revitalization after Hurricane Katrina struck in 2005.  After the catastrophic hurricane, the homes that were renovated, and ready to live in were at an all time low in supply.  If they were not destroyed in the Hurricane, they were in high demand. New Orleans natives were scooping them up at whatever cost just to stay in their city. The prices rose.

As new construction soon began popping up, more homes were available.  Still, getting back into the City was pricey for natives eager to return.  Builders knew the supply and demand conditions would be a big payoff for them for a few years after Katrina, and they capitalized on that.

Shortly after the hurricane, you would find single, shotgun style homes that were going for shotgun house$300,000.  That runs about $300.00 per square foot. Too costly for most natives to return home, coupled with the rise in crime, it just didn’t make sense to move back.  Until now.

Bringing The Price Back To Affordability

Looking at the prices of 2016, we have seen the cost of Real Estate in New Orleans neighborhoods starting to level off, and it was due to flatten out and go down a little.

2016 showed a slow down in the oil and gas industry, and the capping off of the film tax credit did cause some Louisiana jobs to move elsewhere.  Also, typically during a presidential election year, things slow down on the Real Estate front as a whole.

There appears to be a little bit of an oversupply and that will put pressure to moves prices downward some.  This oversupply will also cause rentals and sales to stay on the market a little longer in some neighborhoods of New Orleans.

Higher Priced Neighborhoods Affordable Again

The Uptown, and the Warehouse District are higher priced markets that too will see price drops, and some will be significant.  This is not to go as far as to call it depreciation, or a “Buyer’s Market”, but can be viewed as a slow down on appreciation.  This will help natives to move back into the cities higher end neighborhoods they once fled after Katrina.

Recovery Still Going On

There are still parts of New Orleans that have not recovered.  Homes are gone, but the land where they once sat remains.  Real Estate experts in the area predict these areas will again have homes built that are affordable.  As with any catastrophic event in Real Estate, there comes a time that prices level back out, and people can come home.  That time appears to be now, and all eyes are on the prices for 2017.  This will only be measured by the amount of people returning to the City.

 

2016 Fourth Quarter Gains In Existing Home Sales

2016 Fourth Quarter Gains In Existing Home Sales

Home found

Home Sales Are Ticking Up

The National Association of Realtors® shows the fourth quarter of 2016 showed an up tick in home sales across the United States. It is expected to slow down some during the winter months, but if this is a sign of things to come in 2017, we are in for a good year.  Real Estate Agents, Lenders, Home Sellers and Home Buyers are all keeping a hopeful, and watchful eye that this trend will continue going forward.

National Increase By Region

Southern Regions

Existing-home sales in the South rose by 2.6 percent in the fourth quarter and are 5.4 percent higher than the fourth quarter of 2015. The median existing single-family home price in the South was $210,500 in the fourth quarter, 7.9 percent above a year earlier. Picayune, MS is seeing this rise in existing home sales, as well as other cities across the south. Real Estate Agents in Picayune, MS report that their phones haven’t stopped ringing heading into 2017 as well.  New Orleans, LA has also seen tremendous growth in their existing home sales.  The Lakeview area of New Orleans has surpassed other metro areas within the city, with some of the strongest gains in the country.

The Rest of The Nation

Existing-home sales in the Northeast had gains of 10.5 percent, the Midwest boasts existing-home sales climbed 2.3 percent, and in the West sales gained by 1.6 percent in the fourth quarter. With the Northeast showing the largest gains, we must keep in mind that sales in places like the South had not dropped off as drastically as other part of the nation during the mortgage meltdown, so the South did not have as far to climb back up. The United States (U.S.) subprime mortgage crisis was a nationwide banking emergency that contributed to the U.S. recession of December 2007 – June 2009.

What Does This Mean To Sellers

You sometimes hear this is a “Buyers Market” or this is a “Sellers Market”, I believe it can be the best of both worlds, and the data of the last fourth quarter proves it. If you are wanting to list your home for sale, there are plenty of buyers out there. If you are in the market to buy a home, there is plenty of inventory to choose from.

Be Prepared When You Are Ready To Buy

Those looking to purchase a home in 2017 will benefit from more inventory to choose from. This increase in inventory creates a balance in the housing market.

This shift in supply and demand, to a more balanced market, will give home buyers more options and opportunity to negotiate for the purchase of their dream home. No longer will buyers of existing homes for sale have to settle.

Do your homework on what price home you can afford.  Keep in mind your expenses outside of what a lender may consider, so that you have a comfortable mortgage payment for you and your family.

Get pre-approved with a reputable lender after you decide a comfortable monthly payment, and have on hand your supporting documentation such as pay stubs, bank statements and identification.

Always remember not to make any large purchases prior to applying for your home loan.  Your lender can guide you on what you should, and should not do that may affect your credit.