Buying a waterfront home is a really exciting prospect! Who wouldn't want to wake up every morning and look at a beautiful sunrise over the water? However, finding what you want in a competitive market can be a real challenge, especially when options are limited and the prices are steep.
Southeastern Michigan is a fairly competitive place to buy, even more so on a lake. Good homes on lakes are snapped up within a few hours of being listed (often not even good ones). I did lots of research about what lakes were good to live on, which ones were all-sports, and which were private and public access while I was looking.
I found that different lakes had different price points to get different amenities (shorter commute, better school district, better views and lot sizes, etc.). These were all things I had to weigh into the equation vs. the size of my housing budget when I was house hunting. Some of the biggest factors when I was house hunting for something waterfront boiled down to the following:
one// Do you want a lake view, or can you live with being on a canal?
I found that canal front homes were significantly cheaper than houses located on the main lake. The bonus with a canal is you can snag a little more house for less money. The downside is you can't have a traditional dock, you usually don't have a great view of the main lake, and most likely your view of across the canal will be of your neighbor, so you are looking right at the back of their house.
There are a lot of tradeoffs to being on a main lake when you start looking at canal front homes, but buying a home on a canal is a good way to get on a bigger, better lake for less money.
two // Does your home come with a dock?
If you find a house with a dock in good condition, try to get the dock included in the offer! Docks can be incredibly expensive depending on how elaborate and long they are. (Check with your lake HOA to make sure your dock falls within the rules in terms of length, size, etc.) When looking at homes, definitely walk out to your waterfront and go look at the dock, and look over at the docks the neighbors have to try to gauge how much maintenance you might be in for in the future.
Wood docks are usually the most expensive, but I think aluminum are the most convenient because they can be taken out easier in the fall for winterization. If your house doesn't come with a dock, look for one in the fall. People usually sell used ones because they will decide to upgrade, or docks places clear out inventory.
three// How much water frontage do you have?
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| Your deed or plat map should clearly say the lot size and your water frontage |
four// Where will you put your poo?
With many houses I looked at, everything came down to poo. The home, view and price would all check out but either the seller's disclosure or the inspection would come up that the home had an outdated or failed septic system. This is a huge deal on a lake! Replacing a failed septic system on a waterfront property can run $50-100k! It's a huge, but important investment.
Every time a home changes hands, the septic system will need to be inspected and need to meet current code. A lot of old lake homes were originally built as cottages, so old septic systems weren't built to the standards today. Newer environmental standards have strict restrictions on how far a septic drain field needs to be from a water body, and how large it should be for the square footage for a home- this is a major problem for a lot of lake homes that are built up on small lots! Often, I would find a great home, but with a failed septic system that had no feasible way to replace the septic system, because of setback restrictions from the well on the lot, the neighbors lot, and the waterline.
Every house brought up the same questions; where would I put it? how would I keep it out of the water? And how would I do all of this legally? It's a major hassle, but important in maintaining the water quality of the lakes we love.
five// What does the seawall look like?
Shoreline erosion is a huge problem on some lakes, or even just in a specific area on certain lakes (like on a point of a peninsula). When you look at a prospective house for sale, walk down to the waterfront (even if there's snow on the ground) and look at the seawall to make sure it's in good condition. Seawalls can be made of wood, steel, or stones (rip-rap). Replacing a seawall can be a complicated, expensive process that requires environmental permitting and specialized contractors, so making sure that an existing one looks sound is important. (Replacement costs can run $10k-50k for a steel seawall)
six// What does the lake bottom or lakefront look like? Is there aggressive wildlife on the lake?
This is tough to tell in the winter, but still go look! You're going to want a sandy bottom for swimming, not a mucky bottom. If necessary, bring some rubber boots and step in the water to make sure its sandy! You've gotta do what you've gotta do! Also look for vegetation to see if your area of the lake has a lot of lillypads. I hopped on google maps to see what areas usually had lillypads in the summer to make sure they wouldn't be in front of my house.
Also important to consider is the wildlife in the area. Do you want to spend your summer raking up goose poop off your beach? Are any animals local to your lake endangered? Some internet research or talking to the neighbors could save you from being harassed by aggressive swans...or at least it won't be a surprise.
seven// Is there a lake association, what is the cost, and is membership mandatory?
Similar to a homeowners association, lake associations are something to pay attention to. Dues ranged from $25-650 a year for various houses I looked at. Association deal with things like weed control, towing and moving hazards, maintaining ski courses, and dealing with local and environmental authorities. (Some lakes have water levels that are managed by dams. The association will attend these regional meetings to make sure the levels stays appropriate to protect the homes on the water.) Membership can be mandatory or optional, but it's usually worth it.
eight// Is the lake all sports? Is the lake private or public access?
Are you a waterskiier, wakeboarder, or wakesurfer? Or are you more of a kayak and pontoon person? Well, it's important to figure out whether or not you're looking for an "all-sports" lake or not. An all-sports lake is a lake that allows a boat with a gasoline-powered engine, a jet ski, and people to be towed behind boats. Fisherman and kayaks are still allowed on all-sports lakes. Many lakes can have engine restrictions (will be described as "electric motor only") or will be described as "no-wake." This means it is not an all-sports lake!
Whether or not the lake is public or private access will dictate how much traffic will be on the water. Public access means there might be a lot of weekend traffic, so it'll be louder, busier and might be more difficult to ski, surf, or tube safely.
nine// Are there are overgrown trees on your property?
Have you ever looked at a house near the water and wondered, "Wow, that is such a nice house, but why is that ugly tree there? Why is that addition put on that way? Why did they build an entire deck around that massive tree?"
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| Above is a prime example of perplexing "building around a tree" architecture |
Well, there is a pretty good reason that tree is still there. Environmental laws and regulations around wetland and water bodies are very strict about the removal of native shrubs and trees. Fines can run in the tens of thousands of dollars for unlawfully removing trees within several hundred feet of waterfront. Instead...people build around the standing trees and live with it.
ten// Do you have a sunrise or sunset view?
Another way of thinking about this is, which way does your home face? Does the lake side of the home face East or West? This will dictate whether or not you will have a sunrise or sunset view of the lake every day. This sounds like a very minor consideration, but it will determine whether or not your backyard will be sunny during the summer and also affect warming and cooling in your house.
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If you don't feel like becoming an encyclopedia on local lake and water issues, track down a very knowledgeable realtor. Not every realtor will have in-depth knowledge of waterfront issues, as it's a really niche area or real estate. I was lucky to get a referral to someone with a lot of experience in this area.
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