Beachfront homes are a dream that few Americans can afford. Waterfront homes in general tend to be pricey. These homes cost 116 percent more than the average home, that's more than double the cost! So when a bargain pops up on or near the beach, many buyers rush to make an offer. However, if a beachfront property is being sold for lower than expected, there may be some issues. Here are three reasons that beachfront bargain may actually end up being a money pit.
High Maintenance Costs
One thing that many potential homeowners do not consider when looking at luxury homes for sale is the cost of maintenance. This is especially important for beachfront properties. The wind, sand, and salt water can really damage a home over time. If a home is cheaper than expected, it may need costly repairs. The best way for a potential buyer to know what they are getting into is by getting a thorough home inspection before they purchase. A home inspection costs $318 on average.
Another issue can be that the property itself is unstable. Beaches are something that naturally move over time as storms and surf move sand around. Beachfront property owners try to slow this natural changing of the shoreline with seawalls and beach re-nourishment. This can be expensive. The cost of a concrete seawall is between $100 and $130 per square foot. Properties that are prone to flooding or that are unstable in general may also go for a cheaper price. Having a geologist inspect the property is a great way to figure out where the potential hazards are and whether or not the property is stable enough to live on. These surveys can easily cost more than $1,000 but the cost can be worth it.
Since beachfront homes are more prone to flooding and storm damage in many parts of the country, they tend to cost more to insure. In fact, homeowners can expect to pay more for less insurance especially in hurricane prone areas. The costs vary widely depending on location but it's always a good idea to get a few quotes before purchasing a beachfront home. Taxes and other fees can also be a lot higher. All of this together can make it hard to estimate how much a beachfront property will cost.
Purchasing a bargain beachfront home may not actually be a great investment. Before making the purchase, it's important to research maintenance costs as well as insurance costs. Then there's the property itself. If the property is prone to flooding or unstable, then purchasing it may not be worth it.