Buying a lake home is an exciting process. However, getting caught up in the excitement often leads to costly mistakes. Glen Phillips, CEO of Lake Homes Realty, discusses 4 costly mistakes made by lake home buyers.
- Lack of Due Diligence: Conflict between buyers and sellers often arises, even after the sale, due to a lack of information. Here are a few tips to avoid this conflict:
- Home Inspection: Think of home inspections as an insurance expense. Homes, especially lake homes, have issues as they age. A home inspection is less expensive than finding issues after you purchase the home.
- Survey: As property ages and people move in and out of the property, the question of who owns what gets complicated. Surveys solve this issue by clearly defining property lines and boundaries.
- Geologic Report: If your lake home is close to water, water fluctuations might cause issues with the home. Geologic reports help determine if the property is stable.
- Clear Title: Now more than ever, home buyers need title insurance. Title insurance guarantees that the person selling the property has legal rights to sell it. This protects you from scams by people selling property they don’t own.
- HOA/POA Regulations: Homeowner and property owner associations determine what you can do on your property. These can change, so be sure to stay up-to-date on them.
- Lake Regulations: Every lake has rules about how to use the lake. These rules include permitted watercraft, shoreline regulations, dock/pier construction, and more. Knowing these rules prevents surprise fines.
- Forgetting to Consider Maintenance: Lake home maintenance includes more than the house. If you own a waterfront house, you must also maintain your shoreline. This also includes docks or piers on your property.
- Failing to Research Insurance Costs: Lake homes often require additional insurance costs compared to typical property. For example, many lake homes require flood insurance.
- Agent is not a Lake Expert: Using a real estate agent focusing on lake property helps you save money. They ask questions that someone not familiar with lake property wouldn’t think to ask. They also know how to guide you through the process of lake real estate better than other agents.
While buying a lake home creates plenty of excitement, there’s also risk involved. Not being prepared leads to costly mistakes after the transaction. Visit lakehomes.com, where expert lake agents will guide you through the lake real estate process and help you avoid these mistakes.