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Considerations When Buying Coastal Real Estate

• Talk to experienced builder who builds local coastal homes before you buy.  Ask about building restriction:  Check with the State and local governments about height limits, setback lines, and building regulations.  Get to know the local environmental laws; some areas may be unable to build because they contain protected wildlife.

• The best source for what you can and cannot do with your beach house is FEMA’s Home Builder’s Guide to Coastal Construction Series.  If you want to add a boat dock to your property, check with your state government rather than the local.  Building a boat dock would require leasing underwater land from the state and getting permits from several agencies.  Check tide charts and bridges to make sure you can get to your property by boat at all times and from all directions.

• Know the local building guidelines.  Restriction on sewer systems and septic tanks may limit the size home you can build on your property.  If you want to build on an island or remote waterfront location, consider the transportation cost of having to truck heavy machinery and materials to your building site.

• Know the different between a private beach and a public beach.  A public beach means, among other things, that people can set up their lounge chairs in front of your beach home.

• If you are buying a water front beach home, read the survey to make sure the property that you are buying is a waterfront and not the water view.

• Talk with your local homeowner insurance agent about getting adequate insurance for the property.  Most insurance agents will insure for the amount of the loan on the amount that it is appraised for at the county property appraisal office.  Contact your state insurance department regarding information about insurers who cover the area and any special assistance programs for coastal properties.  Many insurers have stopped writing homeowner’s policies in coastal areas because of storm losses; also expect to pay more for less coverage than inland homes.  You will need flood insurance.  Be aware that insurers will not compensate you for the loss of land due to beach erosion.

• Coastal home requires more maintenance.  Salty air is tough on homes, car, plants, and just about anything left outdoors.  Pay attention to the way beach houses have been built in your region for generations.

• Prepare for the storm.  Ask the builder how he or she plans to deal with storm conditions.  If the house you are buying does not have a safe room, consider adding one or modify an existent room such as a pantry with no opening to the exterior that is strengthened by shear walls (plywood reinforcement behind drywall on either side of wood studs to prevent structural twisting in high winds).  Consult the local architects or engineers for structural input.

• Guard your investment.  Choose to buy properties that are relatively safe from beach erosion and storm damaged.  Properties with a seawall and homes that are located above the 100 year flood level are worth more than unprotected properties.  Other factors affecting the coastal homes’ values include whether there’s a beach renourishment program, the distance between the house and the water, and the quality and safety of the water.

• Consider a purchase in an area that encourages tourism and recreation; it can pay off because of a better demand for rental properties.