Entrepreneur Scott Sohr confirms that waterfront property remains highly desirable real estate despite the downfalls and risks.
NASHVILLE, Tennessee – Sept. 12, 2013 – Whether the house is near a lake, river or ocean, Scott Sohr knows people are willing to pay more for waterfront property. Buyers place a higher value on a house with a view, especially if the landscape includes a tranquil lake, a gurgling stream, or a rolling tide. Scott Sohr explains the desirability factor of waterfront property allows sellers to demand and receive higher prices than for the same house overlooking a street or other houses.
Consumers may think the view alone commands the higher price, but Scott Sohr believes there are several other factors involved that justify the greater values waterfront tracts enjoy. Since Earth is 70 percent water, Scott Sohr agrees that it seems counterintuitive to say finding waterfront land on which to build is difficult. Even though water is not scarce, Scott Sohr explains, waterside land suitable for developing is.
Scott Sohr points out that several things contribute to the higher development costs of shoreline property. Special reinforcement to prevent land erosion may be necessary. River- or lakefront land may be located some distance from public utilities. If so, Scott Sohr explains, it requires additional funds to provide essential utilities in the form of high connection costs or in order to build a well or septic system. These additional costs increase the price of the property.
There is also the matter of the design and size of the house. Scott Sohr reveals people who can afford houses with a view of the water will probably want an upmarket home. In order to accommodate prospective upscale clientele, Scott Sohr says developers tend to put as many value-added amenities as they can in order to price the property more aggressively.
Scott Sohr notes that the appeal of being able to look out the window and see water will always be an enticement to the homebuyer. There are many perks to living the waterfront life, but Scott Sohr adds there are also some downsides. Property prices are always a premium and insurance rates are higher, especially if the property is near a flood zone. Maintenance is also costly because moist air corrodes pipes and eats away at the paint.
Scott Sohr states that even with the threat of coastal storms, beach property remains a hot commodity. Despite severe property damage and devastation left behind by Superstorm Sandy, buyers ignored the possibility of another natural disaster and swept in to scoop up beach property. Scott Sohr adds that while home sales fell more than 4 percent nationwide during the aftermath of Sandy, the average price of homes in the area rose 35 percent from the previous year.
Even with the downside of ownership, Scott Sohr reports the high desirability keeps waterside property moving and the prices steadily rising.