If youre considering buying lakeshore property, you could be in the process of making one of the largest and most important investment decisions of your life. Will you make this decision based on all of the facts, some of the facts or emotion? This White Paper is a tool that will support planning and decision-making. It includes information on where to get relevant information, things to consider in your purchase and what to avoid. Buying lakeshore is not the same as buying residential property. There are a lot more things to understand and consider. This White Paper is generally designed to answer the question: What are the things that need to be considered in a lakeshore property purchase. Top Things to Consider When Buying Lakeshore Property Buying lakeshore is not as simple as viewing the house and garage and determining whether it is consistent with your Buyer Criteria. In addition to evaluating the property itself, there are many major things to consider. LAKESHORE Whats the lakeshore like? Does it have rocks, natural sand, grass, weeds, or muck? Does it have a million snails? Some lakeshores have an area that you can plop down your lawn chairs, dig your toes in the sand, and watch your children build sand castles. Some lakes are notorious for having muck which means that you might sink up to your knees before you hit hard bottom. Is this what you really want? If youre fortunate youll find a lake (in your price range) with a natural sand shoreline. But to do a fair evaluation of the lakeshore means getting out your hip-waders and getting a little wet. When buying lakeshore property, the quality of the lake, lakeshore, and lake bottom are as important as the house. LAKE BOTTOM Whats the lake bottom like? Is it hard bottom, sand, gravel muck, or weeds? Does the lake bottom slope gradually or are there steep drop offs? This could be an important safety consideration if you have small children or grandchildren. Learning about the lake is one of the most important aspects of buying lake property. LAKE The Minnesota Department of Natural Resources provides excellent lake information via their website www.dnr.state.mn.us/lakefind/ Using this website youll be able to determine; how large is the lake, what is the littoral area, how deep is the lake, plus much more. A good quick measure of the quality of a lake is to compare the ratio of lake acres to littoral acres (area less than 15 feet). For instance, Rice Lake (near Brainerd) has 434 acres and 202 littoral acres. This indicates that less than half the lake is less than 15 feet in depth, thus it would be a good overall multi-use lake. Conversely, Little Blueberry Lake is 522 acres in size with a littoral area of 522 acres, with a maximum depth of 15 feet. This indicates that the entire lake has the possibility of blooming over with weeds and vegetation as the summer progresses. Its a good idea to get in your boat and check out the lake first hand if thats possible. Doing this will also help you determine what kind of cabins/homes are on the lake. Are there million dollar mansions or shacks packed together? Another major consideration is whether or not a lake has milfoil or zebra mussels. Theyre proven to be nasty, and almost impossible to get rid of once theyre established, and they have a negative affect on the value of lake properties. LAKE USE How do you plan on using the lake? Do you plan on swimming? Some lakes/lakefronts are too shallow or weedy for swimming. Do you really want to wade thru muck to go swimming? Do you want to just sit on your dock and relax? Some larger lakes like Minnetonka and Whitefish and others get so much boat and personal watercraft traffic that its almost impossible to just sit on your dock and relax (especially on weekends). With lots of boat traffic, is it safe to water ski or pull your kids on the cool water toys? Lakes less than 150 acres may be too small for skiing. Lakes with a high ratio of littoral area may be too weedy for skiing. Larger lakes like Mille Lacs and Leech Lake have large unprotected surface areas, which enables the wind to whip across and work up four foot waves. Can you swim, ski or fish when there are four foot waves? Lake size matters! FISHING Do you or your guests intend on fishing? Do you want to fish in summer and winter? Some lakes are not fishable in winter, others contain hotspots. Whats the quality of fishing poor good excellent? What species of fish reside in the lake; walleye, muskie, bass, or rough fish? Is this what you want to catch? Is there winter kill? BIODIVERSITY Some lakefront properties offer vast biodiversity. For instance, on Rice Lake near Brainerd and Clear Lake near Pequot Lakes you will find a mixture of beautiful sand lakeshore coupled with cool natural flowing springs. Biodiversity like this is rare and priceless, but within your grasp. Lakes that are fed by rivers like the Minnesota, St. Croix or Mississippi offer more diversity to explore and enjoy. The adjoining river is an extension of the lake. In essence, the river increases the lake size and opportunities. LOCATION ON THE LAKE Every lake lot has advantages or disadvantages depending on where they are located and your perspective. If your house is located on the east side of the lake, youll likely experience beautiful sunsets. If your house is on the west side youll likely get a view of the neat sunrises. Does this make a difference to you? Whats the elevation to the lake like? Steep or gradual? Can you see the lake from the house? Do you have to wade thru swamp or weeds to get to the lake? LAKE WATER LEVELS In north central MN, we've experienced a few back to back years of below average rain fall. Some lake levels have dropped a foot or two. On these lakes, lake front property owners have experienced the "receding" water level dilemma. Their boat lifts are dry docked, their docks eerily end before the water begins. AVAILABILITY OF SERVICES For some buyers, it is important to be close to the amenities that make cabin life comfortable. Such as restaurants, bars, gas, bait, golf courses, hardware and groceries. DISTANCE AND TRAVEL TIME For most buyers distance and travel time is important. If you are buying a lake home and live in the twin cities and plan on spending most weekends at the lake, distance and travel time can be significant factors in your purchase decision. Would you rather spend five hours or ten hours a weekend (in the car with anxious kids) commuting to/from the lake? LAKESHORE BUILDING RESTRICTIONS Lakeshore building guidelines are set by the state. Each county must adhere to the state guidelines but they can also set their own local restrictions. These collective guidelines dictate things like; set backs of the house from the lake and property lines, and where the well and septic systems must be located. Are you planning on buying a property with the desire to expand later? If so, make sure that your expansion plans conform with lakeshore zoning guidelines. State and county zoning guidelines are available via the World Wide Web. SEASONAL OR YEAR ROUND USE Do you want a summer home or are you also interested in using it year round as a get away? Do you snowmobile, cross country ski or ice fish? Is the house insulated for winter use? Have the water lines been plumbed so that you can readily drain them as winter approaches? Do you have to crawl under the cabin to get at the water lines? PUBLIC ACCESS Does the lake have a public access? If it doesnt how are you and your guests going to get your water toys in and out of the water? Is the landing concrete or sand/gravel? Will you be able to launch your boat? Beware of lakes on chains. Is there a usable/navigable channel that will accommodate the size of boat that you have? ICE OUT With spring comes ice out. Depending on the pre-veiling winds, your lakeshore could take a pounding. Mille Lacs Lake for instance is notorious for ice out conditions that send walls of ice and debris towards the lakeshore. These walls of ice will move small mountains of dirt and sand. Your gradual slope to the lake could become a five foot drop-off. ROAD NOISE Keep in mind that many lakeshores were plotted off before zoning regulations were in existence. Old wagon trails that were once lightly used have been paved and now carry lots of traffic generating significant road noise. Some lakeshore cabins are within 30 feet of busy highways. Is this situation safe for your children or grand children? What level of road noise is acceptable to you? LAKESHORE PRICING If you havent shopped around for lakeshore property, brace yourself for sticker shock. Depending on the location, quality and desirability of the lake and lakefront, lakeshore property in Minnesota will range from $1,500 to over $7,000 a frontage foot. For instance, on Lake Vermillion in northern Minnesota, many sales are in the range of $1,500 to $2,000 per shoreline foot. That compares with $4,500 to $7,000 a foot for the upscale cachet of lakes near Brainerd like Gull or Pelican Lakes, $3,300 on Leech and $2,000 to $2,400 on Lake Winnibigoshish. Minnesota Lakeshore Pricing Rules of Thumb * If you live on a smaller lake (100 - 500 acres) with gradual to level elevation and a good beach you can expect to pay $1,500 - $2,250 per foot of lakeshore. * For medium size lakes (500 - 1,000 acres) with gradual to level elevation and a good beach you can expect to pay $2,250 - $3,750 per foot of lakeshore. * On larger lakes or chains (1,000 - 15,000+ acres) with gradual to level elevation and a good beach you can expect to pay $3,500 - $7,000 per foot of lakeshore. These figures do not include structures nor do they take into consideration location, beach quality, elevation, trees, exposure and neighboring properties which always influence the market value of property. Anticipate paying more for a quality lake and lakeshore. Buying into the right lake and lakeshore will have a major impact on your ability to enjoy your purchase and the amount of your return on investment. In summary; when buying lakeshore property, the quality of the lake and lakeshore are as important as the house. Houses can be remodeled, lots can be landscaped, but you cant fix the lake, lake bottom or lakeshore. If youve enjoyed this article, please be sure to forward it to a friend! The original version in color and with pictures can be found at www.paradiserealestatemn.com. It can be found at the bottom of the HOME page. |
