Lakefront homes rarely depreciate in value. There is a high demand for properties on the lakefront and a limited supply, which means your home will retain excellent resale value. Your family can enjoy your dream lakefront home for generations without worry about the impact of future housing markets.
If you are unfamiliar with different East Tennessee lakes, lake property values can be very complex. There can be a lot that needs to be considered, and different areas of the state face different influences. We want to help you start looking at the best lake that fits you and how the different lakes are positioned in the marketplace. We are the only brokerage in East Tennessee that specializes in representing buyers and sellers for lakefront properties.
All of this is a prelude to a simple, yet important fact: it is critical that you also address the lake itself
- Winter water level- For example, Tellico Lake only drops water levels 4-6 feet in the winter where Douglas Lake drops 40-60 ft.
- Water quality in lakes
- TVA shorelines and future development
- What are the recreational activities are buyers look for in a particular lake that drives a particular market, and the access to that. Tellico Lake features world class active adult and retirement communities such as Rarity Bay with fabulous boating, golf, and more.
What is the lake frontage like?
Every lake home is unique to the property is it on… Size, slope, substrate, and other factors can impact the value of your frontage. Consider a house sitting on the edge of a bluff, with 200 feet of frontage but 100 steep steps down to the water. What if the shoreline is rocky? What if just a few lots away, the topography is sloped into a gentle, almost level lot with the frontage itself being a natural beach area. This lot is only 50 feet in width at the lake. Which property is more valuable?
The property’s ease of access to the lake and the quality of the frontage are important factors in the property’s value. However, the value effect of these elements can be positive or negative depending on the lake itself. For a clean swimming lake, the smaller, 50 foot water frontage might be much more valuable than the less accessible 200-foot lot, but for a lake that is picturesque but not a good swimming or boating lake, the 200-foot lot with the elevated views might be the more valuable site. It all depends on the lake and why buyers look to that particular lake.
Is the lakefront property dockable?
A lakefront property with a dock or that is dockable could hold much greater value over one that is not. If a dock is already built, the value added to a home varies depending on the type, and quality of the dock. If there is not a dock installed already and no permit on file, it’s important understand TVA shoreline construction and the permitting process. This is where a specialized agent is key. They can guide you through what is allowed, size dimensions permitted, and more.
Limited Inventory and High Demand
If you ever decided to rent or sell your property, you are almost guaranteed to find a buyer. There is a limited amount of property along the shoreline and a limited number of waterfront homes, but there are always people looking to buy. The demand will always be there. On top of that a lake home in a lakefront community with the amenities and atmosphere could affect value as well!
Finding a place where you can be happy and healthy will have lasting benefits for the rest of your life, which is the best investment there is. If you plan to buy or sell in the future its important to work with an agent that understands property values that may affect you in the future. Our Lake Team has lived and played on these lakes so we know the markets and will created a detailed market analysis or comparable properties. From communities to legal ramifications such as docking rights, shorelines, and anything in between, our lake team can help you! Contact us today!
Posted by Mike Hogan, Realtor, Lakefront Living, On The Lake Realty