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If you’ve been dreaming of owning a waterfront home but felt it was out of your reach financially, now could be the time to make your dream come true. Right now, waterfront properties are plentiful and at prices that may surprise you.

“Each week we are seeing more waterfront inventory added,” said Betsy Gunnels of Real Estate III--Jefferson Centre. “My waterfront listings are getting showings, but a lot of buyers are not in a position to buy, as they have a home to sell in out-of-town markets. Some waterfront homes are staying on the market longer for this reason. I have noticed some waterfront homes are reducing their prices to accommodate this market.”

Gunnels added that the story behind each waterfront home on the market is different. Some sellers are in a position where they need to sell, which is why some prices have dropped. "In 2008, I felt we had not been affected as much by the downturn in the market and prices remained fairly steady," she said. "This year it appears to be a harder market to predict."

“The waterfront market is simply following the trend of the housing market in general,” says Patsy Strong, principal broker with Strong Team REALTORS®. “By comparison, in Lake Monticello, there have been three waterfronts sales to date, whereas last year at this time, we had seen six waterfront homes close. The average waterfront price for the sales this year is $423,250, however last year it was $485,000. We have been involved with all three of the sales this year, and can say that the waterfront market is still strong, however, just not as brisk as it has been in past years. There are still a lot of waterfront buyers out there.”

Tom Morace, a broker with Century 21 Monticello Properties, agrees that the economy has affected some –but not all—of the waterfront listings. “It seems as though the older homes that require updating are remaining on the market longer and are subject to lower offers that seem to be typical in this economy,” he said. “The pristine waterfronts, with the good water views that require little or no work, seem to have consistently retained their value and they resell quickly.”

Vicki Wilson, principal broker/owner of Monticello Country REALTORS®, says from her perspective the waterfront market has remained steady. “I have sold homes year-round. Waterfronts attract a specialized market including second home buyers. Vacation at home is the popular trend these days.”

But from an overall viewpoint, all four agree that the economy has definitely impacted the inventory. “Just recently we have had a surge of waterfront availability,” said Morace. “We have an excellent range of waterfront properties—from your fixer-upper to your pristine with great views.”

Gunnels says one of the reasons there are more homes on the market is because fewer waterfront homes are being sold, causing greater competition. “I think the economy is affecting it, especially for second home buyers who generate a lot of our business. People are concerned about buying a second home in this kind of market. The floodgates have not opened up. We were selling waterfront properties last year, but some on the market weren’t priced appropriately and they are back on the market now.”

“We know that second home buyers are studying the market a little more closely than in the past years, and taking much more time to decide on the right waterfront home,” says Strong. “Buyers are looking at a waterfront home purchase again as a true investment, therefore they want to weigh all of the factors and see all of the homes.”

Wide Price Range

How much can you expect to pay for waterfront property? There are a lot of factors to consider, making the price range wide open. Wilson reports that as of May 1, there were 15 waterfront homes for sale at Lake Monticello, starting at $375,000 for a smaller home with minimum water on a cove with a dock. Prices go up from there, depending on the size of the home, views, water, and location.

“Prices range anywhere from the mid-$300s to just below $1 million," said Gunnels. "The upper prices (i.e., $800,000 to $1 million) are new to Lake Monticello. Some of the fabulous waterfronts that have not been to market before are now appearing. Lake Monticello is a thriving small town with a lot of wonderful amenities of its own. We are a gated community that is built around a lake and a golf course. Our proximity to Charlottesville, U.Va., medical facilities, theatre, dining, shopping is awesome, making Lake Monticello an excellent place to retire.”

Gunnels categorizes waterfront property as “excellent”—“good”—“not so good.” A home that is “gentle to the water”—i.e., few steps to the water view—is considered “excellent.” So are properties that have a full view of the lake. “You rate it for view—not just cove view, but open wide water view—out to the main lake or to a big, wide cove where you feel you are surrounded by water. Can you wake up in the morning and see the water from your bed? How did the builder present the home to the water? Are there big glass windows to have that ‘wow’ factor? That’s the tranquility of living on the water and you get your highest rate. Then how updated is the home? Most were built 20 years ago, so have they done any updating? If you are gentle to the water, have that ‘wow’ factor and a good floor plan for retirees, then you have it all.”

Strong adds, “The wonderful thing about our waterfront market today is the fact that there are so many different styles, landscapes, views, and general choices, making it exciting for the buyers–they can literally pick and choose the waterfront that best suits their needs and budget this year!”

Changing Demographic

Wilson feels the additional inventory of lakefront homes at Lake Monticello is due more to the aging population than the slowed economy. “Lake Monticello was developed in the ’70s and continues to grow,” she said. “Those sellers are starting to list and downsize. We are seeing some older waterfront homes that are coming on the market with fabulous lots (from the original lots that were available back then). Some buyers are holding off for that great water and views.”

Gunnels cites the same trend, saying older sellers are putting their houses on the market as a result of a lifestyle change. “The original owners of these homes are elderly people now. They have to leave to make life-changing decisions because they are senior citizens who need to be closer to family. Two of my sellers are leaving to be closer to family and another is moving closer to Charlottesville where things are at their fingertips. Unfortunately for the sellers, the market is slower this year and we’ll have to wait and see how it all plays out. My concern is for the elderly who are trying to sell their homes and get a certain price to be able to afford the next step in their life.”

With a higher than normal inventory, there are some good deals to be had. Gunnels--herself a waterfront homeowner—says she has become familiar with every waterfront home in Lake Monticello since 2001. "It is a market within a market," she said. “We are starting to see the effects of the economic downturn, because quite honestly there are fewer second home buyers. Many second home buyers buy for the future, enjoy their waterfront home now with their children, and then look to retire to their waterfront home when they grow older. This is a great and fun investment!”

Waterfront Versus Water View

Buyers who have looked at property in or around water know that the terms “waterfront” and “water view” can be confusing. Wilson clarified the two terms. “Waterfront has water access. They may or may not be able to house a dock, bulkhead, or park a boat there. It would depend on the size and depth of the water frontage. They may or may not have water views year-round. It is important to obtain a survey of the property to determine what you are purchasing. Just because it is an advertised waterfront, a buyer may not be able to accomplish what they are buying the waterfront for. With water views, a home can be located near the water but not have the access—just the views. They can become obstructed in the future as surroundings change. A water view home will be less expensive than actual water frontage.”

Different Strokes for Different Folks

People who choose to purchase a waterfront home do so for different reasons. As all four REALTORSÒ sell at Lake Monticello, they point out the advantages of living in one of Fluvanna County’s most sought-after areas.

“Lake Monticello’s proximity to Charlottesville is the best,” said Wilson. “We have community water, sewer, the lowest HOA fees, and the best amenities (18-hole golf course, pool, soccer and baseball fields, tennis courts, five beaches, restaurants, fire and rescue, and full police department). We have a 352-acre lake that accommodates speedboats, sailboats, fishing, but no jet skis, which is nice, and a marina. Lake Anna allows jet skis and is bigger and has public access. Lake Monticello is private and only available to residents and their guests. Lake Monticello is a gated community and strictly residential. There are no summer rentals like Smith Mountain Lake.”

“Our buyers love the fact that there is so much to do here at Lake Monticello– on and off of the water. We have had several buyers purchase waterfront homes here thinking that the homes will be used only on weekends and then six months later they find themselves living here full-time,” says Strong. “They just love the lifestyle they get with the home’s purchase.”

Morace thinks it’s all a matter of personal preference. “Some people enjoy the activities and watching skiers and boaters going by. Others would prefer the peace and quiet of a cove and not have to worry about wakes and the noise from boaters.”

For Gunnels, living on the lake is an “awesome” experience and a dream come true. “We’re lucky with our location that we have a nice little cove to swim in for when my grandchildren come and I don’t have to worry about speeding boats. The high holidays (Memorial Day, 4^th of July, Labor Day) are really the only time when there are a lot of boats in the water, but other than that the lake is not overcrowded. It is really quite peaceful and a lot of fun.”

Advice to Buyers

Agents who have waterfront homes are especially knowledgeable about the pros and cons of having such a sought-after piece of property. Wilson has a waterfront home and knows firsthand ownership rights, values, and water, which is all valuable information for a buyer. She offers a unique perspective for her buyers. “We have been selling homes by boat since 1998,” she said.

Her advice to buyers is to contact a reputable real estate professional. “Gather as much information on the area first, then come take a look. Experience and knowledge make a difference in such a large purchase. Know what you are getting.” She also advises buyers to get a survey, and check out the HOA covenants and restrictions prior to placing a contract.

Gunnels said it's important to find a REALTORÒ who understands your needs. "If your buyers are not going to use the water, but want to see outstanding views year-round, then they might consider a home like mine (high off the water). If health problems are an issue, then gentle to the water usually is a must. Swimability is important to some, as well as docking a V-hull boat, which requires deeper water. It really is different for every person. I pretty much know after we go into a couple of homes what works and what does not work for my buyers. Right now most buyers don't want to do a lot of work. They want it move-in ready and updated.” 

All agree that having a waterfront home is a lot more than the “wow” factor that Gunnels talked about. It’s a lifestyle investment that pays big dividends. For Wilson, there’s nothing like it. “Relaxing evenings on the boat, fishing and swimming from my backyard, great equity and resale value, and a great place to raise a family. With waterfront property, you can vacation at home while building equity.”