Waterfront Homes Buying Guide: What to Know Before You Buy

Quick Facts

• Buying a waterfront home means you have a unique list of considerations before you. Here’s a quick list of the basics:
  • Shoreline regulations and permits
  • Access to the water
  • Viability of long-term ownership
  • Property-specific information
  • Connectivity and community
  • Investment performance
• The Lake Minnetonka area has been a hidden gem for over 200 years. It offers some of Minnesota’s most desirable waterfront and lakefront homes, with 14 communities along more than 100 miles of beautiful shoreline.
• Working with a local real estate team who are familiar with the area creates an easier buying experience and helps you find a property to make your future home.

Do You Want to Buy a Waterfront Home? Let’s Tell You All About It

Ah, the unmistakable allure of a lakeside property. 

Buying a waterfront home is usually the dream purchase of many of the buyers we talk to, and why wouldn’t it be? You get to watch the sun kiss the water, wake up to a sky that looks painted on, and enjoy a leisurely lifestyle that’ll have you pause midstep and go “I can’t believe I get to do this!” 

At Excelsior Realty, we’ve helped people find homes near Lake Minnetonka since 2004. We’re acutely familiar with what buyers tend to miss and the questions they should be asking. 

Strap in for Buying a Waterfront Property 101, where we talk to you about everything you should know before you let yourself fall in love with a house along the water. 

What Makes Waterfront Property Different From Other Real Estate?

Now, you’d want to do your due diligence before deciding on any property investment, but waterfront homes need something a little extra.

Understanding the following beforehand can help you out a lot:

• Waterfront homes are subject to shoreline regulations and environmental protections that are distinct from inland properties
• Water rights, dock permits, and lake access are separate from property ownership
• Maintenance responsibilities are higher due to the impact of water, humidity, and seasonal conditions on structures and landscaping
• Resale value is more tightly tied to water quality, access quality, and shoreline condition than standard properties

What Are Water Rights and Why Do They Matter?

One of the most important things to understand when buying a waterfront home is that owning land next to a body of water does not automatically give you unlimited rights to use it.

In Minnesota, riparian rights generally allow lakefront property owners to use the water adjacent to their land for recreational purposes, but the extent of those rights, and what structures you can build or maintain, is governed by state law and local ordinances.

Here’s what we urge buyers to ask when deciding to buy waterfront property:

• How accessible is the lake from the property?
• How is lake access shared with neighboring properties?
• What are the restrictions on the types of watercraft permitted?
• Are there any seasonal restrictions on water use?

What Should You Look for in a Waterfront Property Inspection?

The first step in the journey to buying a waterfront home is a home inspection. At its most basic, it is an assessment of the structure and existing infrastructure of the property, a chance to understand what you are buying and whether you can see yourself living there and building a life.

For waterfront and near-waterfront homes around Lake Minnetonka, the Excelsior Realty team consistently encourages buyers to go further than the basics. 

Here is what to look for beyond the fundamentals.

1. Shoreline and erosion assessment

Building right on the water comes with a couple of unique situations to account for. Erosion is one of the most significant long-term cost risks for lakefront homes. A professional shoreline assessment evaluates the stability of the bank, any existing erosion damage, and what remediation or prevention measures are in place or needed. 

2. Moisture, foundation, and mold assessment

It may sound like a no-brainer, but a property’s proximity to water means greater humidity. Most properties along the lake are built to withstand that seasonal moisture but even so, you’d want to take a closer look at:

• The foundation
• crawl space
• Basement
• any below-grade spaces 

What you’ll be looking for specifically is signs of mold or moisture damage (rotten wood, degraded foundations). This is how you’ll avoid an unpleasant surprise into ownership.

3. Drainage assessment

For homes that are close to the lake but not directly on it, you’ve got to ask about drainage. 

• How does water move across and away from the property during heavy rain? 
• Is the grading directing water toward or away from the foundation? 

From our experience, near-lake properties are susceptible to water pooling, basement seepage, and surface drainage issues. Making sure there are systems in place to combat these is important.

4. Tree and vegetation assessment

Those verdant trees framing homes and set against the blue of the water sure look gorgeous. But they add to your list of considerations. Are any roots coming too close to your foundations? If you’ve got big plans for renovation, you should also check in about what you can and cannot change.

Lifestyle and Seasonality at Waterfront Homes

One of the most important and most overlooked aspects of buying a waterfront home is assessing how the property will feel to live in across all seasons, not just in the warm summer months when it looks its best.

Questions to ask yourself before buying waterfront property:

• Will this property be a primary residence, a seasonal retreat, or a rental investment?
• How does the property feel in November and December?
• Is the community active year-round, or do things wind down in winter?
• What is the commute or access situation in winter conditions?
• Are there rental income opportunities during seasons when you are not using the property?

Communities like Excelsior, Wayzata, and Mound maintain active year-round amenities including restaurants, shops, events, and recreational access that make lakefront property ownership fulfilling and exciting.

Work With a Local Expert When Buying a Waterfront Home

The Lake Minnetonka area offers some of Minnesota’s finest waterfront property for sale, with more than 100 miles of shoreline, 14 surrounding communities, and a lifestyle that holds up beautifully across all four seasons. No matter the property you are looking for, buyers who come in informed and well represented see the best outcomes.

To learn about waterfront homes for sale around Lake Minnetonka, contact the team at Excelsior Real Estate at (952) 474-2999 or hello@excelsiorrealty.com. The office is located at 386 Oak St, Excelsior, MN 55331.

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