What You Need to Know Before Buying Land on a Beach

Owning a piece of coastal paradise is a dream for many, but the reality involves unique challenges that go far beyond the beautiful views. In fact, properties within coastal floodplains can face insurance premiums that are significantly higher than inland properties, a crucial detail to know before buying land on a beach. Evaluating a coastal parcel requires a deep dive into factors like local zoning ordinances, strict building setbacks from the high-tide line, and potential erosion rates that can change your property line over time. Understanding flood risk, utility access, and the complex permitting process is crucial for determining whether you can build your dream home. For a straightforward assessment of your coastal property’s potential, renowned real estate investors and cash land buyers Steve Daria and Joleigh can provide clarity. They specialize in evaluating coastal parcels as-is, navigating the complexities of buildability to present a fair, no-obligation cash offer. If you want an expert opinion before buying land on a beach or need to sell a current property without the hassle, we can help. Book your free, no-pressure discussion today to explore your options and secure a competitive cash offer.

Key Points

• Check Zoning and Building Regulations: Beachfront land often comes with strict local, state, or federal zoning rules. You’ll need to confirm what kind of structures, if any, can be built and how close to the water you’re allowed to build.

• Understand Erosion and Flood Risks: Beach properties are more likely to face erosion, storm surge, and flooding. Make sure to research the history of the shoreline and whether the land is in a flood zone.

• Verify Access to Utilities and Infrastructure: Some beachfront lots are undeveloped and may lack access to water, electricity, or sewer systems. Connecting utilities can be expensive, so factor that into your budget.

• Know Property Boundaries and Setbacks: Coastal land often has special setback rules that limit how close you can build to the water or dunes. Always request a recent survey to avoid legal issues.

• Consider Environmental Restrictions: Protected wildlife zones or wetlands may exist on or near your property. These areas could limit what you can do with the land, so check with environmental agencies before buying.

How do I know if I can build on a beachfront lot?

An updated topographic survey with an Elevation Certificate will precisely define your buildable area and its height above sea level. 

You also need to confirm legal road access and the feasibility of connecting to utilities or installing a septic system. 

It’s wise to consult with the local planning and building department about specific permit requirements and environmental protections for dunes or sea turtles. 

A coastal engineer or architect can review all this data to provide a final buildability assessment. 

Completing this research is a crucial step before buying land on a beach to avoid any costly surprises.

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What are the biggest risks when buying land on a beach?

The most significant risks when buying beach land are tied to its unique and dynamic environment. 

Coastal erosion is a primary concern, as it can gradually shrink your property and alter legally mandated building setback lines over time. 

Storm surge and flooding are also significant threats, leading to very high insurance premiums and strict requirements for elevating your future home. 

You may find that the buildable area is much smaller than you think due to these setbacks, environmental protections for dunes, or the presence of wetlands that can prevent development.

Furthermore, unstable sandy soil can complicate foundation design, while a high water table might limit options for a septic system. 

Securing financing for raw land is often more difficult, and the permitting process can be long and complex. 

Hidden easements granting public access across your lot can also impact privacy and value. 

It is vital to investigate all these factors before buying land on a beach by performing thorough due diligence, including getting a new survey and an Elevation Certificate.

How much does it cost to get utilities to a vacant beach lot?

1. Electricity Installation: Running electricity to a vacant lot usually costs between $1,500 and $5,000, but the price can vary based on how far the lot is from the nearest power source. If poles or underground wiring are needed, expect higher costs.
   
   
2. Water Line Connection: Hooking up to a city water supply may cost $2,000 to $10,000, depending on distance, permits, and the local utility provider. Always ask about water access before buying land on a beach, as installation can be expensive in remote areas.
   
   
3. Sewer or Septic System: If city sewer is available, a connection may range from $2,500 to $7,500. If not, installing a septic system could cost $3,000 to $10,000, depending on soil type and size.
   
   
4. Internet and Cable: The cost of high-speed internet or cable setup typically ranges from $100 to $500 for installation. It’s essential to check availability before buying land on a beach, as remote lots may not have access to critical services.
   
   
5. Permits and Inspection Fees: Permits and required inspections can add $500 to $2,000. Each county has different rules, so always check with local offices before starting utility work.

Can I get a traditional mortgage to buy beachfront land?

Securing a traditional mortgage for vacant beachfront land differs significantly from financing a house, and it’s often more challenging. 

Lenders typically do not offer standard 30-year home mortgages for raw land; instead, they provide specialized land or lot loans. 

These loans usually come with higher interest rates, shorter repayment terms, and require a much larger down payment, often ranging from 20% to 50%. 

Banks consider coastal land a riskier investment due to potential erosion, flood damage, and uncertain buildability, which leads to stricter underwriting.

Alternatives to traditional banks include portfolio lenders, local credit unions, or obtaining a construction-to-permanent loan once you have approved building plans. 

Some sellers may even offer financing directly. 

To improve your approval odds, prepare documents like a survey, an Elevation Certificate, and insurance quotes. 

Having a larger down payment and strong cash reserves also helps significantly. 

It’s essential to compare all costs and timelines with your lender and builder before buying land on a beach to understand the full financial commitment.

What is a typical due diligence period for a coastal land purchase?

1. Standard Due Diligence Timeline (30–60 Days): Most coastal land deals include a 30 to 60-day due diligence period, which starts once the contract is signed. This gives buyers enough time to research the property and make sure it’s a good fit.
   
   
2. Research Local Zoning and Building Rules (Week 1–2): It’s essential to check zoning laws and building limits before buying land on a beach. Some areas restrict how close you can build to the shoreline or what kind of structure is allowed.
   
   
3. Order Flood and Erosion Reports (Week 2–3): Coastal land is often at risk of flooding or erosion. These reports help you understand potential future problems and insurance needs.
   
   
4. Check Utility Access and Costs (Week 3–4): It is vital to know if utilities are available or need to be installed before buying land on a beach. Getting this information early helps avoid unexpected expenses later.
   
   
5. Schedule a Land Survey and Site Visit (Week 4–6): A survey will confirm boundaries and show any legal issues. Always visit the site in person before closing the deal.

What is the first step to take after closing on the land?

After closing on your land, the first critical step is to begin the pre-construction and permitting process formally. 

Begin by assembling a team of experienced professionals, including an architect, surveyor, and builder familiar with coastal regulations. 

You will need to gather your recorded deed and final title insurance policy, which confirms your legal ownership. 

If not already completed, order a new survey and an Elevation Certificate to provide your architect with the exact boundaries and elevation data needed for design.

It’s also wise to schedule a pre-application meeting with the local planning and building department to discuss your vision and understand their specific requirements. 

This initial phase also involves conducting essential site tests, like soil analysis for foundation design and a percolation test for septic system feasibility. 

Budgeting for high-cost items like flood insurance and potential environmental mitigation is a key part of this stage. 

Diligent research and planning at this point will build upon the due diligence you conducted before buying land on a beach. 

To get a clear roadmap for navigating coastal permits and design, book a free, no-pressure discussion with a qualified coastal professional today.

**NOTICE: Please note that the content presented in this post is intended solely for informational and educational purposes. It should not be construed as legal or financial advice or relied upon as a replacement for consultation with a qualified attorney or CPA. For specific guidance on legal or financial matters, readers are encouraged to seek professional assistance from an attorney, CPA, or other appropriate professional regarding the subject matter.