Property Value Factor #4: The Home

If the property has a house, and it is a house that the buyers intend to keep and/or remodel, this is often #4 on the list. Most buyers here are already risk-takers. Many own businesses and/or have built or substantially remodeled homes and see that the previously mentioned items (view, slope, waterfront) are more permanent in nature, while the home can be remodeled, added onto, or bulldozed. This explains why I am showing a lot with a single-wide trailer on it next week priced at $1 million, and am showing lovely new homes to others for half that price.

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Property Value Factor #3: Waterfront

What does “waterfront” mean in this context? This is a catch-all phrase. This issue is often third on folks’ lists, but is sometimes first or second. Factors may include:

Length of Shoreline

Though many buyers dream of having a great deal of shoreline for privacy and recreation, I often find that most owners use only a small area anyway. A typical lot here at the lake has about 100 feet of shoreline. Note that if there is not a dock on the property, you will need to be sure that there is enough shoreline (and that the angles are right if you are in the back of a tight cove) to construct the dock you desire.
Water Depth. Most buyers want deep water off the end of their dock. This provides a great opportunity to launch your boat, the depth needed to jump from the top of the boathouse (my kids love this!), and the depth in the unlikely event of a large drop in the lake level. While deep water is nice, and it is common here, I have seen many homes with only a few feet of water that have worked out fine for the most part.

Note that it is often (but not always) the case that deep water and a gently sloping lot conflict with one another since the slope of the land often continues out into the lake. Also note that there are some advantages to having shallower water, especially for a swimming area for younger children. My ideal waterfront lot is shallow at the edge then drops off where the dock will be.

Water Quality

This is not a big issue here in general, since the water is outstanding throughout most of the lake. There are a few places that have murky water from time to time, especially after winter and spring rains. Conversely, there are also some places on the lake that are known for having especially crystal clear water regardless of the weather or other factors. The former case, since it is the exception, has more effect on price than the latter.

Beach

Beaches are uncommon here, but owners and their children enjoy them. A thorough MLS search can often turn up properties with a beach if this is important to you.

Erosion Control at Shoreline

Most properties at the lake use rip-rap erosion control. These are rocks, fist-sized or larger, that are put above the water level and down into the water to hold back the shore and prevent erosion. This can be done attractively and can enhance the value of a waterfront lot. This should generally not be done on flat areas that do not experience much erosion.

Dock

The quality, style, size and general appearance of a dock can certainly impact the value of the property. Though docks are important, they can usually be altered or replaced. I haven’t seen docks as a critical driver or deterrent in the price of a home or lot in most cases.

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Property Value Factor #2: The Slope

We’ve looked at factor #1, the view, so now it’s time to see a second factor that effects how waterfront real estate is valued. “The Slope” often runs a close second behind view, and for many buyers it is first.

Smith Mountain Lake’s boundaries are made up of beautiful Blue Ridge Mountains that rise up from the water. Many waterfront lots are on old ridge tops or even peaks. Some of these lots are only 5 or 10 feet above the water level, which can result in nearly flat lots with a very gentle slope to the water. Some slopes are too small to even allow a walkout basement. A large number of lots have a gentle or medium slope to the water, and a home can be well situated with a nice view, a basement, and a reasonable driveway in front and walk to the water behind. There are other lots, however, that are steep. A few homeowners have actually added an electric tram to get from the house down to the water! Some homes require a golf cart or many steps.

Typically, the value of a waterfront property is directly affected by the slope. For instance, yesterday I showed a waterfront home with charm and privacy. It seemed like the perfect lake home, and the couple was very excited as they walked through it. That is until they looked off the back deck. This was an unusually steep lot, and there were 105 steps down to the boathouse. They eventually walked down to the dock, and this confirmed that this was not the home for them (I had warned them before we went!).

Often, you will be able to get a nicer home in a nicer area with a better view if you are willing to sacrifice on the slope. And who knows – you may be able to stay in great shape by doing the stairs!

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Many people looking at home listings over the web are surprised when they see the wide variation in home prices here at Smith Mountain Lake. They wonder why a beautiful, large waterfront home is priced hundreds of thousands lower than a run-down cottage in the same area. Or why some vacant lots are more expensive than nearby homes.

A number of factors contribute to property values here. As a result, values are not intuitively obvious, as they may be in a neighborhood in town. I have seen very costly mistakes on both sides of a transaction, and one of the main motivations for me to write this blog is so that you don’t become a victim.

In my opinion, it may not be enough to get a professional appraisal of a waterfront property you plan to buy or sell. [Read more →]

Before launching into more detail about Smith Mountain Lake real estate, some readers may want a broad brush version of the lake as a whole.

Is Smith Mountain Lake man made?
Yes. Smith Mountain Lake was formed in the 1960s as a power generation project of Appalachian Power, part of American Electric Power (AEP). It is the result of a 235-foot tall dam in a gap of Smith Mountain on the Roanoke River channel in Pittsylvania County.

What are the channels of Smith Mountain Lake?
The main channels of the lake total about 40 miles along the basins of two main rivers, the Roanoke and the Blackwater, which join a few miles west of the dam and flow together to form the widest part of the lake. The Roanoke River channel flows south-southeast from the city of Roanoke to the lake, and it generally provides a border between Franklin County on the southwest and Bedford County on the northeast shore. The Blackwater River Channel generally flows west to east through Franklin County until it joins the Roanoke River Channel near the Pittsylvania County border. At the point where the main channels join, the combined main channel flows east to the dam and provides a border between Bedford County on the north and Pittsylvania County on the south shore.

In addition to the two main channels, there are numerous other tributaries that were backed up as a result of the dam at Smith Mountain. Since the dam provided a water level at 795 feet above sea level along all of these creeks and stream basins, several creeks are as broad in places as parts of the main channel itself. Those familiar with the lake throw around the names of tributaries as though they are talking about separate entities from the lake.

Comments such as “try out that Marina on the east side of Craddock Creek” or “the striper bass are really running near the mouth of Betty’s Creek” may seem confusing to newcomers, but you’ll quickly become accustomed to the local lingo. Some of the main tributaries in Bedford County are Witcher Creek, Hatcher Creek ­­­­­­­­­and Craddock Creek. Major tributaries in Franklin County include Bull Run, Betty’s Creek, Becky’s Creek, Gill’s Creek, Lynville Creek and several more.

I’m putting the finishing touches on a massive article that I might split into more than one post. It’s titled “How is Smith Mountain Lake Real Estate Valued?”, and you’re not going to want to miss it! So subscribe now!

Shoreline:
• 500+ miles

Main Channel:

• Approximately 40 miles

Elevation:

• 795 feet above sea level at lake

Local Population:

• Approximately 20,000

Nearby Cities:

• Roanoke – Under one hour.
  Area population approx. 290,000
• Lynchburg – Under one hour.
  Area population approx. 240,000*
• Greensboro/High Point/Winston-Salem
  Approximately 1.5+ hours.
• Blacksburg/Virginia Tech – 1.5 hours
• Charlottesville – 2 hours
• Raleigh-Durham/Chapel Hill – 2+ hours.

Climate:

• Mild, enjoyable temperatures during the four distinct seasons. Summer temperatures average in the upper 70s. Water temperatures average 70 degrees from May to October. The average annual snowfall is less than 18 inches. A strange and distinct absence of a mosquito population. Smith Mountain Lake is near perfect!

Smith Mountain Lake has quickly become one of the most popular destinations for vacationers, second-homeowners, retirees and telecommuters in the Eastern United States. The lake is a natural draw for water and mountain lovers of all sorts. Home buyers from New England to the West Coast have come to Smith Mountain Lake. Many simply have located Smith Mountain Lake on a map, scheduled a trip, and had a property deed in hand a month later. The water and mountains here seem to have an irresistible draw.

Some comment that they have traveled throughout the United States and have never seen a more beautiful spot!

Consider the Pennsylvania school principal and his wife, a teacher. They had grown up on the water in New Jersey and had been saving up for 38 years to retire there. They had been on an unsuccessful 2½-year search all over the East Coast for the perfect spot. After locating Smith Mountain Lake on a map in December 2006, they scheduled a three-day trip over Christmas break. They were overwhelmed by the beauty of the mountains, the water, and the quaint rural surroundings. Within a month they closed on a beautiful waterfront lot and have recently moved into their dream retirement home.

Or the Silicon Valley executive and his wife. As they began to plan for retirement recently, they considered the places they had lived and visited all over the United States and the world. They considered both coasts and many spots in between, but remembered a brief stop they had once made in Southwestern Virginia. During a recent four-day trip, Scott toured the lake by boat, car and plane. On day four he made his decision and he and his wife are now the owners of their fantasy waterfront property. They will call it home permanently when they retire within eight years.

From the D.C. attorney who bought property on his first day at the lake, to the family who bought a cottage on their trip back north from Florida, the stunning beauty and abundance of property as well as the many quality–of-life factors have made Smith Mountain Lake a magnet for people who love the Blue Ridge Mountains, clean water, fresh air and water sports.

Yet this rush to buy lots and homes here has meant problems for some buyers. Smith Mountain Lake, like all waterfront destinations, has a number of issues that, if ignored, can have serious repercussions for property values and quality of life. Fortunately, each of these issues can be navigated successfully with good counsel and careful investigation.

I hope this blog will help you to confidently move forward in buying the property of your dreams here at Smith Mountain Lake!

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Before I became a buyer’s agent at Smith Mountain Lake, I worked with a wide variety of buyers and sellers in Roanoke and the surrounding area. I also bought and sold a substantial number of properties of my own in Virginia, Michigan and Ohio. Through this process, I learned that there is usually a homogeneity within a neighborhood or area that allows properties to be valued using relatively consistent criteria.

You know, the usual stuff like – the state of repair of the home and yard, the view, the interior features, and the construction. These factors exert a predictable influence on the assessment of a property.

The saying is usually true…the big issue is Location, Location, Location!

With this understanding in mind, my investment group began to purchase foreclosed properties at courthouse step auctions after merely driving by the home and checking comparable values in the neighborhood. We learned that there is usually not a huge cost difference between remodeling a somewhat dated home and a significantly neglected or trashed home. We were able to learn from a real estate trainer how to give a home valuation estimate over the phone after asking the owner only their address and a few additional questions.

BUT….The Rules are Different at Smith Mountain Lake

When I began to work at Smith Mountain Lake, however, things weren’t nearly so simple. Because of the significant number of critical variables for any given property, it would be virtually unthinkable for even a seasoned local agent to precisely evaluate a waterfront home or lot without a thorough personal inspection. At a place where a shabby trailer often sells for more than a nice new contemporary home, and a waterfront lot is sometimes more than double the price of the home built on it, it is clear that the rules are different here.

There are so many complex issues, including:

• view
• slope
• waterfront
• water depth
• water quality
• location on the channel or cove
• rentability
• permissibility for a dock
• septic regulations
• and much more!

That all means that it is critical for a buyer here to really understand the factors that drive the value and the functionality of a given property. It is my hope that this blog will help serve that function!

My team and I have worked with many buyers and sellers on the lake, and we have found that there are a number of frequently asked questions they pose when they are considering buying a property. There is also information we share with them that they wouldn’t know to ask about. The info on this blog will be organized along the lines of these typical questions and issues.

Speaking of “info on this blog”, why don’t you subscribe to my RSS feed? You’re not going to want to miss a single post! I hope that this blog will provide you with a start on your treasure hunt at the Crown Jewel of the Blue Ridge, Smith Mountain Lake!

Hello, folks!

My name is Paul Moore, and I’ve been a Realtor here in Smith Mountain Lake, Virginia, for many years now. I’ve learned so much about waterfront property in general, and Smith Mountain Lake in particular, that I’ve written a definitive guide on the subject. This blog is designed to complement the book. It will contain lots of content, will remain up-to-date, and I trust will be a valuable resource to you!

So stay tuned!