How much does a water front home at Smith Mountain Lake (SML) cost is a relative question, somewhat like asking, “How much does a car cost?” At the lower end, homes on the water with dock, etc can run from anywhere from $200,000 to well over a million.
What do you get for the $200,000? Typically, it is a mobile trailer or doublewide in the very back of a cove with shallow water, a steep climb down to the water and little, if any, water view. Add to that a nice house (2,500 sp. ft. @ $125 a square foot, and now you’re at $475,000. If you want to go half way out of the cove, between the back and the point, add another 110K and you’re setting at $575,000. Move your site all the way out to the point, instead of in the cove, we have to add about another 100K to that and now we’re at $675,000. If you want that full, wide water with mountain view, like you see in the magazines, add another 200K for $875,000, and on and on until you’re satisfied. Expensive, yes, worth it, we think so and so do a lot of other people!
Lakefront property is hot, because it is in very short supply. As a result, waterfront prices have climbed at a faster rate than any other property category in the Smith Mountain Lake (SML) area. The typical lakefront buyer we talk to is looking for lake-style waterfront home, fairly modern, private and pristine. It can be found here in several locations, but it is pricey. Private lakefront lots at SML run from $300,000 to as much as you are willing to spend. With construction prices from $135 to $300 a square foot you’re looking at $750,000 to $1.5M+ for a nice 3,000 square foot home on a good lakefront lot. Lakefront lots to build on, outside of new developments, are in short supply. When a large tract becomes available they are bought by developers capable of developing large parcels and cost millions of dollars. There are lots of waterfront lots but good, single, lakefront building lots are in such short supply that we’re starting to see a few people buy older lakefront houses only to bulldoze them down and build new.
We’re asked all the time if it is worth it. The answer is YES because it is spectacularly beautiful and ecologically sensitive area, offering a unique setting in an ideal climate within 45 minute of Roanoke or Lynchburg, Virginia, but it is not for the easy on the wallet.
$500,000 is about the starting point if you’re looking year around for homes on SML and typically come on the market in the $500,000 to the $700,000 range. Whether you’re looking to spend $300,000 or $600,000 or even $1M for a lakefront house, keep in mind that at any price range inventory is very limited. Keep in mind that there are thousands of people looking for that perfect lakefront getaway in Southwestern Virginia – and in 2004, only 246 found one here.
We don’t want to be discouraging but finding a lakefront house here is certainly possible, but it takes time, perseverance and flexibility. It is very unlikely you’ll find a lakefront house that’s your “ready to go” dream. Many of the lakefront houses on the market now were built in the 70’s and 80’s and need updating or expansion. When you find a lakefront house here in a good setting, that’s workable at an affordable price, my advice generally is to buy it. If you hold out for that perfect house in a perfect location, you may wait a loooooooog time. You are only going to retire once and it is going to be forever, do not waste it. Real estate prices here are among the fastest appreciating items in the country, and taxes and utilities have remained amongst the lowest anywhere in the country.
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