Hobe Sound & Stuart Waterfront Due Diligence Guide

0:00Welcome to Hobe Sound and Stuart Waterfront Due Diligence Guide. Quick heads up, this program was created with AI assistance and uses a synthetic narrator. The content was reviewed and approved by Ted Guarnero before we published it.

0:15Information is believed to be accurate, but you should independently verify everything. And just so you know, this program doesn't provide legal, tax, lending, or appraisal advice.

0:26Okay. So today I'm talking with Ted Guarnero about something that honestly doesn't get enough attention. Buying waterfront property in Hobe Sound and Stuart.

0:35Everyone gets caught up in the views, right? But there's so much more you need to check out before you actually put your name on the dotted line. Hey, thanks for having me.

0:44You know, that's exactly right. I mean, waterfront is gorgeous down here. We're talking stunning sunsets, direct water access, all that. But if you don't do your homework, you could end up with some really expensive surprises.

0:59And I'm talking environmental issues, deed restrictions, flood zones, insurance costs that'll make your head spin. Oh, wow. Okay.

1:08So let me ask you this. When someone comes to you ready to buy waterfront, what's the first thing you tell them to look into? Flood zones and insurance.

1:17Seriously, this is huge. You've got to pull the flood maps, understand whether you're an A zone, V zone or X zone, and then you need to get actual flood insurance quotes before you close.

1:32People think, oh, I'll just get homeowner's insurance. And then they find out they need separate flood coverage and it's thousands a year. That changes the whole math on the property.

1:43Right, right. So you're basically saying don't fall in love with the property until you know what it's actually going to cost to own it. That makes total sense.

1:52What else? I mean, there's got to be environmental stuff too, right? Oh, absolutely. You need environmental assessments, phase one, phase two, if necessary.

2:01We're looking for contamination, wetlands issues, seawall condition, erosion. And here's the thing. If there's a seawall, you need a structural engineer to evaluate it. Those things fail.

2:15And suddenly you're looking at a six figure repair bill. Plus you got to check if the property is in a mangrove protection area, or if there are any environmental deed restrictions that limit what you can do with the land.

2:27Okay. So that's the environmental side. But I'm also thinking, what about the actual deed and the legal stuff? Like what rights do you actually have to the water?

2:37Perfect question. You need a title search, obviously, but you also need to understand riparian rights. That's your right to use the water in front of your property. And then there are HOA restrictions, dock regulations, setback requirements from the state and county.

3:03Some properties have shared dock access. Some have private docks with maintenance agreements. You got to know exactly what you're getting. We've seen deals where people thought they had direct water access and found out later they don't.

3:20Or they do, but there's a shared easement that comes with all kinds of limitations. No kidding. So you're really saying you need to treat this like a forensic investigation before you even make an offer.

3:32I mean, Hobe Sound and Stewart are such beautiful areas. Places like the falls at Lost Lake are gorgeous. But I'm guessing even in those premium developments, you still need to do all this due diligence?

3:44Especially in premium developments. Look, those communities have their own set of covenants and restrictions. You need to review the architectural guidelines, understand what you can and can't do with the property, what the HOA fees cover, what the reserve study looks like.

4:04And honestly, that's where a lot of people get blindsided. They don't budget for rising HOA fees or special assessments. So yeah, even in the nicest neighborhoods, you've got to dig into the document. This is really helpful.

4:18So I guess the bottom line is, don't let the view distract you from the reality of what you're actually buying. Ted, anything else people should know before they start looking at waterfront properties around here?

4:28Just this hire professionals. Get a good real estate attorney, an environmental consultant, a structural engineer if there's a seawall. Yeah, it costs money up front, but it saves you from making a million dollar mistake.

4:44And take your time. Waterfront moves fast, but not so fast that you should skip the due diligence. That's the whole point. That's solid advice.

4:55Ted, thanks so much for breaking this down. I think a lot of people are going to find this really valuable. We've linked some resources and related content in the show notes if you want to dig deeper.

5:07But seriously, great stuff today. Thanks for having me. Always happy to talk about this stuff.