Increasing the Value of Waterfront Homes in Smith Mountain Lake: Things to Consider

When it comes to waterfront homes, Smith Mountain Lake is a sought-after location due to its relaxed environment and breathtaking scenery. If you’re getting ready to sell, here are ways to improve the perceived value of your waterfront property.  

Lakefront living is a rare privilege. More than a trophy home, a waterfront property serves as a lifestyle enhancement for those who enjoy fishing, boating, and swimming in a serene environment. Living on or near the water is also known to boost happiness and mental wellness – there’s just something about the placid surface that creates a sense of well-being and connectedness in people. 

There’s no better place to enjoy waterfront living than Smith Mountain Lake. Known as the “Jewel of the Blue Ridge Mountains”, this premier waterfront getaway draws comparisons to other major lake destinations in the United States. But what sets Smith Mountain Lake apart is its community feel. While it is certainly a world-class lake destination, it has retained much of its bucolic character despite robust property values and tourism. 

Waterfront homes in Smith Mountain Lake are highly coveted due to their location and the community that they’re part of. Another factor that affects waterfront property values is exclusivity. In general, lakefront properties command higher prices than inland homes due to limited supply. 

Although waterfront home values fluctuate over time, they sell at a higher price than homes that are not on the water, according to a study of over 1.2 million residential properties across the US. Moreover, lakefront properties are consistently valued about 25% to 40% higher than comparable homes inland, according to analytics.

This means that sellers can look forward to a potentially lucrative sale. If you play your cards right, you can further enhance the desirability of your waterfront home by selling the Smith Mountain Lake lifestyle, as well as making improvements to the property. 

A LAKEFRONT COMMUNITY LIKE NO OTHER 

Located in the Blue Ridge Mountains, Smith Mountain Lake encompasses more than 20,000 acres. The lake itself was formed in 1963 by damming the Blackwater and Roanoke Rivers.

At about 40 miles long, the lake was initially meant to produce electricity but has since turned into a local attraction. 

With a surface area of over 20,000 acres and a shoreline spanning about 500 miles, Smith Mountain Lake is the second largest body of freshwater in Virginia and offers countless recreational opportunities. Smith Mountain Lake State Park is nestled on the northern border of the lake and features a beach with a public boat launch and snack shack. The park also provides access to over 13 miles of hiking trails, as well as several picnic shelters, campsites, and cabins.

Located just 20 to 40 miles from major urban areas like Roanoke and Lynchburg, the community is within driving distance of big city amenities. The towns of Moneta and Huddleston are also located around the lake, which covers three counties. 

COME FOR THE LAKE, STAY FOR THE COMMUNITY 

Though known as a vacation destination, Smith Mountain Lake has been attracting full-time residents over the last few decades. Indeed, Smith Mountain Lake appeals to buyers of diverse backgrounds. The famed novelist David Baldacci and Academy Award-winning actor Sissy Spacek are just some of the community’s high-profile residents. Retirees also flock to Smith Mountain Lake for its slower pace of living, relative affordability, and peaceful environment. 

In addition to outdoor recreation, residents have access to major retailers and healthcare providers in nearby Bedford, Lynchburg, Rocky Mount, and Roanoke. The Smith Mountain Arts Council (SMAC) hosts various art shows and community events throughout the year. 

Anyone who has fantasized about waterfront living should consider Smith Mountain Lake. Residents enjoy swimming, kayaking, waterskiing, and jet skiing in their own time. The lake is stocked with several species of fish, such as catfish, walleye, and smallmouth and largemouth bass. If that’s not enough, the sight of the sun setting over the crystalline waters of the lake is something to behold. 

WHAT TO CONSIDER WHEN INCREASING THE VALUE OF YOUR SMITH MOUNTAIN LAKE WATERFRONT HOME 

In addition to the lifestyle, Smith Mountain Lake offers prime real estate. Real estate is considered a valuable asset, especially when it is located on a body of water. However, when you are selling in a community with many other waterfront properties, it is important to find ways to make yours stand out from similar listings on the market. These simple and straightforward tips will help you make the most of a waterfront home sale.

Researching market trends and buyer preferences

Evolve ranked Smith Mountain Lake among “The 12 Best Places to Buy a Lake Home in 2023,” based on vacation rental performance metrics, median home prices, and the estimated operational costs and cap rate for vacation rentals in the area. The community landed the 5th spot on the list. With an estimated median rental revenue of $33,692 and a median listing price of $462,772, Evolve pegs the cap rate at 5.1% and considers it a top-performing vacation rental market. 

Most waterfront properties are priced between $500,000 and upwards of $1 million. With the huge potential for investment, rental income, and lower property taxes in Virginia, waterfront homes in Smith Mountain Lake make an attractive investment option.

Although Smith Mountain Lake appeals largely to second-home buyers, it is important to note that many condos, townhomes, and waterfront properties in the area are occupied on a long-term or permanent basis. The temperate weather and gentle seasons make it an ideal place for year-round living. 

The local real estate market remained strong despite a nationwide downturn, according to Realtors. Many buyers come from Northern Virginia, Pennsylvania, New York, New Jersey, California, and other states with generally higher property taxes. Buyers find that they are able to stretch their dollar while still enjoying a high quality of life on Smith Mountain Lake.

Renovations and upgrades

Waterfront property usually attracts anglers, swimmers, boaters, and kayakers, so consider transforming your home into the ultimate vacation home. Highlighting recreational opportunities on the property can help you attract more buyers. When making renovations and upgrades, make sure that the property reflects the lifestyle you’re trying to sell. Some simple ideas for waterfront home upgrades include:

• Additional storage for boats, kayaks, jet skis, and other items not in use
• A fire pit or fireplace for late-night gatherings 
• A beach or golf cart for convenient transportation
• A volleyball net, ping-pong table, or other sports equipment

If you’re ready to take on a more ambitious project, consider installing a floating dock to better accommodate boating enthusiasts. Having a private dock is a great way of adding value to the property as it provides a safe and secure place for boat owners to store their watercraft. 

In addition to storage, floating docks offer a visually appealing space where buyers can entertain friends and family. It also sends buyers the message that your waterfront property has premium features that justify a higher asking price. 

In general, all private docks can potentially add value to a waterfront home. However, a floating dock has several advantages over a stationary dock. First of all, floating docks typically do not require extensive underwater installation. These docks simply float on the surface of the water and will move as water levels rise and fall. This makes them easier to use provided that there is a good dock anchoring system in place.

The costs of building and installing a floating dock are typically lower than that of a stationary one and require fewer materials. They are also easier to repair and maintain in the long term – a cost-effective option for sellers who want to give their waterfront property an upgrade.

You can also add more value to a floating dock by investing in some add-on features or accessories:

• Kayak or canoe launch
• Boat or PWC port 
• Swim platform with ladders or slides
• Fish cleaning station
• Safety railings 
• Additional storage for supplies

If you already have a dock on your property, you’ll want to make it easily accessible to prospective buyers. You can do this by creating a clear and well-maintained path to the dock from other areas. You must also make sure that the dock is stable before making the property available for home viewings. 

You can also install other outdoor structures to make your waterfront property more appealing to buyers. These may include:

• Outdoor fireplace or fire pit
• Outdoor kitchen with a bar and barbecue grills
• Porch or patio
• Gazebo or pergola
• Walkways and stepping stones

These outdoor structures can make the property feel more conducive to recreation and entertaining. Consider installing ambient lighting and ceiling fans to keep outdoor spaces as comfortable and inviting as possible. Just remember to check with the homeowners’ association or local zoning guidelines first before installing or renovating structures on your property.

Outdoor spaces and landscaping

Waterfront homes have the advantage of location, offering water views and recreational opportunities that naturally come with living by the lake. Make the most of Smith Mountain Lake’s picturesque setting by making a few improvements to the property. 

Perhaps one of the most valuable things you could do to make a waterfront property more desirable is to offer buyers a clear and unobstructed view of the lake and the surrounding areas. You can improve waterfront visibility by trimming the trees, bushes, and shrubs on the property. Make sure that all interior and exterior windows are clean and in good condition.

In addition to clearing the view of the water, make sure that the shoreline is clean and free of weeds, trash, and other debris. A weed-infested shoreline can make a waterfront property seem neglected, which is a turnoff for many prospective buyers. The same goes for muck, silt, and sludge sitting just below the surface of the water surrounding the property. If you don’t have time to clean and remove weeds, hire a professional company that specializes in cleaning shores and beach areas. Consider installing outdoor lighting along the shoreline to make it more visible and easier to appreciate in the nighttime.

As with all real estate listings, curb appeal plays an important role in selling a waterfront home. In fact, it becomes more crucial for waterfront property since sellers should also consider how their home is seen from the water. If a waterfront property doesn’t look appealing from the lake, prospective buyers will simply move on to the next listing.

Professional landscaping can enhance curb appeal and increase the market value of your property. Greenery and colorful flowers can add visual interest to the exterior of your home. Here are some tips for landscaping:

• Come up with a landscaping plan – A landscaping plan offers a bird’s eye view of the property and ensures that each component of your landscaping project contributes to the larger picture. Following a plan lets you create a cohesive design and a realistic timeline and budget for landscaping.
• Keep the focus on the water – Make sure that all components of the landscape design highlight the property’s main selling point – its lakefront setting. Determine how key areas of the property will look from both the street and the water. Make sure that any trees, plants, and outdoor structures don’t obstruct water views.
• Choose native plants and flowers – When adding foliage to your waterfront property, choose plants and flowers that are naturally abundant in the area. This ensures that your landscaping blends in with the rest of the property, as well as with neighboring ones. This will also make your greenery easier to care for. 
• Install multipurpose landscape features – Certain landscaping elements such as retaining walls and erosion control structures can help maintain shoreline health. Other hardscape options like fences and sidewalks can also help make your property more secure while being aesthetically pleasing.

If you don’t have time to care for plants and install outdoor structures, hire a professional landscape architect that specializes in waterfront properties. Their knowledge of native plants and hardscapes will help you achieve the best possible results. 

Interior design and styling

Spruce up your home interior with on-trend fixtures and finishes. Replace broken fixtures and update the wallpaper and color scheme. Consulting with an interior designer will help you determine how to update your home. 

Staging your home is also crucial when listing a property. Decluttering and depersonalizing your home will make it easier for prospective buyers to imagine themselves living there. A professionally staged home can also help generate more interest in your real estate photos. 

Some staging tips for waterfront homes in Smith Mountain Lake include:

• Choosing a theme – There are many ways to present your home. From bohemian chic to rustic waterfront, choosing a theme will help create visual cohesion in your home. 
• Accentuating gathering areas – Stage the patio, porch, outdoor kitchen, and dining area to entice buyers who want to entertain guests and host events on the property.
• Framing the view – Use home staging to draw buyers’ attention to water views and make sure to let plenty of natural light come in. All water-facing windows should also be clean with the curtains pulled back during home tours.
• Putting items in storage – In addition to keeping the decor and furnishings neutral, make sure that every item in the home serves a clear purpose for staging. Consider putting extraneous items and personal belongings in storage. Not only will this keep the home clutter-free but it will also help protect your privacy. 

Adding functional and luxury features

Once you have all the basics covered, you can start thinking about enhancing functionality and adding luxury features. The sky’s the limit, as far as luxury upgrades go – you can install a hot tub overlooking the lake or convert the basement into a game room. Just keep in mind that not all luxury upgrades will have the same returns. If you don’t have much time and energy to invest in lavish upgrades, it’s best to keep it simple.  

WHY WORK WITH A REALTOR WHEN SELLING YOUR HOME 

While selling a waterfront home may seem complicated, adequate planning, preparation, and research will help you navigate the process. If you need professional guidance, work with a real estate agent who has experience selling waterfront properties. They will help you price your home correctly, evaluate offers, and negotiate the sales price.

FIND QUALIFIED BUYERS FOR YOUR WATERFRONT HOME 

If you’re ready to sell your waterfront home in Smith Mountain Lake, I’d be more than happy to answer any questions you may have about the selling process. 

As a long-term resident, I have in-depth knowledge of the housing market and the amenities in the area. As a Fine Homes Certified Specialist, Luxury Collection Specialist, Certified Residential Specialist, and Short Sales Foreclosure Resource, I will facilitate the quick and profitable sale of your waterfront home. 

Please contact me, Jane Horne, at 540.493.1690 or send a message to schedule a consultation.