Sarasota, Florida, is renowned for its stunning coastal beauty, vibrant cultural scene, and enviable lifestyle. If you’re considering buying a home here, you’ll likely face the decision of choosing between a waterfront property and an inland home. Each option has its own set of advantages and financial implications. This comprehensive guide will compare the costs associated with waterfront homes versus inland homes in Sarasota, covering purchase prices, maintenance, insurance, property taxes, and more.
Purchase Price - Waterfront vs Inland
The initial purchase price is one of the most significant differences between waterfront and inland homes.
Waterfront Homes: These properties typically command a premium due to their desirable location and limited availability. As of 2024, the average price of a waterfront home in Sarasota ranges from $1,50,000 to several million dollars, depending on factors such as proximity to the Gulf of Mexico, size of the property, and amenities.
Inland Homes: Inland properties are generally more affordable. The average price of an inland home in Sarasota ranges from $300,000 to several million dollars with variations based on neighborhood, amenities, home size, and features.
Financing and Closing Costs
Both waterfront and inland homes incur financing and closing costs, but the amounts can differ.
Waterfront Homes: Due to higher purchase prices, the mortgage amount and corresponding interest payments for waterfront homes will be higher. Additionally, lenders may require more extensive appraisals and inspections, which can increase closing costs.
Inland Homes: Inland properties typically have lower mortgage amounts, resulting in lower interest payments. Appraisal and inspection fees are also generally lower compared to waterfront properties
Property Tax
Waterfront Homes:: The higher assessed values of waterfront properties mean higher property taxes. For example, a million-dollar waterfront home might have annual property taxes of around $11,600, given Sarasota County’s average tax rate of approximately 1.16%.
Inland Homes: With lower assessed values, inland homes have correspondingly lower property taxes. An inland home valued at $400,000 would have annual property taxes of around $4,640.
Insurance Costs - Inland vs Waterfront in Sarasota
Insurance is a critical component of homeownership, particularly in coastal areas prone to natural disasters.
Waterfront Homes: These properties often face higher insurance premiums due to the increased risk of flooding, hurricanes, and other water-related damage. Necessary insurance policies include homeowners insurance, flood insurance, and windstorm insurance. Combined, these can add several thousand dollars annually to the cost of owning a waterfront home.
Inland Homes: Inland properties generally have lower insurance costs since they are less vulnerable to water-related damage. Homeowners insurance is typically less expensive, and flood insurance may not be required, depending on the location.
Maintenance and Repairs
Maintenance costs can vary significantly between waterfront and inland homes, primarily due to environmental factors.
Waterfront Homes: Waterfront properties require more maintenance due to exposure to saltwater, humidity, and storms. Key maintenance considerations include seawall and dock upkeep, corrosion prevention, and erosion control. These maintenance activities can add $5,000 to $10,000 annually to the cost of owning a waterfront home.
Inland Homes: Inland properties are generally easier and less expensive to maintain. Standard maintenance tasks such as landscaping, painting, and roof upkeep apply, but without the added challenges posed by a marine environment.
Homeowners Association (HOA) Fees
Both waterfront and inland homes can be part of communities with homeowners associations (HOAs), which charge fees for communal services and amenities.
Waterfront Homes: If part of a gated community or a neighborhood with marina facilities, waterfront properties may have higher HOA fees. These fees can range from several hundred to several thousand dollars annually, depending on the amenities provided.
Inland Homes: Inland properties with HOA fees generally have lower costs unless they are in luxury communities. The fees typically cover landscaping, community pool maintenance, and other common area services.
Lifestyle and Resale Value
Beyond the immediate financial considerations, the lifestyle offered by waterfront and inland homes can influence long-term value and personal satisfaction.
Waterfront Homes: These properties offer unparalleled access to water activities, stunning views, and a luxurious lifestyle that many buyers find irresistible. As a result, waterfront homes often have strong resale values and can appreciate significantly over time.
Inland Homes: While they may lack direct water access, inland homes can still offer a comfortable and enjoyable lifestyle, particularly if located in desirable neighborhoods with good amenities. They provide better value for money and can appreciate well, especially in growing areas. Should you choose an inland location, keep in mind the cost of a slip or dry stack storage for your boat. Slips or dry stack rental can be several hundred or even thousand dollars per month. While the cost to purchase a slip or rack storage in Sarasota can range anywhere from $80,000 to nearly half million depending upon the size of your boat.
Wrapping Up
Choosing between a waterfront home and an inland home in Sarasota involves weighing various financial and lifestyle factors. Waterfront homes offer luxurious living and direct access to water activities but come with higher purchase prices, insurance, maintenance, and property tax costs. Inland homes provide more affordable living with lower ongoing expenses, making them an attractive option for many buyers.
By understanding these cost differences, you can make an informed decision that aligns with your budget and lifestyle preferences. Whether you’re drawn to the allure of waterfront living or the value of an inland home, Sarasota offers a range of options to suit your needs.
If you’re ready to explore your options in the Sarasota real estate market, contact Richard Strauss. With extensive experience in both waterfront and inland properties, Richard can help you find the perfect home that meets your financial goals and lifestyle aspirations. Reach out today to start your journey to owning a beautiful home in Sarasota.
Some favorite waterfront neighborhoods in Sarasota:
