Lake Water Quality and Property Values
Reprinted from the December 2010 Newsletter from the Fish Lake Area Residents Association
“What effect does the clarity of the lake water have on the value of our lake property? Well, according to a study done by the Mississipi Headwaters Board and Bemidji State University in 2003:
(http://www.friendscvsf.org/bsu_study.pdf), lakeshore property values can vary by tens of thousands of dollars based on just a one meter change in water clarity.
Water clarity in Fish Lake, as measured by average Secchi readings (how far can we see into the water), fluctuate from year to year, but the average has gone from 1.84 meters in the 80's to 1.28 meters during the last 10 years. Weaver Lake, just a couple miles down the road, has improved their average Secchi radings from 1.85 meters to 2.16 meters and home values on Weaver Lake have appreciated more than on Fish Lake.”
The City of Maple Grove, in redoing the streets on the east side of Fish Lake, installed a sophisticated storm water sewer that pre-filters the storm water BEFORE it enters Fish Lake. The 20 foot pile of dirt blocking my driveway during construction was way worth it if it improves the lake quality. It would be nice to feel comfortable swimming in the lake I live on.
Follow Up to last week's article on 3 Town home Offers. I'm NOT closing on the town home that I had an offer accepted on. When I wrote the offer the M L S said the H O A dues were $118 a month. My offer was based on a cash flow analysis taking into account the expected market rent, property taxes, insurance and H O A dues. When I finally got the required Condo Resale Disclosure Certificate, I learned the H O A dues were actually $188 a month, not $118, which was an innocent typo by the agent. When I capitalized the $70 a month difference is came to $8,500. I submitted an amendment to lower the price and it was rejected. So I walked.
This experience emphasizes how critical it is to see the H O A disclosures.
Having a strict financial formula to value the town homes takes the emotion and indecision out of it