Buying Waterfront Property: What to Know

Who controls the shoreline?

Most lakes in our area — including Chickamauga, Watts Bar, and Parksville (Ocoee No. 1) in Tennessee, and Blue Ridge, Chatuge, and Nottely in North Georgia — are managed by the Tennessee Valley Authority. On many TVA lakes, the land right at the water is owned by TVA or subject to a flowage easement, even when the deed reads "lakefront." Before you fall in love with a view, confirm:

• Whether the lot has water-use rights (the ability to apply for a private dock)
• Where the property line actually ends, based on a survey
• Whether the existing dock is permitted and the permit can transfer to you

Dock and shoreline permits (TVA Section 26a)

Section 26a of the TVA Act requires a permit before any shoreline construction begins — building a dock, adding a boat lift, stabilizing the bank, or clearing vegetation. TVA advises that processing can take up to 120 days, and you may also need a state water-quality permit first (TVA). In newer developments, residential docks, piers, and boathouses are generally limited to 1,000 square feet (TVA Shoreline FAQ). Applications are submitted online through TVA's permit portal.

Before you buy: ask the seller for copies of all existing Section 26a permits. An unpermitted dock can be costly to bring into compliance — or may have to be removed.

Flood zones and insurance

Look up the property on FEMA's flood maps as soon as you're serious. Homes in high-risk Special Flood Hazard Areas (zones A and AE) with mortgages from government-backed lenders are required to carry flood insurance (FEMA). Standard homeowners policies don't cover flood damage. Some properties need an Elevation Certificate to price the policy accurately (TEMA). Get insurance quotes — homeowners, flood, and coverage for docks and boats — during your inspection period, not after.

Water levels

TVA lakes rise and fall with the seasons, and winter drawdowns on some reservoirs can leave a shallow cove dry for months. Ask about water depth at the dock in winter and summer, and visit at different times of year if you can.

Inspections unique to waterfront homes

• Septic system: many lake homes aren't on city sewer. Get a septic inspection and confirm the system is sized for the number of bedrooms.
• Well water: test for bacteria and quality if the home isn't on public water.
• Dock and seawall: have a marine contractor check flotation, decking, cables, electrical, and erosion.
• Moisture and foundation: check crawlspaces and basements for water intrusion.
• Slope and access: steep lots can mean costly driveways, stairs, and erosion control.

Financing and resale

Waterfront homes often command premium prices, so appraisals depend on true lakefront comparables — which can be scarce. Planning to rent it out part-time? See our rental potential guide, and check local short-term rental rules and HOA covenants before you buy.

We know these lakes well. Tell us what you're looking for, and we'll help you find a property with the water access you actually want.