West Michigan Real Estate Blog | Luke Bouman Team

Buying waterfront property in West Michigan is one of the most rewarding real estate decisions you can make. Waking up to Lake Michigan, Lake Macatawa, or Spring Lake outside your window is genuinely extraordinary — and the West Michigan shoreline delivers that experience at a quality and scale that's hard to find anywhere else in the Midwest.

But waterfront transactions are not standard real estate transactions. They involve a layer of complexity that catches unprepared buyers off guard — sometimes after closing, which is the worst possible time to discover a problem. After nearly two decades of representing waterfront buyers and sellers across West Michigan, and holding the Resort and Second Home Property Specialist (RSPS) designation — one of fewer than 2,000 agents nationally with this credential — this is the guide we wish every waterfront buyer had read before they started looking.

Here's everything you need to know.

1. Understand What You Actually Own — Riparian Rights

When you buy waterfront property in Michigan, you're not just buying the land and the structure on it. You're buying riparian rights — the legal rights that come with owning land adjacent to a body of water.

In Michigan, riparian rights typically include the right to use the water for swimming, boating, and fishing, the right to wharf or dock out to navigable depth, and ownership of the land to the water's edge or in some cases the center of the waterway.

What riparian rights do not automatically include: the right to build any dock you want, any size you want, anywhere you want. That's where permits come in — and where buyers who didn't do their homework run into problems.

Before closing on any waterfront property, have your agent verify exactly what riparian rights convey with the property and whether there are any restrictions, easements, or shared water access agreements that affect those rights. Some waterfront properties have deeded access agreements that allow neighboring non-waterfront properties to share the shoreline — a detail that significantly affects how you experience the property and its long-term value.

2. The Dock Situation Matters More Than You Think

For most waterfront buyers, the dock is non-negotiable. You want to be able to pull your boat up to your own property. What many buyers don't realize until it's too late is that the existing dock — if there is one — may not be permitted, may not be transferable, or may not be the size and configuration they assumed.

In West Michigan, dock permits are issued by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for structures on navigable waters. Permits are property-specific and in some cases owner-specific. When a property sells, the new owner may need to apply for their own permit — and approval is not guaranteed based on current regulations, water depth, or environmental conditions at that specific location.

Key questions to ask before closing on any West Michigan waterfront property:

• Is the existing dock permitted and are those permits current?
• What size boat can the dock accommodate given the water depth?
• Are there any restrictions on dock size, material, or configuration?
• Does the permit transfer to the new owner or require a new application?
• If there is no dock, has a permit application ever been submitted and denied?

These questions need answers before you're under contract — not after. A waterfront property without a viable dock permit situation is a fundamentally different asset than one with a clean, transferable permitted dock.

3. Flood Insurance Is Not Optional — Understand It Before You Buy

Many West Michigan waterfront properties sit in FEMA-designated flood zones, which means flood insurance is required by your lender and non-negotiable. What varies enormously is the cost.

Flood insurance premiums are determined by your property's specific elevation relative to the base flood elevation, the age and construction type of the structure, and whether the property has had prior flood claims. Two waterfront properties a quarter mile apart can have dramatically different flood insurance costs based on these factors.

Before making an offer on any waterfront property, ask your agent to pull the FEMA flood map for that specific parcel and get a flood insurance quote from an independent insurance agent who specializes in waterfront properties. A flood insurance premium of $800 per year and one of $6,000 per year are both possible on comparable-looking West Michigan waterfront homes — and that difference materially affects your total cost of ownership.

Also worth understanding: FEMA's National Flood Insurance Program has undergone significant changes in recent years with the Risk Rating 2.0 overhaul. Properties that previously had low flood insurance costs may now be rated differently. Always get a current quote — never assume based on what the seller was paying.

4. Seawall and Shoreline Condition Can Make or Break the Deal

This is the issue that surprises waterfront buyers most consistently. The seawall — the structure that protects the shoreline from erosion and defines the water's edge — is often one of the most expensive components of a waterfront property, and one of the most overlooked during a standard home inspection.

Lake Michigan shoreline in particular has experienced dramatic water level fluctuations over the past decade. Properties that sat comfortably above the waterline for years have experienced significant erosion and seawall stress during high water periods. Even on inland lakes like Lake Macatawa and Spring Lake, seawall deterioration is a normal and expected part of waterfront property ownership — the question is where in that lifecycle the property currently sits.

A standard home inspector is not qualified to assess seawall condition. You need a marine contractor or coastal engineer to evaluate the structure specifically. The cost difference between a seawall in good condition, one that needs maintenance, and one that needs full replacement can range from zero to several hundred thousand dollars. That assessment needs to happen during your inspection period — not after closing.

Specific things to look for or ask about:

• Age and material of the seawall — steel, concrete, vinyl, or wood each have different lifespans
• Any visible cracking, leaning, or separation from the shore
• Whether any repairs have been made and when
• Evidence of erosion behind or beneath the wall
• Proximity of the structure to the current waterline

5. Critical Dune Regulations Affect More Properties Than Buyers Expect

If you're buying anywhere near Lake Michigan's shoreline in West Michigan, Michigan's Sand Dune Protection and Management Act may affect your property — and it's one of the most misunderstood regulations in West Michigan real estate.

Critical dune areas are designated by the state and cover significant portions of the Lake Michigan shoreline. Properties within these areas face strict limitations on what can be built, cleared, or disturbed — including landscaping, additions, outbuildings, and in some cases even vegetation removal.

A property that looks like it has room to expand, add a garage, or build a guest cottage may be entirely prohibited from doing so under critical dune regulations. Buyers who purchase with plans to improve or develop the property without understanding these restrictions can find themselves unable to execute those plans legally.

Before closing on any Lake Michigan adjacent property, verify whether the parcel falls within a designated critical dune area and what specific restrictions apply. This is not a reason to avoid these properties — some of the most stunning and valuable real estate in West Michigan sits within critical dune zones. It's simply information you need to have before you buy.

6. Second Home Financing Is Different From Primary Residence Financing

If you're purchasing West Michigan waterfront as a second home or vacation property rather than a primary residence, your financing options and costs will be different from what you may be used to.

Second home mortgages typically require a larger down payment — often 10-20% minimum — and carry slightly higher interest rates than primary residence loans. Investment property financing, if you plan to rent the home short-term, carries even more significant differences in down payment requirements and rate premiums.

The classification of the property — second home versus investment property — is determined by your intended use and matters significantly to your lender. A waterfront home you plan to use personally but rent out occasionally occupies a gray area that your lender and your tax advisor both need to weigh in on before you close.

Additionally, jumbo loan territory is common in West Michigan waterfront transactions. Lake Michigan frontage, Lake Macatawa North Shore properties, and Spring Lake waterfront regularly transact above conforming loan limits, meaning standard conventional financing may not apply and a jumbo loan product will be required. Not all lenders offer competitive jumbo products — work with a lender who has specific experience with West Michigan waterfront transactions at higher price points.

7. Short-Term Rental Rules Vary Dramatically by Municipality

If income potential is part of your waterfront purchase rationale — renting the property on Airbnb or VRBO when you're not using it — understand that short-term rental regulations in West Michigan vary significantly by municipality and have been changing rapidly.

Some communities welcome short-term rentals with minimal restrictions. Others have implemented caps, permit requirements, owner-occupancy rules, or outright bans in certain zones. A property that is legally operating as a short-term rental today may face different rules by the time you close — or by next season.

Before purchasing any waterfront property with short-term rental income as part of your financial model, verify the current short-term rental regulations for that specific parcel with the township or municipality directly. Don't rely on the listing, the seller, or assumptions based on neighboring properties. Get it in writing from the local authority.

Work With an Agent Who Knows Waterfront

Everything above is manageable — with the right guidance. None of it should scare you away from one of the most rewarding purchases you'll ever make. But it does illustrate clearly why waterfront transactions require a different level of expertise than a standard residential purchase.

The questions you need answered, the inspections you need ordered, the permit histories you need verified, and the regulations you need understood are not things a generalist agent encounters regularly. They're the daily vocabulary of a waterfront specialist.

Luke Bouman holds the Resort and Second Home Property Specialist (RSPS) designation — one of fewer than 2,000 agents nationally with this credential — along with the Accredited Luxury Home Specialist (ALHS) designation held by fewer than 1,000 agents nationwide. Our team has represented waterfront buyers and sellers across Lake Michigan, Lake Macatawa, Spring Lake, and West Michigan's inland lake communities for nearly two decades.

When you're ready to explore West Michigan waterfront, start here:

• Lake Michigan homes for sale
• Lake Macatawa waterfront real estate
• Spring Lake Michigan real estate
• West Michigan luxury homes

Or call or text us directly at (616) 344-9923. We'll make sure you go into your waterfront purchase with your eyes fully open — and come out the other side with exactly the property you were looking for.