Your realtor will tell you there are three things that matter in buying a home: location, location, and location. I always mention the amount of land matters, too, but the point is that everything else can be changed with enough money. Look at this nice house. It's just over 3,000 square feet with three bedrooms and three bathrooms and a lovely oceanfront view, in Pismo Beach, California. Built in 2003, it was listed for sale in April at $3,600,000. On July 5, it was listed for $2,100,000. On July 25, the price dropped to $1,250,000! You might wonder why the price is less than half what was originally listed. It appears there's a problem with the back yard.
Oh my. At some point, the real estate listing was edited to begin with "EMERGENCY SEAWALL IS NEEDED!" It now states that the property is offered "as is" and only cash buyers need apply. You can imagine that a seawall would cost more than a million to build, but would it even be possible? The city of Pismo Beach used to approve permits for seawalls to be constructed on private property, but that changed last year when the California Coastal Commission objected to seawall permits to protect private homes built after January 1, 1977. The commission wants to promote the idea of letting natural erosion return the shoreline to beaches and encourages public access to the water. It's a long-term strategy that will be good for the general public, but is a disaster for individuals who have already invested in the location.
As sea levels rise, we'll see more of this type of problem, not just in southern California, but everywhere the ocean meets the land. When you choose where to live, it's always a good idea to think more than twenty years ahead. -via Fark