5 Expensive Coastal Property Mistakes That Cost North Carolina Buyers Over $100,000

Published by Kimberly Crouch, eXp Realty | Wilmington & Wrightsville Beach Specialist

After 15 years (since 2010) of living on the North Carolina coast and helping dozens of families navigate coastal property purchases, I’ve witnessed the same expensive mistakes happen repeatedly. As a former finance and accounting professional, I’ve seen how these oversights can cost buyers tens of thousands of dollars—sometimes over $100,000 in unexpected expenses.

Whether you’re considering oceanfront property in Wrightsville Beach, a riverside home in Wilmington, or coastal property anywhere along the North Carolina shore, avoiding these five critical mistakes could save you significant financial stress and help you make a more informed investment decision.

Mistake #1: Not Getting Insurance Quotes Before Falling in Love

The Problem: Many coastal property buyers wait until they’re under contract to investigate insurance costs, only to discover annual premiums ranging from $8,000 to $25,000 or more.

The Reality: Coastal insurance costs vary dramatically based on proximity to water, elevation, construction type, and claims history. Properties that look similar can have vastly different insurance requirements.

The Solution: Get insurance quotes early in your search process. Before you fall in love with a property, understand the true carrying costs. This information should influence your budget and property selection, not surprise you after you’ve committed.

Mistake #2: Buying Based Only on Summer Visits

The Problem: Most buyers visit coastal areas during peak season when everything is bustling, restaurants are open, and the community feels vibrant. This doesn’t reflect year-round reality.

The Reality: Coastal communities can feel dramatically different during off-season months. Some areas become virtual ghost towns from November through March.

The Solution: Visit your target area in February. This “February test” reveals the true character of the community. Which restaurants stay open? What’s the social scene like? How does the area feel when tourism dies down? This insight is crucial for year-round residents and even seasonal homeowners.

Mistake #3: Only Considering the Purchase Price

The Problem: Buyers focus solely on the purchase price without modeling total carrying costs, leading to budget shock after closing.

The Reality: A $750,000 coastal property typically carries $25,000 to $45,000 in annual expenses beyond your mortgage payment. This includes property taxes, insurance, HOA fees, utilities, and maintenance—all typically higher in coastal areas.

The Solution: Work with a real estate professional who understands the financial implications. Model the complete cost of ownership before making an offer. Factor in higher utility costs (salt air affects HVAC systems), specialized maintenance needs, and potential special assessments.

Mistake #4: Ignoring Flood Zones and Future Changes

The Problem: Buyers either don’t understand current flood zone designations or fail to research potential changes to flood maps.

The Reality: FEMA flood maps change regularly, and properties can shift from requiring no flood insurance to needing thousands of dollars in annual coverage. Additionally, oceanfront properties may face questions about rebuilding rights if disaster strikes.

The Solution: Research both current and proposed flood zone maps. Understand your property’s elevation certificate and how it affects insurance requirements. For oceanfront properties, investigate setback requirements and rebuilding rights. Consider how potential sea level rise and erosion might affect long-term property value.

Mistake #5: Underestimating Hurricane Preparation and Costs

The Problem: New coastal residents often think homeowner’s insurance covers all hurricane-related expenses and disruptions.

The Reality: Hurricane costs extend far beyond property damage. Consider evacuation expenses, lost rental income for investment properties, contractor delays (sometimes months), and the general disruption to life and business in remote coastal areas.

The Solution: Budget for the complete hurricane experience, not just insurance coverage. Understand your evacuation route and plan. If buying rental property, factor in potential income loss during storm season. Build relationships with reliable contractors before you need them (or work with a real estate agent whose relationships you can leverage).

Your Coastal Property Buying Checklist

To avoid these expensive mistakes, use this checklist when evaluating coastal properties:

Buying coastal property involves unique considerations that don’t apply to inland real estate. Working with an agent who specializes in coastal areas and understands these financial implications can save you from expensive surprises.

As someone who has lived through 15 hurricane seasons on the North Carolina coast and brings a strong financial background to real estate transactions, I help my clients understand the complete picture before making what is often their largest investment.

Ready to explore coastal property the right way? Contact me for a free consultation where we’ll discuss your specific situation and how to avoid these costly mistakes. Together, we can find your perfect coastal home while protecting your financial interests.

Kimberly Crouch is a licensed real estate agent with eXp Realty, specializing in coastal properties throughout New Hanover, Brunswick, and Pender Counties. With 25+ years of finance and accounting experience and 15 years of coastal living, she offers authentic coastal luxury at every price point.