The million dollar view is often encumbered by an outdated 1950's cottage in dire need of renovation. . Zoning in coastal areas can be highly restrictive so don’t assume you can tear down a cottage and build your dream beach house in the same location. When looking at waterfront homes here are some things you should consider:

1. Ask the seller for a survey. If one doesn’t exist you may be well advised to hire a surveyor during your due diligence period.
2. Determine whether the first floor elevation is above the base elevation as established by FEMA. If the floor is lower than the required elevation there are significant limitations and potential costs.
3. Establish whether the house conforms to zoning setbacks and waterfront setbacks. If the house doesn’t conform and you raze the structure, you will have to meet current setbacks. This could mean building farther away from the water. In Rhode Island, coastal properties are regulated by Coastal Resource Management Council or CRMC.
4. Major renovations can require extensive demolition and can often cost more per square foot than new construction. Evaluate whether your choice to renovate will get you the best design and the best value.
5. Hire an architect who specializes in coastal homes to do a concise and inexpensive feasibility study to insure the value of your purchase.