Outer Banks Homes Are on the Brink. What Erosion Risk Means for Bluff-Top San Diego and Lakefront Chicago Buyers

Erosion stays a slow story until the day it isn't. A nor'easter is battering North Carolina's Outer Banks, where homes already weakened by erosion are close to collapse, according to Realtor.com. Local officials warn that as many as 100 more homes could eventually face the same fate as the shoreline keeps retreating.

This is easy to read as an East Coast problem, but it isn't one. Any home next to moving water carries some version of this risk, and both of our markets have plenty of those homes.

In San Diego County, the risk is the coastal bluff. Parts of Del Mar, Solana Beach and Encinitas sit on sandstone cliffs that wear away over time, sometimes slowly and sometimes all at once. The California Coastal Commission tightly regulates seawalls and bluff protection, so a new owner can't always build their way out of the problem after closing.

In Chicago, the pressure comes from Lake Michigan. In high-water years, waves have eaten into beaches, damaged lakefront paths and hit private shoreline properties along the North Shore. Lake levels rise and fall in cycles, so a calm season during a showing tells you little about the next decade.

What buyers should do before writing an offer

• Ask for any existing geotechnical or bluff reports, and budget for a new one if the home sits near an edge.
• Review the permit history for seawalls, revetments or other shoreline work, including whether that work was ever approved.
• Price flood coverage on its own. Standard homeowners policies generally exclude flood damage, and some coastal carriers have pulled back.
• Read the disclosures closely. A history of slope movement or erosion repairs belongs in the conversation, and in the price.

What sellers should prepare

Buyers at the top of the market know more about climate exposure than ever. Owners of waterfront and bluff-top homes will do better by gathering reports, permits and maintenance records up front instead of waiting for a buyer's inspector to raise the questions. Paperwork turns an open question into a known fact, and a known fact is easier to price.

A water view is still one of the most valuable features a home can have in either city. We think the view and the ground under it should be judged together. If you're considering a coastal or lakefront property in San Diego or Chicagoland, our team can help you ask the right questions before you commit.