Most folks have only so much money to spend on a lakefront property. After conferring with a reputable mortgage broker, lakefront buyers have a pretty good idea of what they can afford to spend . (Need the name of a good mortgage broker? Let us know.)

Determing how much one can spend is a lot easier than determining what to spend it on. Let's say your budget indicates that you can afford to spend $400,000 on a lakefront home.

Here are your 5 choices:

1)One can purchase a $300,000 house on a $100,000 lot
2)One can purchase a $250,000 house on a $150,000 lot
3)One can purchase a $200,000 house on a $200,000 lot
4)One can purchase a $150,000 house on a $250,000 lot
5)One can purchase a $100,000 house on a $300,000 lot

Once acknowledging these five, choices 9 out of 10 people select a 6th choice. That is, a $300,000 house on a $300,000 lot. Unfortunately, this choice does not work with a $400,000 budget even in this extraordinary buyer's market.

You might ask "What would Mr. Lakefront do if presented with these same choices?" My advice: Buy the best lot possible with a house that meets your minimum requirements. How come?

Two reasons: First, a lakefront home is an investment. What appreciates over time is the lot, not the house. Secondly, you can change the house but not the location.

My advice is not usually welcomed very warmly. "But I want a place I can be proud of ", "I want a place that will impress my sister and her snooty husband", or "I want a place large enough to accommodate the kids and the grand kids." I've heard it all.

So what choice would Mr Lakefront make? With a $400,000 budget I would select #4 - I would buy a $250,000 lot with a $150,000 house.

When making this selection I realize that the lot will be terrific and the house rather plain. But I can fix the plain Jane. Because I know there are interior designers that can turn the proverbial "sow's ear " into a silk purse. A good interior designer can turn an average looking place into a dazzling show place. They have a team of loyal subcontractors who perform good work within a budget.

So the next time you enter a lakefront home with shag carpeting, avocado kitchen appliances, dark brown cheap masonite paneling, and orange formica countertops don't turn away too quickly. If the lot is good to great, maybe with the right help you, too, can turn that "sow's ear into a silk purse."

Need the name of a great interior designer? Let us know. We can help you find one.

We love Maine lakes and want to share them with you.

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For Maine lakefront homes in your price range in the region of your choice check out Lakefront Locator.