How Do Water Rights Affect Real Estate Value?

Many people never consider the impact that water rights have on the value of a property. When you buy a piece of property, you want to know that you own it without any restrictions. However, sometimes the water rights can belong to someone else. Here are the basics of water rights and how they affect real estate value. 

Water Rights

Water rights represent the legal right to use the physical supply of the water. This can include the ground water underneath the property, as well as any surface water such as lakes and rivers. When you have water rights you can use the water, but it does not mean that you own the water itself. 

Real Estate Impact

The real estate value of a piece of property could be affected by the water rights. When you buy something, you want the water rights to come along with the property purchase. With water rights, you could build a dock over a body of water, irrigate the water, or consume it. If you do not have the water rights with a piece of property, the value of that property will go down. 

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