Virginia lighthouse lists for $450,000, but you’ll need a boat and a bold spirit

In October 2005, then-54-year-old Dave McNally pitched a dream. It took wine and a candlelight dinner for the Minnesota business owner to get his wife, Teri, on board. But it was more than worth the effort, he said.

After a heart-to-heart conversation, she gave McNally the green light to do the unthinkable: purchase a two-century-old lighthouse across the country he had never visited.

Months later, in early 2006, the family — including a son and two daughters — finalized the purchase and brought McNally's idea to life.

Now, after turning the lighthouse into a summer home for him and his family, McNally, 74, is selling the furnished 1,500-square-foot, 1897 Chesapeake Bay lighthouse in Virginia for $450,000 cash and "as is," according to the listing.

McNally purchased the structure, which his then-19-year-old son, Sam, found online, through a General Services Administration’s Lighthouse Program auction.

He said he grew up near the Mississippi River in Minnesota and had always been fond of lighthouses.

Located miles from land in the southernmost area of Virginia’s Potomac River, Smith Point was in the best condition out of all the lighthouses on the block, also making it the most expensive. McNally paid $170,000. Other lighthouses, he said, sold for $15,000 to $40,000.

Days later, the McNally family hopped on a U.S. Coast Guard vessel and visited the property for the first time. It's a moment he still regards as a “true and genuine moment of faith,” he said. During the initial approach, Teri said, "It looks like a floating castle," McNally recalled.

McNally brought a bag of tools and supplies with him on the first visit, carrying along a hard-working, no-nonsense mindset to boot.

In the weeks that followed, McNally worked on repairs ranging from sealing structural cracks to restoring rusty railing.

McNally’s crew — around three to 12 friends from his hometown of Winona, Minnesota — would labor away irregularly over the next three years. McNally said he made sure to cover wages, lodging and anything they needed. The crew relied on original architectural plans from the National Historical Archives in Philadelphia for guidance, he said.

Smith Point became move-in ready in 2009, said McNally, although he would continue making renovations until 2012. He said he spent a little under $300,000 on the work.

Visitors must enter the lighthouse by climbing a ladder between two porthole windows at the base of the structure. The lowest level features a basement area that historically served as a cellar.

Aside from that, Smith Point has four primary levels. The first level contains the kitchen and a living space, while the second level features three bedrooms. Above that, there's the watch-room level and the lantern room.

Interior features include a breakfast bar, paneling, a living room, hurricane-rated windows, brand-new insulation, window air conditioning units and heaters. Buyers also have access to crab pots, tools, a tackle box and other items.

Lighting fixtures run on a gas-powered electric generator. Smith Point also features a water heater, 250-gallon plumbing system, a Lectra/San wastewater treatment system and a 550-gallon water storage tank in the basement.

Furniture is staying with the lighthouse. McNally said he relied entirely on IKEA products to furnish the interior. He hoisted up boxes using a rope and pulley, almost losing a few items in the water below and assembled the furniture inside, he said.

McNally mentioned the need for basic marine water restoration work, such as repairing old hosing or sealing windows.

The family would settle for weeks at a time at the lighthouse during holidays and special occasions. They would park at the local marina, then embark on a 2.5-mile boat ride to the lighthouse.

July 4 celebrations stand out in McNally's memory, as do the sound of porpoises as he'd fall asleep with his children on the top floor, he said.

Other memorable occasions came later, including being featured on Minnesota television in a segment of "On the Road" with journalist Jason Davis, he said.

But McNally said he is ready to sell and move on, citing the birth of his grandchildren as a key motivator. He said bringing young children to the lighthouse would be too hazardous, even if the family only visited on special occasions.

McNally attempted to sell Smith Point a few times in recent years.

Listing agent Beth Groner is the latest real estate professional to take on the unique challenge. Her first step was solving a key problem: getting the property listed with a real address. Not having an address made it impossible to list Smith Point on a traditional multiple listing service, said the Keller Williams Fairfax Gateway agent. Groner reached out to the local MLS office for help creating the "00 Smith Point" address listed in Reedville, Virginia.

Accessibility was the next concern. Potential buyers could not tour the lighthouse that easily. McNally himself used a skiff to travel to and from the property. On that note, Groner said “people have the fantasy, but they don’t understand the journey.”

Safely boarding the property is another concern that potential buyers worry about. McNally mentioned a key moment long ago when a 10-foot wave struck his feet, almost sending him crashing into the water. Were it not for his wife and a few friends, McNally might've been lost at sea, he said.

In fact, buyers must understand that traditional homeowner's insurance isn’t available for the property, Groner said. That could mean that the new owner is 100% liable for damages or injury, she said.

According to Groner, the U.S. Coast Guard still uses the lighthouse for navigation purposes, and the owner will be legally responsible for letting the authorities perform inspections.

The Coast Guard owns the light beacons within all active lighthouses in the United States — including Smith Point. While the light fixture itself is automated, the Guard maintains and repairs it.

The Smith Point Lighthouse is more than a property — it's an experience, Groner also said. Living in the property is akin to sitting in a reverse aquarium, she said.

McNally said buyers need to do their research before making such a move.

“There are two types of people in this world," he said. "Those who own a lighthouse, and those who don’t.”