Waterfront Real Estate

Today my mother and I went to look at a house right on the water. It's a brand new house that unfortunately has gone into foreclosure but is now being sold by the bank. They want almost $900,000 for it and it's going to be tough. It is RIGHT on the water. The back yard is a deck that hangs over the water. Along the side is a little inlet, like a creek. This photo is taken of the side yard looking out.

The worst part is they didn't take advantage of this lovely view. All along the water side of the house were obstructions like a huge fireplace, some bookshelves, whole stretches of wall with no window, a bedroom upstairs with a closet along the view wall instead of a window, small slider off the master bedroom instead of a wall of windows. On top of this, it had no curb appeal. If I could upload two photos, and if this other photo wasn't so ugly, I would include a photo of the house from the street. But I can't and it is. So instead, I'm uploading this side-yard pic with an interesting octagonal house built on stilts over the water. I would love to go into that one. To the right of this photo is a teeny little cottage that has seen better days, but is right on this little creek/inlet. Who lives in there?