Tag: buyers advice

Lake Home Buyers – Try Before You Buy

Posted on Staff

Estimated reading time: 4 minutes

Couple viewing a lakefront house for sale with scenic lake backdrop

Some purchases in life require a trial run before committing, whether it’s cars, mattresses, or lake properties. The latter is often one of the most significant investments you’ll make and while the appeal of a laid-back, lakeside life is enticing, there can be unexpected challenges depending on where you buy.

To ensure your property investment is the right fit, experience the local lake lifestyle before taking the plunge into lake home ownership.

Every Side Has Its Story

Photo courtesy of Toby Hall on Unsplash

Just as people differ, lakes have unique personalities, and even different parts of the same lake can vary drastically. For example, one end of the lake might be quiet, secluded, and primarily occupied by adults, while its opposite end is a party cove bustling with energy.

Where you choose to buy depends on the lifestyle you desire and your intended uses for the property.

If your main reason for buying a lake home is to enjoy a quiet morning coffee on your dock or watch the grandchildren swim, find a location with minimal boat traffic and safe swimming conditions.

However, if you’re looking for the best water for watersports and activities, consider areas with deep water and open space for smooth, wide turns. Proximity to a marina is also crucial since watersports typically consume more fuel than leisurely cruises. 

Peak Season vs. Off-Season

Most lake lovers and prospective lake homeowners understand what lake life is like during the summer, but what about when the air turns cold and the boats are safely stored?

Among the many reasons lakes are superior to beaches is that, unlike beach towns, lake towns don’t completely shut down during the off-season. On some lakes, the towns surrounding them bustle with the same energy no matter the season. On others, marinas close, restaurants shut down and residents fly the coop until the next year.

Additionally, some lakes, like Alabama’s Logan Martin Lake, experience seasonal drops in water levels. This lake is lowered by about five feet in the winter, only to return to full pool from May to October. These controlled water level changes help manage seasonal rainfall, but low water levels during the off-season can potentially damage docks and bulkheads or leave boats and other watercraft grounded.

Visiting your prospective lake home during the off-season lets you understand how the area operates when the tourists leave, providing a fuller picture of year-round living.

Try the Food, Map Out the Amenities

Part of the appeal of living at the lake is being outdoors, not being cooped up in the kitchen. Grilling is great, but every night? Even when you plan to cook most of your meals at home, you will want to dine out occasionally. Before committing to your lake home, explore the local cuisine scene.

Also, be sure to map out the proximity to essential locations such as gas stations, grocery stores, and hospitals. Lake living goes beyond the house and the boat; it’s about the overall lake experience.

If you think you’re ready to dive in, be sure not to do it blindly and give the lake lifestyle a try before you buy.

Whiteboard Topics: Where Can I Find Foreclosed Homes on a Lake

Posted on Kamari House

A foreclosed home on the lake is a rare find. Lake Homes Realty’s CEO, Glenn Phillips shares why your search for one is coming up short.

LakeHomes.com, MLSs, & Other Websites: While homes like these are available on sites like LakeHomes.com, you may have trouble finding them because of how few there are.

Why So Few?

  1. Not the 2008 Market: While inventory spiked during the recession, this was not the case for lake properties. This is because lake homeowners are more financially sound than the average buyer.
  2. Interest Rates Affecting Sellers: Lake homeowners that have a mortgage don’t want to battle with increasing interest rates when buying a new home.
  3. Lenders are Well Positioned: Due to past real estate crises, lenders have policies in place to ensure they work with stable buyers.
  4. Majority Do Not Have a Mortgage: More lake home buyers paying in cash means fewer mortgages and fewer foreclosures. 

If you still have your heart set on a foreclosed home, LakeHomes.com will have the few left available!

Whiteboard Topics: What Else Should I Ask When Buying a Lake Home?

Posted on Kamari House

Purchasing a lake home is not something to take likely. Before you commit to a property, consider these factors from Lake Homes Realty’s CEO, Glenn Phillips.

  1. Bridges?: The location of bridges will impact how convenient it will be to travel around the area. However, the closer you are to one, the closer you’ll be to traffic.
  2. Water Levels?: The water level can vary by lake, season, and time of day. It’s important to know the behavior of your preferred lake, as the changing levels can affect lake activities.
  3. Shoreline Restrictions?: Research the restrictions surrounding the shoreline, as they tend to fluctuate throughout the area.
  4. Land Restriction?: Most lakes are owned by an organization, which means you’ll run into leased-land properties. You’ll have to follow their guidelines when buying these types of homes. 
  5. Water Restrictions?: Living by the lake doesn’t guarantee you have free range on the water within it. Check out the rules around water activities, water addition/removal, etc.

When buying a lake home, the property itself isn’t the only thing to consider. Be sure you can live the lake lifestyle you want before you buy!

Whiteboard Topics: Why Buy a Lake Home on a Leased Lot?

Posted on Kamari House

Leased lots are more common around the lake than you think. Lake Homes Realty’s CEO, Glenn Phillips, shares why you should consider purchasing these properties.

  1. Common on Many Lakes: Larger lakes were built by power companies, and in order to maintain control of the surrounding land, they prefer to lease lots instead of selling them.
  2. Buy House, Transfer Lease: When buying a home on these lots, the lease will get transferred to the new owners of the property.
  3. Reconsider Time of Homeownership: There’s no need to fear the time length of a lease. If you want to stay longer than your allotted time, you can always renew it. If you’d like to leave sooner than expected, the lease will be transferred to your buyers.
  4. Can Still Finance a Home: Local lenders who are familiar with this structure will have no issue helping you finance.

Buying on a leased lot is a great option for buyers. Remember, you aren’t restricted to the timeframe of the lease because of renewal and transfer options!

Whiteboard Topics: Is a Lake Home a Good Investment?

Posted on Kamari House

Have you been wondering if buying a lake home is the best financial move for you? Lake Homes Realty’s CEO, Glenn Phillips, gives 4 reasons why lake properties are a good investment.

  1. Discretionary Asset: People in this market don’t feel pressure to make rash decisions around a home, making lake real estate more stable than others.
  2. Little Impact from Mortgage Rates: The majority of transactions are cash and those who choose to finance through other means almost never have issues. Because of these reasons, mortgage rates don’t play a major role in their decision-making process.
  3. Foreclosures are Rare: When you’re in competition with cheaper, foreclosed homes, it’s harder to sell your home for what it’s actually worth. In the lake market, this issue rarely happens to this demographic. 
  4. Somewhat Economy Independent: Even in economic uncertainty, lake homes tend to hold their value, making them a great placeholder for your money.

Nothing is completely risk-free, but purchasing a lake home is one of the safer ways to invest your money!

Whiteboard Topics: 6 Surprises to Know About Real Estate Agents

Posted on Kamari House

You may think you’ve gotten the real estate market figured out, but Lake Homes Realty’s CEO, Glenn Phillips, has 6 surprises you probably didn’t know about.

  1. Not All are a Realtor ®: There’s a difference between being a real estate agent and being a realtor. Real estate agents must become a member of The National Association of Realtors to achieve the status.
  2. What Their Training Includes: Most of their mandatory training involves learning the legal aspects of real estate such as contracts and state-specific laws. It doesn’t include soft skills like negotiation and real estate marketing.
  3. Less than Half are Full-Time: Because the threshold to obtaining a real estate license is lower than other forms of education, this is a part-time commitment for most agents.
  4. 1 Out of 70 Adults: There is a large number of people that hold an active real estate license, meaning a lot of people, with varying skill levels, can represent someone in a transaction.
  5. Top 5% Land 10% More $: The top 5% of agents alone are able to make drastic amounts more for their clients because they have more experience in their market and have been trained to become a well-rounded agent.
  6. May Not Be Representing You: A Buyers Agency Agreement is a secure way to ensure the agent you are communicating with is working in your best interest. Before making this commitment, however, it’s crucial you research the agent thoroughly.

Real estate can be tricky when you don’t know what to expect. Keeping these tips in mind before beginning your home search will help you navigate the market with ease.

Whiteboard Topics: How To Find A Lake Home At A Great Price

Posted on Kamari House

You shouldn’t give up on finding a good deal for your dream lake home just because it’s a discretionary purchase. Lake Homes Realty’s CEO, Glenn Phillips, shares four ways to find a great price for your future property.

  1. Think Rural: Location plays a big part in home prices. Typically, the more rural the area, the better deal you’ll get for the lake home.
  2. Smaller Lakes: While major lakes may be the first to come to mind, don’t count out nearby smaller lakes that can provide a similar lifestyle.
  3. Be Flexible: It’s great to have your list of must-haves, but you have to be willing to make some compromises in order to find the right price.
  4. Lake-Focused Agents: Finding an agent who specializes in lake real estate will make all the difference in your home search. Lakehomes.com has a plethora of lake experts committed to finding you what you’re looking for.

Take these tips into consideration before you buy in order to find the right lake home for the right price!

Whiteboard Topics: How Are Lake Home Sellers Different?

Posted on Kamari House

Lake home sellers differ from those in other markets for many reasons. Lake Homes Realty’s CEO, Glenn Phillips, shares the most significant factors to consider before searching for your dream lake home.

  1. Older: Because a lake home is a discretionary purchase, most sellers fall into the older demographic.
  2. Economy Blind: These sellers aren’t as affected by changes in the economy due to their ability to afford a more expensive lifestyle. This factor may also dampen the appeal of a cash offer, as this is extremely common on the lake.
  3. Lack Necessity: Owning a lake home is an elective purchase, meaning those who choose to have one can afford to keep one. Because of this, owners lack haste when selling.
  4. Patient: The biggest incentive these sellers would need to sell their home is a grandiose offer. Without one, most don’t have a big enough reason to budge.

Understanding the demographics of the lake real estate market will help your chances of buying your dream home on the lake!

Whiteboard Topics: How To Spot An Overpriced Lake Home?

Posted on Kamari House

Just because a lake home is a discretionary purchase, doesn’t mean you should overpay for one. Lake Homes Realty’s CEO, Glenn Phillips, shares how to spot an overpriced property.

  1. Price… “Sort Of”: What’s considered overpriced for one home on the lake may be a great value for a similar property in the area. You have to keep certain factors in mind before you start comparing homes.
  2. Days on Market: A high number of ‘Days on Market’ is usually a sign that other home buyers have deemed it inappropriately priced.
  3. Clues in Photos: Assess photos for current conditions. Sellers may try to reimburse themselves for the money they’ve invested in the past despite it being outdated.
  4. FSBO: These sellers aren’t as knowledgeable about today’s market as a traditional agent would be. This typically leads to them overshooting the current value of their home.

Watch out for these signs and you’ll find your dream lake home with the right price tag!