Tag: buying lake property

5 Reasons to Purchase a Lake House as a First Home

Posted on Camille Smith
For Sale Sold Sign lake house as a first home

Imagine that you’re looking to buy your first house or apartment. More than likely, it’s in an urban or suburban area, and the most picturesque views that you’ll get is of your neighbor’s backyard or the recycling bins outside. But of course, it has its benefits —  it’s near work, it’s close to the city, and it’s just practical. Perhaps thoughts of a luxurious lake home seem more like a pipe dream than a reality. Something to save up for and wait several years before even thinking about it. But who says that you have to postpone your lakeside living fantasies?

According to CNN, there’s a rising trend of people buying vacation houses as a first home. For many new homeowners, this method is the ideal way to obtain real estate without sacrificing all their assets in one purchase as you might in an expensive city. From saving money to stressing less, there are several perks that come with buying a lake home as your primary investment property. 

1. Save Money

Lake George, NY
Photo courtesy of Lake George.

It’s no secret that major cities like New York or San Francisco are very pricey for small units of space. Not surprisingly, both were ranked among the top 25 most expensive cities in the U.S. For good reason, many people are now opting to buy properties at vacation spots adjacent to these major cities while continuing to pay rent for their small urban apartments. This way, new homeowners can get the best of both worlds — an investment in real estate while also living in the city. For example, New York dwellers might choose to buy a house on Lake George, about a three hour drive from the hustle and bustle. When the work week gets stressful and a weekend retreat is in the cards, there’s nothing better than a nearby destination that you can proudly own. Buying a lake house as a first home solves this issue.

2. Rent it Out

Person handing house keys to renters

If you aren’t planning to live at your lake house full time but still want to invest in the property, there’s a great opportunity to rent your vacation home to others who are looking for a weekend getaway. Since it’s going to be left unoccupied when you aren’t there, you might as well be making a profit. According to the data studio Priceconomics, AirBnb hosts make $924 per month on average. By including your lake home on a platform like AirBnb, you can offset the mortgage cost each month and make your investment a little more affordable. Plus, with amazing views of a nearby lake and serene nature surrounding the house, you’re bound to get plenty of booking requests.

3. Stress Less

Lake House at Bulow lake house as a first home
Photo courtesy of The Lake House at Bulow.

When it comes to buying a house, there can be a lot of pressure to make sure it’s the right decision. After all, you’re placing roots in a space that you expect to enjoy for years to come. But if you’re living in an expensive city, the stakes are high and dropping more than $150,000 on a downpayment (based on the average listing price of $779,000 in New York City) is not a decision to be taken lightly. If you’re ready to be a homeowner but can’t commit to city prices, choosing a more affordable vacation home is a great way to lower your stress and buy some time before investing in city property.

4. Invest in the Future

Grandfather reading with grandson at lake

If retirement is already on your mind, imagine the kind of place where you’d like to spend the years following your career. Likely, it’s a place where relaxation is the name of the game. By investing in lake house property early on, chances are that you’ll be far enough on your mortgage payments where you can retire comfortably at your vacation home. Not to mention, you’ve secured a vacation destination and weekend getaway for all those pre-retirement years when you need to take a break.

5. Enjoy the Scenery

Buying a lake house as a first home
Photo courtesy of Bontena.

Of course, the decision to buy a vacation home as a first home comes with a few considerations. For example, the upkeep is your responsibility and this may be harder to keep track of when it isn’t your primary residence. However, those who have taken the plunge and bought a vacation home while renting in the city say that it helps to keep close ties with neighbors who can alert you if anything suspicious is going on. And if your property is just a few hours away, you should be able to make it for a maintenance day one weekend a month. If you decide that you’re ready to take on the homeowner responsibilities, consider all the benefits of making your first home one with an incredible lake view. 

Lake Wedowee Agents Receive National Agents of the Year Award

Posted on Staff

Lake Homes Realty named Terry and Sherrie Norton 2017’s Splash Award recipients at its annual Agent Summit, which took place Oct. 17-20, 2017. Additionally, both members of the Lake Wedowee, AL team are now recognized as Lake Homes Realty Premier Agents.

“We are incredibly honored, humbled and appreciative of this recognition of our hard work,” this year’s winners said. “It is an honor to be chosen from among our fellow agents who all work so hard to attain their goals. It really is an incredible honor.”

The Splash Award Defined

The award, presented to company’s Realty Agent of the Year, is given to the Lake Homes Realty agent, or agent team, with the overall best performance across a number of important accomplishments.

“Winning the Splash Award is an honor and a great way for LHR to say that our company appreciates our hard work,” the Nortons said. “Maintaining and working toward this goal again for the coming year is certainly a great incentive.”

Eligibility is open to agents who have been licensed with Lake Homes Realty for a minimum of 24 months by Aug. 31,2017.

These agents must also have completed at least 12 transactions on either the buyer or seller side of a sale within a 12 month evaluation period, which began Sept. 1, 2016 and concluded on Aug. 31.

Lake Homes Realty CEO, COO and Splash Award Winners holding award plaque
Lake Homes Realty’s Terry (center) and Sherrie (right middle) Norton named 2017 Agents of the Year at annual Agent Summit on Oct. 19, 2017.

Additionally, agents had to have closed $3.5 million or greater in transaction volume during this time in order to gain award eligibility.

“Eligible agents are then ranked, relative to each other, by performance in a number of key areas. These include overall effective commission per side and percent increase of year-over-year transaction volume in dollars,” explained Glenn S. Phillips, Lake Homes Realty CEO.

Additional areas assessed include average number of days it takes from closing to office file completion, total number of sides closed and number of listings in Multiple Listing Services as of Sept, 1, 2017.

Agents are also ranked by total transaction volume closed in dollars.

This volume is defined by sale price apart from the number of sides an agent represents for a given transaction. Referral transactions are not included in the total transaction volume.

Determining the Agent of the Year

To determine the Splash Award winner, the best performance in each of the criteria areas is given one point. The next best performance receives two points, the third receives three points and so forth.

The points from each area are then totaled with the lowest total score named the winner of this prestigious award.

“In the event of a tie in total points, the tie-breaker is determined by the highest transaction volume between those tied during the evaluation period,” Phillips explained.

For 2017, the Splash Award winners and the second best overall performing agent were separated by just one point.

“Lake Homes agents are the special forces unit of real estate industry,” Phillips said. “They are the lake real estate experts and their knowledge and skills continue to be reinforced year-after-year.”

2017 Agents of the Year

“We feel extremely blessed by our past success,” they said. “We have to continue to strive to always do our best.”

During the 12-month evaluation period alone, the team sold more than $7.7 million in lake property.

The Nortons are proven local lake real estate experts who are passionate not about selling property, rather their passion is for selling the lake experience.

Their credibility is further made evident by their relationships among both buyers and sellers. From Sept. 2016 to Aug. 2017, the Premier Agents team represented 55 total sides closed.

The Key is Happy Clients

“Our motto is ‘we work hard for our clients.’ Our clients are our success,” the couple emphasized. “There is great satisfaction in a job well done and in knowing we have provided the best service possible to our clients.”

Additionally, the Nortons’ transaction volume increased by an impressive 44.15 percent in the last year.

“Hopefully clients and potential clients who read about our awards and success will feel confidence in LHR,” they said, “and about our abilities to represent them as they list their home or purchase a new home.

Lake Homes Realty is the largest, lake-focused real estate brokerage in the nation. The company business model focuses on creating a national market reach for local properties and agents.

Phillips and his wife Doris, who serves as Lake Homes Realty’s Chief Operating Officer, shared that treating their agents with respect and confidence in their abilities is paramount to the company’s success.

“We always say we have four clients: the buyer, the seller, the agent, and our staff,” the COO explained. “Just like we want Lake Homes buyers and sellers to be happy with us, we strive to maintain positive relationships with our agents. Their happiness is what drives their success, and ultimately, the success of Lake Homes Realty.”

This mindset is proving its worth as LHR is currently licensed in 16 states, and counting, and belongs to more than 70 MLSs.

“We are so proud to be a member of the LHR team. Simply put, we could not provide the customer service we provide if we did not work for such an amazing company,” the Nortons said. “We can proudly state [Lake Homes Realty] is the leader in lake home sales. We know we work for the best.”

4 Things You Must Do When Looking at Lakefront Property

Posted on Glenn S. Phillips

Lake housesFinding a home on the lake is an exciting time; so exciting that one may forget to check a few important aspects out before signing the paperwork. This list will help you remember the main focuses on purchasing your new lake home other than what you plan to do once it is purchased.

Do not be blind-sided by the beauty. Make sure you are aware of the requirements and what to expect with the home. Lakefront property is very different from a normal real estate transaction, keep the following in mind:

Number 1: Find an agent that is a waterfront specialist.

Typical agents will not have the knowledge of every aspect of purchasing and owning a lakefront property. They may have enough to complete a sale, but there is more to it than just pointing then signing.

For example, one home may be cheaper due the fact that its lot doesn’t have year round water. It is important to find an agent that knows the ins and outs of your lake. They will ensure that the home you purchase is perfect for your needs.

Number 2: The property is more than just a home.

You must remember that you are not just looking at the home itself, but you need to take a look at the property, the views, and other aspects of living in this specific location.

Often times a rambunctious home buyer will buy a home that they fell in love with only to find that the view is bad, the swimming is actually mucky, and other problems they could have avoided.

Number 3: Choose your home to fit your lifestyle, not build your lifestyle around the home.

The home may be absolutely perfect, but it may not be perfect for you. If you love kayaking on calm waters, a house on a busy main channel is probably not for you.

You will need to think of key aspects of your life that you would like your home to cater to. After all, you are spending good money on it, so make sure that it fits your lifestyle instead of the other way around.

Number 4: Get to know the neighbors.

It is crucial not to be shy. Go ahead and knock on the doors of the neighbors. They have insider information about the area and other aspects of living in the neighborhood.

You do not want to purchase a home only to find out that at night it turns into a loud party area.

No matter what state you are looking for property in, this list applies to them all. Keep your list of personal requirements near by as you look at homes. Do not let your excitement blind from all aspects of the decision making process when it comes time to purchase your home.

Lake Property and Shoreline Ownership

Posted on Glenn S. Phillips
Person holding set of keys with house keychain in the air

Every lake home buyer has the same question when it comes to shoreline ownership. Do you own this land, or lease it? The choice does not always belong to you.

Who Legally Owns the Land?

The owner of the lakebed and the shoreline property may have stipulations on the way they can legally offer building lots. Most owners of major, developed lakes in the United States are public utilities. Utilities such as power companies or government agencies like the U.S. Army Corps of Engineers.

In fact, some estimates show that these kinds of shoreline ownership accounts for about 90 percent of the approximately 41 million acres of lakes and reservoirs in the United States.

When a public utility builds a lake because it needs water for industrial use, such as hydroelectric power, cooling of industrial power plants, etc., the public utility, within Federal Energy Regulatory Commission (FERC) agreements, retains possession of much of the land around the lake, including shoreline areas.

The FERC may allow the public utility to only lease shoreline lots to homeowners. In other cases, the public utility is able to actually sell the lots to homeowners.

Whether they lease or sell the lot is based on the individual public utility’s agreement with the FERC regarding a particular lake. Additionally, highly detailed state or local lake protection ordinances contain restrictions covering many concerns. These concerns include how many homes can be built along shorelines, how close to the water they can be, and how wide visibility buffers must be between them.

Things to Consider with Leased Land and Shoreline Ownership

Potential lake home residents are cautioned to read the fine print on land lease documents. For instance, a lease may stipulate that if “improvements” are not made within a certain number of years, the lease could be terminated.

This means that a person who intends to eventually build a retirement home on leased land, let’s say in 40 years, may not be allowed to do so. This is because the lease could stipulate that “improvements” or building of the home must occur within 5 years.

Land leases can run for a maximum of 99 years, while some lake leases are much shorter. Sometimes running 35 or less. A mortgage lender will typically not issue a mortgage to buy or build your lake home for longer than the length of the lease on the lot. For instance, seeking a 30-year mortgage to build on a lot that is leased for 25 years is futile.

Person holding house and keys in hand while homebuyer signs leased land contract

Consideration for inheritance must include the length of the property lease and whether it is renewable. With many leases, after the lease term expires and there is no renewal option, all land and “improvements” (inclusive of houses and other structures) revert back to the organization who has issued the lease to the person.

So don’t build a lake home on leased land with no ability to renew. Also don’t expect your heirs to automatically have ownership of the lake home.

At some lakes, ownership of the ground might be an option when deciding to build a new home or purchase an existing home. There is usually more opportunity for this on a privately-owned lake, although many publicly-owned lakes offer ownership as well.

Some public utility officials say the trend at public utility-owned lakes is moving more toward selling the lots, rather than leasing them. But, only if it is allowed in the FERC agreement.

Floodplains and Your Shoreline

Keep in mind that whether leasing or buying land to build on, power companies by law must retain ownership of the floodplain. In practical terms, a floodplain is a certain number of feet of land extending from the shore of a lake.

This boundary is determined by federal and state agencies. It is vital for storm runoff, vegetation diversity, water quality, wildlife habitat, and aesthetic qualities.

Turn to an Expert

There can be many complications when it comes to purchasing or leasing property on a lake. This is why it is always best to enlist the help of a real estate agent. Specifically one who focuses on lake real estate.

A true lake specialist will be very familiar with all of the details of their lake. They will be glad to walk you through all available options and what each will mean to you as a buyer.

Should I Buy A Lake Home or a Lake Cabin?

Posted on Glenn S. Phillips
Lake Home or a Lake Cabin | Lake Homes Realty | Hendel Homes
Photo courtesy of Hendel Homes.

Deciding whether to buy a lake home or a lake cabin can be a very difficult choice to make. Trying to weigh the pros and cons of either choice can help with the situation, as well as taking into account other factors such as price, area, size, and a number of other things.

Splitting up both a lake house and lake cabin into a pros and cons list, which highlights the advantages and disadvantages, gives you something akin to the following

Continue reading “Should I Buy A Lake Home or a Lake Cabin?”