first time home buyers Archives

5 Reasons to Purchase a Lake House as a First Home

Posted on February 12, 2020April 15, 2020 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

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.

When’s The Best Time of Year to Buy a Lake Home?

Posted on November 14, 2018June 3, 2019 Staff

Ask your lake real estate agent when the best time to buy a lake home is, and they will gladly tell you, “it’s always a good time to buy lake property!”

And believe it or not, what your agent is saying is true. There are pros to buying in both the peak and off-seasons, just as there are cons to both periods as well.

So is there a right or wrong time to buy a lake home? Well, we’ll let you decide.

Peak Season

Pros:

Lake real estate markets start livening up in the spring, as temperatures begin to climb, and are in full swing by summer.

Today’s sellers know that summer months see more potential buyers in their markets than any other time of year.

Because of this influx of potential buyers, spring and summer markets are suddenly inundated with homes for sale.

This spike in inventory is a considerable part of why buying in the peak season is preferred by many prospective buyers.

Spring and summer not only yield a more robust variety of properties to choose from, but the lake season also presents buyers with a wider price range, thus a better chance of finding the RIGHT lake home.

Another pro to peak season-shopping is that buyers often have fuller pockets during this time of year. Tax returns have been processed and holiday bills settled, therefore many have more money for down payments.

Cons:

That said, demand is greater in warmer months, which means higher competition for both buyers AND sellers.

Sellers compete with other homeowners to get their homes sold quickly and for top dollar, and buyers compete with each other to win out on their favorite listings – without going too much over budget.

This two-edged sword means that with a seemingly endless supply of buyers, sellers have the luxury of fielding as many offers as they choose until one comes along that matches their expectations.

This also means that buyers are more likely to put multiple offers down at one time so as not to miss out on other opportunities.

Additionally, because sellers are aware that demand is greater during the lake season, they often list their homes at higher prices than they would in the off-season. This is because in a high-competition market, buyers are likely more willing to pay a little extra for the right lake home.

Off-Season

Pros:

In the lake real estate off-lake season, generally during the fall and winter, many sellers opt to take their homes off the market to relist them as new listings in the spring.

But those homeowners who choose to keep their properties on the market past peak season are often exhausted and ready.to.sell.

As a result, home prices typically drop, which is great for budget-conscious buyers. Plus, tired sellers are likely to advocate for a quick closing.

Not only does off-season shopping allow buyers to spend more time inspecting the home, area and lake culture outside the busy season, but it can also mean fewer offers for sellers to consider.

Purchasing a lake home in the fall or winter also gives buyers plenty of time to prep the property for the coming lake season.

Cons:

Of course, in the off-season there are fewer listings for buyers to consider as demand tapers down. Tighter inventories can mean bigger compromises in property features and distance from the waterfront.

Finding the time to tour homes can also be more difficult for off-season buyers because of the holidays when parties and weekend guests are more frequent.

Winter weather may factor into off-season buying, as well.

Not only are lake levels generally lower during colder months, the wildlife has also disappeared and the plants have all died, making it difficult for buyers to envision themselves enjoying sunnier times there.

Particularly in harsher environments, buyers may have to suffer touring though unheated vacation homes in inclement conditions, if the weather doesn’t prevent them from traveling there all together.

Want to chime in on when YOU think the best time to buy a lake home is? Let us know in the comments below!

And, if you have more questions about lake real estate buying or selling, check out our other articles, “The Hidden Costs of Buying a Lake Home” and “Lakefront Property: What Are Your Options When Buying at the Lake?“

Home Buying Basics: What is Title Insurance?

Posted on June 17, 2015February 14, 2023 Glenn S. Phillips

Once you buy a home, you will need to be sure there are no issues with the title of the home. If there is a problem with the title, then it can limit the use and the enjoyment of the new property. It can also bring on financial loss.

Title Search

Once the sales contract is accepted, a professional of titles will then search for public records in order to look for any potential problems with the property’s title.

The search will normally involve a review of any land records that go back several years.

It is the job of the professional to fix the issues before the closing on the property. For example, if a previous owner had minor construction completed on the property, but has never paid the contractor; it is the job of the professional to solve the issue.

Owner Title Policy

There are times when a problem can occur that cannot be found by the public records or are missed during the search process. In order to help protect you, it is highly recommended that you have an Owner’s Policy of Title Insurance. This will ensure that you will not be subject to any issues that are unforeseen.

The Owner’s Title Insurance, also referred to as Owner’s Policy is typically issued in the total amount of the property purchase. It is a one-time fee during the closing and will last for as long as you or any heirs have interest remaining on the property. Only the Owner’s Policy will fully protect the buyer and should a covered title issue come up that was not found during the search, it will be taken care of. Possible issues that can arise are:

Mistakes in Records
Forgery
Errors or even Omissions in the Deed
Undisclosed Heirs

The policy will provide the assurance that the title company will stand behind the buyer monetarily and will provide legal defense should it be needed. The bottom line is the title company will be there to aid in any valid claims. You are also even able to purchase expanded coverage.

It is called Homeowner’s Policy and it will cover other things that the Owner’s Policy does not cover. Talk to the local title company and ask for an explanation of the Homeowner’s Policy they can offer you.

Loan Policy

There are different types of title insurance. Owner’s Title Insurance and Lender’s Title Insurance. Most of the lenders will typically require a Loan Policy in which they will issue a loan.

The policy is normally based on the amount of the loan. It will only protect the lender’s interests in the home. Should an issue come up, it will protect the lender.

It does not help the buyer. The policy amount will decrease with every year and will ultimately disappear as you pay off the loan. The bottom line is that the policies are crucial in order to protect you from unforeseen issues that may come up before and after purchasing your home.