Not every lake home is waterfront, but they all have their advantages. Lake Homes Realty’s CEO, Glenn Phillips, breaks down the differences between types of lake homes.
Sometimes, But Not Always: Not every lake home is on the water. There are many options available including lakefront, lake access, and lake view.
Lakefront: This property is also known as waterfront, and is actually on the water. The home has direct access to the lake.
Lakeview: These homes are some distance away from the lake, but have a beautiful view of it from where they are. For some, the view is the highlight of lake living.
Lake Community: Typically a large community with plenty of amenities including golf courses and clubhouse access. You’ll also be a fair distance from the water but said amenities will more than make up for it.
Whether your home is right on the water, or some ways away, you can still make the most out of your lake living experience. Think about what’s most important to you before you buy your dream lake home!
Unfortunately, some real estate agents are known for using catchy phrases and buzzwords to attract unsuspecting homeowners. Lake Homes Realty’s CEO, Glenn Phillips, gives five tactics to ignore when choosing a lake real estate agent.
“No Cost to the Buyer”: There is always a cost because agents are getting compensated for representing you. You want to get the most value because you are paying them indirectly.
“Million Dollar Producer”: A million dollars sound like a lot, but can be misleading. Selling one million dollars of property can be done in four transactions, which isn’t very much.
“The Most Listings”: Having properties available isn’t a bad thing, but the problem arises when those properties have been on the market for long periods of time.
“Largest Local Office”: The size of the office doesn’t determine how motivated a brokerage is to sell your home. Depending on their processes, they can even limit your pull of buyers.
“Marketed on Thousands of Websites”: Being marketed on thousands of websites means nothing if no one is visiting those websites. You want your properties to be seen on high traffic, real estate-focused sites.
If something sounds too good to be true, that’s because it usually is. Be ahead of the game, and know what you should and shouldn’t take into consideration when choosing your lake home real estate agent!
The incoming fall season inspires change to the current lake homes market. Lake Homes Realty’s CEO, Glenn Phillips, gives five keys to follow in order to keep up with this fall lake homes real estate market!
Price Growth Peaking: The acceleration in price growth is finally coming to a plateau now that the summer rush is over.
Mortgage Rates MIGHT Matter: Mortgage rates could be a hedge against inflation. Paying off a mortgage with a lower interest rate than inflation rate may be an option.
Inventory to Remain Low: Inventory will most likely remain in low supply, meaning there still won’t be many homes coming to the market.
“Less” Competition: The competitive edge of today’s market will begin to subside, especially because people are losing the extra time they gained in the midst of Covid.
Long Distance Buyers Remain: These buyers should be taken into account when selling, and it’s important to have an agent who can tap into this pool of buyers.
The change in season doesn’t stop the lake homes real estate market, but it does have an effect on it! It’s crucial to stay on top of this shifting market, whether you’re buying or selling a lake home.
Although buying foreclosed homes is becoming popular, waiting for them to hit the market may not be the best way to buy your dream lake home right now. Lake Homes Realty’s CEO, Glenn Phillips, breaks down three reasons why you shouldn’t wait to buy!
Not the 2008 Market: Unlike the 2008 market, there is a shortage of homes, which means high competition and a low probability of getting a home.
Banks are Well-Positioned: With the economy doing as well as it is, banks no longer have to liquidate these houses because there is rising demand for these homes. Banks are also able to renegotiate with current homeowners.
Majority Do Not Have a Mortgage: More than half of the lake homes transitions are in cash, which means there is no one to foreclose them.
Buying a foreclosed property can be a smart financial move, but with this current market, it may not be feasible. Waiting for a lake home to foreclose can cause you to miss out on purchasing one entirely!
Home buyer’s remorse is very real, but can be avoided when you’ve done your research. Lake Homes Realty’s CEO, Glenn Phillips, introduces five factors to consider before purchasing your lake home to prevent buyer’s remorse!
Relying on Appearances: This can lead to miscommunication and disappointment. For example, the placement of a fence isn’t always a great identifier of a property line.
Assuming HOA Rules: The rules of every lake association differ per lake, so it’s important to stay updated on the current rules in place.
Assuming Shoreline Usage: These rules also differ per lake. Just because you see others with a pier or dock, doesn’t mean you have the right to build one.
Ignoring Flood Insurance: Flood insurance should not be ignored or taken lightly. The benefits outweigh the cost, but you must take the added expense into account.
Grossly Overpaying: The market is extremely hot right now, but that doesn’t mean you should pay extreme prices because of the rising demand.
You should have the confidence to buy your dream lake home with no regrets. Buyer’s remorse can be prevented when you know what you’re getting yourself into. Do your research!
Lake Homes Realty’s CEO, Glenn Philips, explains why inflation has such a big impact on real estate as a whole, and why you need to understand how it affects lake real estate if you’re interested in purchasing/selling a lake home.
Mortgage Interest Rates: The combination of low mortgage interest rates and a steady increase of inflation may affect buyers who typically pay cash for lake homes
Stock $ Impact: Lake home owners are usually also investors, and depending on how inflation is affecting stock value, this could influence whether they keep or sell their homes.
Influence of Headlines: The buzz generated from worlds like inflation can have an impact on how potential lake home buyers/sellers participate in the real estate market.
Investment Value: Real estate is usually a good way to hold investments, so purchasing lake homes as your second home is a viable option.
Knowing how big of an influence inflation can have on lake real estate will help you navigate this market when buying your dream lake home!
When buying a lake home, it’s important to put yourself in the best position. This means understanding the market, or working with an agent who does. Lake Homes Realty’s CEO, Glenn Phillips gives four tips for leveraging backup offers for lake home buying.
Patience: Being in a hurry to buy a lake home can damage the chances of a purchase being made. Leveraging backup offers means waiting for an offer to fall through.
Add Contingencies: Ensuring a higher quality offer with contingencies can
Don’t Ask, Just Submit: Instead of waiting while more offers can be made, submitting your offer can put you in the best position.
No Guarantees: While an offer may seem perfect, nothing is guaranteed.
Selling your lake home doesn’t have to be difficult. Set yourself up for success and work with an agent who knows not only your lake area but the lake house market!
You can never be over-prepared when buying your future lake home. Lake Homes Realty’s CEO, Glenn Phillips, has four tips for buyers in this hot real estate market that you’ll want to check out before you make your next offer!
Easy to Understand: When making an offer, ensure that it is easy to understand. Making it too complex can confuse the homeowner and their agent.
Ready Cash: Having plenty of cash available can help you stand out against other buyers with loans. Sellers feel more secure with cash offers because of the added security.
Improve Credit Score: Improving your credit score beforehand will help with your buying power. It can help with loan approvals and lowering interest rates.
Follow Seller’s Rules: Be sure to follow the rules of the seller when showing interest in their home. Failure to do so can cause your offer to be overlooked.
Buying a lake home shouldn’t be complicated. Following these four tips can help ease the process, and give you a better home buying experience.
Finding your dream lake home isn’t easy. Sometimes, you’ll have to sacrifice certain “nice-to-haves” for the sake of securing your “non-negotiable” qualities in a lake home. However, the solution to attaining your dream home might be to create aspects of it yourself. Investing in a fixer-upper can be an excellent opportunity to customize a home to your liking and increase your return on investment for an eventual sale. Plus, there are plenty of DIY solutions to fixing up a property. Check out these insider tips on buying a fixer-upper lake home from real estate experts across the country.
Whether it’s a lake property or a residential home, every buyer should know their numbers. “Run your flip like a business — because it is!” says Charlie Mackey, director of investment solutions at Sundae. “Start with the 70% rule. You should not pay more than 70% of the After Repair Value (ARV) of a property or what the house can be sold for after completing all work and renovations. Think of this number as a starting point.”
Knowing your numbers can help eliminate any cost surprises in the long run. It can also help you decide if a property is worth the money. “You’ll never be 100%, but you can be as close as possible,” says Bill Samuel, a residential real estate developer who specializes in rehabbing and selling houses. “Know what your total development cost will be at the end of the day. The most important thing is: what’s the property going to be worth when you finish, and is that number versus your total cost worth it?”
Look for the Bones
When you’re buying a fixer-upper, it’s not the inside that counts — it’s the structure. You’ll be renovating the interior, but you want to make sure the overall frame of the home is sound. “Look for the bones,” says real estate expert Steve Laret. “Look at the dock, pilings, roof, walls, the stuff that isn’t ‘sexy money’ to spend.” If everything on the outside of the home is intact, including the electrical wiring, plumbing, and a termite inspection, then you can spend your money on aesthetics alone. “Run away from a place that needs a new roof, tons of tree work, or is completely shaded. They are not going to return your investment,” he says.
These days, buyers are savvier than ever. However, it doesn’t hurt to get a second opinion — especially one who’s an expert. “Don’t be afraid to have a contractor walk a property with you,” says Henry Washington, a real estate investor who specializes in buying and renovating homes. “A lot of times, people THINK they know how much a renovation will cost, but they don’t actually know. The expense of fixing foundations can be cheap or expensive, and it’s hard for an expert to know the difference. Have a professional give you a quote.”
In particular, a contractor may help you search for things like cracks in the walls that you might not notice. These could indicate a problem in your home’s foundation, and you may want to offer less for the property.
A contractor can also offer insight into the home’s electrical wiring. “If you’re not experienced with doing a lot of construction, stick to a house that wasn’t built over 100 years ago because you’re going to wind up with way too many surprises,” says Samuel. This is because 100 years ago, there were no building codes for electricity.
If your house is too old and is not up to code, you will be responsible for the costly fees of updating the wiring if you were to open a wall. Bringing a contractor on-site could help you catch things like this — the little things that come with a hefty price tag.
After buying a fixer-upper, you’re going to be doing a lot of the work. Be prepared by knowing what you’re working with and looking for the home’s potential rather than evaluating it based on its current state. For lake houses, adding bedrooms means adding value because you will be paid more whenever you rent it out or if you want to sell it one day. “Look for places where the square footage and the number of bedrooms don’t add up,” says Washington. “That means that you can add a bedroom and still have a great-sized home.” At a lake house, you may also want to take down trees to increase the lake view. However, this can be expensive, as Laret warns. It may be a better idea to consider other ways to let light into your home, such as changing the window treatments.
Finally, when buying a fixer-upper on lakefront property, be sure to hire a lake-focused real estate agent. “Hire someone locally who knows all the nuances of the lake market,” Samuel says. “Know what the water quality is like, and other important factors about that lake. The more information you have, the better your decision will be.” At Lake Homes Realty, our lake agents have both local and national expertise and can help you find the property and lake area that’s right for you.
