There is no doubt that right now is a hot market for real estate, but a high offer does not always mean you get that amount at closing. The highest and best offer are not always the same thing. If you are looking to sell your lake home or property, here are three reasons why the highest offer might not be the best offer for you.
Loan Contingencies. This means that if the buyer does not get approved for a sufficient loan, they can get out of the contract. This can be an issue if they give you a high offer that they are unable to follow through on, leaving you back at square one.
Inspection Contingencies. This can lead to negotiating the price if issues are discovered about the property. While these issues may not be a deal-breaker in your mind as the seller, they could be a way for the buyer to get out of the contract or leverage the price in their favor.
Appraisal Issues. With a high-priced market, the appraisal may not come back as high as the price you have set as the buyer. A bank will only loan out so much money, so the issue of who is going to come up with the difference in price can be a challenge. If a buyer does not have the means to cover part of the appraisal gap, their high price may not be as high as expected.
We hope you find these tips valuable as you venture out on your journey to selling your home. Please feel free to reach out to our lake experts for guidance.
Are you thinking of selling your lake home yourself? If so, you probably already thought about negotiating pricing and marketing, which are important, but there are other aspects you may not be ready for. Here are six dangers you must know before you do so.
Fair Housing Laws. You may want to get to know the people interested in your home, but if you look like you are filtering by demographics, check these laws to make sure you stay fair and abstract. Build a wall when making your selections because not only are you negotiating the property, but you are also vetting it as the seller.
Evaluating Multiple Offers. In a hot market, if you price your home appropriately, you will get multiple offers quickly. Are you prepared to evaluate those offers in a timely manner and how they all differ?
Inspection Contingencies. If someone makes a great offer, maybe in all cash, but they have a home inspection, it gives them a caveat to get out of the contract. It is important to understand what this contingency is, whether it introduces risk into your contract, and if there are problems, it could open negotiations or kill the deal.
Loan Contingencies. One great thing about lake properties is that over half the deals in our country are cash, but loans are still used as well. A pre-approval letter may not carry as much weight as you think, and if you accept a deal with this contingency, it could fall through.
Escalation Clauses. If the bids come in, that is typically the buyer’s offer unless someone beats it. These competing offers can become complicated because they can escalate to different amounts or triggers. Be prepared for this in a hot market because buyers do not want to miss out.
Property Disclosures. You must disclose the property and the issues involved otherwise you could be sued later. You need to understand what you disclose and what you do not disclose, which can be confusing.
Whether you’re buying or selling your lake home or property, our agents at Lake Homes Realty can help provide insight into today’s lake real estate market and guide you in your home journey.
In many of our Whiteboard Wednesday videos on the Lake Homes blog, CEO Glenn Phillips has covered why now, during a pandemic, is a great time to sell your lake house. But what if your lake home isn’t in perfect selling condition, and you want to take advantage of the market? In this case, you may be selling a fixer-upper — and there’s nothing wrong with that! If this is you, here are some helpful tips straight from top real estate experts across the country.
Focus on the Shell
If you’re selling a fixer-upper, don’t worry about the interior. Just make sure your home’s overall structure is sound so buyers will see the potential in your home. “When the shell is good, you care less about the interior finishes,” says real estate expert Steve Laret. “People come for the exterior. They are willing to chalk up deficiencies inside. What matters to people the most is that slice of water they can see from the cabin. How buyers value that is anybody’s guess.”
With lake properties specifically, one way to improve your home’s structure is by improving your home’s water access. For example, while you can’t change the water’s depth, you can install stairs and invest in a new boat dock. At the end of the day, buyers want to know whether they can store their boat at your home and how easily they can access the water.
Focus on the Market Now
The lake real estate market has undoubtedly changed since COVID began. On the one hand, people have been investing much more in lake houses because of the social distancing benefits, so it’s an excellent time for sellers. However, this trend may not last forever. Steve Laret warns, “Step on it before the fallout comes. This will likely be 18 months out from the start of COVID. Typically, that is how long it takes from something that’s shut down the economy to rear its ugly head.” If you’re looking to sell lakefront property, fixer-upper or not, it’s best to get it done right now before the eventual fallout. This trend is based on what happened in other devastating events such as stock market crashes and the aftermath of 9/11.
Know Your Price
Sometimes, as a seller, you can get into a state of disillusionment regarding the price of your home. We understand this. You’ve spent a lot of time at your lake house, you love it, and believe it should be worth a lot of money to any buyer. However, your bias may skew your perception. “If you’re selling a fixer-upper, have your realtor do a market analysis of your house as if it were already fixed up,” says Henry Washington, real estate investor who specializes in buying and renovating homes. That will give you a realistic value of the house after the home improvements. You’ll be able to include this in your listing.
Additionally, ask your realtor to give you information about rental prices per night on fixed-up properties. AirDNA is a good resource that provides analytics behind Airbnb to price your rental correctly.
A little bit of perspective-taking goes a long way. Ask yourself, “If I were a buyer and had to fix up this house, what would I be looking for?” In doing this, you should focus on the future. After all, you are not selling your current home — you are selling a vision for your current home’s potential. One way to cater to the buyer is to make small changes that will make your home more marketable. For example, Washington recommends replacing old light fixtures with more modern choices. “It can have a huge impact on the place,” he says. “It’s a pretty inexpensive fix that might help bring more offers in or sell for a higher price.” He also recommends updating the mirrors on bathroom walls to modernize the space. These are little ways to say to the buyer: “Look what this home can be!”
For more information about selling your lake home, connect with one of our many Lake Agents at Lake Homes Realty!
While it might sound good for an agent to have a lake home sold in one day, it may not be in your best interest as the seller. You may get a great offer that first day or that first weekend, but here are three reasons to hold off on deciding too soon.
Winning and THEN deciding. Some buyers will win the highest bid before they decide if they even want the house. They know the market is hot, so they will bid high and then decide to go through with the offer or renegotiate using contingencies. People who are more methodical will most likely not jump on the first day.
Fewer offers. You may get several offers the first day or first few days but waiting even two weekends will give time to the methodical buyers to think through an offer.
Out of town buyers. These buyers cannot come in a day. If you give a longer window of time, they will show up with intention and will often have the best deals for the seller.
There are different aspects to selling your lakefront property than if you were to sell a landlocked property. These are the surprising risks to be aware of when maximizing the return on your value and investment.
Sell really fast. Selling your home quickly will not get you the best return on your dollars. A lot of lake home buyers are from out of town or out of state, and you may limit the number of buyers that can’t respond quickly enough.
Rushing through the transaction. This is a legal transaction involving a lot of money and it’s important to read and understand what you’re signing. Avoid any legal issues in the future by taking your time.
Overpricing. The best way to get the best price is to price appropriately and leave room for competition. Overpricing drastically for the current market will cost you time and money, even in a hot market.
We hope you find these tips valuable as you venture out on your journey to selling your home. Please feel free to reach out to our lake experts for guidance.
While real estate agents are here to help you with your lake home, there are some things you can do to make the process easier. Here are four tips to help the real estate transaction go smoothly for you and your agent.
Accept the consequences. Be sure you understand that the lake market is a hot market in 2021. It’s different from other markets and knowing the nuances are important to be successful in the process.
Do your homework. Agents will help you and answer your questions, but you have to know what to ask. Educating yourself and working with an expert agent will keep you out of trouble.
Expert agent. Whether you’re buying or selling, working with a lake expert agent will help you navigate the nuances of each lake. The rules and regulations for each market can be different, so having someone who can guide you through those will help meet your expectations.
Be prepared to buy. Do the prep work to make a thoughtful and competitive offer in a timely manner. You snooze, you lose!
Whether you’re buying or selling your lake home or property, our agents at Lake Homes Realty can help provide insight into today’s lake real estate market and guide you in your home journey.
Are you ready to sell your lake home or property? Before you make the move to list your home, here are 6 tips for maximizing the price of your lake home in a hot market.
Plan Beyond Listing. Be sure you have a plan beyond just getting the home listed. Oftentimes, home sellers overlook other factors such as the amount of time it takes to communicate back and forth between agents as well as setting expectations on home offers.
Sale Period. Make sure you appropriately set your sale period long enough to include all potential homebuyers in the market. Keep in mind that lake home buyers are not always local buyers and are oftentimes from out-of-state.
Out-of-State Buyers. Because a large portion of lake home buyers from out-of-state, you need to maximize access to these potential buyers. Make sure you have an agent that is not only knowledgeable about your lake area but also has a healthy pipeline of these highly qualified buyers.
Cleanliness and Staging. A clean and well-staged property is a must if you want to maximize the price of your lake home. If your property is not picture-perfect, you might run the risk of having your property overlooked or having it undervalued by potential homebuyers.
Highest Offer May Not be Best. The highest offer is not always the best offer as there could be many contingencies associated with them. High offers with high risks have a higher chance of falling apart.
Lake Expert Agent. Be sure to have a lake expert on your side. Selling lake property varies by lake and it is imperative that you have an agent that understands the nuances of your lake and lake home.
Whether you’re buying or selling your lake home or property, our agents at Lake Homes Realty can help provide insight into today’s lake real estate market and guide you in your home journey.
The pandemic has forced many to change their lifestyles and this includes living spaces as well. So, if you’re thinking of selling, here are 5 things to promote when listing your lake home.
Internet. With more people working and spending more time at home, having reliable high-speed internet access is crucial.
Cell Signal. Many lake homes are located in mountainous or rural areas where cell phone signal might not be at its optimal strength. If your lake home has strong cell signal, this is a feature that is worth mentioning.
Home Office. The pandemic has allowed many people to work from home, therefore a home office is a requirement that most lake home buyers are looking for in 2021.
Extra Storage. Unlike traditional lake homes/vacation homes where people often visit for short periods, living at the lake requires extra storage space for everyday household items and perhaps a garage for a car or other vehicles.
Time to Airport. Travel time to and from an airport is an important factor that many lake home buyers might consider when looking for a lake home. Even though travel has temporarily stalled due to the pandemic, it is expected to resume in the near future.
We hope you find these tips valuable as you venture out on your journey to selling your home. Please feel free to reach out to our lake experts for guidance.
Do you own a lake house and are not sure whether or not you should keep it? Here are a few things to consider if you are on the fence about keeping or selling your lake home.
Use or habit? Do you use your lake home on a regular basis? If you find yourself not visiting the lake as often as you’d like, then odds are keeping your lake home is probably not worth the time or money.
Right size? Your kids might’ve moved out or you’ve added a few new family members since you first bought your home. So, the question is: “Is your lake home the right size for your life right NOW?” If the answer is no, then you might want to consider selling it.
Family REALLY use it? Would your family actually use it if it was inherited? Just because you enjoy having a lake home doesn’t mean your family would appreciate it as much as you did.
Duration of peak market? By holding on to your lake home for too long you might run to risk of missing out on the “peak” market. Lake real estate doesn’t always appreciate in value in the short-term interim.
Whether you’re buying or selling your lake home or property, our agents at Lake Homes Realty can help provide insight into today’s lake real estate market and guide you in your home journey.
