Whiteboard Topics: 4 Tips for Lake Home Buyers in this Hot Real Estate 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!
  1. 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.
  2. 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.
  3. Improve Credit Score: Improving your credit score beforehand will help with your buying power. It can help with loan approvals and lowering interest rates.
  4. 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.

iBuyers: We Aren’t That Type of Brokerage

Because Lake Homes Realty has an exceptionally strong online component, we’re often misidentified as an online brokerage. In reality, Lake Homes Realty is a new breed of tech-enabled services companies that fuses the power and convenience of the web with the personal service of local lake market experts.

It’s true that our website, LakeHomes.com, is the best online tool for searching lake homes and land and for connecting lake real estate buyers and sellers.

But of the many features our site offers, homeowners will not find among them an option for selling their properties directly to us.ibuyer Shaking hands with person through laptop screen

iBuyer programs have recently grown in popularity, offered today on such platforms as Zillow, Redfin and Opendoor.

However, is selling to these companies, or iBuyers, really a practical option when it comes to lake properties?

To know for sure, it’s best to familiarize yourself with the iBuying/Selling process and consider what this new transaction model could mean for lake real estate.

What are iBuyers?

iBuyers are companies that provide instant offers for property listings — sight unseen — even before they are listed.

By filling out iBuyers’ online questionnaires, homeowners often use such platforms to get an idea about their properties’ values before entering a contract with an agent.

Typically, iBuyer offers are based off what home valuation models estimate the properties to be worth, taking into account the properties’ current fair market values.

These companies pride themselves on quick closings and fast resell times, earning their money not on the profits made from resales, but on the fees associated with using their instant offer platforms.

According to one Forbes article, iBuyer fees can quickly add up to as much as 10% of a listing’s fair market value, compared to traditional real estate commission fees which total between 5 and 6 percent, on average.

Data on the effectiveness of selling to iBuyers is limited; however, the same Forbes article reported 9 out of 10 homeowners who initially considered iBuyer offers ultimately chose to work with a live real estate agent.

iBuyer ROI

iBuyer offers are deeply rooted in home valuation tool estimates, so it’s important to point out these models do not play well with unique properties like lake homes.

Tools like the Zestimate (LINK) are great for cookie cutter properties, like those found in subdivisions, but when it comes to properties with unusual property shapes, lake view or lake front, home values can get a little more tricky.

Particularly when it comes to niche properties, list prices should be determined with the help of a local market expert who is intimately familiar with your lake.

However, to illustrate how selling to an iBuyer can effect your return on investment when listing your lake home, pretend you have foregone the help of a lake real estate agent.

Say you originally purchased your lake home for $500,000. In this scenario, you put down a traditional 20 percent down payment, meaning on the day you became its owner, you had roughly $100,000 in home equity.

When you decided to list your home, it had not appreciated much in the short amount of time you’d owned it, and therefore its fair market value, according to your iBuyer’s estimate, remained close to the $500,000 for which you bought it.

Once listed, an iBuyer offered you $475,000 for your lake home, a loss of about $25,000. Still, the offer appeared attractive, and was close to what your own home valuation estimate research had shown, so you accepted and agreed to pay a 5 percent commission to process the transaction.

This totaled nearly $24,000.

Combined with the $25,000 lost on the fair market value, by working with an iBuyer, you ultimately ended up losing $48,750 of the equity you started with, though your home closed quickly.

Lake Real Estate Agent ROI

Now, consider this: Originally purchased for 500,000, your lake home is located right on the water, has a newly finished back patio and has a custom $30,000 boat dock.

Shortly after closing, the lake’s managing entity passed regulations restricting the construction of any more docks along your shoreline.

As a result, your lake home instantly gained $10,000 more in value, without appreciating naturally over time.

Because home valuation models are based on tax records, comparable home sales and user-generated data, the model your iBuyer used could not factor in the above variables, thus offering you the $475,000.

Out of curiosity, you contact a Realtor, who happens to live on the same lake himself. As an area local, he understood the significance of your home’s dock and suggests you list at $510,000.

After several months, you accept an offer from a live buyer, for $500,000.

After paying your agent’s 6 percent commission, you walk away from the table with $60,000 of your home equity as opposed to just over $51,000 if you had sold to the iBuyer.

A difference of less than $10,000 may not seem like much to some, but for those homeowners who have very little equity – or those who paid cash for their lake homes – this amount can be rather significant.

What This Means for Lake Real Estate

Traditionally, lake listings stay on the market for longer periods of time than off-lake properties, often because these listings serve as second or vacation homes. Therefore, owners are rarely in a hurry to sell.

And, going into the original purchase of their home, they likely understood that as a discretionary property, their lake home would not be as easily liquidated.

Still, we can see how the time element of iSelling can be attractive.

Ultimately though, when dealing with properties whose values depend on more than public records, it’s best to consult a real estate professional who has experience working similar listings, even if only for a second opinion.

Especially if there is no immediate need to sell, take your time, and exhaust all your options before jumping at the first offer that’s brought to the table.

Your lake home is unique to your local market. Be sure you are getting the most from your sale by speaking to your local Lake Homes Realty expert.

It’s possible your home is worth more than you think.

Premier Agent Designation Awarded to 33 at Annual Summit

Thirty-three Lake Homes Realty agents were honored with a Premier Agent designation during the brokerage’s 2017 Agent Summit, held Oct. 17-20.

The designation was awarded to Big Wave and Aqua Award recipients from across eight states, and nearly 25 lake real estate markets.

“We are just so glad to see so many of our agents succeeding in their lake markets,” said Doris Phillips, COO of Lake Homes Realty. “Awarding them with these honors recognizes how hard they have all worked in the last year and what an asset they are to the Lake Homes team.”

Big Wave and Aqua Awards Explained

Lake Homes Realty’s Big Wave Award is presented to agents who have obtained a total transaction volume of at least $3.5 million up to, but not including, $10 million.

Winners of the Aqua Award are agents who have a total transaction volume of $10 million or more.

group of Lake Homes Realty Premier Agents
Nearly 100 Lake Homes Realty and visiting agents attended the 2017 Agent Summit. Of these agents, more than 30 received honors.

“Transaction volume, for the purposes of Lake Homes awards, is based on sale price independent of the sides represented,” explained Lake Homes Realty CEO, Glenn S. Phillips. “Further clarified, this means sale price apart from whether an agent represents a single side of the transaction, either the buyer or the seller side, or both sides.”

This transaction volume must be obtained within a 12-month evaluation period.

For 2017, this evaluation period was from Sept. 1, 2016 through Aug. 31, 2017.

Referral transactions are not included in determining the winners of company’s Big Wave and Aqua Awards.

Award Winning Agents

Aqua Award Winners for 2017:

Big Wave Award Winners for 2017:

LHR Premier Agents Benefits

The Aqua and Big Wave Awards, which are presented annually at the Lake Homes Realty Agent Summit, are two of the company’s most prestigious awards.

“In addition to being recognized for their outstanding effort, performance and dedication to Lake Homes, our agents also reach Premier Agent status as winners of these awards,” said Phillips. “With this designation, agents are able to market themselves as our company’s top earning lake-area real estate experts.”

These agents are some of Lake Homes Realty’s best ambassadors, characterizing the business as convenient, attentive, and passionate about finding its clients the lake-area homes they have always dreamed of.

With continued success and efforts of agents like those awarded Big Wave and Aqua honors, Lake Homes Realty remains the nation’s largest, lake-area real estate focused brokerage.

 

 

 

Getting Ready for your First Open House

home with open house sign in front of it If you are selling your home, chances are your real estate agent has spoken with you about an open house.

These are an excellent way to get prospective homebuyers in the door and get them talking to your selling agent.

If you are still living in your home, this can be tricky.

Here are some tips to help you work with your realtor and make your property as appealing as possible.

Clean, Clean, Clean

Now is the time to do all the spring cleaning you’ve been putting off, and then some. Vacuum, mop, clean the floors, wipe down the countertops and more.

Don’t neglect any out-of-the-way areas like the guest bedrooms, bathrooms or the garage, either. This is the time to clean the grout, tile, fixtures and appliances.

Remove the sources of any unpleasant odors. Even faint odors from a pantry, cigarette smoke or garbage disposal can often turn buyers off.

Especially if you have pets, vacuum the carpet, drapes and upholstery. Buyers with pet allergies won’t want to stay long otherwise!

If you don’t want to handle the cleaning all by yourself, consider hiring a cleaning service for a good, deep clean.

De-clutter

Buyers are attracted to properties where they can imagine themselves moving in as soon as possible.

Help this process along by removing any day-to-day clutter that might distract them from those happy thoughts.

Put away things such as laundry, dishes, bills, children’s homework or pet projects.

Make sure the dishwasher and sink are empty, and all trash cans are empty, even those in the bathrooms or garage.

When possible, you should also remove any prominent personal items. You want buyers to imagine your property as their new home.

Family photos, quirky fridge magnets, religious icons and sports memorabilia can make that difficult.

If removing framed photos leaves a big empty spot on the wall, you can temporarily replace them with a simple painting or other generic decoration.

Let the Sun Shine In

Homes look their best,  and their biggest, when they are open and well-lit.

Turn on every light in the house, other than those that cause noise, such as lights wired to kitchen exhaust fans.

Clean your windows and pull back the curtains, as well. If bushes or trees obscure the view, consider trimming them back.

Open windows always make a house look larger, especially in the living room.

Don’t let Rover come over

If you have pets, try to remove them during the open house, especially dogs.

Dogs can be very anxious or excited around visitors, especially if you aren’t there. No matter how friendly they are, your furry friends might give the wrong impression.

If you simply can’t remove your pets, for whatever reason, confine them to a specific part of the property, such as the garage.

Make sure they won’t bark or scratch at the door, and that your realtor is comfortable being alone with them.

Whatever you do, do not lock pets in sought-after areas such as the master bedroom. The entire point of your open house is to give buyers an in-person look at the property!

Protect your Belongings

Ideally, you will have several strangers looking and moving through your house. Make sure your belongings and valuables are kept safe.

Your realtor can’t be everywhere at once.

Remove or secure any jewelry, medication, electronic tablets and other valuables that might “walk off.”

If you aren’t sure where to put them, simply pack them in the trunk of your car until afterwards.

After the open house, double-check your doors and windows to make sure they are still locked.

Remember the Great Outdoors

Mow, trim, weed and wash!

Your front yard is the first thing visitors will see when they pull up. Make sure your lawn is already mowed, with the grass clippings blown or swept away.

Trim any bushes and remove any low hanging tree limbs that need removal.

If your house has vinyl siding or a brick exterior, this is the perfect time to give it a pressure wash.

This is doubly true for walkways, steps, and driveways. Removing a few years of grime and mildew can make your home stand out!

Don’t neglect the back yard, either. Visitors will certainly look there!

Put away any tools, children’s toys, lawn care equipment and other clutter. Outdoor furniture is a plus, but make sure yours is clean and doesn’t have any mildew or standing water in it.

If mosquitos are a problem in your neighborhood, light a few citronella candles in discreet places so they don’t harass your guests.

Leave!

This may go against your instincts, but most buyers are far more comfortable speaking with an agent, without the homeowner present.

Even if they don’t buy the house, they can often give your agent useful feedback that they might not give you directly.

Give your selling agent a complete rundown on anything they need to know, and let them work their magic.

If your home is a lake home, a selling agent who specializes in lake property can be a huge help with the lake-specific aspects of this process. Visit the Find a Lake Agent page on Lakehomes.com to find one in your area.

And be sure to check out our lake home specific open house article for additional advice and tips.

Lakefront Property: What Are Your Options When Buying at the Lake?

When considering purchasing a lake property, many potential buyers assume the lakefront is their best option. But for many buyers, there are other options to consider, specifically lake-view and lake-access properties.

Lakefront property includes shoreline as part of the property, while lake view property is within sight of the water but doesn’t include shoreline.

Lake-access properties may not have a clear view of the lake but do have guaranteed access to it through either a dock or path.

Factors to Consider

How do you know what kind of lake property is best for you?

Most buyers gravitate first toward the lakefront because of the convenience and excitement of living right on the water. However, after you factor in location and price, the lakefront may not be the best option for you.

First, you need to figure out which is most important to you. Is it living on the waterfront, sticking to your budget or finding the perfect neighborhood?

As you consider these options, you will want to think about how often you will be visiting your lake property and how you envision the time you’ll spend there.

Cost

Lake-view/Lake-access

lakeview home in idaho
Photo courtesy of Hendricks Architecture.

If you have your heart set on a particular lake and have a tight budget, lake-view properties could be your best option.

Prices will vary greatly from lake to lake, and each lake will have lakefront properties at a wide range of prices.

Generally, lake-view properties will be considerably less expensive than lakefront lots nearby.

If you are open to considering several different lakes, you can often find a lake-view property within your budget.

An advantage to buying lake-view or lake-access property is that most can offer buyers the majority of the conveniences enjoyed by lakefront properties, but often at a fraction of the cost.

Lakefront

lakefront house with family

When looking at lakefront property, the biggest advantage is that they are an increasingly scarce resource. After all,  there is only a limited amount of shoreline on each lake.

A lakefront property will appreciate most quickly, especially if the lake in question has a historically low inventory of similar properties.

Upkeep is a potential con when considering a lakefront property for purchase. The cost of maintenance from erosion, dock repairs, and other weatherproofing expenses can certainly add up to a great deal.

You will incur these costs the entire time you own the property. Most of them can be avoided with a lake-view or lake-access home.

Activities on the Lake

You should also seriously consider how you plan to use the property and the activities you see yourself spending the majority of your time engaged in.

If you love boating, you will want a house with easy access to a dock, whether your own on your property or a community dock nearby.

If swimming is one of your favorite activities, a waterfront property may be best for you.

You will need to consider the depth of the water surrounding your property, and if the lake is not at full pool year-round, what the variance has been historically.

three boys sitting on raft at lake

Swimming fans should also consider how rocky the bottom is near their shoreline, the amount of boat traffic, and the safety record for the area you plan to use.

It is important to be mindful of the location you are considering. Some houses sit on main channels, which often have high levels of boat traffic. Others are tucked into quiet coves, more secluded and with less traffic.

If you love a busy lake and enjoy having people around, then a main-channel lakefront property could be ideal for you. But if you prefer a secluded spot, you may be interested in a property seated in a cove that could be either lakefront or lake-view.

All in All

Whether your best choice is a lakefront, lake-view, or lake-access property depends on your unique needs and circumstance.

Considering all of your options and knowing which property types are available in your area are important parts of the buying process. Are you ready to start enjoying lake life? Begin your search here!

7 Major Waterfront Vacation Home Issues You MUST Consider

Buying any type of property—from a small home to a large commercial development—is a complicated and time-consuming process. Emotions have to be carefully checked and buyers need to be highly focused in order to put a great deal together. If you are considering a waterfront vacation home, your job can be even more difficult. You will be faced with several more layers to navigate such as mortgage loans, potential weather problems, and insurance concerns. Here are seven vacation home issues you need to carefully consider:

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