Increasing mortgage rates are inevitable, and as a lake homeowner, you need to know what that means for the value of your property. Lake Homes Realty’s CEO, Glenn Phillips, shares four things to consider as interest rates rise.
Less DIRECTLY Important: The fluctuation in mortgage rates will influence the demand for your home. Selling before the rise in mortgage rates will ensure a larger pool of interested buyers.
Slow Price Appreciation: With inventory being so high and demand being so low, prices have skyrocketed in recent times. The increase in mortgage rates will contribute to slowing this down.
Influences Buyer Mindset: As interest rates go up, buyer demand goes down. Inflation can cause buyers to be more conscious of their spending habits.
Think About Timing: If you want to maximize the return on your investment, you have to time the sale of your home to the market’s peak.
Owning a lake home is an investment, and as a homeowner, you want to maximize this investment when you’re ready to sell. Be sure to research the current state of the market before you decide to list your home!
Choosing a real estate agent without properly vetting them will be your demise when buying or selling a lake home. Lake Homes Realty’s CEO, Glenn Phillips, shares five questions you need to ask when searching for an agent.
Are All Agents the Same? Of course not. The first step is to exclude the ones you don’t want so that you can choose from the ones you do.
What is MY Goal? When considering your goals, decide what’s most important to you. Is it maximum profit? Do you want to stay in your home for as long as possible before you sell? Answering these questions will help you develop a game plan.
Which Agent is Most Capable of Helping Me Achieve My Goal? Find an agent who is particularly skilled in your goal criteria. One may excel at listing your property, but another may be more skilled in buyer relationships.
Which Agents are Focused on LAKE Real Estate? The difference between selling on the lake versus a primary residence is considerable. Find an agent that understands the nuances of lake real estate.
Which Agents can Provide a Pipeline of Out-of-Town Buyers? Most of your potential buyers’ pool will come from out-of-town residents. You need an agent who can prove they have connections to buyers across the nation.
You need a skilled lake real estate agent on your side when buying/selling your lake home. Before you begin your search, be sure to have your specific goals in mind to ensure you are matched with the right one.
Do you know what the term “seller net” means? “Seller net” is the amount of money a seller makes from a real estate transaction after all costs and fees are accounted for. When selling a lake home, there are many factors that could distract you from the overall “seller net” equation. In this video, Lake Homes Realty’s CEO, Glenn S. Phillips explains four reasons lake home sellers should focus on the “seller net.”
Cost of Selling. A common mistake most lake home sellers make is being fixated on the small details of home selling costs such as commission fees.
Time Matters. The time your house stays on the market affects your bottom line. Things home sellers often overlook are mortgage payments, insurance, and home maintenance costs that cost you more over time.
Brokerage Commission. If you pay a lower commission rate and get a lower price for your house, that could affect your “seller net.” In other words, you get what you pay for.
Service Level of Agents. When selling a home, it’s important to look for an agent that can provide you with exceptional service. This includes someone that is knowledgeable about your lake property and location and is capable of properly pricing your home for the best return on investment.
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.
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.
When it’s time to sell your lake property, it can be difficult to know what should be top of mind. In today’s Whiteboard Wednesday video, Lake Homes CEO, Glenn Phillips, shares three things to consider when selling your lake home.
Your competition in other lake markets
How long an agent’s houses are on the market
How to connect with the buyers more actively
At Lake Homes, we help you navigate these important aspects of selling your lake home. Our national network of agents facilitates knowledge of the competition, quicker home sales, and relationships with buyers. If now is the time to sell your lake home, connect with one of our agents at Lakehomes.com today!
When selling your lake home, you may think that taking the highest priced offer is the best choice. However, there’s an anomaly happening in the real estate market now. Lake Homes CEO, Glenn Phillips, explains why taking the highest and best offer can create some problems.
Picture this: You put your lake home on the market at a reasonable price. You receive a high offer with a pre-approval letter. Then, the appraisal comes back short or the lender isn’t sure they’ll approve it. You’re back to square one.
To avoid this scenario, get an appraisal yourself. It’ll help you negotiate and price your home appropriately. Further, if you get several potential buyers, consider more than the highest offer. Finally, find a lake agent who knows the market, is familiar with pricing, and can successfully sell your lake home.
If you’re considering selling your lake house, you might be wondering if now is the right time to do so. In today’s Whiteboard Wednesday video, Lake Homes Realty CEO, Glenn Phillips, gives 4 reasons why Summer 2020 is a great time to sell your lake home.
Lack of high competing prices
Ability to get ahead of the economic decline
Opportunities for short-term rentals
Regulation changes are continuing in lake markets
Looking ahead, it’s unlikely that you’ll get a better opportunity to sell than right now. Since lake property is more difficult to sell than other markets, now is the perfect time to take advantage of this window!
Check out what’s happening in your current market at Lakehomes.com.
