Whiteboard Topics: 5 Questions To Ask Yourself When Hiring A Lake Real Estate Agent

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.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Trust Your Appraisers, Not an AVM

property value checklist; trust your appraiser, not an AVM

Lake properties are unique, and the way their values are determined is too. 

Unlike homes in off-lake suburbs that may feature cookie-cutter properties, no two lake homes are alike.

The fact they can be so different throws a wrench in how automated valuation models (AVM) estimate their worth.

Automated valuation models provide buyers and sellers with base price points for listed properties.

However, data scientists with the National Association of Realtors caution consumers that AVMs are “not a substitute for formal appraisals, comparative market analysis, or the in-depth expertise of real estate professionals.”

When it comes to buying and selling unique lake properties, ones that don’t fit into the generic AVM mold, only a highly trained, objective and knowledgeable appraiser can accurately determine your home’s value. 

The Appraiser/AVM Difference

AVMs determine estimated home values by analyzing quantifiable structural and public property data like a home’s number of bedrooms and baths, lot size and sales history. 

Some tools may also include limited MLS data and user-submitted information.

However, algorithmic estimations do not reflect the more personal aspects of your property like its view of the lakefront, unusual features such as a private peninsula or your home’s overall visual appeal. 

Nor do AVMs consider how many feet of lake frontage your property has, the depth of water at your property line, or whether you can build a dock in the future when calculating value estimates.  

An appraiser, on the other hand, formulates home values using a combination of all these things. 

Either side of a real estate transaction can hire an appraiser. Most commonly, mortgage lending institutions require an official property appraisal to verify that buyers’ loan amounts are accurate. 

Only verified property appraisal values can be used as a base for challenging a seller’s asking price during contract negotiations for this reason. 

AVM values also bear no significance in negotiations or in determining appropriate mortgage amounts. 

The Appraiser’s Checklist

Because appraisers work closely with financial institutions, these licensed and certified real estate professionals are required to use Fannie Mae-sanctioned report forms to determine how much a property is worth.

Homeowners and prospective buyers can access the 2019 Uniform Residential Appraisal Report, or Form 1004, for free here

In addition to reporting property details about the subject property, like its foundation type, the number of stories, square footage and age, appraisers also record outside factors that may influence your lake home’s perceived value. 

Influencers include neighborhood characteristics such as how much of the area is built-out opposed to undeveloped; whether neighborhood growth is rapid, stable or slow; and supply and demand in the area. 

Appraisers must also answer if your lake property “fits” in your neighborhood in terms of its style, condition and construction. 

Appraisal values reflect materials used and the condition of your property’s exterior walls, flooring, trims and finishes and any additions and upgrades made, as well.

Both location and physical appearance factors contribute to how potential buyers form their opinions on how much a property is worth to them.

The Uniform Standards of Professional Appraisal Practice instructs appraisers to be “independent, impartial and objective” when evaluating properties. 

Appraisers who are intimately familiar with consumer attitudes and behaviors, and the current climate in your specific lake real estate market, use these sentiments in tandem with quantifiable data to formulate comprehensive, well-rounded home values.

Professional appraisers also compare your property to similar on-the-market and recently sold homes to support their final estimations.

Appraisers Offer Better Accuracy

Professional appraisers’ holistic approach to determining how much properties are worth allows them to provide consumers with more accurate value estimations than electronic AVMs. 

Consider this: AVMs cannot physically tour your property and therefore, can’t “see” its condition. 

Take two lake properties, one right next to the other.

Both Property A and Property B were built in 2003, both are 5,000 square feet and both have the same number of bedrooms and baths. 

Both properties are on same-sized lots and both have lake views. 

An AVM may take these property characteristics and determine similar home values for these seemingly comparable homes. 

However, because the AVM is confined to numerical data analysis, it cannot accurately compare these homes. It can’t take into account that Property A has been so poorly maintained that its paint has faded, its windows have been broken and its boat dock destroyed by the elements. 

Property B has been well taken care of, fitted with energy-saving appliances and features a newly rebuilt boat dock. 

These properties also differ in that Property A has a poor lake view because of a row of lake management-protected trees near the shoreline, while Property B has a clear, picturesque view of the waterfront. 

An appraiser can walk Property A and Property B individually, taking into consideration their respective similarities and differences to appropriately estimate their worth. 

An appraiser can more accurately define what makes a property “comparable” to the subject property concerning condition, amenities, lake access, etc.

Lake Living – What Homeowners Love Most

older couple enjoying lake living while rowing a boat

Lake living is the best, at least we’re inclined to think so. But who can blame us? We are the lake people.

But before you decide whether the lake life’s right for you, take a look at some of the things lake homeowners love most about the lake lifestyle.

Innumerable Beautiful Sunsets

Sunsets may be one of the universe’s most mesmerizing creations.

They turn the skies from beautiful blue into vibrant pinks, oranges and reds, smears of purple streaked with elongated tendrils of sunbeams.

After a long day of swimming, boating, fishing and grilling there’s nothing more captivating or more calming than the sun setting over a glass-smooth lake.

And no matter how many days you spend staring out toward the horizon from your lake home, each day brings a sunset completely unlike the day before.

Fourth of July

Hundreds of lakes across the country roll out the red carpets for out-of-this-world Fourth of July festivities.

Family-friendly activities include spectacular fireworks displays, poker runs, boat parades and concerts by local artists.

Even if your lake doesn’t put on a grand show, most permit lake homeowners to privately shoot fireworks from their docks, decks and backyards.

Plus, no matter the degree to which you party for patriotism, at the lake you can always count on there being good ole’ home-cooked food for the soul.

Family Time

We all lead busy lives, and sometimes it’s hard to find time for quality family bonding. 

That’s not the case at the lake. In fact, all the time you spend at the lake can be time spent with family, be it with those related to you by blood or the family members you choose to share the lake with. 

At the lake, family time isn’t necessarily characterized by sharing stories around the dinner table, though that’s certainly one option. 

No, for most lake homeowners, family moments shared at the lake take place around fire pits and grills, on floaties and rope swings, and in the kitchen while the summer showers roll through. 

The Memories Made

Ask any lake homeowner, or any lake lover for that matter, what their favorite memories are, and you’re guaranteed to hear a litany of wonderful things that happened at the lake.

That’s because the lake is made for making memories.

The lake is where grandfathers teach their grandkids to fish, where favorite uncles grill the best hamburgers, and where sons and daughters learn to swim.

It’s the perfect place to gather in celebration of birthdays, holidays and milestones, like graduations and baby showers.

And the lake is where s’mores are first tasted, minnows are captured as pets and where some of life’s best lessons are learned.

Memories made at the lake are more than special, they are priceless.

It’s all these things and more than make lake living so worthwhile. They are why buying a lake home is more than a real estate transaction, it’s attaining a lifestyle; it’s buying the lake experience. 

If you’re ready to invest in your best future, let us — the lake people — help make your dream a reality. 

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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