You shouldn’t give up on finding a good deal for your dream lake home just because it’s a discretionary purchase. Lake Homes Realty’s CEO, Glenn Phillips, shares four ways to find a great price for your future property.
Think Rural: Location plays a big part in home prices. Typically, the more rural the area, the better deal you’ll get for the lake home.
Smaller Lakes: While major lakes may be the first to come to mind, don’t count out nearby smaller lakes that can provide a similar lifestyle.
Be Flexible: It’s great to have your list of must-haves, but you have to be willing to make some compromises in order to find the right price.
Lake-Focused Agents: Finding an agent who specializes in lake real estate will make all the difference in your home search. Lakehomes.com has a plethora of lake experts committed to finding you what you’re looking for.
Take these tips into consideration before you buy in order to find the right lake home for the right price!
Just because a lake home is a discretionary purchase, doesn’t mean you should overpay for one. Lake Homes Realty’s CEO, Glenn Phillips, shares how to spot an overpriced property.
Price… “Sort Of”: What’s considered overpriced for one home on the lake may be a great value for a similar property in the area. You have to keep certain factors in mind before you start comparing homes.
Days on Market: A high number of ‘Days on Market’ is usually a sign that other home buyers have deemed it inappropriately priced.
Clues in Photos: Assess photos for current conditions. Sellers may try to reimburse themselves for the money they’ve invested in the past despite it being outdated.
FSBO: These sellers aren’t as knowledgeable about today’s market as a traditional agent would be. This typically leads to them overshooting the current value of their home.
Watch out for these signs and you’ll find your dream lake home with the right price tag!
Lake home buyers differ greatly from their residential counterparts. Lake Homes Realty’s CEO, Glenn Phillips, breaks down the traits of these types of buyers.
Money / Financing: Over half of lake home transactions are with cash. If buyers do decide to get a mortgage, they are more than likely favorable candidates for them.
Motivation: The average lake home buyer has one of two reasons for moving closer to the water. They’re either eager to move because they’ve become enthralled with the idea of a lake home, or they want to enjoy the slower-paced lifestyle of lake living.
Timeframe /Patience: These buyers are searching for their dream home, meaning any old property won’t do. They have plenty of patience, and time on their side.
Impact of Economy: Even in times of economic uncertainty, lake home buyers are still active in the market. Although a lake home is a discretionary purchase, it can be a great place to hold your money.
The best way to cater to a potential lake home buyer is to understand their behaviors and what they want in their dream home. This insight should make your real estate journey much smoother!
High-interest rates can startle the average buyer, but rest assured, the lake real estate market plays by a different set of rules. Lake Homes Realty’s CEO, Glenn Phillips, shares why lake home buyers shouldn’t be concerned about the rise in interest rates.
Limited Mortgages: Most lake home transactions are done in cash, elevating the need for mortgages. Because lake homes are discretionary purchases those who opt into a mortgage art usually in a higher financial bracket.
Existing Lender Relationships
Rural vs. Suburban
Preferred Credit: Most lake home buyers have a solid credit standing, which puts them in a better position than other borrowers.
Investment Hedge: During inflation, investing in real estate is a great financial move. The average lake home buyer will see this as a smart place to put their capital.
Mindset: While the increase in interest rates doesn’t have a significant effect on lake home buyers, it could indirectly affect their behavior.
Don’t let increasing interest rates stop you from finding your dream lake home. The lake real estate market will have no problem thriving despite inflation!
Predicting the habits of sellers tends to be a shot in the dark in today’s market, but it doesn’t hurt to give an educated guess. Lake Homes Realty’s CEO, Glenn Phillips, forecasts some expected trends from sellers in 2023.
Already Selling: There are three types of sellers in this category. They typically range from casually invested, uninterested, and completely vested in the lake real estate market.
“Steady as She Goes”
Under-reactive
Proactive
New Sellers: This category also holds three types of sellers, most of which are proactive. What differs about them is the motivation behind selling their property.
“Steady as She Goes”
Proactive-Economic Concerns
Proactive-Liquidate
From speculative to motivated, sellers come in all types, and understanding their patterns is key to buying or selling a lake home. Be sure to take these seller types into consideration before entering the lake homes market!
Before embarking on your lake real estate journey, you have to set some groundwork. Lake Homes Realty’s CEO, Glenn Phillips, presents five ways to prepare yourself in order to find your dream lake home.
Know What You Seek: Clearly define what you want in your lake home. It’s extremely difficult to find the right home if you don’t know what you’re looking for.
Know What You DO NOT Want: Knowing what you don’t want will help narrow your search to more promising homes.
Long Time-Frames: Lake homes are discretionary purchases, which results in a slower moving process than traditional residential real estate. Prepare to be patient for the home that you want.
LakeHomes.com Email Alerts: To stay on top of the lake homes that match your criteria, sign up for email alerts at LakeHomes.com.
Lake Expert Agents: Be proactive in communicating with a lake expert agent. Doing so will help them find the best lake home for you.
Setting the foundation for a smooth home-search process will make all the difference. Find your dream home with confidence after adding these steps to your checklist!
Is demanding everything you want worth it if you still own your lake home in the end? Lake Homes Realty’s CEO, Glenn Phillips, shares 3 reasons why you should be more flexible as a seller.
Overpriced for Current Market: One of the first indicators that you are about to ‘buy’ your own lake home, is overpricing it. While your home may feel priceless, its valuation has to match the market. Are the phrases below clouding your pricing judgment?
What I’ve got in it
I used to be an agent
My ‘Friend’ said
I read on the Internet
My neighbor’s house…
I need this much
Failure to Counter Every Offer: No matter the offer, you should never take it personally. Always consider countering in order to take advantage of all opportunities.
Looking to Conquer: Be willing to consult with a lake expert, and accept that you may not get everything you want out of the deal. The best chance you have to sell your home is when you are realistic.
Don’t let your personal attachment to your home force you to own it forever. Let the market and your lake agent, guide you when you’re ready to sell!
Winter may seem like an unusual time to purchase a lake home, but now is a great time to determine if a home is right for your year-round. Lake Homes Realty’s CEO, Glenn Phillips, offers 4 reasons why you should continue your lake home search through the off-season.
Understand Seasonal Water: Water levels tend to vary depending on the season. Getting a good idea of how the winter water will prevent surprises.
Understand Community: You’ll get a good idea of what local life is like outside of the overactive summer crowd.
Possible Price Advantages: While winter won’t have an outstanding effect on overall market pricing, the lowered frenzy in demand may help you get a better deal.
Availability of Best Agents: Summer is the busiest time for lake real estate specialists. The off-season allows those lake experts to dedicate more time to your dream home journey.
Summer is the ideal season to buy a lake property, but waiting until winter has its advantages. Don’t let the chilly weather stop you from finding your dream home!
When thinking of lake houses, visions of blue-green waters, sparkling with sunlight, may come to mind. The concept of greywater is probably last on the list. Although this isn’t the type of water that draws us to the lake lifestyle, it’s necessary to learn about as a lake homeowner who wants to stay sustainable. With more people using greywater systems, the demand for freshwater reduces, relieving the pressure on global water resources. To help you become more informed, we’ve consulted experts in the field to cover all the basics of greywater systems.
Ever wonder what happens to the water you use for showering, washing dishes, and doing laundry? A greywater system is a plumbing system that allows you to recycle this water. After installing one in your home, this wastewater gets reused in sinks, toilets, and showers. Volodymyr Barabakh, co-founder and director of the Chicago-based real estate development company, Fortress Home, adds: “Greywater systems filter out water to make sure that water has been contaminated with bodily fluids is not reused in the home.” As such, your recycled water won’t be contaminated when it’s reused.
Let’s start with the simplest solution — a bucket. Also known as a manual refill system, this is the simplest greywater system solution that requires little skill. Rick Hoskins, founder of Filter King explains, “Instead of letting your greywater disappear down the drain, put it in the bucket. When the bucket is full, take it into the garden and water your flowers.”
Another option is a greywater diversion device (GDD). This automated system redirects the water away from the drain and into the garden. Depending on the location, it can be powered either with pumps or gravity. Of the two, the gravity pump system is the most simple. Of course, this process assumes that your house is atop a downward slope. By contrast, a pump system is much more expensive. Usually installed within a home or underground, they rely on mechanical or electric pumps to transport water to the desired location.
Finally, a Greywater Treatment System (GTS) is the most complex option. This system could be likened to having your own private water treatment plant. Rick adds, “The greywater is purified to the point where you could use it for surface-level irrigation.”
The cost of a greywater system will depend on the type of system you choose. Volodymyr says, “Gravity-based greywater systems can be relatively cheap, starting at $800 for materials if you were to do it yourself. Getting it installed professionally will probably cost around double this, so $1500.” By contrast, pump systems cost much more. It’s not uncommon for these to cost anywhere between $5,000 and $15,000. The most expensive choice is the GTS system, which would be at least $10,000 out of pocket.
What Should Lake Homeowners Know about Greywater Systems?
Being a lake homeowner comes with additional considerations when it comes to greywater. First and foremost, you’ll want to keep the lake contaminant-free. Rick comments, “Graywater should not be released into lakes and rivers. The nutrients in greywater, which plants love, are pollutants in freshwater. If you produce more greywater than you need, add a switch that lets you easily send the excess down the drain.” Additionally, constructed wetlands can help create a filter between your irrigation zone and the lake.
At Lake Homes, we’re all about sustainability! Recycling used water from your lake house is one of the best ways to give back to your garden. We hope this information helps get you started!
