Are you selling your lake home anytime soon? If so, you may be thinking about the different costs that could go into it. One specific thing is different compensations for agents. More specifically, buyer agent compensation. Should you just offer it? Glenn Phillips, CEO of Lake Homes Realty, offers insight into this topic.
It Depends: Buyer agent compensation isn’t something that is required. At the end of the day, it comes down to whether you feel like you should offer it. However, you have to think about it because there are situations where you might want to, and in some cases, you might not.
What Is Your Goal In Selling? You want to get the most money you can, but there should be more thought put into that. Something you really should strive for is getting the maximum number of buyers who are capable of paying for the price you’re looking for.
3 Groups of Buyers: A) Can Pay Their Agent – These are typically the buyers who will be paying cash for the house. Many of these buyers are comfortable paying for services and have usually signed the Buyer’s Agent Agreement. B) Can Not (or Will Not) Pay Their Agent – This group usually doesn’t have the means to pay that compensation. They often expect the seller to compensate in some form or fashion. C) Can and Will Pay a Portion – They might pay a little bit or they might end up paying a lot. This group will typically be seen doing the most negotiating.
Suggested Goal: Best Net $: The end goal should be what will ultimately net you the best return on your investment (your lake home). Something that can play into this is pricing accordingly. Expanding your pool of buyers might also be a factor.
If you’re planning on selling your property soon and need assistance, don’t hesitate. Reach out to one of our lake expert agents at LakeHomes.com. They are always willing to help and can answer any questions you still might have!
You’ve decided to finally buy that lake home you’ve always wanted. The only issue is that you don’t know how to go about it. How do you navigate this market? What goes into buying a lake home? Well, now there is no need to stress over these issues. Lake Homes Realty’s CEO, Glenn Phillips, goes over how you can buy a lake home like a pro!
Investor or “I Want What I Want”: What is your mindset going into the buying process? If you’re thinking like an investor, you’re more likely to think of things like ROI. Thinking as an investor or in the sense of making money will bring in different values during buying. On the other end, you might have an idea of exactly what you want. These 2 different spectrums are ways that you can approach this financial aspect of buying.
Know Your “Number”: Before going into anything, you should know what you’re willing to spend. Being comfortable knowing what number you’re wanting to spend will help alleviate future issues. People who buy off emotion or do not give a lot of thought can lead to feelings of regret.
Use a Lake Expert Agent: Having an agent who knows the market, the area, the lake, etc. is more valuable than you know. These agents know the nuances of the lake homes in their area. If you don’t already have a lake expert agent, check out someone from LakeHomes.com. They are some of the best out there and would love to help!
Do the Due Diligence: Things such as getting surveys and home inspections—all these things you might think you can pass on, you can’t. Not doing your due diligence can lead to mistakes, issues, and a plethora of other unwanted things.
Keep Options Open: You’re allowed things you won’t budge on. However, you need to keep the options open because something could come up.
Buying a lake home like a pro doesn’t need to be a stressful or difficult task. The biggest thing to remember is these 5 points. If you follow these, it will make your experience play out a lot smoother. Don’t forget to check out the list of agents at LakeHomes.com/agents who are ready to help you!
The lake real estate market is an interesting one. Unlike your typical market for real estate, this market is more niche. You also might be wondering if it is a market for sellers or buyers. Questions like these are very typical when it comes to this market specifically. Luckily, Lake Homes Realty’s CEO, Glenn Phillips, has the answer to this question.
Seller’s Market: Command Higher Prices – Typically, a seller’s market means that the seller can command this higher price. When this occurs, there is usually limited inventory and a high volume of buyers. With this type of market, the seller has more of an advantage.
Buyer’s Market: More Options – Opposite of the seller’s market, the buyer’s market has fewer people looking. During this time, a lot of sellers are wanting to appeal to the buyer. When this type of market happens, the buyer has the ability to offer a lower price with more options.
Pricing: Supply and Demand – The main factor in determining which market we’re in comes down to supply and demand. Is there a higher number of houses with fewer buyers, or less inventory and more buyers? In more recent years, there has been a decline in inventory. This was around the Covid-19 years, which created a seller’s market. Things have begun to change due to less demand. That’s not to say it isn’t still there; it’s just not like the frenzy that it once was.
Increase in Inventory (Sort of) – In the past couple of months, there has been an increase in lake real estate and primary residential real estate.
“Phantom” Inventory – There are still sellers today who think we’re in a strong seller’s market. This has caused them to overprice their homes, leading to the homes sitting on the market.
“Stalemate” Market – We’re not technically in one market or the other, more so this “stalemate” market. This ultimately means there’s an equilibrium between supply and demand.
It all boils down to: which market are we still in? Truth be told, neither. We’re in an area where the sellers can have a little bit of an advantage if they price their homes appropriately. If you’re still curious about the market or have other real estate questions, head over to LakeHomes.com. You’re bound to find an agent in your area who is happy to help out.
When dealing with buying a lake home, you might hear the term “escalation clause”. If you’re familiar with this term, you might be wondering if it is a good or bad thing. Even if it is something you’ve never heard of before, finding out what it means can benefit you in the future. Lake Homes Realty’s CEO, Glenn Phillips, discusses what this is and whether an escalation clause is something good or something bad.
Escalation Clause: Automatic Price Increase Formula: This was something that was very popular during Covid-19 and, in particular, frenzy buying. Basically, people were wanting to make an offer and that be it. They were not willing to go through the hoops of making a second offer. Simplified more, you would make your offer and if someone came in with a higher one, you’d understand yours would jump up some amount.
Keeps Offer Amount Competitive: Due to these different escalation clauses for properties, it was more of a competitive area. Instead of the one amount being out there, it was almost a stair-stepping increase between offers.
Less Popular: Since Covid-19, these clauses aren’t as popular. One reason in particular is that it is becoming too much for the sellers and their agents to manage. Sellers got to a point where they wanted people to make their best offer. Now, sellers will ask buyers to “give us your highest and best offer”.
More to Offer Than Money: Oftentimes, escalation clauses can overshadow some of the other things that could potentially be offered. Things such as an additional property (a boat, furniture, etc.) or a different contribution of closing costs, etc.
Varies By Local Market: These clauses all vary depending on the market. Utilizing a lake agent, like one at LakeHomes.com, would be beneficial. The agents understand their markets and the things that go into them, such as inflation rates.
Before going into the buying process and expecting things to flow a certain direction, reach out to a lake expert for more help. They are always willing to give advice and information when needed.
Most people have probably heard of the TV show Shark Tank. However, you might not realize that selling lake property is more similar to that show than you know. When you think about it, the people who go on the show are entrepreneurs. This can almost be said for somebody selling a lake home. You have a product, your home, that you’re trying to get the “sharks”, the buyers, to invest in. Glenn Phillips, CEO of Lake Homes Realty, discusses 5 points about what this might look like.
“Addressable Market” (Who is Your Customer?): You’re not selling to everyone when it comes to your lake home. You have a specific demographic that is realistically looking at your home. These are the people who are interested in making that investment/purchase of your home.
How Do You Market (Reach Your Customer)?: Here at LakeHomes.com, there is market reach to people in your area and those who are states away. Agents at Lake Homes Realty can present you with this data and show you that the customers you’re reaching are likely outside of your local area.
What is Your Value Proposition? What is the reason behind your home being at this price point? Oftentimes, consumers who visit Lake Homes Realty are searching around different lakes so pricing is an important factor to stay competitive.
What Makes You Different? You need to have something that differentiates you from other sellers. Going back to Shark Tank, all the products are different. You also need to think beyond your personal home values. Most buyers aren’t looking into how you personalized the property.
Is Different Desirable? You can have eccentric aspects to your property, but this can be a negative to consumers. Not all the things you like always have a positive value.
Overall, selling a lake home can have these similarities with the people who make their way onto Shark Tank. When it comes down to it, making sure you remember these 5 key tips can make or break it. Don’t hesitate to reach out to a lake agent at LakeHomes.com for more help!
As lake homeowners, we care deeply about the health and well-being of our lake ecosystems, which we continue to enjoy year after year. With global issues like climate change affecting the natural world, it’s becoming increasingly important for dedicated professionals to continue investigating lake environments and preserving the integrity of these bodies of water. Enter the field of limnology. A close cousin of oceanography, limnology refers to the scientific study of lakes. Previously, on the Lake Homes Realty blog, we’ve covered the field as a broad introduction. Now, we’re getting more specific. To learn more about the field in detail, we spoke with Dr. Catherine O’Reilly, a professor of geology at Illinois State University. Through learning about her journey to the field and her life’s work, we can gain a deeper appreciation for lakes as a whole and how we can contribute to limnologists’ efforts.
Q: What is Limnology?
Limnologists who work for the State Hygenic Lab collect samples in a creek near Dewitt, Iowa. The researchers are Todd Hubbard (brown hoodie), Mark Johnston (white beard tan hat), Kyle Skoff (red beard), and Mike Birmingham (green shirt). Photo courtesy of now.uiowa.edu
A: Limnology is a nebulous field that includes a bunch of everything. That’s why I went into it. It covers the organisms, the chemistry, and the physics. In some sense, I’m an interdisciplinary expert. Limnologists study algae in the lakes, develop gene technology to identify what’s going on, and use remote sensing to take images of lakes and look at changing temperatures. Basically, limnology is anything connected to a lake. The lake can be your world as a scientist – it doesn’t matter if you’re studying fish, stratification, or water chemistry – it all happens in the same environment. It’s also a great community of people to work with. We have several societies, such as the Global Lake Ecological Observatory Network which is an international research society focused on rivers and streams. Most everyone does research on a particular lake. “Your lake” gives you an identity as a scientist. Although a lot of limnologists work in academia, some work in research centers, as well as government organizations like the United States Geological Survey. State departments of natural resources also hire limnologists, and other federal agencies like EPA and NASA (yes – there are people who study lakes at NASA!).
Q. What was your journey like that led you to limnology?
A: My interest in water stemmed from living in South Africa as a kid. During a seven-year drought, I watched the reservoir get really low. We only took one bath per week. Since then, my background has been in water, and I figured that if I’m involved in studying water, I’ll always have a job. I did some summer research assistantships in Northern Wisconsin, where scientists around the world come together on large-scale experiments, such as adding new fish to a lake and investigating what happens. We were trying to understand the role that the environment plays in lakes, what makes them clear or murky, and other important topics. It made me really curious about how lakes work, which got me hooked on studying lakes as a water resource. For my Ph.D., which I did at the University of Arizona, I wanted to work on a large tropical lake. I worked on Lake Tanganyika, the second-largest lake in the world, where I got to go snorkeling and see the sand and deep blue colors. I got some unexpected results, and it turned out the lake was being impacted by climate change.
Since working on Lake Tanganyika, I’ve done a lot of work on how climate change is affecting lakes. Specifically, it’s going to reduce fish catches, which has implications for how communities get food. Additionally, the warmer water changes how lake water mixes, how fast algae blooms develop, and how ice covers the lake in winter. In that case, if you don’t have an ice cover all winter, you don’t have the same habitat available for fish, and warmer water will create more algae blooms. Basically, when you change the thermal stratification, you’re changing the habitat. Most of the recent work I’ve done is on declining ice coverage due to warmer winters. I’m also doing work on lake water color around the world. People think of lakes as blue, but actually, blue lakes are not very common. Only ⅓ of the world’s lakes are blue, and most are green/brown. Blue lakes only exist in places with cold winters and summers, so we predict lakes will lose winter ice cover and summers will get warmer.
Q: What is the “real world” application of limnologists’ work?
A: The Clean Water Act is a huge thing for limnology. It’s a field that studies what causes toxins to happen in drinking water—for example, the algae blooms that kept Toledo from having drinkable water—and how to create models to predict the likelihood of the toxins. Limnologists can also tell us how agriculture impacts water quality so that those in the agriculture field know what reservoir they should take water out of. Limnologists also sometimes study water quantity issues (e.g., river flow, how much water is in a lake), although these questions are typically answered by hydrology. For the most part, limnologists’ real-world applications center around water quality rather than quantity. We’re understanding the quality of existing lakes and determining the consequences of change.
Q: Using a limnology-informed approach, what should lake homeowners do differently?
A: Two things. First, we really don’t want fertilizer to get into the lake. It makes algae grow really well. When using fertilizer, make sure you are using the right application rates and the right timing. Secondly, some lakes are susceptible to shoreline erosion, so please make sure your shoreline area is as stable as possible. Call your state or local agency, where someone can help you make sure that you have the best landscaping and shoreline protection. Make sure to get the septic system pumped regularly because that can often get into the lake.
At Lake Homes, we’re thankful for Dr. O’Reilley and other important scholars in the limnology field. Their expertise allows us to develop practices and policies that fight climate change, preserve clean water, and allow us to keep enjoying and appreciating our wonderful lake areas.
The time has come and you’re ready to buy a lake home. You might be asking yourself, “What lake makes for the best lake home purchase?” When it comes down to it, it all just depends. A lot of people who purchase lake homes on specific lakes do it for a plethora of reasons. Hear what Glenn Phillips, CEO of Lake Homes Realty, has to say when it all boils down to deciding which lake to call home.
Depends: It’s Personal: Picking between Lake A and Lake B is a personal choice. Because of this, you have to narrow down the things you would want from living at the lake. Lake homes vary widely, from environments to the reasoning behind the purchase and many other factors.
Full-Time or Part-Time: Are you planning on making this home your full-time residence? If so, you’ll more than likely have different needs than a part-time resident. For example, if you plan on living there part-time, you might want to consider a home with extra space for storing items during the off-season.
Accessibility: Does it take 30 minutes or 2 hours to get there? Sometimes you will have lakes where you can see the other side, but in order to get to your home, it’s a 45-minute drive. You will also need to consider the terrain as well as the road conditions from your home to major access points.
Quiet or Busy: Some lakes are more populated than others. Depending on your preference, you will need to choose between a lake area that is busy versus one that is quieter and laid-back.
Seasonality: Some lakes are considered “full pool” meaning the water level doesn’t drop significantly. The lakes that do fluctuate are typically used for flood control, which can limit water activities. Also, depending on which region of the country the lake is located in, you might find lakes that completely freeze over during the winter season. In this case, you will need to winterize your home.
Affordability: Lake homes are niche properties that are different from your typical residential home. Knowing what you can realistically afford will help narrow down options for both properties and locations. Keep in mind that location can significantly add to your overall lake home cost.
Date the Lake: Plan to take a trip to a lake you might be looking at. Stay there for a weekend or multiple weekends at different times of the year. This can significantly help in getting to know your way around the area and lake.
The bottom line when choosing which lake to pick from all comes down to what you’re looking for. Buying a lake property is a choice that needs to align with your lifestyle. If you’re still on the fence about it or would like more assistance navigating it, head on over to LakeHomes.com. We have lake agents from all over the country who are experts in their market. They can help you navigate the homebuying journey and find your dream lake home!
Now might be the time when you have decided to put your lake house up for sale. Going into it, you might have heard of different rules to follow or maybe even some myths. When it all comes down to it, some of these myths end up costing money for the seller. Lake Homes Realty’s CEO, Glenn Phillips, details 6 expensive myths you might hear.
Myth #1 – The Local MLS and Zillow are Sufficient and Effective: While these platforms are great, that doesn’t take away from the fact that they’re simply not enough. Oftentimes, people who are looking from other parts of the country might have a hard time finding your property through these channels. More niche websites, such as LakeHomes.com, are more efficient for the buyer who is looking for a property like yours.
Myth #2 – An Open House is Critically Important: If you’re selling in a more urban setting, hosting an open house would be beneficial. Because the majority of lake home buyers live somewhere else, it wouldn’t be as useful to host an open house. If they live in another state, they will probably want to see the property, but not necessarily in an open-house setting.
Myth #3 – Zillow’s Zestimate Reflects Current Value: This tool is great for other types of environments; however, with lake properties, they don’t know how to account for factors that are specific to lake properties. Water location, water depth, and seasonal patterns are not always common knowledge, so therefore, the algorithm can’t process them accurately. A lake expert agent will have more insight into these nuances for various properties around the lake.
Myth #4 – Lake Home Buyers Want the Same Type of Homes Popular a Decade Ago: Homes from 10 years ago can have features that give them a rustic feel. However, buyers today might be looking for homes that are updated and feel high-tech.
Myth #5 – Fewer Lake Houses for Sale = Sellers Can Ask a Premium Price: Today’s buyers are more informed than ever before. These buyers know what they want and what they’re willing to pay for. This doesn’t mean they will automatically pay the premium price, which will oftentimes lead to homes just sitting on the market.
Myth #6 – Little Risk in “Testing the Market” with a High Price: The information we have found is that homes starting above market price tend to fail. Starting too high and then cutting shows buyers you’re aiming too high for what your home is actually worth.
Now that you are aware of these myths, you are better prepared to sell your lake home. If you’re getting ready to sell or have started the process, check out the lake experts at LakeHomes.com. They would love to help out if you’re looking for guidance through lake real estate!
Selling your lake home can be a difficult and time-consuming process. One of the best things you can do is have a trusted lake real estate agent by your side. However, you shouldn’t just choose any lake agent. You need to ensure the one you choose is willing to help with the full process. Glenn Phillips, Lake Home Realty’s CEO, lays out 4 danger signs when it comes to choosing your agent.
Agent is Not Interviewing the Seller: While you need to interview the agent, the same goes for them interviewing you. It could be a red flag if they come in telling you how great they are and not asking you about what it is you’re looking for. A great agent will always ask what kind of outcome you are expecting.
Will Take Overpriced Listing Without a Plan: A good agent usually has an idea of what your home would typically sell for. If you want to sell it for a higher price and they have a plan if it doesn’t pan out, that’s an agent you’d want on your side. If they’re just willing to put it at that price with no backup if it doesn’t sell, you might need to question that.
Not a Lake Real Estate Expert: Being a lake expert for lake markets is incredibly important. The nuances that encompass lake real estate are something a typical real estate agent probably doesn’t know. Having someone with key knowledge of the lake and area is always something to look for. Working with a lake expert ultimately gets you the maximum return on your investment.
Cannot Explain How They Target Out-of-State Buyers: Simply listing a property on the MLS to target people isn’t enough. Because this isn’t an effective way, LakeHomes.com uses specific marketing and targeting to figure it out. As a result, our agents are able to tell you where people are looking as well as where these buyers are located.
Overall, paying attention to these signs is really important when it comes to choosing who you want to work with. If you’re still not sure when it comes down to it, check out the great lake experts who are ready to help you out at https://www.lakehomes.com/agents.
