Whiteboard Topics: What Are 5 Pricing Mistakes Made By Lake Home Sellers?

When selling a lake property, you always need to be aware of possible mistakes that can happen. Luckily, Glenn Phillips, CEO of Lake Homes Realty, gives insight into 5 common pricing mistakes. Not only does he mention what they are, but he also explains ways to ensure you avoid them. 

  1. Trusting Websites Offering AVMs: Automated Valuation Models are essentially websites where you can input data and “find out” how much your home is worth. These are not real people and are simply automation algorithms. A lot of times, these websites are flawed. These tools are typically better suited for evaluating homes in subdivisions as opposed to lake homes spread around a lake.
  2. Using Prices of Currently Listed Properties: Just because you have a neighbor or friend listing at a specific price doesn’t mean you should use the same one. At the end of the day, these properties will still likely sit on the market, which typically means the prices didn’t work. The longer a property sits, the less money the seller will get.
  3. “I Need to Get…”: Oftentimes, a seller will have unrealistic goals for what their home is worth and will ask for too much money. Before putting your home on the market, you will need to understand what the market value of the property is. 
  4. Emotional Reasoning: Being aware of what the market is saying about what a property like yours is worth vs. how you might feel emotionally. Just because you added certain features or made modifications to the home doesn’t necessarily mean it increases its value. Always see what the market says. 
  5. Failing to Consult a Lake Expert Agent: This is one of the best ways to avoid any of these mistakes. Consulting someone who is an expert in this area will be beneficial to you in the long run. It might be tempting to use somebody who is a friend, but someone who specializes in this area is ideal. Lake agents have a better understanding of what it takes to sell in this market.

When it comes time to sell, there are plenty of ways to avoid these mistakes. It will ultimately help you in the long run and avoid a lot of stress. If you still have any questions or need guidance, check out LakeHomes.com. There are plenty of lake agents who would be thrilled to help you through your real estate process. 

Whiteboard Topics: 6 Ways To Protect Yourself From Lake Real Estate Scams

Anyone who has gone through the home-buying process knows it can be tricky. Just like scammers in everyday life, there are real estate scams that many people might fall victim to. Luckily, Lake Homes Realty’s CEO, Glenn Phillips, walks through 6 different ways to protect yourself from these scams. Find out some of the best strategies below or reach out to one of our lake agents at https://www.lakehomes.com/ for more guidance!

  1. Never Buy Without Title Insurance: Right now, there are people who list different properties on the market, yet they don’t even own the property. 
  2. “Check In” on your property (Including Lots!): For a large group of people, their lake home isn’t their main home. Essentially, the home is just sitting there. They realize nobody is there, especially with lots, and then somebody will try and list it.
  3. Verbally Confirm All Payment Instructions: Always plan to do this, especially if you are issuing the money. All real estate types are big targets for email hacking and phone calls. These hackers are reaching out in ways where they suggest payment should be sent to another place.
  4. Do Your Due Diligence: You need to make sure you know everything about the property. From the survey to the condition, make sure people aren’t taking advantage of you.
  5. Be Wary of Haste: If someone is hurrying you in a way that doesn’t seem genuine or feels right, double-check everything. If haste prevents you from verifying things, that is a sign.
  6. Confirm Funds Have Cleared: Make sure your funds, especially with earnest money, are clearing. Your real estate agent can usually provide help with this to ensure everything goes accordingly.

Don’t let the fear of scams hinder your real estate endeavors. Yes, real estate is more likely targeted due to the higher amount of funds, but there are precautions to be taken. Protecting your money and protecting yourself are the two things to remember when it comes to avoiding real estate scams.

Whiteboard Topics: What Are 5 Common Mistakes Made By Agents At The Lake?

When it comes to real estate, mistakes will happen on occasion. Even the most seasoned agents may make a mistake. At the end of the day, it’s human nature and not something to be too upset about. Luckily, Lake Homes Realty’s CEO, Glenn Phillips, has outlined the 5 most common mistakes and how to stay clear of them.

  1. Agreeing to Overprice a Lake Home: As a seller, it is normal to want to maximize the amount you get from the home. However, this can typically cause the property to sit on the market longer and, inevitably, sell for less money. 
  2. Missing Phone Calls: Sometimes being busy can get to you or you might find yourself in an area where the cell service isn’t that good. This results in missed opportunities for the client to get to work with you and vice versa. 
  3. Only Marketing Listed Property Locally: When promoting the property locally, you’re typically going to be promoting to people who already own a lake home. Oftentimes, the ones looking are not local and can even be from out of state. Only marketing locally will result in a loss of visibility for potential out-of-state buyers.
  4. Not Thinking Long-Term: Simply worrying about the next new buyer leaves room for forgetting about your current buyers. These other buyers might just take longer to complete a transaction. While it is good to always think about new buyers, don’t forget about the long-term ones.
  5. Lacking Lake Expertise: The higher price points of lake properties are very enticing, but lacking the knowledge can backfire. Everything from water regulations to how you get to the properties, and even pricing and value. Expertise always matters.

In the future, knowing about these common mistakes can really change the game when it comes to selling lake properties. There are always ways to improve on this knowledge and even learn more when it comes to avoidable mistakes. Visiting LakeHomes.com is always a helpful tool and a great way to learn more!

Whiteboard Topics: 4 Costly Mistakes Made By Lake Home Buyers

Buying a lake home is an exciting process. However, getting caught up in the excitement often leads to costly mistakes. Glen Phillips, CEO of Lake Homes Realty, discusses 4 costly mistakes made by lake home buyers.

  1. Lack of Due Diligence: Conflict between buyers and sellers often arises, even after the sale, due to a lack of information. Here are a few tips to avoid this conflict:
    • Home Inspection: Think of home inspections as an insurance expense. Homes, especially lake homes, have issues as they age. A home inspection is less expensive than finding issues after you purchase the home.
    • Survey: As property ages and people move in and out of the property, the question of who owns what gets complicated. Surveys solve this issue by clearly defining property lines and boundaries.
    • Geologic Report: If your lake home is close to water, water fluctuations might cause issues with the home. Geologic reports help determine if the property is stable.
    • Clear Title: Now more than ever, home buyers need title insurance. Title insurance guarantees that the person selling the property has legal rights to sell it. This protects you from scams by people selling property they don’t own.
    • HOA/POA Regulations: Homeowner and property owner associations determine what you can do on your property. These can change, so be sure to stay up-to-date on them.
    • Lake Regulations: Every lake has rules about how to use the lake. These rules include permitted watercraft, shoreline regulations, dock/pier construction, and more. Knowing these rules prevents surprise fines.
  2. Forgetting to Consider Maintenance: Lake home maintenance includes more than the house. If you own a waterfront house, you must also maintain your shoreline. This also includes docks or piers on your property.
  3. Failing to Research Insurance Costs: Lake homes often require additional insurance costs compared to typical property. For example, many lake homes require flood insurance.
  4. Agent is not a Lake Expert: Using a real estate agent focusing on lake property helps you save money. They ask questions that someone not familiar with lake property wouldn’t think to ask. They also know how to guide you through the process of lake real estate better than other agents.

While buying a lake home creates plenty of excitement, there’s also risk involved. Not being prepared leads to costly mistakes after the transaction. Visit lakehomes.com, where expert lake agents will guide you through the lake real estate process and help you avoid these mistakes.

Whiteboard Topics: 6 Expensive Mistakes Made by Lake Home Sellers

When selling your lake home, you’ll want to avoid making certain mistakes. Glenn Phillips, CEO of Lake Homes Realty, discusses six mistakes made by lake home sellers.

  1. Failure to Truthfully Disclose: Truthfully disclosing information isn’t just a good idea; it’s the law. Failure to disclose known problems with the home leads to legal ramifications. When this happens, you not only have to fix the problems, but you also have to pay the attorneys.
  2. Overpricing: After overpricing a home, it sits on the market for a while. Then, after several price cuts, buyers make an offer lower than the cut price. These low offers lead you to miss out on money you could have made by appropriately pricing the home.
  3. Agent is not a Lake Expert: Lake homes have nuances that typical real estate doesn’t have. Automated systems and general agents often don’t factor in these nuances in pricing. These inaccurate pricings end up costing you money down the line.
  4. Picking Agent Based on Large Number of Listings: An agent with numerous listings that aren’t selling is a sign they might not be good at selling. Homes sitting on the market for extended periods lead to price cuts and ultimately less money for you.
  5. Refusing to Counter an Offer: A low offer is better than no offer. Countering allows you to explain why you’ve listed the house at the listing price and opens a conversation. Refusing to counteroffer will oftentimes end a sale before it even happens.
  6. Selling in 1 Day or 1 Weekend: Buyers for lake properties typically aren’t local. They can be 2 hours away or several states away. Looking at several offers before selling allows you to maximize your potential earnings.

If you’re looking to sell your lake home, you’ll want to avoid these costly mistakes. Not being diligent in the selling process leads to money left on the table as well as additional costs. Visit lakehomes.com, where you can find expert lake agents who will help you through the selling process.

Whiteboard Topics: Lake Home Buyers Need to Understand Speculative Sellers

When looking to buy a lake home, buyers need to understand speculative sellers. Glenn Phillips, CEO of Lake Homes Realty, explains what speculative sellers are and why buyers should understand them.

  1. Two Types of Sellers: Understanding the differences between the two types of sellers affects how you negotiate pricing.
    • Motivated: Motivated sellers usually have a sense of timing. This means life circumstances push them to sell their house on time. For instance, this could be a change in family size, a new job, or some other life event.
    • Speculative: Speculative sellers appear more in discretionary property markets, such as lake homes. They aren’t motivated by their life circumstances. Instead, they test the market, aiming for a certain price.
  2. Speculative Sellers:
    • Overprice: Speculative sellers usually price above market trends. Because of this, the home stays on the market for extended periods of time. For example, this could be from 2-3 weeks to several months.
    • Lack Urgency: Oftentimes, speculative sellers set a listing price just to see what happens. This can make them unmotivated and slow to respond.
    • May Lack Market Understanding: Sometimes, the seller doesn’t know they’re being speculative. They may price their house at what similar houses sold for in the past without looking at current trends.
    • Emotionally Driven: Speculative sellers may not be all-in on selling their home. Additionally, they sometimes have attachments to aspects of the house that buyers don’t care about. The seller also attaches memories and emotions to the house the buyer doesn’t have.
    • Frustrated by “Low” Offers: After the home sits on the market for some time, sellers become impatient. This leads to frustration from “low” offers. These offers may even be appropriately priced for the market, but the seller expects a high price.

Engaging with speculative sellers as a buyer requires understanding. Keeping these tips in mind helps move the process along. Being patient, as well as providing market data to support your offers, may even help them understand your thinking. Be sure to visit lakehomes.com, where you can find agents who will help you understand speculative sellers.

Whiteboard Topics: Speculative Selling Will Cost You Money

When you decide to sell your home, you need to figure out the strategy for setting your listing price. One method is speculative selling, or listing the selling price above the current market value. Glenn Phillips, CEO of Lake Homes Realty, explains why this strategy will cost you money:

  1. Two Types of Sellers:
    • Motivated: Most sellers of primary residential homes have some motivation to sell their homes. This typically includes life events such as new jobs, moving towns, changes in the number of family members, or limiting health concerns.
    • Speculative: This often happens with discretionary property, such as lake homes. Speculative sellers don’t have to sell and don’t necessarily have an urgency to sell their home. They typically list their home over the market price to see if they can get a high bid.
  2. Speculative Selling Risks: If you are considering a speculative selling strategy, consider these risks.
    • Increased Time on Market: Due to the overpriced nature of speculative listings, they tend to sit on the market for an extended amount of time. Buyers today use a plethora of online tools that inform them of what the current market is like. These buyers aren’t willing to pay the extra premium if the price is way above the market value.
    • Lack of Urgency: With speculative selling, sellers tend to be unmotivated to sell the home. Even if interested buyers want to look at the house, speculative sellers may decline them because they have other plans that day.
  3. Consequences:
    • Increased Time-On-Market Creates Buyer Doubt: When buyers see an overpriced house sit on the market for too long, they begin to question if the house has other issues.
    • Repeated Price Cuts Teach Buyers to Offer Low: Buyers pay attention to continuous price cuts on your listing. This teaches them to offer lower than the current listing price, even if it’s a good market price.
    • Eventual Sale Price Often Less Than Market: Speculative selling can lead to fatigue, and they just want to be done with it. Sitting on the market for so long also comes with other costs. These can be HOA dues, insurance, utilities, and more that will eat into your selling profits.

Before selling your lake home, think about the pricing strategy you want to use. You need to decide if you are a motivated or speculative seller. However, you need to be aware that speculative selling comes with risks and consequences. To connect with agents who can help you with listing your house, visit lakehomes.com.

Whiteboard Topics: Have Lake Home Buyers Given Up?

Recently, the question “Have lake home buyers given up?” has been asked frequently. Many agents say buyers don’t have an interest in the current market. Agents also comment that buyers don’t ask to see properties as much as they have previously. Glenn Phillips, CEO of Lake Homes Realty, discusses some explanations.

  1. Insight from LakeHomes.com: On the Lake Homes website, the company sees customer traffic and what they do, even if they aren’t reaching out to agents. Based on web traffic, Lake Homes Realty sees that buyers haven’t given up. Millions of people visit the website and view properties, but they don’t always reach out.
  2. “I’m not hearing from as many buyers.”: This is a common issue across all of real estate in the current market, not just lake homes. Lake Homes Realty agents, other brokerages, and even primary residential real estate companies have seen fewer leads recently.
  3. Inventory Problem: While inventory exists in the current market, some twists could catch those who don’t study the market off guard.
    • “Phantom Inventory”: This happens when sellers list their home way above market price, attempting to get previous peak prices still. Listers in this situation may not have to sell but would consider it if they got an offer at that high price. These “lottery ticket” seekers somewhat inflate the market.
    • Appropriately Priced, Sell Fast: Today’s buyers are prudent and don’t want to overpay for lake homes. Because of this, appropriately priced homes sell fast, so they disappear from the market quickly.
    • Buyers Not Gone: Watching & Waiting: Buyers visit websites looking for homes and pounce on homes that interest them at an appropriate price. As speculative sellers lower their prices and inventory increases, engagement from buyers will increase.

The real estate market ebbs and flows. During periods of slow business, you may think buyers aren’t interested in homes anymore. Once you look at the data, however, you see that buyers are there, but they’re waiting. Visit lakehomes.com to connect with agents who understand inventory in your market.

Whiteboard Topics: The Wrong Questions When Picking a Lake Real Estate Agent to Sell

Selecting a real estate agent often seems like an easy decision. You may choose a friend or just the first agent you come across. Other times, the number of real estate agents to choose from intimidates you. However, before deciding on an agent, consider your goals and what you want from selling your house. Motivated sellers want to sell their homes for the highest current market price in a reasonable time. Glenn Phillips, CEO of Lake Homes Realty, discusses the wrong and right questions to ask when choosing a real estate agent.

  1. Wrong Questions
    • Which agents have the most listings? While there are great agents who have numerous listings, it isn’t always an indicator of success. Effective agents sell their homes and don’t let their listings sit on the market forever. Instead, ask about how many houses they sell.
    • Which agent do I personally like? You aren’t selling your house to make a new friend. Working with someone who you work well with is important; however, just because they’re your friend or family doesn’t automatically make them the best option. Don’t look to make selling your home personal. It’s a business transaction, and that’s how it should be treated.
    • Do they have an office nearby? Several lake home buyers come from out of town or even states away. When they come to town, they want to visit the house, not an office.
  2. Better Questions
    • Are all agents the same? No, not all agents are the same, but it can be hard to tell the difference. Look for someone who is experienced; they should be able to explain the process and have a plan. Seasoned agents are successful at selling lake homes and can get you the best price.
    • Which agents are focused on lake real estate? When selling lake homes, exclude any agent not focused on lake real estate. Assume the buyer and their agent don’t understand the nuances of lake property. Having agents who don’t understand lake property leads to confusion and unexpected turns.
    • Which agents can prove they have a pipeline of out-of-town buyers? The right agent can produce a list of where their buyers are coming from. Putting your home on multiple different websites doesn’t always produce results. Good agents instead target buyers who are already interested in your lake.

Selling your lake home is a complicated process, so agents are there to help you. However, choosing the right one isn’t always the easiest job. Friends and family often make a strong case but aren’t always the best option. Visit lakehomes.com where agents who understand lake real estate can help you navigate the process.