The incoming fall season inspires change to the current lake homes market. Lake Homes Realty’s CEO, Glenn Phillips, gives five keys to follow in order to keep up with this fall lake homes real estate market!
Price Growth Peaking: The acceleration in price growth is finally coming to a plateau now that the summer rush is over.
Mortgage Rates MIGHT Matter: Mortgage rates could be a hedge against inflation. Paying off a mortgage with a lower interest rate than inflation rate may be an option.
Inventory to Remain Low: Inventory will most likely remain in low supply, meaning there still won’t be many homes coming to the market.
“Less” Competition: The competitive edge of today’s market will begin to subside, especially because people are losing the extra time they gained in the midst of Covid.
Long Distance Buyers Remain: These buyers should be taken into account when selling, and it’s important to have an agent who can tap into this pool of buyers.
The change in season doesn’t stop the lake homes real estate market, but it does have an effect on it! It’s crucial to stay on top of this shifting market, whether you’re buying or selling a lake home.
Lake Homes Realty’s CEO, Glenn Philips, explains why inflation has such a big impact on real estate as a whole, and why you need to understand how it affects lake real estate if you’re interested in purchasing/selling a lake home.
Mortgage Interest Rates: The combination of low mortgage interest rates and a steady increase of inflation may affect buyers who typically pay cash for lake homes
Stock $ Impact: Lake home owners are usually also investors, and depending on how inflation is affecting stock value, this could influence whether they keep or sell their homes.
Influence of Headlines: The buzz generated from worlds like inflation can have an impact on how potential lake home buyers/sellers participate in the real estate market.
Investment Value: Real estate is usually a good way to hold investments, so purchasing lake homes as your second home is a viable option.
Knowing how big of an influence inflation can have on lake real estate will help you navigate this market when buying your dream lake home!
The current real estate surge has led to an inventory shortage in most markets, but LakeHomes.com has tens of thousands of lake property currently listed. So, what motivates someone to sell during this frenzy? While there are some outliers, here are three reasons why people in this economy are interested in selling a lake home:
Age. Even before the pandemic, age-related transitions were on the minds of sellers. Whether it’s because the kids have moved out and they are now looking to downsize or they are looking to go live with family elsewhere, sellers making age-related decisions are creating some turnover in the lake real estate market.
Financial Need. As the economy shifts, financial need will become more of a motivation for sellers than it already is. Right now the real estate market is at its peak, so if a seller has a financial need, now is a great time to make that property very liquid and get cash for the home.
Financial Opportunity. This is the best time for someone with a lake home to seize the opportunity to get maximum return on their lake property. Though sellers should avoid overpricing their lake home, these are the homes that can be sold quickly because of the strong demand right now.
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.
When you’re buying or selling a home, there’s one thing that should be on your mind — value. If you’re buying a home you should be thinking about getting great value for your dollar, and if you’re selling, you should be thinking about maximizing the value of your home. Whether you’re buying or selling, here are three important things to think about when it comes to value in real estate:
Value vs. Price Many people confuse value and price as the same thing, but they’re not! If you believe a house you’re selling is worth more than its listing price, that’s only perceived value. Price is what that house is listed for. The perceived value of both the buyer and seller have to align in order to create the actual value. Many deals fall through because of the disconnect between perceived value and actual value.
Financial Value This is what the home is worth in real dollars to most people. Because we make decisions justified by emotion, financial value and personal value get mixed up when buying or selling a home. If there is an aspect of a house that does not add financial value to a house, then it is a personal value.
Personal Value This is what the home means to you — this is more common among sellers. If you make an addition to your home that you know won’t necessarily increase the financial value of your home, but that you enjoy personally, that’s personal value. Personal value is still important, but it is not financial value. This confusion can derail many great opportunities in the real estate market.
The key to understanding value when buying or selling a home is knowing value does not equal price, and personal value does not equal financial value. 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 today’s active real estate market, you may want to sell your house but are unsure if you will be able to buy another one with the current inventory shortage. If you’re nervous about being able to buy a house upon selling your own, check out these 3 tips on navigating that situation from Lake Homes Realty’s CEO, Glenn Phillips.
Buy First. If you’re not able to support a second mortgage, you may want to find the home you’re wanting to buy, make that deal contingent on the sale of your current home, and provide other incentives to make that deal appealing to the seller.
Sell with a Lease Back. This allows you to sell your home and lease it back for a certain period of time with the buyer.
Move Twice. Sell your home while the market is at peak pricing, move your belongings into storage, then find somewhere small to rent while you look for your next home.
Whether you’re buying or selling your lake home or property, our agents at Lake Homes Realty can help provide insight in today’s lake real estate market and guide you in your home journey.
In real estate, it’s common knowledge spring is the best time to put your house on the market. However, this restriction doesn’t apply to lake homes.
According to the New York Times, “putting a vacation property on the market requires a different strategy than selling a primary residence.”
At Lake Homes Realty, our agents sell billions of dollars of lake real estate all year long. In fact, listing your home in a season other than spring might help you stand out. At all times of the year, we have important tips for selling.
That said, if you’re considering selling your lake house this fall, here are some seasonally-specific tips to keep in mind.
Some say that image isn’t everything. But when it comes to selling a lake house, it is.
Especially in our current virtual world, buyers place a strong emphasis on their first impression of your home on the internet. Homes with good quality photography sell 32 percent faster than those with low-quality photos.
Although you’re selling your lake house during the fall, your photos don’t have to depict brown leaves and overcast skies. In actuality, using spring photos improves sales.
When buyers imagine themselves at a lake home, they’re picturing warmer weather. So, posting pictures from spring will play into this vision that buyers want.
Prioritize Curb Appeal
Fall leaves are beautiful, but not when massive piles are blocking the entryway to your lake house. Similarly to our first tip, aesthetics matter.
It’s a bit more complicated at the lake. In a traditional residential home, curb appeal means mowing the lawn and cleaning up the porch. However, on a lake property, the shoreline requires landscaping as well.
It’s almost like having two curbs. Our CEO, Glenn Philips, says in this Whiteboard Wednesday video that sellers must make their homes “picture-perfect move-in ready.”
As such, prioritize curb appeal and consult your agent about what curbside changes will enhance your lake home.
Real estate investor Scott McGillivray, the host of “Income Property” on HGTV, told U.S. News that sellers should put away over-the-top seasonal decor or overtly religious themes. The occasional pumpkin is fine, but buyers may turn their attention elsewhere when the house looks like a Party City store.
When selling your lake house, stick to a neutral decor.
Price It Correctly
Due to COVID-19, there’s a shortage of appropriately priced inventory nationwide. At the same time, buyer demand has increased because lake homes are perfect social distancing destinations.
“We have buyers who are ready to buy right now on almost all of our lakes,” Glenn Phillips says in this Whiteboard Wednesday video. “However, they aren’t going to overpay at what they believe to be the peak price.”
In other words, there’s a limit to how much money this influx of buyers will spend. As such, if your home is priced appropriately, there’s a good chance it will sell.
Government programs like stimulus checks and the PPP have created a false economy that may decline by late fall. Before this happens, take advantage of this period by selling your lake house.
Contrary to what many people think concerning the pandemic, this is a great time to put your home on the market.
Find a Lake-Focused Agent
In many ways, lake real estate is a different ball game than traditional markets. Unlike residential homes, lake homes are an aspirational product.
Buyers often have other priorities for these second home properties. When catering to these buyers, it’s essential to know what they do and don’t care about to succeed. It’s also crucial to understand your lake’s niche market.
For expertise in both of these areas, hiring a lake-focused real estate agent is the answer. Unlike many traditional agents, lake agents often live in the markets they serve and are intimately familiar with the area.
At Lake Homes specifically, our national network equips agents to build connections at lakes across the U.S. As such, the combination of local and national experts will facilitate your sale. These agents will also be aware of how the fall season affects the market.
Ultimately, the best time to sell your lake home is when it’s right for you. If you’re still enjoying the lake lifestyle, keep doing so. But if it’s time to sell, don’t let the myth of “springtime is selling time” fool you!
In real estate, especially in competitive markets, agents typically ask for the “highest and best offers.” It’s important to understand what this means, and whether you’re buying or selling your lake home, here are five things you will need to know about “Highest and Best” offers.
This is not an auction. The biggest number doesn’t always win the deal. Ultimately, the sellers decide on what is best for them.
Mortgage vs. cash. Cash transactions typically don’t go through an appraisal process (there are exceptions). There’s usually a pre-approval process with transactions involving mortgages, which could lead to an inconvenient holding pattern, thus making it a riskier transaction than cash.
Timeframe matters. You can de-risk the deal to a seller if there is a shorter timeframe from contract to close.
Earnest money. A large amount of earnest money offered ensures the buyer’s level of commitment, which further de-risks the deal.
Connection. An emotional connection can help make an offer highest and best.
Whether you’re buying or selling your lake home or property, our agents at Lake Homes Realty can help provide insight in today’s lake real estate market and guide you in your home journey.
When it’s time to sell your lake home, you’re likely keeping a mental list of what home buyers find important. However, your attempt to read buyers’ minds could be incorrect. To avoid this pitfall, Lake Homes CEO, Glenn Phillips, shares 5 things that home buyers don’t care about.
What you paid for the lake house
The price of nearby homes in the market
Personal effort that you put into the home
Using outliers in the market as a proxy for your home
Your feelings about the home (don’t take an offer personally!)
If you’re preparing to sell your lake home, it’s natural to wonder how the market will be doing this Fall. Although COVID-19 has left the market’s future more uncertain, some reliable predictions still exist. Lake Homes CEO, Glenn Phillips, shares five things to consider when predicting the Fall real estate market:
Stimulus checks, the PPP program, and other initiatives have created an artificial economy that will likely continue through the Fall
A high demand for lake houses has persisted throughout the pandemic
Despite the demand, there’s a housing shortage of appropriately priced inventory for lake homes
Consumers’ fear of uncertainty means they are not willing to overpay for homes
As stimulus money fades later in the year, an economic cliff is likely to happen when the true state of our economy becomes clearer.
If you’re buying or selling a lake home, it’s important to keep these Fall real estate market predictions in mind. As a national specialist in lake real estate, we’re here to help. Check out our website for more information.
