Are you thinking of selling your lake home yourself? If so, you probably already thought about negotiating pricing and marketing, which are important, but there are other aspects you may not be ready for. Here are six dangers you must know before you do so.
Fair Housing Laws. You may want to get to know the people interested in your home, but if you look like you are filtering by demographics, check these laws to make sure you stay fair and abstract. Build a wall when making your selections because not only are you negotiating the property, but you are also vetting it as the seller.
Evaluating Multiple Offers. In a hot market, if you price your home appropriately, you will get multiple offers quickly. Are you prepared to evaluate those offers in a timely manner and how they all differ?
Inspection Contingencies. If someone makes a great offer, maybe in all cash, but they have a home inspection, it gives them a caveat to get out of the contract. It is important to understand what this contingency is, whether it introduces risk into your contract, and if there are problems, it could open negotiations or kill the deal.
Loan Contingencies. One great thing about lake properties is that over half the deals in our country are cash, but loans are still used as well. A pre-approval letter may not carry as much weight as you think, and if you accept a deal with this contingency, it could fall through.
Escalation Clauses. If the bids come in, that is typically the buyer’s offer unless someone beats it. These competing offers can become complicated because they can escalate to different amounts or triggers. Be prepared for this in a hot market because buyers do not want to miss out.
Property Disclosures. You must disclose the property and the issues involved otherwise you could be sued later. You need to understand what you disclose and what you do not disclose, which can be confusing.
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.
There are different aspects to selling your lakefront property than if you were to sell a landlocked property. These are the surprising risks to be aware of when maximizing the return on your value and investment.
Sell really fast. Selling your home quickly will not get you the best return on your dollars. A lot of lake home buyers are from out of town or out of state, and you may limit the number of buyers that can’t respond quickly enough.
Rushing through the transaction. This is a legal transaction involving a lot of money and it’s important to read and understand what you’re signing. Avoid any legal issues in the future by taking your time.
Overpricing. The best way to get the best price is to price appropriately and leave room for competition. Overpricing drastically for the current market will cost you time and money, even in a hot market.
We hope you find these tips valuable as you venture out on your journey to selling your home. Please feel free to reach out to our lake experts for guidance.
While real estate agents are here to help you with your lake home, there are some things you can do to make the process easier. Here are four tips to help the real estate transaction go smoothly for you and your agent.
Accept the consequences. Be sure you understand that the lake market is a hot market in 2021. It’s different from other markets and knowing the nuances are important to be successful in the process.
Do your homework. Agents will help you and answer your questions, but you have to know what to ask. Educating yourself and working with an expert agent will keep you out of trouble.
Expert agent. Whether you’re buying or selling, working with a lake expert agent will help you navigate the nuances of each lake. The rules and regulations for each market can be different, so having someone who can guide you through those will help meet your expectations.
Be prepared to buy. Do the prep work to make a thoughtful and competitive offer in a timely manner. You snooze, you lose!
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.
Are you thinking of buying your first lake home? Buying a lake home is unlike buying any other home so here are 5 important questions to ask when you know you are ready to buy.
Dock Regulations? The rules and regulations on what you can and cannot do to a dock will vary from lake to lake. Some might not allow the existing docks to be modified. Before you decide to build one or fix up an existing dock, be sure you understand the regulations.
Internet Access? Most people often think that the internet is widely accessible, but this is not always the case with lake homes. Sometimes houses on the lake are located in secluded, rural areas where internet access is not always readily available.
Water Levels? Water levels vary on different lakes. Some lakes could have water levels that vary from day to day while some are seasonal. For instance, a lake might be at full capacity in the summertime and be completely dry in the winter.
Boat Traffic? You might not realize that your ideal lake home is situated on an area of the lake that has high traffic. The buzzing of passersby might be appealing for some but if you’re looking for a more tranquil setting, an area with high boat traffic might not be a good fit for you.
Grocery Store DRIVE Time? How long does it take to get to the nearest grocery store? Always calculate the time and not the distance because the shortest distance does not always equate to the fastest time and vice versa.
If you’re ready to make your very first lake home purchase, be sure to contact our lake experts to help guide you on this special journey.
These unprecedented times have changed the way we do business in real estate. Whether you’re buying or selling in 2021, here are 5 early thoughts from Lake Homes Realty’s CEO that you must consider.
Safe Home Showings. Home showings are a lot safer than initially thought. Keeping a safe distance from others and wearing a mask have limited the risk of exposure. Though taking safety precautions such as wiping down surfaces and proper handwashing are still important, having proper air circulation within your property is imperative to ensure a safe home showing.
Step-Up Basis Repeal. The new administration under Joe Biden has proposed major changes to the step-up in cost basis for capital gains tax. This could influence your decision to sell or keep your inherited property. Learn more about the Estate Tax Reform Proposal here.
Buyer Demand. There is a huge demand from home buyers in this current market, but homes are only selling if they are appropriately priced. Be sure to enlist a professional agent to help you properly price your lake home for competing bid offers.
ACT Immediately. Be ready to act immediately. If you find a home that is appropriately priced, be ready to buy because it might not be on the market the following week.
Think Multiple Markets. When buyers are looking for lake homes, chances are they are shopping multiple lake areas in multiple states. If you’re a seller, you must think of selling your property in relation to other markets and price it accordingly. To get the full scope on lake properties in various markets, be sure to download our Lake Real Estate Market Report.
It’s no secret that moving is an emotionally taxing life event. Even if you’re excited about your move (who wouldn’t be excited about moving to the lake?), it can still be highly stressful. There are so many things to consider — and even more factors when you’re moving out of state. Whether you’re in the process of moving or just thinking about it, we’re here to help you cover the basics.
Update Your Address
This one might go without saying; it’s important to update your address when moving out of state. First, you can fill out the change of address form on the USPS website. This will forward mail from your old address to your new one. You’ll also receive discounts at places like Bed Bath and Beyond for all your new home essentials. Don’t forget to change your address on your bank account, credit cards, and subscription platforms like Netflix. Finally, remember to change the address of your voter registration. Voting in your new state and getting involved in local politics will allow you to be more integrated into your community.
Learn the New Tax Rates
Once you update your address, your zip code and house number aren’t the only things that change — so do your taxes (hopefully, they change in your favor!). When moving out of state to a lake house, many people pick lake homes in states with lower tax rates. For example, lakes in Tennessee will not come with a state income tax, although you will still have to pay the federal tax. Other states without income taxes include Texas, Washington, and Florida. Keep in mind that if it’s the middle of the year, you will have to pay taxes in both states, which can get confusing.
Switch Your Licenses
If you drive a vehicle, this is one of the first things you should do when moving out of state. The grace period between moving and updating your license can range anywhere between 10-30 days, so be sure to check state requirements. Given the short turnaround time, it’s best to make an appointment with the DMV before your move. This way, you can avoid the long lines, which are ubiquitous across states. Lucky for lake homeowners, though, one thing that does not need to be updated is your boating license. If you take a boating test approved by the NASBLA, the National Association of State Boating Law Administrators, these certificates are valid in all 50 states.
Understand the Lake Fees
If you’re moving to a house with lake access, specific fees can add up. But this depends on who owns your lake. The U.S. Army Corps of Engineers owns many larger lakes. Their interests are preserving wildlife, maintaining flood control, and other public concerns. On Army Corps lakes, living in a home with direct lake access can be expensive because owning a boat dock comes with a fee. There may even be certain size limits on boat docks, so be sure to check the regulations before visiting. On the other hand, homeowners associations (HOAs) control many smaller lakes in the country. Since they do not share the same public concerns as Army Corps lakes and are more focused on recreation, there are different regulations. Usually, you’ll need to get approval for the construction of a boat dock, and membership fees may be required.
If you’re moving out of state, you’ll need new health insurance. For those of us who are self-employed (a freelance business working remotely from a lake house? Sounds perfect!), you’ll need to alert the health insurance marketplace about your move and search for a health insurance agent to assist you. If you have health insurance through your job, you’ll need to find new healthcare providers in your network.
Searching for providers can be difficult for those who live on the lake, especially if your lake house is in a remote location. As such, choosing a lake house with close proximity to a hospital is an important consideration, especially if you’re moving for retirement. However, this doesn’t mean you have to choose an urban lake. For example, Tellico Lake in Tennessee is in a remote community with a 45-minute driving distance from the city of Knoxville, home to the University of Tennessee’s Medical Center. Even if you aren’t someone with routine medical needs, it’s best to be prepared for the future.
If you’re thinking of buying or selling a lake home, here are 4 things you need to know about appraisal risk.
Appraiser Lacks Lake Experience. Lake lots and property value vary greatly due to many factors such as location, lake characteristics and features. An inexperienced appraiser might not be able to provide accurate information regarding your lake home.
Inflexible Appraiser. Due to time constraints and unfamiliarity with lake areas, getting good quality comps could be difficult. In situations like these, knowledgeable agents can oftentimes help the appraiser get a head start in getting a good quality appraisal.
Lack of Recent “Comps”. In today’s real estate market where the inventory is low and the demand is high, this trend has made it difficult for appraisers to provide comps to support the new prices.
Appraisal Too Low. You can de-risk the offer by making up the difference or a portion of it. There is an assumption that if the appraisal is lower then the sellers would drop the price. Lake property is discretionary so there is a good chance that the homeowners would choose to not sell their home or they could get an offer from another buyer.
For more information on buying or selling a lake home or property, be sure to visit Lakehomes.com or contact our lake experts. We’re here to help you navigate the lake home buying or selling process that can oftentimes be complicated.
There are three particularly important aspects you must give extra consideration when you’re thinking of buying or selling a lake home.
In this video, Lake Homes Realty’s CEO, Glenn S. Phillips goes over why the points are more important when it comes to lake real estate.
Water. How deep is the water? How far is it from the main body of water? How is the boat traffic? Does the water level vary by season? Every lake has its own water characteristic, in fact, different areas of the same lake may vary so these factors can affect the price of a home when buying or selling.
Sun. Which way the home faces relative to the sun is important to the value of a lake home. Some might prefer sunrise or sunset views. If a lake home is situated due north, or in a cove with hills and trees, it views of sunrises or sunsets may even be fully obstructed.
Earth. The terrain on which the home is situated is important to consider. Is it waterfront or water access? Did you know some property is waterfront without water access? What kind of septic system will this property support (as many locations are rural)?
Because lake real estate is unique with many factors to consider when buying or selling, it’s important that you have a lake expert by your side.
Here at Lake Homes Realty, we’ve got our own licensed agents who are highly specialized in all facets of the lake and the lake lifestyle. If you need help with lake real estate questions or are looking for an expert to help you buy or sell your lake home, be sure to contact us!
Have you ever had an agent tell you that they can help you buy a home or property and not cost you anything? In this video, Lake Homes Realty’s CEO, Glenn S. Phillips, explains why this is not true.
Department of Justice (Nov. 19, 2020). The National Association of Realtors and the Department of Justice had a settlement that states agents can no longer claim that their services are free.
Paid through Cooperative Agreements. Even though the agents are not being paid for their services, they are being paid through the deal or transaction via the brokerage and listing agent.
Bring Value. The buyer’s agent you’re working with should be looking out for your best interest…someone who pays for themselves in the value that they bring.
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