There is no doubt that right now is a hot market for real estate, but a high offer does not always mean you get that amount at closing. The highest and best offer are not always the same thing. If you are looking to sell your lake home or property, here are three reasons why the highest offer might not be the best offer for you.
Loan Contingencies. This means that if the buyer does not get approved for a sufficient loan, they can get out of the contract. This can be an issue if they give you a high offer that they are unable to follow through on, leaving you back at square one.
Inspection Contingencies. This can lead to negotiating the price if issues are discovered about the property. While these issues may not be a deal-breaker in your mind as the seller, they could be a way for the buyer to get out of the contract or leverage the price in their favor.
Appraisal Issues. With a high-priced market, the appraisal may not come back as high as the price you have set as the buyer. A bank will only loan out so much money, so the issue of who is going to come up with the difference in price can be a challenge. If a buyer does not have the means to cover part of the appraisal gap, their high price may not be as high as expected.
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.
Do you own a lake house and are not sure whether or not you should keep it? Here are a few things to consider if you are on the fence about keeping or selling your lake home.
Use or habit? Do you use your lake home on a regular basis? If you find yourself not visiting the lake as often as you’d like, then odds are keeping your lake home is probably not worth the time or money.
Right size? Your kids might’ve moved out or you’ve added a few new family members since you first bought your home. So, the question is: “Is your lake home the right size for your life right NOW?” If the answer is no, then you might want to consider selling it.
Family REALLY use it? Would your family actually use it if it was inherited? Just because you enjoy having a lake home doesn’t mean your family would appreciate it as much as you did.
Duration of peak market? By holding on to your lake home for too long you might run to risk of missing out on the “peak” market. Lake real estate doesn’t always appreciate in value in the short-term interim.
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.
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.
Are you thinking of selling your home this year? You might think that spring would be the ideal time to sell your home, but we think otherwise. Here are 5 reasons why you should list your lake home before spring.
Lake buyers schedule. Lake home buyers have a different schedule. Because lake homes are not considered a discretionary purchase, the average lake home buyer is not affected by decision-making drivers such as school year cycles, job relocations, etc.
Hot for selling. The lake real estate market is hot right now. There are buyers wanting to buy now and have their home ready for spring.
Economy. The economy is strong right now but during these unprecedented times, the state of the economy is unpredictable. Therefore, buyers are less likely to pay an optimal price or might opt to wait on purchasing their lake home.
Reduced inventory. Lake home buyers are wanting to make a purchase now. If you wait until spring to list your lake home, you’ll be faced with increased competition as more home sellers will be listing their homes as well.
Time Value of Money. Expenses such as a mortgage, utilities, and home maintenance costs could be reduced if you list and sell your home now instead of waiting until spring.
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.
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.
For more articles and industry tips, be sure to visit our blog.
One thing in a real estate transaction that some people may not understand is title insurance. They may ask themselves “What is it?” and “Do I really need it?” To navigate the confusion or uncertainty, here are three things to know about title insurance.
Right to Sell. Title insurance is basically just insurance that guarantees that the seller has the right to sell that property. There can be a lot of confusion surrounding whether someone has the right to sell a property — whether that be fraud, a mistake, or ownership uncertainty — but title insurance can help clarify and clean up that misinformation.
Clients Can Shop. You can shop around for title insurance that best fits your needs. The price of title insurance typically reflects the sale price of your home, and relative to many of the other costs involved in a real estate transaction, it isn’t that expensive. Though there are laws in place to protect buyers and sellers from fraudulent title insurance companies, you always have the option to shop around and get prices from various suppliers.
One-Time Cost. This is not a recurring payment. It is a one-time cost that takes place at a closing. Once the title insurance company is paid, they will do additional filings and verifications at the courthouse, and several days later, the buyer will receive their policy.
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.
