COVID-19’s impact on many businesses has brought on significant changes to rules and regulations that can be seen on a global scale. The real estate industry is also having to change to meet the needs of its buyers during these times of uncertainty.
In this video, Glenn Phillips, CEO of Lake Homes Realty, discusses the types of buyers you’ll find in the present COVID-19 marketplace. Learn how to navigate the delicate new economics of real estate in this exploration of buyers.
The proliferation of COVID-19 will most assuredly bring significant and permanent changes to businesses across the spectrum in the United States and worldwide. The real estate industry will also certainly change to meet the needs of customers everywhere. Even with restrictions on travel and free movement within communities, real estate transactions are still taking place. Both buyers and sellers are completing negotiations and closings in what is shaping up to be a busy spring period.
Here at Lake Homes Realty, we’ve taken steps to protect agents and customers as we negotiate the new environment in which we find ourselves. Glenn S. Phillips, CEO of Lake Homes Realty, says that “Safety is the number one challenge in conducting our business presently. We are doing everything in our power to support our clients safely and protect our agents.”
Safe Showings
Many buyers of lake real estate live in areas far removed from the lake markets in which they are searching for a home. LakeHomes.com, our highly trafficked website, is the perfect platform to allow potential buyers in markets across the country to shop for lake realty virtually anywhere in the company’s 29-state footprint.
Since there is often distance involved, our agents are offering virtual walkthrough services by using programs such as Facetime, WhatsApp and Zoom. Agents are spending significant time with clients to ensure all questions are answered and needs are met through the medium of mobile-based live video.
When physical showings are necessary, we’ve established a set of common-sense rules for conducting those showings. Agents will arrive early armed with disinfecting wipes or sprays, cleaning all doorknobs and light switches, then leaving the lights on and doors open to minimize touching while touring the homes.
Agents will ask that potential buyers minimize touching or sitting on the furniture. They will also request that the agent be alerted to any areas that need to be shown, which may not be easily accessible.
Seller Service Through Technology
Lake Homes Realty is a hybrid company, existing both digitally through LakeHomes.com and as a traditional brokerage with agents located in markets nationwide. Because of our unique position, we have resources for lake real estate that other brokerages do not.
We produce the Lake Homes Realty Lake Real Estate Market Report quarterly, but since these unprecedented circumstances began, we’re now updating the report data daily. These accelerated data reports provide our agents with the most up to date comparables with which establish dependable market pricing for sellers. No other brokerage has this tool.
As always, valuation services are free to sellers listing a home or property. Best of all, these services can take place virtually through a web conference or telephone meeting to minimize or eliminate face to face appointments.
Listing Power
With over 4 million highly qualified buyers visiting LakeHomes.com annually, expressly to shop for lake properties, there is no more powerful or safe partner for selling your lake real estate. We’ll develop those leads and virtually introduce your property to our qualified buyers. This incredible level of service supports sellers even in this challenging business climate.
Stay Informed
The COVID-19 virus is continuously pushing us all to be knowledgeable about the pandemic. Staying informed and being able to move nimbly under these market conditions is the key to success. Lake Homes Realty is the partner who wants to protect you and your interests in this difficult time.
Every once in a while, we come across a unique home design or regional fun fact that makes us take pause and dig a little deeper. It isn’t often, though, that we happen upon a place like Florida’s Lake Nona.
In a feature article for Worth magazine, author Helen Anne Travis highlighted what makes this little oasis unique. “With its innovative take on combining top-level healthcare, sports, technology and other amenities with residential planning,” Lake Nona offers “a futuristic vision of how people should live…”
Awe-inspiring. Groundbreaking. Ambitious. There are an almost endless array of adjectives that could be used to describe the lake community. But why not just let the facts do the talking?
A Greater Quality of Life
Located within Orlando city limits, Lake Nona is a 10,800-acre, master-designed community. Its raison d’etre is sustainable design, healthier lifestyles and an overall higher standard of living. The community became the first Iconic Cisco Smart + Connected Community in America in 2012. Major cultural hubs like London, Moscow and Barcelona also carry the distinction.
Lake Nona is also the first community in Florida to integrate gigabit fiber technology. Thanks to Dais, the development’s on-site technology company, residents can enjoy internet speeds that are 200 times faster than the average U.S. connection.
The technology is for more than just surfing the web and streaming videos, though. It allows for superior cellular coverage and provides Lake Nona’s Medical City the technological foundation it needs to run efficiently.
But the community has more to offer than just fancy tech. Forty percent of the 17-square-mile development is preserved green space, in keeping with Lake Nona’s theme of conservation and sustainable living. That means a garden, playground, park or pool on every corner.
And they can all be reached via the 44-mile web of walking and biking trails that connect the entire community. Don’t own a bike? Not a problem. The many grab-and-go free bike rental stations are another perk of a community that encourages active lifestyles.
There’s also the Sports and Performance district. Lake Nona not only pushes the envelope on what we know about sports science, but also advances athletic and personal performance with the help of professional athletes, researchers and trainers.
The community is actually the United States Tennis Association’s new Home of American Tennis.
Located in Lake Nona, the USTA’s National Campus houses 100 tennis courts, two separate divisions and the University of Central Florida’s tennis teams. That makes it the largest tennis facility in the country.
It’s hard to imagine how this futuristic suburb of Orlando fits so many things into 17 square miles. From multiple neighborhoods and state-of-the-art event venues to intensive hubs of research and technology, the amenities seem never-ending.
The Lake Nona Medical City is a 650-acre health and life sciences park and is Orlando’s premier location for research, education and medical care. The initial theory was placing healthcare and life science facilities in close proximity to each other will help accelerate innovation.
Over the years that theory would prove to be spot on. Lake Nona is now home to some of America’s leading research institutions, hospitals and universities.
The Medical City includes world-class facilities like the University of Central Florida’s Colleges of Nursing and Dental Medicine. Nemours Children’s Hospital, Samford-Burnham Medical Research Institute and the University of Florida Academic and Research Center are also included in the hub. And the Orlando Veteran’s Administration Medical Center is the first VA hospital built in the U.S. in more than 20 years.
This cluster of medical facilities and research institutions also plays a part in other community-wide educational projects.
The Lake Nona Education Initiative provides extensive learning opportunities at every level of education. Dubbed the Collaborative Learning Environment (CLE), this strategy was implemented by the Lake Nona Institute, a non-profit dedicated to health and wellness, education and sustainability.
All these ambitious projects bundled up into one city seems almost too good to be true. Coupled with the community’s thriving arts and culture scene and its location in one of the most popular cities in the world, Lake Nona is a spectacular place to settle down. And that’s not just our opinion.
While the development only makes up 10 percent of Orlando’s surface area, it accounted for 18 percent of the city’s growth between 2014 and 2016. It’s one of the fastest growing master-planned communities in the nation.
Beyond being just a great place to live, the community is a shining example of human potential. Lake Nona is unlike any lake community we’ve ever seen. And while it may be the first of its kind in America, we have a feeling it isn’t the last.
To check out homes and details about the Lake Nona community, click here.
We’ve said it before, and we’ll say it again: one of the biggest reasons a home doesn’t sell is pricing.
A smart asking price can be the key ingredient to the success of your home’s sale. Even in a bad market, a home will sell if the price is right. Choosing to forego expert advice, however, can lead to your listing stalling out on the market, which usually results in a price drop.
While asking for less may help you sell your home, there are some consequences of price drops that could be counterproductive to the sale.
Why Overpricing Is So Common
There are a handful of reasons sellers give for padding the asking price of their home.
Some point to unique, decorative features, like a brick pizza oven or wine cellar, as evidence that their property’s value is higher than it is. However, quirky add-ons, as opposed to neutral touches, have a higher chance of backfiring. Not all buyers will share your same tastes and some upgrades, like a luxury bathroom or tricked out kitchen, won’t garner as many returns on investment as homeowners think they will.
There’s also the mistake of setting an asking price based on what you need from the sale rather than what the home is actually worth.
Some lake homeowners aren’t likely to get as much from the sale of their home as they may have originally planned. Thanks to the 2008 recession, the demand for second homes isn’t as high as it was a decade ago. According to Forbes, vacation homes have been slower to rebound from the housing bust than off-lake properties.
In fact, since 2009, with the exception of 2010, markets with the highest concentration of vacation homes have under performed every year. So while a seller may be committed to selling a lake home at a certain price point, the property value may not have bounced back enough from the housing bust to make it happen.
Unfortunately, buyers don’t care what a seller needs for personal financial reasons. They’re only concerned with the home’s real value.
The Aftermath of Price Drops
Anything can happen that results in an inflated asking price. However, when a seller finally decides to lower expectations, there are consequences.
Price cuts usually happen after a home has been on the market for too long. “Too long” can mean different things for different agents. To prevent a listing from “going stale,” some agents suggest price cuts after two weeks on the market, while others will give it a month.
Either way, after a significant price drop or too much time on the market, one question always arises: “What’s wrong with it?” Potential buyers understand that you get what you pay for, so a listing that frequently gets cheaper and cheaper will have them questioning the quality of your home.
Even if there are no significant structural issues with the property, a potential buyer who’s already made negative assumptions about your home will be conditioned to see the glass as half empty no matter what.
Each price decrease also indicates that a seller lacks confidence in his or her own asking prices. So, when you mark your home down once, some buyers will just wait for another price cut. If the seller isn’t confident in the asking price, why should the buyer be?
These flip flops in pricing leads to even more time unsold and puts your property at higher risk for going stale. In real estate, an extra week or two added to a home’s shelf life can make a big difference.
Your real estate agent’s goal is to sell your home as quickly as possible for the best price. He should have enough market knowledge at their disposal to calculate your home’s real value, which if you follow his suggestions, will help the listing move faster.
So price it right the first time by trusting the expertise of an experienced professional.
A picturesque, gated lake community with affordable homes surrounded by nature? Sounds perfect to us.
Located in Gainesboro, Virginia, just near the West Virginia state line, Lake Holiday offers everything a true lake lover craves. The 1,900-acre wooded community has a modest average home price of $286,892 and encompasses a 240-acre residential lake.
Don’t let the fact that it’s a neighborhood lake fool you, though. It’s no stranger to energetic residents. In fact, Lake Holiday happens to be perfect for popular water sports such as canoeing, kayaking, water skiing, sailing, and swimming.
And humans aren’t the only ones enjoying the great outdoors. Lake Holiday is overflowing with diverse wildlife. White-tailed deer, wild turkeys, great blue herons and even eagles frequent the area. Ducks and geese are present year round and are sometimes joined by the occasional swan.
Beneath the water’s surface is an angler’s paradise. This body of water just so happens to have some of the best bass fishing in the state. In addition to smallmouth and largemouth bass, fishermen also reel in black and white crappie and channel catfish.
Community residents have access to a 91-slip marina, beaches and a lakefront clubhouse. And that’s just in Lake Holiday’s own backyard. Since the residents are also in the great state of Virginia, they’re never far away from a good time.
A Nature-Bound Haven
Virginia is a paradise for outdoor enthusiasts. Four-season natural recreation ranges from skiing in the mountains to sunbathing on the Atlantic coast. For Lake Holiday residents, it’s only a one-hour drive to the Shenandoah National Park.
This massive natural preserve is nestled among the Blue Ridge Mountains, just 75 miles west of Washington, D.C. It features 500 miles of nature trails–including 101 miles of the well-known Appalachian Trail–surrounded by towering trees, waterfalls and rock formations.
Backpackers love to hike up Hawksbill Mountain. At 4,050 feet, it’s the highest peak in the Shenandoah National Park and features 360-degree panoramic views of the world below.
Visitors can get another perspective of the landscape with the historic Skyline Drive. This National Scenic Byway stretches the entirety of the 105-mile-long park. It features envy-worthy views from various peaks and overlooks, as well as multiple campsites, and continues south as the famous Blue Ridge Parkway.
The park also serves as a safe haven for a wide variety of animals that are otherwise pressured by too much human activity. In fact, there are over 40 fish species, 50 mammal species, 20 reptile and amphibian species, and more than 190 different types of birds.
The majority of animals in the park, like white-tailed deer and woodchucks, are relatively harmless. However, visitors should still keep an eye out for larger predators like black bear, bobcats and coyote who thrive in the deep woods.
The park thrives in every season, from the colorful foliage of fall to the snowy slopes of winter. And with infinite recreational opportunities like white-water rafting and mountain climbing, it’s a great place to visit with the family.
The Perfect Place to Call Home
With all this fun within just one hour of the lake, Lake Holiday is an ideal community for lake lovers to settle down in.
Its safe, secluded location puts it miles away from any big city, offering something we could all use a little more of: peace and quiet. It’s engulfed in nature on all sides and couldn’t be more perfect for those who live for the outdoors.
A word to the wise: consider purchasing your next lake home here. You won’t be disappointed.
For more information on what’s available on Lake Holiday right now, click here.
Home equity, or the difference between the value of your home and what you still owe, is a key component of your finances.
Your equity can act as a financial cushion for emergencies, or provide your family with a healthy nest egg for the future. In fact, building equity is one of the first steps to accruing wealth.
Equity is awesome, and there are a million online articles that report what it is, why it matters and how to cash in on it. However, there isn’t a lot of information about effectively building equity on lake homes, most of which are secondary homes.
Let’s take a look at some key factors that actually matter when it comes to your lake home’s equity.
Equity and Down Payments
When buying a home, the larger your down payment, the more equity you’re starting out with. Hefty down payments also ensure lower mortgage rates, which is always a plus.
Ideally, 20 percent is the golden standard, but it’s certainly not a requirement. According to Zillow’s 2017 Consumer Housing Trends Report, only a quarter of buyers pay 20 percent of their home’s price upfront.
Most lenders will accept as low as 3 percent, although it’s best to put down as much as possible. A disadvantage of smaller down payments, however, is they yield a premium–private mortgage insurance (PMI)–to cover the extra risk that lenders take.
When it comes to secondary homes, however, there are a few more factors that go into down payments and building equity.
Qualifying for a mortgage on a secondary home is exponentially harder. Lenders assume that, in the event of hard times, homeowners are more likely to default on their vacation homes than their primary residences.
This means inevitably more resistance and red tape in the home buying process.
Buyers should expect to provide at least a 20 percent down payment in the case of good credit (725 to 750, typically). For lower scores, up to 35 percent down isn’t unheard of.
Lenders take a deeper look at your debts compared to your household income, sometimes including full income and asset documentation. There are also higher interest rates and tighter guidelines on second homes.
This would explain why, in 2018, 39 percent of vacation home buyers paid cash. It’s simply easier to do so for those who have the means. And paying cash eliminates the need to build equity, since it’s already at 100 percent from the start.
However, equity in a lake home isn’t as liquid as on primary residences. Since vacation homes are seen as luxury properties and not necessities, they may take longer to sell.
This means that in the event of a financial emergency, it won’t be as easy to tap into your lake home’s equity for help.
Use Rental Income to Pay Toward Your Principal Balance
For those who are in no hurry to cash in, though, there’s a clever way to build equity faster.
In addition to a host of taxes and fees, mortgage payments also cover interest and principal balance. As in general real estate, the faster you pay off the principal balance, the faster you build equity. That’s assuming, of course, your home value stays the same or increases.
The following is an example from LendingTree.com. Let’s pretend there’s a $300,000 house–with a 30-year mortgage at a 4.5 percent interest rate–that Person A bought in March of 2018.
Below is the difference between the standard repayment schedule and how fast Person A could pay it off by putting $500 per month toward his or her principal balance.
Courtesy of LendingTree.com
As you can see, an extra $500 per month toward her loan’s principal balance saved Person A more than $107,000 in interest. It also allowed him to pay his home off nearly 12 years faster.
The good thing about owning a secondary, or vacation, home is you don’t need to pay the mortgage all by yourself.
In 2014, vacation rental owners charged an average rental rate of $1,520 per week ($217/night). That translates to an average residual annual income of $27,360 for the owners.
Using rental income to pay off your lake home’s principal balance is a smart financial move that requires minimal effort, aside from cleaning costs. Renting the property out for a few months a year means the house basically pays for itself.
When paying your mortgage, remember to specify how much you want to go toward your principal. Keep in mind to check with lenders and ensure that paying off your home faster won’t result in prepayment penalties.
Make Some Home Improvements
Making some improvements around the house not only makes it easier to sell later, but builds equity.
However, while some updates can help you, others simply cost more than they’re worth. Therefore, it’s important to consult a real estate professional before investing in home improvements.
According to Realtor.com, some common updates that show a negative return on investment include master suite, bathroom and deck additions. While these projects may be glamorous and popular, they often cost twice as much as their resale values.
Realtor.com advises “less is more”. In fact, simple tweaks like attic insulation, garage door replacement and minor kitchen remodeling offer the best returns on investment.
Landscaping, bathroom improvements and fresh coats of paint can help increase the value of your lake home, too. Sellers would benefit from energy-efficient updates and smart home additions as well.
Lake home owners face different obstacles when it comes to home financing and equity. But if done right, you could ensure financial security for years, and generations, to come.
Winter 2018 Update to the Lake Real Estate Market Report Released
Lake Homes Realty has released the Winter 2018 update to the firm’s proprietary Lake Real Estate Market Report.
Covering more than 650 lake real estate markets across 13 states through the Southeast, Southwest, Northern, and Northeast United States, the report is the nation’s most comprehensive look at these lake real estate markets.
This edition of the report has data from Alabama, Arkansas, Georgia, Maryland, Michigan, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.
This is the second report to include trending data that shows how markets compare to the winter of the prior year!
A “Must Read” for Lake Home Buyers and Sellers
“Anyone who is considering buying or selling a lake home or lots in any of these 13 states will find this to be a ‘must read’ report,” notes Brian Cauble, Lake Homes Realty’s Director of Market Engagement.
Cauble and Tom Wofford are co-authors of the report, which includes 59 pages of rankings for market sizes, most expensive home and land markets, and most affordable home and land markets.
Previous editions of this report have been a valuable resource for lake home and land buyers and sellers.
The report has also been popular with a number of local and regional news outlets, as well as a growing number of visitor and convention bureaus.
The full report is available at no charge for lake real estate buyers and sellers, as well as media use.
Lake Homes Realty named Terry and Sherrie Norton 2017’s Splash Award recipients at its annual Agent Summit, which took place Oct. 17-20, 2017. Additionally, both members of the Lake Wedowee, AL team are now recognized as Lake Homes Realty Premier Agents.
“We are incredibly honored, humbled and appreciative of this recognition of our hard work,” this year’s winners said. “It is an honor to be chosen from among our fellow agents who all work so hard to attain their goals. It really is an incredible honor.”
The Splash Award Defined
The award, presented to company’s Realty Agent of the Year, is given to the Lake Homes Realty agent, or agent team, with the overall best performance across a number of important accomplishments.
“Winning the Splash Award is an honor and a great way for LHR to say that our company appreciates our hard work,” the Nortons said. “Maintaining and working toward this goal again for the coming year is certainly a great incentive.”
Eligibility is open to agents who have been licensed with Lake Homes Realty for a minimum of 24 months by Aug. 31,2017.
These agents must also have completed at least 12 transactions on either the buyer or seller side of a sale within a 12 month evaluation period, which began Sept. 1, 2016 and concluded on Aug. 31.
Lake Homes Realty’s Terry (center) and Sherrie (right middle) Norton named 2017 Agents of the Year at annual Agent Summit on Oct. 19, 2017.
Additionally, agents had to have closed $3.5 million or greater in transaction volume during this time in order to gain award eligibility.
“Eligible agents are then ranked, relative to each other, by performance in a number of key areas. These include overall effective commission per side and percent increase of year-over-year transaction volume in dollars,” explained Glenn S. Phillips, Lake Homes Realty CEO.
Additional areas assessed include average number of days it takes from closing to office file completion, total number of sides closed and number of listings in Multiple Listing Services as of Sept, 1, 2017.
Agents are also ranked by total transaction volume closed in dollars.
This volume is defined by sale price apart from the number of sides an agent represents for a given transaction. Referral transactions are not included in the total transaction volume.
Determining the Agent of the Year
To determine the Splash Award winner, the best performance in each of the criteria areas is given one point. The next best performance receives two points, the third receives three points and so forth.
The points from each area are then totaled with the lowest total score named the winner of this prestigious award.
“In the event of a tie in total points, the tie-breaker is determined by the highest transaction volume between those tied during the evaluation period,” Phillips explained.
For 2017, the Splash Award winners and the second best overall performing agent were separated by justone point.
“Lake Homes agents are the special forces unit of real estate industry,” Phillips said. “They are the lake real estate experts and their knowledge and skills continue to be reinforced year-after-year.”
2017 Agents of the Year
“We feel extremely blessed by our past success,” they said. “We have to continue to strive to always do our best.”
During the 12-month evaluation period alone, the team sold more than $7.7 millionin lake property.
The Nortons are proven local lake real estate experts who are passionate not about selling property, rather their passion is for selling the lake experience.
Their credibility is further made evident by their relationships among both buyers and sellers. From Sept. 2016 to Aug. 2017, the Premier Agents team represented 55 total sides closed.
The Key is Happy Clients
“Our motto is ‘we work hard for our clients.’ Our clients are our success,” the couple emphasized. “There is great satisfaction in a job well done and in knowing we have provided the best service possible to our clients.”
Additionally, the Nortons’ transaction volume increased by an impressive 44.15 percent in the last year.
“Hopefully clients and potential clients who read about our awards and success will feel confidence in LHR,” they said, “and about our abilities to represent them as they list their home or purchase a new home.
Lake Homes Realty is the largest, lake-focused real estate brokerage in the nation. The company business model focuses on creating a national market reach for local properties and agents.
Phillips and his wife Doris, who serves as Lake Homes Realty’s Chief Operating Officer, shared that treating their agents with respect and confidence in their abilities is paramount to the company’s success.
“We always say we have four clients: the buyer, the seller, the agent, and our staff,” the COO explained. “Just like we want Lake Homes buyers and sellers to be happy with us, we strive to maintain positive relationships with our agents. Their happiness is what drives their success, and ultimately, the success of Lake Homes Realty.”
This mindset is proving its worth as LHR is currently licensed in 16 states, and counting, and belongs to more than 70 MLSs.
“We are so proud to be a member of the LHR team. Simply put, we could not provide the customer service we provide if we did not work for such an amazing company,” the Nortons said. “We can proudly state [Lake Homes Realty] is the leader in lake home sales. We know we work for the best.”
Lake Homes Realty has just released the Fall 2017 update to the firm’s proprietary Lake Real Estate Market Report.
Covering more than 550 lake real estate markets across 12 states through the Southeast, Southwest, and Northeast United States, the report is the nation’s most comprehensive look at these markets.
This edition of the report has data from Alabama, Arkansas, Georgia, Maryland, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. In addition, this is the first time the report includes trending data showing how markets compared to the fall of last year!
A Must Read for Lake Home Buyers and Sellers
Lake Homes Realty’s Director of Market Engagement Brian Cauble shared,
“Regardless of where they live now, anyone considering buying or selling a lake home or land in these states should find this to be ‘must read’ information.”
Cauble, along with Tom Wofford, is a co-author of the report, which includes 55 pages of rankings for market sizes, most expensive home and land markets, and most affordable home and land markets.
Previous editions of this report have been a valuable resource for lake home and land buyers and sellers. The report has also been popular with a number of local and regional news outlets.
The full report is available at no charge for lake real estate buyers and sellers, as well as media use.
Lake Homes Realty has released the Winter 2018 update to the firm’s proprietary Lake Real Estate Market Report.
