Tag: real estate

Preparing for War – A Bidding War

Posted on Staff

You’ve found the lakeside home of your dreams. You put in a bid on it, but the next thing you know you’re in a bidding war for the home. How does this happen? What should you do next? Perhaps more importantly, what shouldn’t you do next? Here are a few tips to help you out if you find yourself in the middle of a bidding war.

real estate agents lined up to bid on a lake homeBidding wars are most common in popular areas or cities, but can also happen on lakes which often have limited inventory.

As the economy recovers in areas where properties are scarce, it’s harder to find desirable homes. With reduced inventory comes increased competition, hence the bidding war.

Now, here are some tips to help you get the home you want.

1. Do your homework and hire an experienced real estate professional. You will want someone who is familiar with not only the area, but the lake in particular. Their knowledge of the local market, real estate regulations, and the overall process will be invaluable throughout the experience.

2. One tactic that can get you ahead of the competition is to get your loan pre-approved. Pre-qualification is not the same thing, as it just means you could get a loan for a given amount. Pre-approval, on the other hand, means you have the finances ready. So when you make an offer, you can pay for the home.

3. Another piece that can help you is if you have a significant down payment. Having that cash on hand shows that you are a serious buyer, and puts you ahead of the potential buyers who are not as financially set. Your offer should be firm, and your best one. If it is, the seller will be more likely to think of you first.

4. If you have done your research on homes in the area, you know what similar homes have sold for, so you can put in an accurate bid. It keeps you from low-balling, or from coming in too high.

5. When you make your offer, try to keep out any extraneous restrictions or requirements. Those can slow down the process and frustrate the seller, putting your offer at the bottom of the list. If there are legitimate things you need to have addressed, like repairs to the home, that is a different matter.

6. That said, you should have a proper inspection conducted on the house that is thorough enough to check all structural issues and things like plumbing and wiring. That can help keep you from looking at properties that will need much work done. It would be best if you planned on paying for this yourself and not put that cost onto the seller.

7. Come back to the home after doing your first walk-through to see if you still love it. It could even be at a different time of day to check how the light looks in the evening, or what that brown paint does on a rainy day. This step helps you be rational about your bid instead of getting swept up in the emotion.

8. Have your agent find out from the seller what the magic trigger is that would make them close now. Is it a matter of changing the closing date? Should you include closing costs to help the seller out? What is the key motivating factor for the seller to complete the sale?

9. Don’t get caught up in a bidding frenzy that takes you out of your budgeted range. Stay calm and logical. Do your best to keep your emotions in check.

It takes some strategizing, and a great real estate agent will prove invaluable, but you can be successful in a bidding war, and come out ahead with the home you have always wanted.

5 Tips for Staging the Outside of Your Lake Home

Posted on Glenn S. Phillips

Selling a home can be a lot of work, and a lake home is no exception. While many people think about staging the inside of their home for potential buyers, the outside of a lake home can be just as, if not even more important.

So to help you sell that home faster, here are 5 tips for staging the outside of your lake home to make it more enticing for buyers.

Have a Well-Defined Pathway to the Water

Water pathwayMost lake home buyers generally consider the pathway to the water to be important, and therefore you should make preparations in order to make the pathway more attractive and welcoming. This will ensure that you make a good impression on the buyer, who will be more interested in purchasing your home.

Staging your dockCheck the Docks and Deck

Replace any loose or rotting boards and nail down any protruding nails from both your deck and your dock. For many, this area will be the “living room” for their lake experience, the place to spend the majority of their time with family and friends.

Increase the Curb Appeal of the Shoreline

The shoreline near the lake house can quickly catch the attention of potential buyers. If you want to sell your lake home faster, then you will have to spruce up the shoreline.

Make sure that there is no debris or muck floating in the water and that your shoreline is in immaculate condition. Make sure that the landscaping in your lakeside lawn is as good or better cared for than the front yard!

Lifestyle Staging

Kayaks People who are interested in purchasing lake homes are mainly interested in the type of lifestyle that they can lead if they choose to purchase a lakeside home. You need to help the buyer visualize the type of life they will be leading at your particular lake home, and therefore you should stage the shoreline with fishing equipment, kayaks, fire pits, beach towels, and more.

Don’t go overboard with the lifestyle staging though, since you don’t want to force your lifestyle onto them and want to them to be able to see themselves enjoying the lake!

Offer Lake Tours

Another thing you can do is to take prospective buyers to a lake tour around your lake home. This will provide them with a good view of the home, as well as give them a fair idea about what it will like being on the lake. The excitement of launching a boat from what could be their future lake home is sometimes enough to make a prospective buyer decide to take the plunge!

When it comes to selling a lake home it is all about selling the lake experience. Create a fun, inviting atmosphere in which your potential buyers can see themselves and their family enjoying the lake for years to come!

Lake Property and Shoreline Ownership

Posted on Glenn S. Phillips
Person holding set of keys with house keychain in the air

Every lake home buyer has the same question when it comes to shoreline ownership. Do you own this land, or lease it? The choice does not always belong to you.

Who Legally Owns the Land?

The owner of the lakebed and the shoreline property may have stipulations on the way they can legally offer building lots. Most owners of major, developed lakes in the United States are public utilities. Utilities such as power companies or government agencies like the U.S. Army Corps of Engineers.

In fact, some estimates show that these kinds of shoreline ownership accounts for about 90 percent of the approximately 41 million acres of lakes and reservoirs in the United States.

When a public utility builds a lake because it needs water for industrial use, such as hydroelectric power, cooling of industrial power plants, etc., the public utility, within Federal Energy Regulatory Commission (FERC) agreements, retains possession of much of the land around the lake, including shoreline areas.

The FERC may allow the public utility to only lease shoreline lots to homeowners. In other cases, the public utility is able to actually sell the lots to homeowners.

Whether they lease or sell the lot is based on the individual public utility’s agreement with the FERC regarding a particular lake. Additionally, highly detailed state or local lake protection ordinances contain restrictions covering many concerns. These concerns include how many homes can be built along shorelines, how close to the water they can be, and how wide visibility buffers must be between them.

Things to Consider with Leased Land and Shoreline Ownership

Potential lake home residents are cautioned to read the fine print on land lease documents. For instance, a lease may stipulate that if “improvements” are not made within a certain number of years, the lease could be terminated.

This means that a person who intends to eventually build a retirement home on leased land, let’s say in 40 years, may not be allowed to do so. This is because the lease could stipulate that “improvements” or building of the home must occur within 5 years.

Land leases can run for a maximum of 99 years, while some lake leases are much shorter. Sometimes running 35 or less. A mortgage lender will typically not issue a mortgage to buy or build your lake home for longer than the length of the lease on the lot. For instance, seeking a 30-year mortgage to build on a lot that is leased for 25 years is futile.

Person holding house and keys in hand while homebuyer signs leased land contract

Consideration for inheritance must include the length of the property lease and whether it is renewable. With many leases, after the lease term expires and there is no renewal option, all land and “improvements” (inclusive of houses and other structures) revert back to the organization who has issued the lease to the person.

So don’t build a lake home on leased land with no ability to renew. Also don’t expect your heirs to automatically have ownership of the lake home.

At some lakes, ownership of the ground might be an option when deciding to build a new home or purchase an existing home. There is usually more opportunity for this on a privately-owned lake, although many publicly-owned lakes offer ownership as well.

Some public utility officials say the trend at public utility-owned lakes is moving more toward selling the lots, rather than leasing them. But, only if it is allowed in the FERC agreement.

Floodplains and Your Shoreline

Keep in mind that whether leasing or buying land to build on, power companies by law must retain ownership of the floodplain. In practical terms, a floodplain is a certain number of feet of land extending from the shore of a lake.

This boundary is determined by federal and state agencies. It is vital for storm runoff, vegetation diversity, water quality, wildlife habitat, and aesthetic qualities.

Turn to an Expert

There can be many complications when it comes to purchasing or leasing property on a lake. This is why it is always best to enlist the help of a real estate agent. Specifically one who focuses on lake real estate.

A true lake specialist will be very familiar with all of the details of their lake. They will be glad to walk you through all available options and what each will mean to you as a buyer.

Advantages of Buying Vs. Renting A Lake Home

Posted on Glenn S. Phillips

lake home for saleLiving in a waterfront home is a dream for many Americans, and it’s easy to understand why.

The water is enchanting, peaceful, and seems to offer a different view every time you gaze upon it. Shoreline homes offer great places to escape the noise and stress of the city as well as entertain friends and family.

Owning a lakefront home is a sweet reward reflecting success for many Americans. There are, however, several pros and cons to consider when buying or renting.

We’ve listed several advantages of buying vs. renting a lake home below:

When Owning a Lake Home is Better than Renting

  1. Building equity – The chief reason to buy a waterfront home as opposed to renting one is that you can build equity in your new home each time you make a mortgage payment. Since waterfront property is highly prized in most parts of the United States, there is less downside equity risk involved with owning shoreline property.
  2. You know where you’ll be staying – When you rent a waterfront house for the summer season, you usually have to start looking the day after New Year’s to secure a place for the coming season. Even when you’re a long-time renter, there’s no guarantee that the place you’ve grown to love will be available for the coming summer. The owner may run into financial difficulties and decide to sell the home or may choose to stay there for the summer. When you own the lake house, you will know exactly where and when you will enjoy lake season, year after year.
  3. You can pass it down – When you buy a waterfront home, it becomes part of your estate, and you can enjoy the thought of your children and grandchildren spending their summers at the house long after you’re gone, ensuring many more fond family memories will be made.
  4. You have an any-time retreat – No one says you can only use your lake home in the summer. When you own a lake home, you have a place to which you can retreat for the weekend or gather for holiday celebrations.

Sometimes Renting a Lake Home Makes More Sense

As intriguing as owning a lakefront property may be, there are some scenarios where renting a lakefront home might make more sense.

  1. You’re simply unsure about owning waterfront property – One very good reason to opt to rent rather than buy a lakefront house, at least for a few years, is to see if owning–and maintaining–a waterfront house is right for you and your family. It’s much easier to change your mind if you rent.
  2. The size of your family may change – Another good reason to consider renting instead of buying is if you think your family size may change. For instance, if you have a house full of teenagers today, in a decade they will all likely be at college, married, and have families of their own. That five-bedroom home that is just perfect for your family today will be way too much house for you in a few years.
  3. It’s easier to forecast expenses – Shoreline homes have different maintenance needs than homes in the city. When you rent, painting, maintaining the waterfront, and taking care of the dock are the landlord’s responsibility. Not having these added, unfamiliar expenses makes it easier to stick to your summer budget.
  4. You don’t have to spend money on furnishings – Many seasonal rental homes are offered furnished, saving you from furnishing a home you might only use part of the year.

Spending the summer in a lake home can create memories that your family will enjoy for the rest of their lives. While buying such a property is certainly intriguing, it’s wise to weigh the pros and cons of owning versus renting.

Understanding Endangered Species Along Your Shoreline

Posted on Glenn S. Phillips

As a homeowner, one of the best real estate investments you can make is in waterfront property. Homes on the water make excellent retirement or vacation homes because of their location and natural beauty. They also present special challenges though when it comes to endangered or protected animal species.

Here’s what you need to know about how the Endangered Species Act could affect your own private shoreline. Continue reading “Understanding Endangered Species Along Your Shoreline”

Questions to Ask About Your Local HOA Before Buying

Posted on Glenn S. Phillips

house key

Before deciding to purchase a home (lakefront or not), one of the most important things you must do – one that buyers often forget – is to speak to the homeowner’s association (HOA) before buying.

The homeowner’s association is the organization that sets the regulations and rules for the community. Regulations and rules that often affect what you can and can’t do with your property.

Because of this, the following are a few questions that you should be sure to ask the local homeowner’s association before deciding to purchase any new house:

1. What are the rules?

You won’t want to break any rules simply because you don’t know what they are. Not to mention, it’s good to know what the rules are up front in case they end up restricting you from doing something that you wanted to do.

For example, some homeowner’s associations won’t allow you to build any additional structures onto your property. Such a restriction would be problematic if you were looking to add a deck, patio, or porch area.

There are smaller rules to be on the lookout for as well, such as whether you’re allowed to have pets. What a disaster it would be if you bought a home only to find out you’re not allowed to keep your dog there! Be sure to take a look at the list of restrictions that the homeowner’s association has put into place.

Some commonly covered guidelines in homeowner’s association rules and regulations include:

  • The home paint color
  • The ownership of pets
  • Where you are allowed to park
  • Whether you can build decks or patios
  • Whether you can run an at-home business
  • What type of landscaping you’re allowed to do
  • Whether you can have satellite dishes
  • How high your fence can be
  • Whether you can have a fence on your property
  • Whether you can put up mailboxes, flags and other items in your yard

2. How much are the dues?

If you live in a neighborhood that has a homeowner’s association, then you’ll have to pay dues. These dues vary from one homeowner’s association to another in both cost and how often payment is due. Typically, dues are paid monthly, quarterly, or yearly. As soon as you become a homeowner within the community, you’ll be legally obligated to pay these dues. It’s important to figure out what the dues are ahead of time so that you can better plan out your financial arrangements.

3. How often are the dues increased?

Find out how often HOA dues are increased and by how much. If dues don’t change often – and when they do they are by a small amount – then you won’t have to worry much. However, if the dues regularly increase and by a large amount, then this is a factor you need to take into account when deciding on the purchase of the home.

4. How much are the assessments?

You’ll also have to pay for assessments that cover work such as snow removal or trash collection as well as for maintenance for community areas, such as playgrounds or pools. Just like knowing what your association dues will be, knowing how much the assessments will cost is integral to figuring out your finances and whether or not you can afford to live within a specific community.

5. What is the current state of the homeowners association?

Find out if there are any issues between the HOA and any of the homeowners. Are there a lot of ongoing issues between them? Has there been a history of litigation or other issues? You may not want to deal with an HOA that has a bad reputation amongst residents in the community. Ask the homeowner’s association if you can see notes on a previous meeting. You can often tell by the notes whether they are picky about the rules or lenient. Be sure to walk around the neighborhood and ask some of the homeowners for their opinion on the homeowner’s association as well.

6. What do their reserves look like?

Ask to see financial statements for the last few years as well as the current and future budgets. You should look at the reserves for things such as sidewalk repair as well as at the maintenance contracts to make sure that they are reasonable. You’ll want to make sure that the dues and assessments that you will pay will be put to good use, after all.

These are some of the things that you’ll want to ask the homeowner’s association before you make the final decision to purchase a new home. Neglect speaking with them and you could end up having some real issues in the future as a homeowner within the community.

5 Things Buyers Do That Drive Real Estate Agents Nuts

Posted on Glenn S. Phillips

Buying a home can be exciting. It can also turn normally sane people just a little nuts. Ask any real estate agent.

While the average real estate professional may handle several home sales each and every month, the average consumer only buys a few homes in his or her lifetime.

It’s understandable that the process can be unfamiliar and thus, stressful. However, there are a few things you’ll want to avoid doing if you want to stay on the good side of your real estate agent.

Here are 5 things that real estate buyers do that drive real estate agents nuts: Continue reading “5 Things Buyers Do That Drive Real Estate Agents Nuts”

Top 10 Real Estate Investor Mistakes

Posted on Glenn S. Phillips

Investing in real estate property can be a career, or it can be a valuable sideline. Either way, it is not at all the same as buying a home for your family to live in. It’s a business. If you don’t treat it that way, you won’t make money. You could easily lose your investment, and more.

The purpose of any investment goal is to grow your capital. Avoiding these 10 real estate investor mistakes will keep your ROI trending in the right direction. Continue reading “Top 10 Real Estate Investor Mistakes”

Top 10 Turn-Offs for Potential Home Buyers

Posted on Glenn S. Phillips

empty lake homeIf deciding to sell your home, there are a number of things that you need to do before listing it to potential home buyers.

You need to make your home as attractive as possible to potential buyers. Part of this is making sure that there’s nothing about your home that will turn off potential buyers.

The following are ten of the top turn-offs for home buyers you should avoid when putting your home up for sale:

  1. Unpleasant odors – A house filled with unpleasant odors will turn the buyer off immediately. This can be anything from the smell of cigarette smoke to the smell of your pets. If there are unpleasant smells present in your home, you need to get rid of them before you begin showing your home. Open up the windows to get some air-flow and have a professional cleaner come to your house to help get rid of the smell. An unpleasant smell will rush the buyer. His or her mind will be fixed on leaving as soon as possible instead of looking at the rest of your home.
  2. A converted garage – If you’ve converted your garage to a home office, an extra bedroom, a personal gym, or anything else, then convert it back to a garage. Do this before you begin showing your house. There’s a good chance most buyers will want the garage to be a garage. Especially if street parking is at a premium.
  3. Pools – Don’t be mistaken into thinking that your outdoor pool is a feature that will attract all buyers. Most buyers will consider a pool to be a major eyesore. This is especially true for above-ground pools which tend to leave dead spots in the grass. Even an in-ground pool is a huge turn-off due to the high maintenance required to care for a pool. Not to mention the liability involved with owning a pool. Having a pool can even increase the homeowner’s insurance premiums that the next homeowner will have to pay.
  4. Outrageous color design – You may have a unique taste in interior design which you may have celebrated by choosing some bold colors or patterns for your home. Though, this doesn’t mean that everyone else will share your tastes. Re-paint those lime green walls using a neutral color scheme instead.
  5. Wallpaper – Wallpaper almost always looks tacky. Especially if it’s been up there for the better part of the decade or if you have specially designed “fun” wallpaper in your child’s bedroom. Not only is wallpaper extremely personalized, it’s also quite hard to remove. This adds to the “things to do” list that a homebuyer will have if he or she decides to purchase your home.
  6. Personal décor – You may think that the family portraits in the living room or the kids’ drawings tacked up on the fridge help to add a homely and inviting feeling to the atmosphere of your house. Though, all they’re doing is making buyers feel like they are walking in someone else’s home. You need to decorate the home so that buyers can pretend like it is theirs. This will give them a better sense of what it would be like to live there. Having pictures of someone else’s kids all over the place won’t help to achieve this.
  7. Meddlesome sellers – There’s nothing more annoying than having a seller lurking around during a showing.  Many sellers that do this will try to walk around the house with potential buyers in order to provide their thoughts and feelings about the house. Most buyers want to be able to privately tour the home without the added pressure from the seller. Having the seller around makes it difficult for potential buyers to talk privately. Let the realtor do his or her job and stay away from your home showings.
  8. Dirty homes – Nobody wants to walk into a home that has clutter everywhere, or even worse, that’s dirty. Make your home presentable by getting rid of clutter and doing a whole-house cleaning. Place special emphasis on the bathrooms and the kitchen. Hire a cleaning service if you have to.
  9. Misrepresented homes – Nothing angers buyers more than showing up to a home that was misrepresented in ads.  Whether because the house is located in the middle of a trailer park, or because that third bedroom is a glorified closet space. You’re not doing yourself any favors by tricking buyers to try and get them to come to your showings.
  10. sad dogPets – If you’re planning a showing, remove your pets from your home. Buyers don’t want to have to deal with dogs or cats chasing them around. Too, some buyers could potentially be afraid of animals, or have allergies.

These are ten things that turn off homebuyers so be sure to avoid them!