Tag: real estate

Whiteboard Topics: Escalation Clauses When Buying A Lake Home: Good Or Bad?

Posted on Zac Parnell

When dealing with buying a lake home, you might hear the term “escalation clause”. If you’re familiar with this term, you might be wondering if it is a good or bad thing. Even if it is something you’ve never heard of before, finding out what it means can benefit you in the future. Lake Homes Realty’s CEO, Glenn Phillips, discusses what this is and whether an escalation clause is something good or something bad.

  1. Escalation Clause: Automatic Price Increase Formula: This was something that was very popular during Covid-19 and, in particular, frenzy buying. Basically, people were wanting to make an offer and that be it. They were not willing to go through the hoops of making a second offer. Simplified more, you would make your offer and if someone came in with a higher one, you’d understand yours would jump up some amount.
  2. Keeps Offer Amount Competitive: Due to these different escalation clauses for properties, it was more of a competitive area. Instead of the one amount being out there, it was almost a stair-stepping increase between offers.
  3. Less Popular: Since Covid-19, these clauses aren’t as popular. One reason in particular is that it is becoming too much for the sellers and their agents to manage. Sellers got to a point where they wanted people to make their best offer. Now, sellers will ask buyers to “give us your highest and best offer”.
  4. More to Offer Than Money: Oftentimes, escalation clauses can overshadow some of the other things that could potentially be offered. Things such as an additional property (a boat, furniture, etc.) or a different contribution of closing costs, etc.
  5. Varies By Local Market: These clauses all vary depending on the market. Utilizing a lake agent, like one at LakeHomes.com, would be beneficial. The agents understand their markets and the things that go into them, such as inflation rates.

Before going into the buying process and expecting things to flow a certain direction, reach out to a lake expert for more help. They are always willing to give advice and information when needed.

Whiteboard Topics: Selling A Lake Home Is Like “Shark Tank”

Posted on Zac Parnell

Most people have probably heard of the TV show Shark Tank. However, you might not realize that selling lake property is more similar to that show than you know. When you think about it, the people who go on the show are entrepreneurs. This can almost be said for somebody selling a lake home. You have a product, your home, that you’re trying to get the “sharks”, the buyers, to invest in. Glenn Phillips, CEO of Lake Homes Realty, discusses 5 points about what this might look like.

  1. “Addressable Market” (Who is Your Customer?): You’re not selling to everyone when it comes to your lake home. You have a specific demographic that is realistically looking at your home. These are the people who are interested in making that investment/purchase of your home.
  2. How Do You Market (Reach Your Customer)?: Here at LakeHomes.com, there is market reach to people in your area and those who are states away. Agents at Lake Homes Realty can present you with this data and show you that the customers you’re reaching are likely outside of your local area.
  3. What is Your Value Proposition? What is the reason behind your home being at this price point? Oftentimes, consumers who visit Lake Homes Realty are searching around different lakes so pricing is an important factor to stay competitive.
  4. What Makes You Different? You need to have something that differentiates you from other sellers. Going back to Shark Tank, all the products are different. You also need to think beyond your personal home values. Most buyers aren’t looking into how you personalized the property.
  5. Is Different Desirable? You can have eccentric aspects to your property, but this can be a negative to consumers. Not all the things you like always have a positive value.

Overall, selling a lake home can have these similarities with the people who make their way onto Shark Tank. When it comes down to it, making sure you remember these 5 key tips can make or break it. Don’t hesitate to reach out to a lake agent at LakeHomes.com for more help!

Whiteboard Topics: What Is The Best Lake To Buy A Lake Home?

Posted on Zac Parnell

The time has come and you’re ready to buy a lake home. You might be asking yourself, “What lake makes for the best lake home purchase?” When it comes down to it, it all just depends. A lot of people who purchase lake homes on specific lakes do it for a plethora of reasons. Hear what Glenn Phillips, CEO of Lake Homes Realty, has to say when it all boils down to deciding which lake to call home.

  1. Depends: It’s Personal: Picking between Lake A and Lake B is a personal choice. Because of this, you have to narrow down the things you would want from living at the lake. Lake homes vary widely, from environments to the reasoning behind the purchase and many other factors.
  2. Full-Time or Part-Time: Are you planning on making this home your full-time residence? If so, you’ll more than likely have different needs than a part-time resident. For example, if you plan on living there part-time, you might want to consider a home with extra space for storing items during the off-season.
  3. Accessibility: Does it take 30 minutes or 2 hours to get there? Sometimes you will have lakes where you can see the other side, but in order to get to your home, it’s a 45-minute drive. You will also need to consider the terrain as well as the road conditions from your home to major access points.
  4. Quiet or Busy: Some lakes are more populated than others. Depending on your preference, you will need to choose between a lake area that is busy versus one that is quieter and laid-back.
  5. Seasonality: Some lakes are considered “full pool” meaning the water level doesn’t drop significantly. The lakes that do fluctuate are typically used for flood control, which can limit water activities. Also, depending on which region of the country the lake is located in, you might find lakes that completely freeze over during the winter season. In this case, you will need to winterize your home.
  6. Affordability: Lake homes are niche properties that are different from your typical residential home. Knowing what you can realistically afford will help narrow down options for both properties and locations. Keep in mind that location can significantly add to your overall lake home cost.
  7. Date the Lake: Plan to take a trip to a lake you might be looking at. Stay there for a weekend or multiple weekends at different times of the year. This can significantly help in getting to know your way around the area and lake.

The bottom line when choosing which lake to pick from all comes down to what you’re looking for. Buying a lake property is a choice that needs to align with your lifestyle. If you’re still on the fence about it or would like more assistance navigating it, head on over to LakeHomes.com. We have lake agents from all over the country who are experts in their market. They can help you navigate the homebuying journey and find your dream lake home!

Whiteboard Topics: 6 Expensive Myths For Lake Home Sellers

Posted on Zac Parnell

Now might be the time when you have decided to put your lake house up for sale. Going into it, you might have heard of different rules to follow or maybe even some myths. When it all comes down to it, some of these myths end up costing money for the seller. Lake Homes Realty’s CEO, Glenn Phillips, details 6 expensive myths you might hear.

Myth #1 – The Local MLS and Zillow are Sufficient and Effective: While these platforms are great, that doesn’t take away from the fact that they’re simply not enough. Oftentimes, people who are looking from other parts of the country might have a hard time finding your property through these channels. More niche websites, such as LakeHomes.com, are more efficient for the buyer who is looking for a property like yours.

Myth #2 – An Open House is Critically Important: If you’re selling in a more urban setting, hosting an open house would be beneficial. Because the majority of lake home buyers live somewhere else, it wouldn’t be as useful to host an open house. If they live in another state, they will probably want to see the property, but not necessarily in an open-house setting.

Myth #3 – Zillow’s Zestimate Reflects Current Value: This tool is great for other types of environments; however, with lake properties, they don’t know how to account for factors that are specific to lake properties. Water location, water depth, and seasonal patterns are not always common knowledge, so therefore, the algorithm can’t process them accurately. A lake expert agent will have more insight into these nuances for various properties around the lake.

Myth #4 – Lake Home Buyers Want the Same Type of Homes Popular a Decade Ago: Homes from 10 years ago can have features that give them a rustic feel. However, buyers today might be looking for homes that are updated and feel high-tech.

Myth #5 – Fewer Lake Houses for Sale = Sellers Can Ask a Premium Price: Today’s buyers are more informed than ever before. These buyers know what they want and what they’re willing to pay for. This doesn’t mean they will automatically pay the premium price, which will oftentimes lead to homes just sitting on the market.

Myth #6 – Little Risk in “Testing the Market” with a High Price: The information we have found is that homes starting above market price tend to fail. Starting too high and then cutting shows buyers you’re aiming too high for what your home is actually worth.

Now that you are aware of these myths, you are better prepared to sell your lake home. If you’re getting ready to sell or have started the process, check out the lake experts at LakeHomes.com. They would love to help out if you’re looking for guidance through lake real estate!

Whiteboard Topics: 4 Danger Signs When Interviewing A Lake Real Estate Agent

Posted on Zac Parnell

Selling your lake home can be a difficult and time-consuming process. One of the best things you can do is have a trusted lake real estate agent by your side. However, you shouldn’t just choose any lake agent. You need to ensure the one you choose is willing to help with the full process. Glenn Phillips, Lake Home Realty’s CEO, lays out 4 danger signs when it comes to choosing your agent.

  1. Agent is Not Interviewing the Seller: While you need to interview the agent, the same goes for them interviewing you. It could be a red flag if they come in telling you how great they are and not asking you about what it is you’re looking for. A great agent will always ask what kind of outcome you are expecting.
  2. Will Take Overpriced Listing Without a Plan: A good agent usually has an idea of what your home would typically sell for. If you want to sell it for a higher price and they have a plan if it doesn’t pan out, that’s an agent you’d want on your side. If they’re just willing to put it at that price with no backup if it doesn’t sell, you might need to question that.
  3. Not a Lake Real Estate Expert: Being a lake expert for lake markets is incredibly important. The nuances that encompass lake real estate are something a typical real estate agent probably doesn’t know. Having someone with key knowledge of the lake and area is always something to look for. Working with a lake expert ultimately gets you the maximum return on your investment.
  4. Cannot Explain How They Target Out-of-State Buyers: Simply listing a property on the MLS to target people isn’t enough. Because this isn’t an effective way, LakeHomes.com uses specific marketing and targeting to figure it out. As a result, our agents are able to tell you where people are looking as well as where these buyers are located.

Overall, paying attention to these signs is really important when it comes to choosing who you want to work with. If you’re still not sure when it comes down to it, check out the great lake experts who are ready to help you out at https://www.lakehomes.com/agents.

Whiteboard Topics: 5 Questions Lake Home Buyers Should Answer

Posted on Zac Parnell

Buying a home means asking and answering questions. Before you start the buying process, know that you should be prepared to answer specific questions. Knowing specific things about what you’re looking for will tremendously help your real estate agent and improve the experience. Today, Glenn Phillips, CEO of Lake Homes Realty, explains a few questions you should be ready to answer.

  1. Sunrise or Sunset? If you are looking for a lake home with views, specifically one of these views, you need to know which you prefer. Narrowing down if you’d prefer a sunrise or sunset view can help pinpoint areas of the lake to look at. 
  2. Convenience or Solitude? This is one to really keep in mind. If you want the most privacy you can get, you have to be aware that you may be giving up convenience. This is something to thoroughly think about before making any type of decision. 
  3. People Traffic: Let’s say you do want a lake home with more solitude; you still need to think of the location. You might not have many neighbors, but if the road your home is on leads to even more private properties, there could be more traffic. This can also play into boat traffic. Solitude on land doesn’t always mean the same for the lake.
  4. Waterfront, Water View, or Water Access? Price points can change drastically depending on which of these 3 you’re looking into. Not only that, but what you might think is waterfront could very well just be water access. This is something to keep in mind.
  5. Full-Service or DIY (Do It Yourself)? Are you looking more for a home where you take care of everything or something where people in the community can come and help? Some communities take care of the trash, mow the lawn, and many other things. If you want more responsibility for your lake home, then DIY is where you should be looking.

Being able to answer these 5 questions is important if you’re thinking of buying a lake home. If you’re not sure where to begin with these, check out https://www.lakehomes.com/ for more information. You can also contact one of our lake experts for guidance through the buying process!

Whiteboard Topics: Do Lake Markets Match Reach Estate Headlines?

Posted on Zac Parnell

If you’ve looked for real estate in your life, you’ve seen the different headlines about real estate markets. Now, if you happen to be looking for a lake home, you may think to yourself, “Do those headlines pertain to lake markets, too?” Lake Homes Realty’s CEO, Glenn Phillips, dives into why these don’t typically match up.

  1. Location, Location, Location: This is a big contributing factor for lake real estate. Oftentimes, the headlines revolve around residential properties. The location of a lake changes the property value of a home. In fact, demand, popularity, and price can all be determined by the location of lake homes.
  2. “Phantom” Inventory: Because there is a big demand for lake properties, some homes are selling and some simply aren’t. This can be attributed to what is priced right and what isn’t. This leads the market to look inflated when it’s actually due to this “phantom” inventory. 
  3. Discretionary Homes: Some people who are looking to sell their lake home might be sitting on it due to a lack of urgency. This differs from residential real estate, where many homeowners are trying to sell as soon as possible.
  4. More Second Homes: If the lake property isn’t your main home, you’re not under a time constraint trying to get out and into your next. This leads to longer transaction periods. 
  5. More Investment Properties: Regardless of whether you use it as your second home or as a rental property, you’re putting money into it. What this means is that you’re creating new buyer demand.
  6. Mortgage Rates Not as Influential: It would surprise you how many lake property transactions are made with cash. Having more cash transactions means mortgages aren’t as impactful. 

In other words, these tips should give more insight into the reasoning behind lake market headlines not matching with other real estate. Another great way to gain more information is to reach out to a lake expert. If that’s something you’re thinking about, check out LakeHomes.com/agents to connect with one of our agents today!

Whiteboard Topics: How Weak Real Estate Agents Fool Consumers

Posted on Zac Parnell

Buying or selling a home typically means you’re going to be working with a real estate agent. You might look and look, trying to find the best one. You also might decide to use somebody that you know in the business. When it all boils down, the best thing to do is to choose someone who knows what they’re doing. These strong real estate agents know how to keep on top of everything and not lead you astray. Today, Glenn Phillips, CEO of Lake Homes Realty, discusses how a weaker agent might not be the best fit. 

  1. Years in Real Estate: Someone who has many years in this business might boast about it. While this doesn’t inherently mean they’re not good, it means you need to look at what took place during those years. Were they effective with the market in those years? Or changed things up to ensure success? All these points take precedence over a certain number of years.
  2. High Number of Listings: If they have a high number, that can mean that they are moving transactions. However, some agents have a ton of listings that end up not going anywhere; they simply stay stagnant. 
  3. Number of Certifications: Certifications can play a huge part in becoming a great agent. But those certifications alone aren’t that meaningful if transactions and experiences aren’t there along with them. Being able to apply the certification knowledge comes into play in distinguishing between two types of agents.
  4. Number of Websites: You can have your home listed on many different sites. What it really comes down to, however, is if the website is getting a lot of traffic. More people see your listing on a website like LakeHomes.com as opposed to your home being listed on 10 low-traffic sites.
  5. Office Location: A buyer would much rather see a property as opposed to an office. The typical buyer is much more likely to find a property online and not need to come into an office. At the end of the day, having a physical location doesn’t really move the needle.
  6. Number of Brokerage Agents: Your listing will be put on the Multiple Listing Service (MLS). Agents within that market who have buyers interested will want to bring them to view that property. Having agents at the same brokerage doesn’t really matter when it comes down to it.
  7. Commission % Versus Net $: The biggest thing you need to know is how much you will net in cash when it comes down to selling it. 

These 7 tips can be intersectional in the way that a great agent can have them but still perform well. The thing you need to watch out for is if the agent is using these things to cover lower execution. If you’re looking for a great agent that can help you sell or buy a property, check out LakeHomes.com. There are many agents who would love to help out!

Whiteboard Topics: Is It A Good Time To Buy Or Sell A Lake Home In 2024?

Posted on Zac Parnell

Have you been pondering the idea of buying a lake home? Maybe you’re considering selling the one you currently have. You also might be thinking to yourself, is it even a good time to do either of these things? Lucky for you, Glenn Phillips, Lake Homes Realty’s CEO, discusses whether it’s the right time to buy or sell. 

  1. “Hot”… but Not Exactly: The demand for a lake home is still there. Buyers are continually on the hunt for the property they’ve been dreaming of. On the other end of things, not many transactions are taking place. However, the transaction flow is on the rise. 
  2. FOR SALE Inventory Increasing: There are plenty of properties for sale at the current time. The issue with it is phantom inventory
  3. “Phantom” Inventory: This essentially means there is a property where the seller has overpriced it. Not only is it overpriced, but the buyer can realize the property’s pricing isn’t what it should be. This leads to properties just sitting there and not having a transaction happen. When the property is set at a reasonable price, it moves through the market quickly.
  4. Seller Tip: Do Not Overprice: From a selling point of view, it is a good time to sell. The caveat to that is making sure you know how to properly price your lake home. A good way to ensure this is by contacting one of our lake experts at LakeHomes.com.
  5. Buyer Tip: Patience and Diligence: Making sure you take your time and pay attention to everything going on can help with the buying process. Don’t check in every 2 months or give up after one search. 

If you’re planning to sell, there are always buyers looking, and vice versa. The thing you have to remember is that it is dependent on what your goal is. If you’re selling, remember to not overprice your home, which can ultimately lead to making less in the long run. When it comes to buying, you have to stay on top of it and have patience; it will get you a long way.