Selling a lake house is an exciting but difficult undertaking, and your main goal as a homeowner is to secure the greatest offer possible. However, it is critical to exercise caution because the highest offer may not always be the most lucrative. Let’s look at some important points to consider when selling your lake house to prevent financial hazards.
1. Avoiding Selling Too Quickly: Resist the urge to accept early offers; instead, wait for perfect market circumstances to obtain the best price.
2. All Cash Transactions: Be wary of all-cash proposals since they may come with lesser bids and make it difficult to negotiate a fair bargain.
3. Limited (or no) Contingencies: Carefully evaluate proposals with fewer conditions to prevent any legal or financial problems.
4. Seasoned Real Estate Agents Who Understand Niche: Work with seasoned agents who specialize in lakefront properties for professional advice, effective marketing, and skilled negotiating.
A thoughtful and informed approach to selling a lake house may make it a rewarding experience. While a large offer may appear appealing, it is critical to consider all elements to prevent financial disasters. Take your time, investigate all-cash bids, evaluate conditions, and seek advice from experienced lakefront real estate brokers. With these safeguards, you may sell your cherished lake house with confidence and optimize your investment return.
Selling your lake home can be challenging when you don’t understand the importance of proper pricing. Lake Homes Realty’s CEO, Glenn Phillips, shares five pricing mistakes sellers must “get over.”
What You Paid for the Property: Buyers do not care what you paid for your property. Your pricing must be based on the current market, and not the one when you bought it.
Prices of Nearby Homes for Sale: Ignore the prices of nearby homes that have been on the market for some time. These unsold homes are more than likely overpriced.
Your Personal Effort: Just because you have put personal effort into your home doesn’t mean the market price will reflect what you feel it’s worth.
Rumors of High Sales Prices: Outliers do exist, but you shouldn’t overprice your home because of them. Use the average sales prices as a guideline.
Taking Low Offers Personally: Disregarding low offers can close the door on potential opportunities. Be sure to respond in order to begin the negotiation process.
Your lake home will never leave the market if you don’t do the proper research when listing it. Sell it for the right price in this real estate market now with these tips so you’ll know what to avoid!
Every real estate market, in any economy, has a number of homeowners dismayed about their home not selling. These houses just sit on the market. They become stale inventory, frustrating the home seller, real estate agents, and even buyers (yes, buyers).
Over the last three years, I’ve had the very unique opportunity to travel to a number of states and have multi-hour, face-to-face conversations about local real estate markets with scores of real estate agents. Some work with our brokerage, many with other brokerages.
These agents may work in urban, suburban, or rural markets. A lot of these agents work in my niche of real estate: lake homes and land. However, I have also spent a very significant time with agents who focus on typical primary residential homes.
The Two Reasons for a Home Not Selling
One topic I find interesting to discuss is the number of homes listed for sale for long periods of time, longer than should be expected. What factors lead to a home not selling? Here is something I’ve learned, something that is very consistent across every market.
There are ONLY two reasons for a home not selling in a reasonable amount of time. Only two. Either:
1. The home lacks proper market exposure and/or
2. The home is not priced appropriately.
That’s it. Every other issue will fall as a subset of one of these two reasons.
Lack of Proper Market Exposure
One reason for a home not selling is it has not been marketed correctly. The homeowner and their agent are trying to sell a secret! If the potential buyers of this property don’t know it exists, the price is irrelevant. You can’t even give away something if no one knows about it.
By “not marketed correctly,” I don’t necessarily mean not marketed at all. The home must be marketed to THE RIGHT prospective buyers.
For instance, a “For Sale” sign in the yard may look great but the neighbors and their friends are rarely going to buy that home. How do you reach the buyer who is somewhere else than around the corner?
Lack of precision marketing is one of several reasons why For-Sale-By-Owner homes are typically much slower to sell. These homes may not be on the local MLS (Multiple Listing Service) which feeds a host of real estate websites. Even if the home is listed in the MLS, there may not be enough other marketing efforts to break through the thousands of homes typically for sale in each market.
While in a few markets an open house may be a viable marketing tool, this typically makes the seller feel happy but often does little to find the right buyers. The same can be said about much of the local print advertising.
What Creates Proper Market Exposure
The most productive marketing in today’s world of real estate is online marketing coupled with strong agent presence. By online, I’m not limiting this to a Multiple Listing Service and websites like Zillow and Realtor.com.
I’m talking about very focused marketing for homes directed at the correct potential buyers.
This targeted marketing uses an understanding of the age, financial status and motivation of the right buyers for each particular home.
Highly targeted online marketing can include specialty websites, targeted online ads, and targeted and boosted social media engagement. And these are rarely free, even if it is just the significant time required to present the home and community correctly to the targeted buyer population.
Want to sell a home? First, make sure the most likely buyers can easily learn about it.
Home is Not Priced Appropriately
When I say a home is not priced appropriately, I don’t necessarily mean that it must be the lowest price in its local market. (Although rare, I’ve seen instances were even underpricing created problems. But that is a story for another day).
Instead, an appropriately priced home will be seen as reasonably priced when all other factors are considered.
Those factors include house condition, neighborhood, school system, local real estate market conditions, location, lot size, traffic, next-door neighbors, house age, nearby culture/restaurants/shopping/parks, historical significance, public services and a host of other items.
If there are problems with the home, smart pricing can overcome those issues. No matter how bad the issues are with a home, pricing can still make the home appealing to someone.
Let’s consider a home for sale with reasonable market exposure.
If that home has been on the market for a period as short as two weeks without much buyer interest, the market is speaking. No, correction… the market IS YELLING! The market is letting the seller know the home is not appropriately priced. Period.
Buyers Understand Prices (Better than Most Sellers)
Today’s buyers are savvy. They research online, they watch home prices, and they know an overpriced home quickly. You WILL NOT fool these buyers into even touring a significantly overpriced home. Their time is valuable and house hunting starts at home (or, admit it, at work) on the Internet.
Even if you do fool buyers into coming to see an overpriced home with careful photography and crafty descriptions, if the home is much less than the buyers expect, you will piss them off for wasting their time. They will feel deceived and likely never make an offer.
Buyers are often much better than sellers at understanding the reality of homes not selling. When setting the price of a home, the smart seller will work hard to think like the informed buyers, avoiding the emotional (and false) price justifications.
The Danger of Starting High then Cutting the Price
A home seen as overpriced will be left by buyers to soften… or rot.
Even if price drops begin, this signals to the home buyers they can continue to wait. They know more price drops will be coming (even when the seller has not realized it yet).
As more time passes, even with price cuts, the home now develops a compounding problem. “What’s wrong with it? Why has it been on the market for so long?”
A high number of “Days on Market” can lead even newly interested buyers to avoid the home, regardless of price, out of doubt or fear of an unknown issue.
Repeated price cuts also suggests to buyers that the seller is willing “to make a deal.” So when buyers finally do decide to make an offer, they will often make a very low offer, genuinely expecting the seller to continue price cutting.
Over time, multiple price drops signal that price cuts are (finally) acceptable to the seller, so buyers will expect another big price cut before they buy. And the seller has themselves to blame for the home not selling, as they repeatedly helped train the buyers to think this way.
Even in markets with a large number homes that are not selling, many buyers can and will wait until the market prices adjust downward.
Sellers who believe they are smarter than the market (that is, smarter than the buyers) often win the “prize” of keeping their house (and its associated expenses) for even longer.
How To Get a Home Sold
There are many factors that can help sell a house quickly and for a satisfactory price.
The key is that, when all things are considered, the home is directly marketed to the correct potential buyers and the price makes this house one of the best values in that neighborhood.
If you use a real estate agent, don’t just pick a friend or a friend-of-a-friend. Evaluate them. Find out how they really will market the home. See if they know who the likely buyer will be AND how to reach them. Your agent should have a process, a success history, and be able to communicate all of this very clearly.
Forget the emotional “logic” of house pricing. Use current market data about SOLD homes (not list prices) to set a price the buyer will believe is reasonable.
Want a higher price for your home? Then do real improvements to increase the real and perceived value. Make sure the home and yard is in great condition, clean, well-staged, smells great, and feels bright. Be sure the right buyers know all this through accurate and truthful marketing. Hire an agent who can target market and is up-to-date on marketing techniques.
Even when done right, finding a home buyer for your home can take some time. Increase the odds of a timely sale by pricing appropriately and marketing directly to the right buyers.
Greater Challenges when Selling a Lake Home
Niche property, such as lake real estate, can make the market exposure and pricing challenges become even more obvious. The buyers for such property are rarely local, so exposure to the right buyers in other cities and states is critical.
Furthermore, lake home and land values vary more than in typical residential real estate markets. This makes it very hard for home owners (and inexperienced lake agents) to determine the correct marketable price.
If you have a lake home or land you are simply considering selling or your home is not selling, you may need more expert help. The nation’s largest lake-focus real estate company, Lake Homes Realty, has agents in many lake markets. These lake real estate agents and brokers can give you market-specific advice and expert guidance.
A Lake Homes Realty agent can also help you determine if now is a good time to sell and provide unique information about the current market price expectations. They have access to technology to help your home be found by buyers from other cities and states (as many buyers for lake real estate are not local). You can learn more at Selling a Lake Home.
Whether a home is located downtown, in the suburbs, in a rural market or in a specialty niche like lake real estate, the reasons a home does not sell are rarely complicated. The right buyers have to know about it AND the property has to be priced within the market’s current and real expectations. Period.
Trying (or rather pretending) to sell otherwise is usually a waste of time and, typically, money.
Have you ever needed to sell your home while buying a new one?
This happens often when your family outgrows your house or when you or your spouse changes jobs and moving to a new city is necessary.
Recently, USAToday.com featured a Nerd Wallet article by Hal Bundrick which shared tips from Glenn Phillips, CEO at Lake Homes Realty, and several other prominent real estate experts.
In the article, Phillips describes the process of buying and selling at the same time is “twice the adventure.”
“Be aware of the market,” he encouraged. ” Typically when it is easier to sell, it is hard to buy. And vice versa. Know which market you’re in, then work on the hardest part first.”
You’ve really tried hard to sell your house, but for some reason, it’s still on the market and no one seems interested. This has you wondering about what you might have missed, about what you might have failed to do.
Here are 3 common reasons your home won’t sell and factors to consider with your real estate agent. These could take you from frustrated to SOLD.
Your selling price
Many times the selling price on a home that is not selling is too high. The seller looks at the home and tacks on several thousand for sentimentality. This is without taking a realistic look at the prices of other homes in the area and what needs to be done to the home to either update or repair it.
Even though you have come to love and accept the quirks of your home, a new buyer might not be so willing. Especially if he or she is not handy around the house or does not have timeto do the fixing.
It can be difficult, but it is necessary to step away and look at your home from someone else’s perspective. A clever agent can organize open house, and solicit feedback from attendees to see what they think needs to be changed before they will commit.
A high price might also discourage people from buying your home who otherwise would love to, but who cannot qualify for that much in lending. You might want to consistently research the area alongside your agent to make sure that your home is priced well in comparison to those of your neighbors.
Location, Location, Location.
Having a lake home on the shore might not be enough to attract a buyer if the school district is not highly rated. Or, if you are near a major thoroughfare with noisy traffic.
Sometimes simple fixes can be put in like better windows that will block some of that noise. But, you can’t fix a school district. In those cases, the only option really is to lower the purchase price of the home or attempt to sell to those without children.
You might also live in an area that hasn’t yet experienced part of the economic recovery. A slower housing market will naturally lead to it being a buyers’ market where they call the shots.
If you can hold off until the economy gets better, you will be able to realize a better sales price. If you cannot wait, you will need to reduce your price again, or be willing to entertain offers under your asking price or that include things the buyer wants, like an inspection or new carpeting.
Staging your house in the best light
When you are still living in a home and also trying to sell it, it can be difficult to find the right balance. Oftentimes, if you have too many of your own personal belongings there, the prospective buyers cannot see themselves in your home. This is because they are unable to visualize what the home would look like with their personal belongings.
If you can move some of it out to a storage area, or put away the more personal items (like photographs) during a showing, you stand a better chance of your home selling.
The best way to handle these problems is hiring an experienced, local real estate agent who is familiar with your area. They will know the ins and outs of your market, have an accurate price range for your property, and can even help with staging your home for showings.
There are lots of things that need to be taken into account when you are planning to buy or sell a property. One of those things is known as closing costs. It’s something that first-time buyers may not be aware is required. Closing costs come from a variety of fees and often overlooked expenses. So what are these closing costs?
There are lots of factors that need to be taken into account when it comes to closing costs. These can include inspections, loan fees, government recording charges, and title charges. These costs are generally covered by the buyer, although there are also instances in which the buyer can ask the seller to cover some part of the closing cost fees.
To help provide you with a clearer picture of closing costs, we will go into more detail.
Real Estate Closing Costs
Closing costs can change according to the area and the type of transaction performed. However, in general, the things that comprise closing costs are:
• The cost of conducting surveys
• Inspections and appraisals
• Title search fees
• Courier and Funds transfer fees
• Loan origination fee
• Assessments
• Mortgage and deed preparation costs
• Recording
• Others
Buyer’s Fees
In general, the majority of the fees included in closing costs are part of the buyer’s deal. This is why buyers generally have to take responsibility for the payment of closing costs.
Closing costs vary according to the state, type of agency, and transaction. All buyers should acquire an estimate of the closing cost fees they are liable to pay to avoid surprises at the end of the deal. Lenders are required by law to give you this, also known as a GFE (good faith estimate).
Seller’s Fees
When it comes to sellers fees, they don’t have to worry about closing costs as much as the buyer. The only thing they will be required to do is take care of the loan payoff costs, agent’s commission, associated penalties, notary fees, homeowner association fees, and transfer taxes.
Payment Options
When it comes to closing costs, the majority of the fees fall upon the buyer. These are the ones who usually have to decide how to pay it. They can choose to pay it outright through wire transfer or with a cashier’s check. They can also choose to negotiate with the seller to cover some part of the costs in a sale. Also, some lenders offer loans with the closing costs rolled into the mortgage. This option will almost always cost the buyer more in the long run, as they will end up paying interest on these items.
A lot of first-time buyers and sellers are confused about the closing costs and the types of fees included in them. If you face any confusion, you should never hesitate to ask your mortgage broker or your agent to explain any fees to you.
Living 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
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.
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.
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.
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.
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.
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.
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.
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.
Nothing will boost your spirits or improve the look of your home quite like a new decorating project will. Many people have the notion that decorating has to be an extensive project in order to make a difference. The truth is that there are plenty of easy, do-it-yourself techniques you can use to liven up any room of your home.
Real estate professionals will tell you the two most important ingredients for a profitable home sale are location and curb appeal.
A lake home has both, in a big way, but there are still a number of things you can do to when selling your lake home to bring in the highest possible price.
You’re selling the lake, and the lakefront lifestyle
The lake has both aesthetic and functional sales value – it provides a lovely view, from indoors and outside, and is typically also a source of numerous recreational opportunities.
Everything about your property needs to be shipshape, all the way down to the water’s edge. This is whether you have lawn, beach, a rocky shore with dock-only access, or a combination of these.
Fix things in your lake home
The lake may be #1, but you’re selling the home, too. Make sure it lives up to the appeal of the lake, whether it’s a three-bedroom getaway or a multi-million dollar mansion.
All those little “detail problems” you conveniently overlook will be glaringly apparent to potential buyers. Many can be fixed quickly and inexpensively, so there’s less chance of quibbling over them later. Instead, your home and property will appear move-in ready, a big positive for buyers.
For decks, docks, boathouse, and shoreline, everything should be snug and clean. Repaint or stain, remove weeds and debris, and rake the sand. This way the area looks fresh and ready to enjoy, rather than unattended. Too, double-check pathway lighting to be sure it’s working properly.
Stage your lake home to appeal better to buyers
Purchasing any home is an emotional event. The more welcoming your home feels, the more desirable it will be. Your lake is the first thing buyers will want to see, so make it your focal point.
Create outdoor living “rooms” on the dock or overlooking the lake. Include things such as seating, a BBQ prepped with accessories, a cozy fire pit, and potted flowers. Your goal is to show off the home’s versatility as well as create a pretty picture. Keep it in scale, so it looks comfortable, not crowded.
Set out sports gear that’s water-related or appropriate for the area – a kayak, bicycles, a croquet set, etc. Be sure to include child-size equipment and a sand pail and shovel to let parents and grandparents see your lake home is perfect for all ages.
Take photos of your home as seen from the water. Better yet, give serious buyers a short boat tour so they can see for themselves and imagine giving their own tours for visiting friends and family. Photos of the lake in other seasons will reinforce your home’s year-round appeal, so even second-home buyers will see it as a top-notch investment.
Choose a real estate agent who is experienced selling lake homes
They’ll help you get top dollar by marketing your property to maximum advantage. That should include creating an inviting online presence for your home. A virtual tour is the best way to show off your in-home and outdoor lifestyle amenities.
Get advice from a professional real estate appraiser as well as your real estate agent to set a listing price, because valuing a lakefront property can be more complex than pricing a traditional neighborhood home. Reaching for the moon may be tempting, but it can backfire, leaving your home lingering instead of generating a lucrative sale.
Each of these details can add to the value of your home where it counts most – in your prospective buyer’s eyes and mind. The more you focus on that, the more money you’ll make when the sale goes through.
When you are still living in a home and also trying to sell it, it can be difficult to find the right balance. Oftentimes, if you have too many of your own personal belongings there, the prospective buyers cannot see themselves in your home. This is because they are unable to visualize what the home would look like with their personal belongings.
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.
Purchasing any home is an emotional event. The more welcoming your home feels, the more desirable it will be. Your lake is the first thing buyers will want to see, so make it your focal point.