I thought I would just give you a quick synopsis of what I have noticed in the waterfront market so far this year. Normally, I don't notice much of anything, because the buyers really aren't out looking at too many properties yet. But this year might be different.
Typically, we start getting our first buyer calls of the year for low-priced cabins and lots. I'm not sure why that is, but it seems to be the case almost every year. The closer we get to ice out, the price range seems to get a little bit higher, and then it begins to peak in early summer.
Now don't get me wrong; that doesn't mean that buyers will spend more for a particular property later in the the spring market, it just has to do - in general - with the price range of buyers that are actually purchasing. And, obviously, there are lake homes and cabins that sell in every price range throughout the year, so you certainly can't know exactly when the perfect buyer might come along for your property, no matter what price range it is in.
This year I am seeing a different type of buyer entering the market early. Instead of the calls for $100,000 cabins, we are seeing several sales at the $500,000 range already. And these aren't lake homes in the Twin Cities, they are cabins up north!
One thing that I have also noticed is that many of these properties have had some significant price reductions, so I think these buyers may have been sitting on the sidelines for some time just being patient. Whatever the reason, it is a good start to an early spring market...and overall that should be good for everyone.
Thursday, January 31, 2008
Tuesday, January 29, 2008
Part 2 of Series..."What to Think About When Buying Lakeshore"
Part 2: Remodeling Old Cabins
So, you've made the decision to buy a lake cabin. However, you don't just want any lake cabin...you really want to have some of that charm from yesteryear, and you figure you can always add on or remodel if things aren't quite right for you. You very well may be able to, but make sure you understand not only the integrity of the foundation and structure itself - but also the required setbacks and codes that you will have to meet in order to do the work legally. Things may not be as easy as they once were!
A lot of us still have memories of hanging out at the grandparents' cabin when we were young. It seemed like Grandpa would just tack another bedroom on when they needed a little more space. He did! And there were a lot of other grandpas who did the same thing.
Back in the 40s, or 50s - or even the 60s - there weren't a lot of people paying much attention to building codes at the lake. You could pretty much build wherever you wanted to on your lot, even out over the water in some cases. The cabin was a place to get away from all the rules, and the lakes weren't that heavily developed anyway, so what was the difference?
But all of a sudden, people started to like the idea of living at the lake instead of just visiting. Developers began to buy up larger tracts of shoreline and cut them up into the smallest lots possible to make the most on their investments. Sand beaches on empty lots - once easy to obtain - became a thing of the past as buyers sought out any type of lakeshore that was affordable to build on, putting environmental pressure on delicate areas of the lake.
It was about this time - during the 70s - that a lot of governmental agencies began to get involved in what could and couldn't be done on lakeshore property. Setbacks from the lake, and from neighboring properties, were put in place or broadened. Septic tanks that were sometimes nothing more than a barrel in the ground became much larger, and setbacks were also put in place on how close you could build to them. Some lots became "unbuildable," because the setbacks would actually cross each other, leaving no room to build.
Well, Grandpa (you know the Grandpa I'm talking about) already had three or four extra rooms tacked onto his cabin, along with two or three garages, a boathouse, an outhouse, a lean-to for the boats on shore, and a few other sheds to adorn the property. But Grandpa was "grandfathered in," so he could just keep all that extra stuff on the property - even though new codes would never allow it these days.
Now, you are in the market for a great place on the lake, and you realize that this place that Grandpa built is a beautiful piece of property, with west facing views over an excellent sand beach, towering white pines, and a little bit of that "old lake cabin" charm that is hard to reproduce only 27 feet back from the water's edge. There might be an extra shed or two on the property, but overall it is exactly what you want...if you can tear off a couple of these small bedrooms with low ceiling height and add a nice bright bedroom facing the lake. After all, Grandpa built whatever he wanted, wherever he wanted...why can't you?
This story could obviously go on and on about what you can and can't do with old lake cabins. But if you are thinking about making any changes to any place you are thinking about buying on the water, just make sure you check into your options thoroughly before purchasing. Otherwise, you may be stuck with Grandpa's design!
So, you've made the decision to buy a lake cabin. However, you don't just want any lake cabin...you really want to have some of that charm from yesteryear, and you figure you can always add on or remodel if things aren't quite right for you. You very well may be able to, but make sure you understand not only the integrity of the foundation and structure itself - but also the required setbacks and codes that you will have to meet in order to do the work legally. Things may not be as easy as they once were!
A lot of us still have memories of hanging out at the grandparents' cabin when we were young. It seemed like Grandpa would just tack another bedroom on when they needed a little more space. He did! And there were a lot of other grandpas who did the same thing.
Back in the 40s, or 50s - or even the 60s - there weren't a lot of people paying much attention to building codes at the lake. You could pretty much build wherever you wanted to on your lot, even out over the water in some cases. The cabin was a place to get away from all the rules, and the lakes weren't that heavily developed anyway, so what was the difference?
But all of a sudden, people started to like the idea of living at the lake instead of just visiting. Developers began to buy up larger tracts of shoreline and cut them up into the smallest lots possible to make the most on their investments. Sand beaches on empty lots - once easy to obtain - became a thing of the past as buyers sought out any type of lakeshore that was affordable to build on, putting environmental pressure on delicate areas of the lake.
It was about this time - during the 70s - that a lot of governmental agencies began to get involved in what could and couldn't be done on lakeshore property. Setbacks from the lake, and from neighboring properties, were put in place or broadened. Septic tanks that were sometimes nothing more than a barrel in the ground became much larger, and setbacks were also put in place on how close you could build to them. Some lots became "unbuildable," because the setbacks would actually cross each other, leaving no room to build.
Well, Grandpa (you know the Grandpa I'm talking about) already had three or four extra rooms tacked onto his cabin, along with two or three garages, a boathouse, an outhouse, a lean-to for the boats on shore, and a few other sheds to adorn the property. But Grandpa was "grandfathered in," so he could just keep all that extra stuff on the property - even though new codes would never allow it these days.
Now, you are in the market for a great place on the lake, and you realize that this place that Grandpa built is a beautiful piece of property, with west facing views over an excellent sand beach, towering white pines, and a little bit of that "old lake cabin" charm that is hard to reproduce only 27 feet back from the water's edge. There might be an extra shed or two on the property, but overall it is exactly what you want...if you can tear off a couple of these small bedrooms with low ceiling height and add a nice bright bedroom facing the lake. After all, Grandpa built whatever he wanted, wherever he wanted...why can't you?
This story could obviously go on and on about what you can and can't do with old lake cabins. But if you are thinking about making any changes to any place you are thinking about buying on the water, just make sure you check into your options thoroughly before purchasing. Otherwise, you may be stuck with Grandpa's design!
Sunday, January 27, 2008
A Hint for Sellers Up North
It's amazing to me how many times I hear a buyer say something like, "I already have a home...what I really want is something that feels like a cabin." The trouble is, as a seller, this has been your home for many years and you envision a new buyer moving in to use it as their full time residence. When you have those emotional ties to the place you have lived in for a long time - and maybe raised your family there - it's hard to see someone just buying it for a place to go play now and then. You also might think that it is not worth changing carpets or painting because a new buyer might want a different color. Big Mistake!
One thing I learned long ago in this business is that people talk about what is logical for them, but they end up purchasing based on their emotions. Even when buyers are just looking for a new home to live in, they have a hard time seeing through outdated decor. Homes with old carpets and poor lighting are an immediate turnoff for buyers, and they see a lot of them on their house hunting trips. But cabin buyers can be more particular yet in the emotional draw!
Their logical thinking tells them they need to have four bedrooms at the cabin for friends and family to visit, but emotionally they will purchase a two bedroom cabin that has the atmosphere you would expect at a cabin...a fireplace, knotty pine, a firepit, a great deck...and on and on. And I can't tell you how many times I've had a buyer who wanted to purchase all the furniture along with the cabin when it is decked out in great "cabinware."
If you live on a lake outside of a major city in Minnesota or Wisconsin, the reality is that a large majority of your potential buyers are looking for a cabin, or a place that feels like a cabin. So if you are serious about selling, you may only have to make a few improvements to make your place stand out.
Very few sellers will take the initiative to take out old carpets, add more relaxed furniture, or create a more interesting ambience. It may cost a few thousand dollars for you to do some of those things, but I can assure you that if you decide to invest upfront in a few of these improvements, your house will stand out - as a cabin - from the others when the cabin buyers come along. And one good test is to go out and look at other lake properties on the market, and decide which ones would be attractive to you as your new cabin.
One thing I learned long ago in this business is that people talk about what is logical for them, but they end up purchasing based on their emotions. Even when buyers are just looking for a new home to live in, they have a hard time seeing through outdated decor. Homes with old carpets and poor lighting are an immediate turnoff for buyers, and they see a lot of them on their house hunting trips. But cabin buyers can be more particular yet in the emotional draw!
Their logical thinking tells them they need to have four bedrooms at the cabin for friends and family to visit, but emotionally they will purchase a two bedroom cabin that has the atmosphere you would expect at a cabin...a fireplace, knotty pine, a firepit, a great deck...and on and on. And I can't tell you how many times I've had a buyer who wanted to purchase all the furniture along with the cabin when it is decked out in great "cabinware."
If you live on a lake outside of a major city in Minnesota or Wisconsin, the reality is that a large majority of your potential buyers are looking for a cabin, or a place that feels like a cabin. So if you are serious about selling, you may only have to make a few improvements to make your place stand out.
Very few sellers will take the initiative to take out old carpets, add more relaxed furniture, or create a more interesting ambience. It may cost a few thousand dollars for you to do some of those things, but I can assure you that if you decide to invest upfront in a few of these improvements, your house will stand out - as a cabin - from the others when the cabin buyers come along. And one good test is to go out and look at other lake properties on the market, and decide which ones would be attractive to you as your new cabin.
Friday, January 25, 2008
Part 1 of Series..."What to Think About When Buying Lakeshore"
When buyers start looking for a lake cabin, or a lot to build one on, they don't always think through what might be most important to them. Sure they know if they like to fish, but a vacation getaway can also turn into a pretty strong attraction for friends and relatives, so make sure you think through how you will use the property before you buy. I will be adding new articles quite often to this ongoing series to help waterfront buyers make the right choices. This first article is on boating.
Part 1: BOATING
What kind of boating are you into...or do you want boats around at all? Generally, you won't find a lot of skiiers on lakes much smaller than 200 acres, but sometimes the real serious water-skiiers like the smaller lakes because they are calmer. I've seen skiiers - especially barefooters - out on 50 acre lakes at dawn every morning. That may end up taking away some of your solitude if you are more into peace and quiet, not to mention disrupting your sleep!
Sometimes the problem with a small lake is that there is no place to get away from the activity, although many of them have more tranquility than you will find on larger water bodies when the boats aren't out there. And overall, these little lakes get a very small amount of traffic...and almost none from non-residents.
If you don't want a lot of activity in front of your cabin, but you still want to be able to have lake big enough for boating when friends are around, you may find the best property for your needs in a back bay or channel. Normally those types of properties will be less expensive, but much of the time they will not have as good of shoreline or water quality because of less wave action. Also, make sure you have enough depth during low water years to get the type of boat you plan on using in and out of the dock easily. Here, you may want to look at lakes that start at about 400 acres, which will give you about a twenty minute ride around the lake for an evening pontoon cruise, and offer up a good variety of fishing holes.
When you start approaching the 1,000 acre range for lake sizes, you can almost always find a wide variety of shoreline types available. You also tend to start seeing larger boats with faster motors to get around the lake quicker and easier in rough waters. If you plan to do a lot of boating in and out of the dock, and if you see yourself using the dock or shoreline to water-ski from, then make sure you have at least four feet of water at the end of the dock. And it doesn't hurt to have a couple more feet for safety if there is going to be a lot of people using the property for swimming - and potentially diving from the dock.
Minnesota and Wisconsin have thousands of lakes in the 200-1000 acre range, so there are plenty of boating options no matter where you go, and there are still quite a few with 1,000-10,000 acres to give some great boating opportunities. But when it comes to the big boys, with 40,000 acres or more, you will be a bit more limited. These are the types of lakes you can make a day - or in some cases even a week - out of. You will find every variety of boat out here, from canoes to yachts to houseboats. Whether you enjoy resort-hopping, island camping, great fishing, or just long distance boating, you will be able to find plenty of recreational opportunities on the "big lakes." You can even cross into Canada and explore vast wilderness areas on some of these border lakes.
Here are a few of the larger lakes to choose from:
Rainy Lake - 220,000 acres
Mille Lacs Lake - 132,000 acres
Lake Winnebago - 137,000 acres
Lake Vermilion - 40,000 acres
Lake of the Woods - 305,000 acres
Leech Lake - 109,000 acres
This is not meant to be a complete list, and there are definitely other lake chains and rivers throughout Minnesota and Wisconsin that offer extreme boating. But if the ones above aren't big enough for you, it may be time to explore opportunities on Lake Superior or Lake Michigan. Now that's boating!
Part 1: BOATING
What kind of boating are you into...or do you want boats around at all? Generally, you won't find a lot of skiiers on lakes much smaller than 200 acres, but sometimes the real serious water-skiiers like the smaller lakes because they are calmer. I've seen skiiers - especially barefooters - out on 50 acre lakes at dawn every morning. That may end up taking away some of your solitude if you are more into peace and quiet, not to mention disrupting your sleep!
Sometimes the problem with a small lake is that there is no place to get away from the activity, although many of them have more tranquility than you will find on larger water bodies when the boats aren't out there. And overall, these little lakes get a very small amount of traffic...and almost none from non-residents.
If you don't want a lot of activity in front of your cabin, but you still want to be able to have lake big enough for boating when friends are around, you may find the best property for your needs in a back bay or channel. Normally those types of properties will be less expensive, but much of the time they will not have as good of shoreline or water quality because of less wave action. Also, make sure you have enough depth during low water years to get the type of boat you plan on using in and out of the dock easily. Here, you may want to look at lakes that start at about 400 acres, which will give you about a twenty minute ride around the lake for an evening pontoon cruise, and offer up a good variety of fishing holes.
When you start approaching the 1,000 acre range for lake sizes, you can almost always find a wide variety of shoreline types available. You also tend to start seeing larger boats with faster motors to get around the lake quicker and easier in rough waters. If you plan to do a lot of boating in and out of the dock, and if you see yourself using the dock or shoreline to water-ski from, then make sure you have at least four feet of water at the end of the dock. And it doesn't hurt to have a couple more feet for safety if there is going to be a lot of people using the property for swimming - and potentially diving from the dock.
Minnesota and Wisconsin have thousands of lakes in the 200-1000 acre range, so there are plenty of boating options no matter where you go, and there are still quite a few with 1,000-10,000 acres to give some great boating opportunities. But when it comes to the big boys, with 40,000 acres or more, you will be a bit more limited. These are the types of lakes you can make a day - or in some cases even a week - out of. You will find every variety of boat out here, from canoes to yachts to houseboats. Whether you enjoy resort-hopping, island camping, great fishing, or just long distance boating, you will be able to find plenty of recreational opportunities on the "big lakes." You can even cross into Canada and explore vast wilderness areas on some of these border lakes.
Here are a few of the larger lakes to choose from:
Rainy Lake - 220,000 acres
Mille Lacs Lake - 132,000 acres
Lake Winnebago - 137,000 acres
Lake Vermilion - 40,000 acres
Lake of the Woods - 305,000 acres
Leech Lake - 109,000 acres
This is not meant to be a complete list, and there are definitely other lake chains and rivers throughout Minnesota and Wisconsin that offer extreme boating. But if the ones above aren't big enough for you, it may be time to explore opportunities on Lake Superior or Lake Michigan. Now that's boating!
Thursday, January 24, 2008
Lakehomes.com Realty Agent Featured for Ingenuity
Craig Mische is not one to follow in someone else's footsteps when it comes to marketing his listings. Craig runs the Alexandria Office for Lakehomes.com Realty, and he knows the power of the Internet. He gets plenty of information requests from across the country on his extremely informative website about Alexandria, Minnesota real estate - and the area in general - at CraigMische.com.
Because Craig keeps close tabs on Internet trends, he realizes that out of town buyers want as much information as they can get about a property before they make the trip to see it in person. Therefore, he goes way beyond what his sellers might expect as he drags his video equipment from property to property...no matter the weather. He says that this is already translating into additional buyer activity on his listings - and that is the name of the game when it comes to creating sales.
Michael Wurzer, Chief Executive Officer of FBS Systems, runs the computer programs that track tens of thousands of real estate listings from across the United States. When it comes to Realtors, he knows a trailblazer when he sees one, and he believes that Craig is charting some new territory. You can read what he had to say about Craig's ideas on his FBS Blog.
Because Craig keeps close tabs on Internet trends, he realizes that out of town buyers want as much information as they can get about a property before they make the trip to see it in person. Therefore, he goes way beyond what his sellers might expect as he drags his video equipment from property to property...no matter the weather. He says that this is already translating into additional buyer activity on his listings - and that is the name of the game when it comes to creating sales.
Michael Wurzer, Chief Executive Officer of FBS Systems, runs the computer programs that track tens of thousands of real estate listings from across the United States. When it comes to Realtors, he knows a trailblazer when he sees one, and he believes that Craig is charting some new territory. You can read what he had to say about Craig's ideas on his FBS Blog.
Wednesday, January 23, 2008
Are You a "True" Lake Home Buyer?
Buying a lake home can be a little more difficult than purchasing a typical house in a residential neighborhood. There are a lot more factors to consider as you decide what is important to you on the water...and you may not be willing to sacrifice some of the modern conveniences that have become necessities in your life.
Generally, when an individual or a couple begin their search for a new home in the suburbs or their local community, they think about things like the drive time to work, the neighborhood, the amount of privacy the yard offers, and - of course - the design, square footage and condition of the home. Many buyers are quite set on the age of the home before they ever even begin to look, knowing that amenities like master suites, open spaces and taller ceilings are more likely to be found in the newer structures.
Certainly, when buyers begin searching for lakefront real estate, many of these factors from a normal wish list can also come into play. But I've found that true waterfront buyers tend to give up many of the features they are looking for in a home to get what they want in the property and the lake itself! They often focus on the type of shoreline, direction the home faces to the lake, depth for swimming and boating, and quality of water...not to mention fish species and fishing success rates.
This process is probably most evident with relocation buyers from other parts of the country, who sometimes imagine that most every home in Minnesota or Wisconsin must be on the lake because of the sheer number of water bodies that exist. It normally only takes about half a day for the "hopeful waterfront buyers" to realize that the home they have in mind (coming from a new development in another state) is not that easy to find here - especially at the price range they can afford. That is when we adjust quickly and help them narrow down the other factors that are important to them, so that we can get them in the right property within their limited time frame. By showing them their best options on water right away, we can help them eliminate those types of properties and give them more time to focus on what they really want.
However, I've also found that about 50% of relocation buyers are set on living on the lake, and they would rather purchase an older home or one that is further from the city rather than give up on their dream. And, generally, the smaller the lake size the lower the prices, so we are able to offer other options that can still give them their place on the water. It seems that when they have their heart set on lake living, nothing will stop them!
I'll talk about other factors that make up a "true waterfront buyer" in a future article.
Generally, when an individual or a couple begin their search for a new home in the suburbs or their local community, they think about things like the drive time to work, the neighborhood, the amount of privacy the yard offers, and - of course - the design, square footage and condition of the home. Many buyers are quite set on the age of the home before they ever even begin to look, knowing that amenities like master suites, open spaces and taller ceilings are more likely to be found in the newer structures.
Certainly, when buyers begin searching for lakefront real estate, many of these factors from a normal wish list can also come into play. But I've found that true waterfront buyers tend to give up many of the features they are looking for in a home to get what they want in the property and the lake itself! They often focus on the type of shoreline, direction the home faces to the lake, depth for swimming and boating, and quality of water...not to mention fish species and fishing success rates.
This process is probably most evident with relocation buyers from other parts of the country, who sometimes imagine that most every home in Minnesota or Wisconsin must be on the lake because of the sheer number of water bodies that exist. It normally only takes about half a day for the "hopeful waterfront buyers" to realize that the home they have in mind (coming from a new development in another state) is not that easy to find here - especially at the price range they can afford. That is when we adjust quickly and help them narrow down the other factors that are important to them, so that we can get them in the right property within their limited time frame. By showing them their best options on water right away, we can help them eliminate those types of properties and give them more time to focus on what they really want.
However, I've also found that about 50% of relocation buyers are set on living on the lake, and they would rather purchase an older home or one that is further from the city rather than give up on their dream. And, generally, the smaller the lake size the lower the prices, so we are able to offer other options that can still give them their place on the water. It seems that when they have their heart set on lake living, nothing will stop them!
I'll talk about other factors that make up a "true waterfront buyer" in a future article.
Monday, January 21, 2008
When is the Spring Waterfront Market?
Throughout the years I have noticed a fairly steady pattern of activity in different parts of the state as we get closer to spring. It doesn't seem to have a whole lot to do with temperatures or snow cover...although it is definitely easier to see closed up cabins and lots once some melting begins to take place. Instead, I think it has more to do with the beginning of a new year, and the fact that once the holidays are over it's time for a new outlook on life for many people. And as we get a little more daylight each day, it makes it somewhat easier to view a property or two after work instead of tying up valuable weekends.
We always notice our web traffic increasing right after Christmas, so we know that we are starting to attract a new crop of potential buyers to the site. Many years ago (like maybe ten), we would judge that new activity based on the amount of calls we would get off an ad, but the Internet makes it much easier for buyers to shop in secret.
Generally, around the beginning of February, we start to get a lot more emails and calls coming in from those people who have just been looking online, so we can tell they are beginning to get excited about the prospect of owning a lake place. However, actual showings tend to pick up much more quickly closer to the Twin Cities since that is where most of the buyers are coming from. As you move out into the two hour radius from Minneapolis - in areas like Alexandria, Brainerd, or Siren - it may take another month or so to get a large increase in showings...and Grand Rapids, Bemidji or International Falls can be a little later yet.
The one thing I hear over and over from sellers is that they want to wait until their yard is cleaned up and the flowers are blooming to put their place on the market. Cleaning up the beach and having the dock in can make an attractive setting, but there is often a major flaw in this thinking. Sellers don't realize that many buyers want that beautiful setting for themselves when the ice goes off the lake, so they are looking for the right waterfront property long before that. And, those are generally the most motivated buyers!
So, when you think about the best time to get your property listed for the spring market, remember that spring starts early in the mind of a lakeshore buyer, and that Minnesota and Wisconsin have short selling seasons. If you wait until it feels like spring, you might be too late!
We always notice our web traffic increasing right after Christmas, so we know that we are starting to attract a new crop of potential buyers to the site. Many years ago (like maybe ten), we would judge that new activity based on the amount of calls we would get off an ad, but the Internet makes it much easier for buyers to shop in secret.
Generally, around the beginning of February, we start to get a lot more emails and calls coming in from those people who have just been looking online, so we can tell they are beginning to get excited about the prospect of owning a lake place. However, actual showings tend to pick up much more quickly closer to the Twin Cities since that is where most of the buyers are coming from. As you move out into the two hour radius from Minneapolis - in areas like Alexandria, Brainerd, or Siren - it may take another month or so to get a large increase in showings...and Grand Rapids, Bemidji or International Falls can be a little later yet.
The one thing I hear over and over from sellers is that they want to wait until their yard is cleaned up and the flowers are blooming to put their place on the market. Cleaning up the beach and having the dock in can make an attractive setting, but there is often a major flaw in this thinking. Sellers don't realize that many buyers want that beautiful setting for themselves when the ice goes off the lake, so they are looking for the right waterfront property long before that. And, those are generally the most motivated buyers!
So, when you think about the best time to get your property listed for the spring market, remember that spring starts early in the mind of a lakeshore buyer, and that Minnesota and Wisconsin have short selling seasons. If you wait until it feels like spring, you might be too late!
Saturday, January 19, 2008
Internet Real Estate Trends and Searches
Since you are most likely sitting at your home or office reading this, you probably understand how much easier it is to look through available properties on the Internet before making calls to agents, or driving around trying to find a new home. It seems like most potential buyers have now figured that out.
In 1996, just 2% of buyers shopped the Internet for real estate. The National Association of Realtors study from 2007 showed a whopping 84% of buyers now starting their searches online. Although there is no concrete data on how high that number is for waterfront and vacation properties, it only makes sense that it is a higher percentage yet, due to the fact that most of these homes and lots are purchased from buyers many miles away - and that their income levels tend to be higher than average.
According to Topix.com, Google now has 64% of all Internet searches, and Yahoo has 21%. Also, a study by AHFX.net showed that 62% of Internet users click on the first page of the results when doing a search engine query.
If you are thinking of selling a property, make sure the agent or broker you choose has good search results for your geographic area and the type of property you are selling. A search for "Minnesota Lakefront Property" or "Northern Minnesota Waterfront Properties" may be a starting point for a buyer from California to get an overview of the market. If your property can be found easily on a search like that, you may attract more out of state buyers. However, a buyer from a 100 or 200 miles away may be more likely to type in "Bemidji Waterfront Real Estate" or "Alexandria Lake Property" for their search criteria. If your property also comes up on that type of search, it will be hard for you to miss any possible buyers.
In 1996, just 2% of buyers shopped the Internet for real estate. The National Association of Realtors study from 2007 showed a whopping 84% of buyers now starting their searches online. Although there is no concrete data on how high that number is for waterfront and vacation properties, it only makes sense that it is a higher percentage yet, due to the fact that most of these homes and lots are purchased from buyers many miles away - and that their income levels tend to be higher than average.
According to Topix.com, Google now has 64% of all Internet searches, and Yahoo has 21%. Also, a study by AHFX.net showed that 62% of Internet users click on the first page of the results when doing a search engine query.
If you are thinking of selling a property, make sure the agent or broker you choose has good search results for your geographic area and the type of property you are selling. A search for "Minnesota Lakefront Property" or "Northern Minnesota Waterfront Properties" may be a starting point for a buyer from California to get an overview of the market. If your property can be found easily on a search like that, you may attract more out of state buyers. However, a buyer from a 100 or 200 miles away may be more likely to type in "Bemidji Waterfront Real Estate" or "Alexandria Lake Property" for their search criteria. If your property also comes up on that type of search, it will be hard for you to miss any possible buyers.
My Thoughts on the 2008 Waterfront Market
When I first started in the real estate business back in 1988, I remember my broker at Harvey Hansen Realtors telling me, "Once you're in this business for a long time, you can feel the pulse of the market." She was saying that she could sense what the market was doing, even before she pulled a market analysis or read the news on the latest sales figures. I guess now that I have been in the waterfront business for two decades, I have that same ability.
Like all of you, I have seen plenty of news reports on how bad the real estate business is. As we watched appreciation of 10-20% each year on many waterfront properties just a few years ago, I told plenty of people that there is no way that would continue. Well...it didn't. But where are we now?
Realistically, unless you purchased your home in the last few years, you probably still have had a decent increase in your value. Now, it may not be as much as what you would have had if appreciation had continued to go through the roof, but most people are sitting pretty good.
What I saw happening in late 2007, and what I think will continue to happen early this year, is that a lot of people who have been sitting on the sidelines are coming back into the market due to some very good price drops. Some of the sellers who didn't believe we were going to have a market correction would not lower their prices in 2006, but finally gave in this past fall. That, combined with the lowest interest rates in over two years, may make this one of the best spring waterfront markets ever. Once the media picks up on some of these great buys, there will be a rush back into the waterfront marketplace by a lot of buyers. Let me know if it turns out that I am wrong!
Like all of you, I have seen plenty of news reports on how bad the real estate business is. As we watched appreciation of 10-20% each year on many waterfront properties just a few years ago, I told plenty of people that there is no way that would continue. Well...it didn't. But where are we now?
Realistically, unless you purchased your home in the last few years, you probably still have had a decent increase in your value. Now, it may not be as much as what you would have had if appreciation had continued to go through the roof, but most people are sitting pretty good.
What I saw happening in late 2007, and what I think will continue to happen early this year, is that a lot of people who have been sitting on the sidelines are coming back into the market due to some very good price drops. Some of the sellers who didn't believe we were going to have a market correction would not lower their prices in 2006, but finally gave in this past fall. That, combined with the lowest interest rates in over two years, may make this one of the best spring waterfront markets ever. Once the media picks up on some of these great buys, there will be a rush back into the waterfront marketplace by a lot of buyers. Let me know if it turns out that I am wrong!
Friday, January 18, 2008
A New Waterfront Blog
Hello Everyone!
Thank you for coming to our website at Lakehomes.com. It has been a favorite of many waterfront buyers and sellers throughout Minnesota and Western Wisconsin since 1996.
Throughout the years, Sandy and I have tried hard to provide the information that our visitors need to make their property searches easy, and our waterfront blog will now be an added feature to help give an overview on many items having to do with life on the water. We will be continuously adding information about waterfront values, interesting facts and general lake information to help out our visitors. Please stop back soon.
Dan Anderson
Broker
Lakehomes.com Realty
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