Monday, February 23, 2009

A Little Tweak To Our Design

A few months ago we began to change a few things on our website to give it a fresher appearance and more functionality. You probably didn't notice much difference until the last couple of weeks when the main design alterations began to appear. It is something we've wanted to do for a long time, but these aren't overnight projects so we tend to put them off when things work well. On top of that, we have several other waterfront websites that constantly need attention to keep operating effectively, so time is always a factor.

The changes at this time are still ongoing. Whenever you redesign a website you miss a couple of things that you would like to have, or notice items after the fact that seem out of place. Those fixes will come, but for the most part we are happy with the cleaner look and more efficient usability for our visitors.

Our site at Lakehomes.com has been a valuable tool for waterfront buyers and sellers since 1996. Each year we have tried our best to keep it that way and make it better as the technology became available to do so. Although some people may like the looks of the old site better, there are also those who carry an affection to things from the past such as rotary phones and 1965 Impalas. There is nothing necessarily wrong with those items, but sometimes new ideas make life a bit easier. We hope that our new website does that for you also.

Please be assured that we will continue to make Lakehomes.com a great place to visit in your quest for waterfront properties in Minnesota and Wisconsin. We will attempt to provide you with the most relevant content, knowledgeable lakeshore agents, and a comprehensive supply of listings to peruse. For additional information on any waterfront areas or real estate information, just give us or any of our agents a call or email.

Sunday, February 15, 2009

About Price Decreases

There was a comment on my last blog about what I have been seeing with price decreases in the market. I don't know if there is a general answer for this, but overall I have a gut instinct on how this is playing out.

About three or four years ago everything was moving along just fine...actually a little too fine. Interest rates were low and loans were extremely easy to come by. In fact it got a bit ridiculous in that some buyers were not happy with just putting nothing down on home purchases; in addition they wanted money back at closing. That, combined with a huge influx in new and inexperienced agents, created kind of a mess out there in property valuations.

As we all know now, the last few years changed that free-for-all mentality. Now the challenge has shifted to getting consumers feeling assured that values won't continue to decrease on their property purchases. Even lake properties, which were always considered a safe haven along with their attributes for enjoyment, have a smaller group of serious prospects hunting for them.

But, that doesn't mean that the market has dried up. The number of visitors to our website at Lakehomes.com has about doubled in the last two weeks, and we have had an increasing amount of calls and emails coming in. It seems to me that there is some pent-up demand in the waterfront real estate market, at least, but buyers have a lot of inventory to choose from...so well-priced properties and those with the best beaches and other amenities will be in highest demand.

Getting back to the question of how much prices will have to decrease for everything to turn around, this is my answer:

Good properties on good lakes will always be in demand. The problem is that most properties aren't good. I have found over the years that about 80% of buyers want sand beach, or at least a firm shoreline. If you have a mucky bottom, you probably paid about half as much for your lot as someone with hard sand frontage...or you should have if you were being represented by a knowledgeable waterfront real estate expert. Obviously, there are already less possible buyers for this type of lot -- no matter how nice the structure is -- so you will have to be priced accordingly.

Properties that are high up on hills overlooking the water have the same issues. Most lakeshore buyers are either looking toward retirement or have small kids, so this type of property is generally not conducive to either of them. Some people love the views that these eagles nest properties have to offer, but many others see them as a burden for access to the lake. Be prepared for longer market times on these types of homes and cabins, too.

Some people like the idea of quiet lakes that offer solitude from boaters and the constant assortment of activities available on larger water bodies. The key word here is "some" -- because "most" enjoy the idea of having lots of things to do at the lake. Again, there are buyers who will have the same mindset of living in peace, but be prepared for a smaller pool of them.

Lake cabins and homes with 70s decor, or designs such as split levels that feel more like they belong in Bloomington than they do on a Northern Minnesota lake, also don't typically sell as well on the water -- unless the lots are truly desirable! Most buyers looking for lake properties want to feel like they are at the lake, not like they are buying another house in the city. If there are things you can do to open up walls, add some tongue and groove to the interior, or create a more interesting waterfront ambiance, you will have better luck grabbing one of the buyers in today's market.

And then you have the homes and cabins that feel like lake places on good, clear recreational lakes with level lots and sand beach. They might be older cabins set amongst towering pines where the lots have sat undisturbed for decades, or they could be well-designed newer structures with quality finishing that have taken full advantage of their prime lots and views. If priced within reason, these are certainly the most sought after of all lake properties. I don't believe that demand for these will ever go away. But if sellers get too greedy on pricing these, too, will sit.

So there you have it. I didn't really answer you question...because there really isn't an answer to it. However, there has been a fairly substantial reduction overall in prices during the past year, and there are some pretty interesting properties available at great values right now. Some buyers will recognize this, and others will probably wait too long. None of us know when the bottom will hit, but it generally takes place sometime before we know it is happening.

In this type of market, the best suggestion I can make is to work with agents who understand values and can help protect you from making the wrong decisions. Sometimes, what may look like a good value is really a bad one in disguise. I don't think this is a good time to go it alone thinking you might save a couple dollars somehow, because many who did that a few years back have ended up in just the opposite situation today!

Monday, February 9, 2009

The Spring Market Is Here!!!

I always enjoy springtime in the lake property business. There is just something that lifts your spirits as you travel from lake to lake through slush-filled gravel roads, sometimes barely passable as the frost begins to fade away in place of wobbly earth behind it.

When I walked outside today it was raining, so to me that was the first sign that lake cabin buyers will be coming out of hiding soon. The second sign was when we received several information requests from potential buyers...who must have also experienced that springtime sensation.

Winters get long up here in the Northland. With the difficult real estate market and fumbling economy we hear about nearly every day, this winter may have been a little worse. But the sun is feeling warmer -- and February goes by fast -- so things can only look up.

And with the drop in prices we've experienced in 2008, this year the early birds may really get the worm!