So many of us in all types of consumer-related businesses have been essentially forced into a multitude of new ways to connect with the public. Whether it is through blogging, social media, or just trying to find ways to be seen above all the other online clutter, you can pretty much spend your entire day fiddling around with these technologies in hopes of providing some sort of value to your audience.
But I think the main problem with this idea is that there just aren't enough hours in the day for most of those people you are focusing on to even read what you write. So perhaps the days of telling long stories on niche-focused blogs is a thing of the past. And maybe people who are looking for lake properties would rather spend their limited time looking through actual lake properties that may fit their needs, instead of reading the opinions of agents who are selling them.
I know that most of the articles I receive in my inbox each day end up going straight into a folder titled: "Articles to Read." Not that I ever really think of reading them again, but it makes me feel better if they are gone from my inbox and somewhere that I can find them if I want. However, I would have to take about a three month vacation in an attempt to read them all, and I don't see that happening anytime soon. Not to mention, tomorrow will be a brand new day of fresh articles popping into my email, with brand new ideas -- even much better than those old ones from last week.
So as good as the idea of blogging is in terms of providing expert advice to those who may want it, I'm sure that a ten second Google Search can bring up many well-written articles with the exact content that anyone has in mind at that time. I know that is what I do when I need information on nearly any subject, and it is much more efficient than reading through multiple blogs in hopes of coming across an article that may be helpful.
But, when it comes to providing information about some of the best lake properties entering the market, that is something we are pretty good at filtering out for our ongoing audience. And as the new season approaches, our focus will be more on using our talents to point out some of those new lake places for you in our blog. Hopefully, that will be information you will find extremely valuable as a potential waterfront buyer -- and something that is not as easy to find on your own.
Happy Holidays,
Dan Anderson
Wednesday, December 21, 2011
Sunday, November 6, 2011
The Story of Lakehomes.com Realty
Lakehomes.com Realty has operated throughout many waterfront markets in Minnesota and Western Wisconsin since the late 90s, and grew from the niche concept that its founders, Dan & Sandy Anderson, had created ten years before that. The idea to truly specialize in waterfront properties, instead of focusing on all types of real estate like most agents do, was somewhat of a new concept back then. But both buyers and sellers seemed to appreciate the focused knowledge that the Andersons brought to the table, and their niche marketing strategies became incredibly effective as a tool to find qualified buyers for their lakefront listings.
As the Internet evolved, Lakehomes.com became their platform to get in front of both waterfront buyers and sellers, instead of primarily print advertising as used previously. Although only 2% of real estate buyers searched for properties online in 1996 when Lakehomes.com was launched, that portion of the business continued to grow and has become the search mechanism of nearly 100% of today’s buyers – especially those in search of homes and vacation properties on water.
Today, Lakehomes.com Realty continues to expand its brand into various market areas across Minnesota and Western Wisconsin through localized agents who can benefit from the marketing strengths of Lakehomes.com, and who are able to create a waterfront specialty business for themselves in their respective market areas. Those agents are able to bring a unique value and added exposure to their listings through highly targeted marketing – something incredibly difficult for most agents to do on their own or with more generalized brokerages. And, as this model has worked well to benefit numerous agents and their clients in the Upper Midwest for many years, it is only a matter of time before we begin to expand into waterfront regions across the country.
Because Lakehomes.com Realty agents have a primary focus on waterfront properties, and tend to view those properties over and over, their sense of value is second to none. Whether they are representing buyers in search of the perfect lake place, or helping sellers prepare a property for its highest potential sale price, their focus on the waterfront market gives them a strong understanding of current values and buyer needs – along with specific knowledge on many of the unique factors relating to real estate transactions on water.
When you work with an agent from Lakehomes.com Realty, you not only get a highly focused professional who is a true specialist in their field, but you also have an incredible combination of marketing expertise and in-depth knowledge of the waterfront real estate business through the many years of accumulated insight that the company and its broad base of specialized agents have acquired. A Lakehomes.com Realty agent does not have to guess what types of marketing efforts are most effective, or which lakes may fit your needs best…they have the answers already. It is the same reason people work with specialists in any type of profession.
But just like specialists in law, medicine, or any other field, Lakehomes.com Realty agents are certainly more than capable of assisting their clients in any general area of real estate as well, such as homes that are not on water. It’s just that when it comes to lake and river properties, they will be hard to beat!
The full story of Lakehomes.com and Lakehomes.com Realty is yet to be finished. But even in an extended period of economic turmoil – a time when many other general real estate companies are somewhat adrift – the chapters are continuing to take shape here. And, best of all, they are filled with a growing list of satisfied clients who decided to use a specialist from Lakehomes.com Realty for their waterfront real estate needs.
As the Internet evolved, Lakehomes.com became their platform to get in front of both waterfront buyers and sellers, instead of primarily print advertising as used previously. Although only 2% of real estate buyers searched for properties online in 1996 when Lakehomes.com was launched, that portion of the business continued to grow and has become the search mechanism of nearly 100% of today’s buyers – especially those in search of homes and vacation properties on water.
Today, Lakehomes.com Realty continues to expand its brand into various market areas across Minnesota and Western Wisconsin through localized agents who can benefit from the marketing strengths of Lakehomes.com, and who are able to create a waterfront specialty business for themselves in their respective market areas. Those agents are able to bring a unique value and added exposure to their listings through highly targeted marketing – something incredibly difficult for most agents to do on their own or with more generalized brokerages. And, as this model has worked well to benefit numerous agents and their clients in the Upper Midwest for many years, it is only a matter of time before we begin to expand into waterfront regions across the country.
Because Lakehomes.com Realty agents have a primary focus on waterfront properties, and tend to view those properties over and over, their sense of value is second to none. Whether they are representing buyers in search of the perfect lake place, or helping sellers prepare a property for its highest potential sale price, their focus on the waterfront market gives them a strong understanding of current values and buyer needs – along with specific knowledge on many of the unique factors relating to real estate transactions on water.
When you work with an agent from Lakehomes.com Realty, you not only get a highly focused professional who is a true specialist in their field, but you also have an incredible combination of marketing expertise and in-depth knowledge of the waterfront real estate business through the many years of accumulated insight that the company and its broad base of specialized agents have acquired. A Lakehomes.com Realty agent does not have to guess what types of marketing efforts are most effective, or which lakes may fit your needs best…they have the answers already. It is the same reason people work with specialists in any type of profession.
But just like specialists in law, medicine, or any other field, Lakehomes.com Realty agents are certainly more than capable of assisting their clients in any general area of real estate as well, such as homes that are not on water. It’s just that when it comes to lake and river properties, they will be hard to beat!
The full story of Lakehomes.com and Lakehomes.com Realty is yet to be finished. But even in an extended period of economic turmoil – a time when many other general real estate companies are somewhat adrift – the chapters are continuing to take shape here. And, best of all, they are filled with a growing list of satisfied clients who decided to use a specialist from Lakehomes.com Realty for their waterfront real estate needs.
Thursday, October 20, 2011
Getting Lost -- and Found -- in a World Wide Web of Real Estate
We were fortunate to learn about the Internet quite early in online history compared to many of our competitors in the real estate business, and somewhat by accident. After hearing a speaker in 1996 talk about how the Internet was a bit like the Wild West, with incredible opportunities just waiting for adventurers, I remember coming home all excited about the possibilities, and we set out to find an internet expert who could help us find a good domain name and build a website to fit our lake property real estate niche.
Many people have asked us over the years about how we were able to get a name as good as Lakehomes.com. It was essentially a stroke of luck, and it has been the driving force behind our business -- and our lives -- ever since.
Having a niche site with great content for so many years has been the key to obtaining powerful search results as well. Long before Google was even around, we had first page results on search sites like AltaVista, Lycos, Infoseek, Ask Jeeves and many others. And as those lovable search engines from the past have faded into darkness, we have been able to find the same success with the main search sites of today.
But new technologies and ideas have given rise to numerous methods of connecting with others and obtaining specific information. Obviously, social networking sites like Facebook and Twitter have created an entirely new array of ways for people to stay in touch and recommend products and services to others. They have also become somewhat effective tools to market all kinds of items, including real estate. Many agents have become experts at using the features associated with these unique sites to get more exposure for themselves, and their properties...but generally with limited success.
Directory sites like Craigslist, Yelp.com, and Thumbtack.com -- where you could find companies like ours under a category such as Waterfront Real Estate Specialists -- try to localize specific types of businesses or products for sale, and sometimes include ratings systems for visitors to find reviews and additional information. There are so many types of directories that it is pretty much impossible to really categorize even the sites themselves, but many of them can be used to either promote properties or a specific real estate company or agent.
And then, of course, there are niche sites like VRBO.com, Hotels.com and LakehomesUSA.com that offer specific products to a target audience. The real estate landscape is littered with these types of niche sites, whether you are looking to rent your property or sell it. And it is quite easy to find high traffic niche real estate sites that can get you plenty of page views in your specific category.
So as a prospective seller these days, you have nearly limitless options to market your own property through a plethora of websites that could potentially find you a buyer. Hopefully, if you decide to list your property with a licensed agent, they will use a variety of those same techniques to get some promising results as well. And if they do, you won't be the one forking out $25 here, or $75 there, to get on the best sites...because many of the free ones are generally free for a reason.
By letting the agents handle this piece of the puzzle you can save a fair amount of upfront money, since their marketing costs are probably included in the commission structure. But even more important, they are not doing this for the first time, and they most likely have a pretty good idea of which sites work better than others.
But there is one thing I can assure you of: If it were that easy to get homes sold in this day and age directly from just using multiple websites, every agent would be doing it -- and earning BIG commissions without much effort. And...they are not!
Being successful at real estate sales takes a number of skill sets beyond just the marketing of the property. It is true that the more exposure you can obtain -- especially to your target audience -- the better chance you have of landing your property in front of the right prospect. But negotiating, preparing the proper wording, understanding the competition, recognizing buyers' motivations, and holding things together up until closing are all even more important than the initial act of finding a buyer.
So, as this economy continues to bounce along on bottom, trying so hard to turn the corner back up again (at least that is the way I see it in the lakeshore market today), you will need every tool possible to not only create the best exposure to find that elusive buyer, but also the expertise to make sure you get to the closing table...and walk away from it without owning the property any longer. Because each step of the process can be a considerable struggle in the current marketplace, and your are going to want all the help you can get.
The Internet has created a sea change in all of our lives that will last at least as long as we all do. But harnessing its true power -- both in searching for products and in trying to market them -- can still be a bit of a secret. It is extremely easy to get lost out there in that Wacky World Wide Web...but not quite as easy to get found.
Many people have asked us over the years about how we were able to get a name as good as Lakehomes.com. It was essentially a stroke of luck, and it has been the driving force behind our business -- and our lives -- ever since.
Having a niche site with great content for so many years has been the key to obtaining powerful search results as well. Long before Google was even around, we had first page results on search sites like AltaVista, Lycos, Infoseek, Ask Jeeves and many others. And as those lovable search engines from the past have faded into darkness, we have been able to find the same success with the main search sites of today.
But new technologies and ideas have given rise to numerous methods of connecting with others and obtaining specific information. Obviously, social networking sites like Facebook and Twitter have created an entirely new array of ways for people to stay in touch and recommend products and services to others. They have also become somewhat effective tools to market all kinds of items, including real estate. Many agents have become experts at using the features associated with these unique sites to get more exposure for themselves, and their properties...but generally with limited success.
Directory sites like Craigslist, Yelp.com, and Thumbtack.com -- where you could find companies like ours under a category such as Waterfront Real Estate Specialists -- try to localize specific types of businesses or products for sale, and sometimes include ratings systems for visitors to find reviews and additional information. There are so many types of directories that it is pretty much impossible to really categorize even the sites themselves, but many of them can be used to either promote properties or a specific real estate company or agent.
And then, of course, there are niche sites like VRBO.com, Hotels.com and LakehomesUSA.com that offer specific products to a target audience. The real estate landscape is littered with these types of niche sites, whether you are looking to rent your property or sell it. And it is quite easy to find high traffic niche real estate sites that can get you plenty of page views in your specific category.
So as a prospective seller these days, you have nearly limitless options to market your own property through a plethora of websites that could potentially find you a buyer. Hopefully, if you decide to list your property with a licensed agent, they will use a variety of those same techniques to get some promising results as well. And if they do, you won't be the one forking out $25 here, or $75 there, to get on the best sites...because many of the free ones are generally free for a reason.
By letting the agents handle this piece of the puzzle you can save a fair amount of upfront money, since their marketing costs are probably included in the commission structure. But even more important, they are not doing this for the first time, and they most likely have a pretty good idea of which sites work better than others.
But there is one thing I can assure you of: If it were that easy to get homes sold in this day and age directly from just using multiple websites, every agent would be doing it -- and earning BIG commissions without much effort. And...they are not!
Being successful at real estate sales takes a number of skill sets beyond just the marketing of the property. It is true that the more exposure you can obtain -- especially to your target audience -- the better chance you have of landing your property in front of the right prospect. But negotiating, preparing the proper wording, understanding the competition, recognizing buyers' motivations, and holding things together up until closing are all even more important than the initial act of finding a buyer.
So, as this economy continues to bounce along on bottom, trying so hard to turn the corner back up again (at least that is the way I see it in the lakeshore market today), you will need every tool possible to not only create the best exposure to find that elusive buyer, but also the expertise to make sure you get to the closing table...and walk away from it without owning the property any longer. Because each step of the process can be a considerable struggle in the current marketplace, and your are going to want all the help you can get.
The Internet has created a sea change in all of our lives that will last at least as long as we all do. But harnessing its true power -- both in searching for products and in trying to market them -- can still be a bit of a secret. It is extremely easy to get lost out there in that Wacky World Wide Web...but not quite as easy to get found.
Tuesday, August 16, 2011
Another Year Older
The last few years have been kind of an odd situation for many people, in that they can't easily move on with their lives because of the marginal real estate market. They are seeing life dreams slip away as they get another year older.
Unfortunately, it's not just the sellers who can't move; it is also the people who want to buy those sellers' homes -- but forced to be sellers themselves first. Until we find a large group of buyers, at some price range, who can purchase easily without selling their homes first, this stagnation will continue. And, obviously, that group of buyers will also have to want to purchase!
I've heard all the rationale that spews out of the real estate forums, and from the mouths of real estate gurus. Much of it makes sense, such as just selling your home for what you can and then making it up on the other end. It is true that this will probably work just fine...if you don't owe more than you can sell your existing place for. But the reality is that more and more people are stuck in a kind of quicksand that keeps pulling them further and further into a quagmire, away from their chosen path. And that is the sad reality of this drastic whack in prices which is keeping many creative and motivated people from: moving to new cities, meeting new friends, starting new businesses -- and hiring new employees that would get the economy moving again.
But there are still a fair amount of buyers who can purchase without selling their existing homes, and I think the group who is choosing to do that may be increasing in numbers. With prices down 35-50% in some market areas, it seems that some of those people are realizing that there may never again be an opportunity like there is now to purchase a lake home or cabin at such an incredible discount. So maybe there are enough of those buyers to turn this mess around...at least I hope that is true!
So if you can buy, why not buy now? Go ahead and do your part to get the economy back on its feet, and most likely you will have a heck of an investment in any good lake property you purchase. There are certainly enough of them out there to choose from!
Although a few people may have profited somehow from this mess we are in, I haven't found many small business owners who even know if they can hang on for very much longer. I imagine you see just as many For Sale of For Lease signs as I do on commercial buildings on prime street corners across the state. And from what I have seen, it doesn't improve a whole lot as you drive through other parts of the country either. It is a scary thought to think of all those "mom and pop" shops closing their doors, and also having to get rid of those loyal employees who make very little in wages just to continue living in America's small towns. It will eventually be a drastic change in the landscape of the things we love most about this country.
But whatever happens is what will happen. We can try to fix it, or we can ignore it. And if this downturn continues, each year we will end up a little further from a solution to the problem.
I am hopeful that we will regain our senses and realize that small businesses are what built this country, and are what will get it going again. I'm just a small business owner myself, frustrated by many of the things I've seen lately that seem so incredibly far from any realistic solution to the problem.
So, do whatever you can to get on with your life. Some people are so stuck that they really don't know what to do next. If a few of us take a risk here and there, it might be a big enough jolt to get a few of the wheels turning.
But whether you choose to be in the group that pitches in or just sits on the sidelines, I will guarantee that we are all going to be together when it comes to the one thing we can't control. Next year each of us will be another year older...so let's make the most of it we can!
Unfortunately, it's not just the sellers who can't move; it is also the people who want to buy those sellers' homes -- but forced to be sellers themselves first. Until we find a large group of buyers, at some price range, who can purchase easily without selling their homes first, this stagnation will continue. And, obviously, that group of buyers will also have to want to purchase!
I've heard all the rationale that spews out of the real estate forums, and from the mouths of real estate gurus. Much of it makes sense, such as just selling your home for what you can and then making it up on the other end. It is true that this will probably work just fine...if you don't owe more than you can sell your existing place for. But the reality is that more and more people are stuck in a kind of quicksand that keeps pulling them further and further into a quagmire, away from their chosen path. And that is the sad reality of this drastic whack in prices which is keeping many creative and motivated people from: moving to new cities, meeting new friends, starting new businesses -- and hiring new employees that would get the economy moving again.
But there are still a fair amount of buyers who can purchase without selling their existing homes, and I think the group who is choosing to do that may be increasing in numbers. With prices down 35-50% in some market areas, it seems that some of those people are realizing that there may never again be an opportunity like there is now to purchase a lake home or cabin at such an incredible discount. So maybe there are enough of those buyers to turn this mess around...at least I hope that is true!
So if you can buy, why not buy now? Go ahead and do your part to get the economy back on its feet, and most likely you will have a heck of an investment in any good lake property you purchase. There are certainly enough of them out there to choose from!
Although a few people may have profited somehow from this mess we are in, I haven't found many small business owners who even know if they can hang on for very much longer. I imagine you see just as many For Sale of For Lease signs as I do on commercial buildings on prime street corners across the state. And from what I have seen, it doesn't improve a whole lot as you drive through other parts of the country either. It is a scary thought to think of all those "mom and pop" shops closing their doors, and also having to get rid of those loyal employees who make very little in wages just to continue living in America's small towns. It will eventually be a drastic change in the landscape of the things we love most about this country.
But whatever happens is what will happen. We can try to fix it, or we can ignore it. And if this downturn continues, each year we will end up a little further from a solution to the problem.
I am hopeful that we will regain our senses and realize that small businesses are what built this country, and are what will get it going again. I'm just a small business owner myself, frustrated by many of the things I've seen lately that seem so incredibly far from any realistic solution to the problem.
So, do whatever you can to get on with your life. Some people are so stuck that they really don't know what to do next. If a few of us take a risk here and there, it might be a big enough jolt to get a few of the wheels turning.
But whether you choose to be in the group that pitches in or just sits on the sidelines, I will guarantee that we are all going to be together when it comes to the one thing we can't control. Next year each of us will be another year older...so let's make the most of it we can!
Tuesday, July 12, 2011
Midsummer Mania
Each year around the beginning of July, we end up with a huge spike in the visitors on our website at Lakehomes.com, and it lasts for about a month before turning back the other way to its low point a couple days before Christmas. The same thing happens on our sister sites at LakehomesUSA.com and other waterfront portals across the country. Buyers seem to choose this time of year to be the most interested in thinking about purchasing a lake home or cabin, and then they start drifting away slowly.
Selling lake properties is quite a bit different than working in general residential real estate. Waterfront buyers typically aren't moving from one home to the next, but are instead looking for second homes and vacation getaways. And even if they are thinking of moving to the water for their full time residence, they may not be your normal relocation buyer who has to make a move. So it is entirely in their court whether they make the decision to purchase or not.
After doing this business for as long as I have, I've found that if I can help these buyers understand the market quickly, it will be better for them...and for me. The lakeshore market is not an area of real estate where an agent should decide which three properties might fit a buyer's needs best, at least not until they get a good understanding of the reason why that buyer wants to be on the lake in the first place. And you aren't going to know that until you show them about twenty other lake properties so that they can get a reasonable feel for the current values and what types of structures, lots, lake sizes and lake qualities are available in their price range.
But midsummer is when lakeshore buyers are the most active in their searches -- both online and off. And they aren't out there just for the fun of it. These buyers -- perhaps you reading this article -- are actually ready to purchase a lake cabin, lot, or home...if you get the right assistance and education from your agent.
But if you choose the wrong agent -- one without the abilty to give you the proper education and direction -- you may very likely end up in the largest group of lakeshore property buyers. Those are the ones that never end up having a lake place at all!
Selling lake properties is quite a bit different than working in general residential real estate. Waterfront buyers typically aren't moving from one home to the next, but are instead looking for second homes and vacation getaways. And even if they are thinking of moving to the water for their full time residence, they may not be your normal relocation buyer who has to make a move. So it is entirely in their court whether they make the decision to purchase or not.
After doing this business for as long as I have, I've found that if I can help these buyers understand the market quickly, it will be better for them...and for me. The lakeshore market is not an area of real estate where an agent should decide which three properties might fit a buyer's needs best, at least not until they get a good understanding of the reason why that buyer wants to be on the lake in the first place. And you aren't going to know that until you show them about twenty other lake properties so that they can get a reasonable feel for the current values and what types of structures, lots, lake sizes and lake qualities are available in their price range.
But midsummer is when lakeshore buyers are the most active in their searches -- both online and off. And they aren't out there just for the fun of it. These buyers -- perhaps you reading this article -- are actually ready to purchase a lake cabin, lot, or home...if you get the right assistance and education from your agent.
But if you choose the wrong agent -- one without the abilty to give you the proper education and direction -- you may very likely end up in the largest group of lakeshore property buyers. Those are the ones that never end up having a lake place at all!
Wednesday, June 1, 2011
Going To Zero!
If you are searching for marketing secrets, you really have to look no further than the front page of the daily newspaper to get great ideas. Many times I will walk past the newspaper rack in hopes that nothing will catch my eye, and I can just continue on on by. But, more often than not, at least one headline jumps out at me and pulls me back, causing me to throw out another hard-earned dollar or two so that I can read the full story -- without having to look like a cheapskate standing there thumbing through the pages.
This morning there was another blatant headline in big bold letters that I just couldn't resist: "HOME PRICES KEEP ON DROPPING." It seems like I've seen that one quite often lately, and then the next day there is a another one that says that sales have increased. I really never know what to believe any longer when it comes to real estate news, so most of it is probably best ignored.
But what really caught my eye on this article today was the fact that the Twin Cities "saw the biggest plunge among the largest 20 U.S. Cities"....and there is "no relief in sight!" Wow, does that mean we will keep going down in value until there is no value at all? We will certainly have to raise our commisssions if we hope to make any money in a market like that!
It is almost like that Extreme Couponing show, where they buy hundreds of dollars worth of items and only pay a few bucks -- or even get money back! Is the same thing going to happen now in real estate? I can envision a time in the not too distant future where a buyer might ask to for the seller to pay them a mortgage just to take the house, because there will certainly be upkeep and many expenses over the next 30 years. Buying a house could truly become an investment from day one instead of waiting around for years hoping that it will increase in value.
Well today I'm going to be out showing homes in the $300,000 to $400,000 range, because that is in the price range these buyers are comfortable with. And in the past that was important. But if we are going to zero anyway, I guess there isn't much reason to limit our options to any sort of price range. We can just keep throwing out offers on any homes that fit their criteria -- no matter the price -- until one of these sellers finally understands their place isn't worth anything...any longer!
This morning there was another blatant headline in big bold letters that I just couldn't resist: "HOME PRICES KEEP ON DROPPING." It seems like I've seen that one quite often lately, and then the next day there is a another one that says that sales have increased. I really never know what to believe any longer when it comes to real estate news, so most of it is probably best ignored.
But what really caught my eye on this article today was the fact that the Twin Cities "saw the biggest plunge among the largest 20 U.S. Cities"....and there is "no relief in sight!" Wow, does that mean we will keep going down in value until there is no value at all? We will certainly have to raise our commisssions if we hope to make any money in a market like that!
It is almost like that Extreme Couponing show, where they buy hundreds of dollars worth of items and only pay a few bucks -- or even get money back! Is the same thing going to happen now in real estate? I can envision a time in the not too distant future where a buyer might ask to for the seller to pay them a mortgage just to take the house, because there will certainly be upkeep and many expenses over the next 30 years. Buying a house could truly become an investment from day one instead of waiting around for years hoping that it will increase in value.
Well today I'm going to be out showing homes in the $300,000 to $400,000 range, because that is in the price range these buyers are comfortable with. And in the past that was important. But if we are going to zero anyway, I guess there isn't much reason to limit our options to any sort of price range. We can just keep throwing out offers on any homes that fit their criteria -- no matter the price -- until one of these sellers finally understands their place isn't worth anything...any longer!
Wednesday, April 13, 2011
Buyer and Seller Tips on Pricing and Offers for the 2011 Lakeshore Market
If you are a true lakeshore buyer right now -- one that is serious about purchasing a lake property instead of just looking around -- I'll give you a little insight into what is really going on in the market...and how you might find the best opportunity out there. And lakeshore sellers need to know this information too, because only the truly serious sellers are going to have success this year. So there is really no sense in tippy-toeing around this subject!
I haven't checked all the MLS areas yet, but I did look at the statistics in a couple of them last week, and there are some very telling signs about the waterfront marketplace. In looking at all the residential lake properties (homes and cabins) that went on the market from January 1st, 2010 until last week (15 months), I found that only 15% of them had sold or were pending in one of the MLS Areas, and 17% in the other. That doesn't leave a real likelihood that your lake place is going to sell during the term of your listing contract, so it is probably time to face reality on this issue.
So here is the reality...
For Sellers
There aren't enough buyers in the marketplace for you to put your lake home or cabin on the market hoping that someone might come along at a price you hope to get out of it...IF that price is more than 10% higher than what you would pay for it yourself. Be honest! Now is NOT the time to test the waters, so you are better off just waiting a year of two if you really don't need -- or want -- to get moved on. By not putting your place on the market, you will help the entire marketplace by keeping inventory lower, and you won't get so frustrated with your agent in the process because they aren't getting you all the activity you expected.
Just sit back and enjoy the lake for the time being, and hope for things to get better sometime soon. That may not happen, but unless you have a spectacular property that is incredibly unique and appealing (again, be honest) you are only going to hurt yourself by having it on the market at a price that is much over the actual value. And here are a few of the things that could happen:
For Buyers
As a buyer in this market, you are certainly in the driver's seat. There are more good lake properties out there -- those with great sand beaches and superb lots -- than I have ever seen. In the past, those cabins were usually scooped up by neighbors, friends, or relatives...but not anymore. Money is tougher to come by now, and with all the inventory on these lakes, those closely held transactions are much more rare. So remember that many of these sellers are either upside down on mortgages or have lost a lot of equity that they believed they had several years ago. If you approach this as someone who is trying to take them to the cleaners, you probably won't get very far.
Here are my suggestions on finding a very good deal on a lake home or cabin, and having the seller want to work with you to get it done:
Dan Anderson
866-327-9889
info@lakehomes.com
I haven't checked all the MLS areas yet, but I did look at the statistics in a couple of them last week, and there are some very telling signs about the waterfront marketplace. In looking at all the residential lake properties (homes and cabins) that went on the market from January 1st, 2010 until last week (15 months), I found that only 15% of them had sold or were pending in one of the MLS Areas, and 17% in the other. That doesn't leave a real likelihood that your lake place is going to sell during the term of your listing contract, so it is probably time to face reality on this issue.
So here is the reality...
For Sellers
There aren't enough buyers in the marketplace for you to put your lake home or cabin on the market hoping that someone might come along at a price you hope to get out of it...IF that price is more than 10% higher than what you would pay for it yourself. Be honest! Now is NOT the time to test the waters, so you are better off just waiting a year of two if you really don't need -- or want -- to get moved on. By not putting your place on the market, you will help the entire marketplace by keeping inventory lower, and you won't get so frustrated with your agent in the process because they aren't getting you all the activity you expected.
Just sit back and enjoy the lake for the time being, and hope for things to get better sometime soon. That may not happen, but unless you have a spectacular property that is incredibly unique and appealing (again, be honest) you are only going to hurt yourself by having it on the market at a price that is much over the actual value. And here are a few of the things that could happen:
- You won't get a lot of showings...and maybe not any.
- You will become frustrated with very few showings, and the negative feedback on pricing from those who do come to look at it.
- You will get more hopeful on each showing you have, and start telling yourself that you will "take anything to get rid of this place!"
- You will find yourself dropping your price again and again as you become more motivated, which may appear as a sign of desperation to potential buyers. And if you don't drop your price, you still won't get anyone to look at your property. You will likely find yourself lowering your price to a level below what your agent originally suggested, and then having to look for offers even below that.
- If you do find a buyer to put an offer in, it will most likely be quite a bit lower than you think appropriate. And the entire negotiation will be based on hard feelings and mistrust as you try to come to an agreement, unless you just decide to accept their offer -- or something close to it -- and get moved on.
- Finally, we have the appraisal and underwriting issue. Remember that if you do come to an agreement on a sale price that is hard to justify based on current market conditions, it still may not get to closing. This is a very challenging time to find support for prices that even appear inflated -- especially on lake properties where there are few comparables.
For Buyers
As a buyer in this market, you are certainly in the driver's seat. There are more good lake properties out there -- those with great sand beaches and superb lots -- than I have ever seen. In the past, those cabins were usually scooped up by neighbors, friends, or relatives...but not anymore. Money is tougher to come by now, and with all the inventory on these lakes, those closely held transactions are much more rare. So remember that many of these sellers are either upside down on mortgages or have lost a lot of equity that they believed they had several years ago. If you approach this as someone who is trying to take them to the cleaners, you probably won't get very far.
Here are my suggestions on finding a very good deal on a lake home or cabin, and having the seller want to work with you to get it done:
- Look at a lot of lake properties...not just on the Internet, but in person. If you are working with a good waterfront agent, they will want you to do that so that you can educate yourself on values. I normally don't let anyone look at less than a dozen lake properties, and I prefer to show them twice that many. You will see that a few stand out from the rest of the group. But if you only saw a few, it would be hard to recognize those that were a cut above the rest. Of course, if you are in a much more defined geographic area and price range, there may not be as many available to view.
- Have your ducks in order. If you are going to spend $4 per gallon for gas and a day or two to drive around much of the state to view these, then spend an hour talking to a lender to make sure what you can qualify for. I can't tell you how many times I've been out with a buyer who finds just the right property to fit their needs, but then has to figure out how they can make it work. Most lakeshore buyers usually can make it work out and know about how much they can afford, but just take care of this step upfront to put yourself in a stronger purchasing situation.
- Don't think all properties are overpriced! The reason I like my buyers to look at a lot of properties is that they will end up getting a sense of what the true values are. As you wander through all the junk out there, looking at ideas to add rooms or do major updating, you will find that most of the time it will cost you a whole lot more money to do those improvements than to find a structure in very good condition already. And lots are even more important. A level, sandy lot on a good lake is generally worth about twice as much as a comparable lot with mucky shoreline or high up on a hill. So make sure you consider that value as you compare one property to the next.
- Put yourself in the seller's shoes. Once you find that property that truly stands out from the rest, and is in the same price range as the others, you have come across a nugget. It may be that the other lakeshore buyers don't know as much as you do yet, so don't let them find out. If you feel it is the perfect spot for you, don't get too greedy on the purchasing end. Even at the list price, you have probably found yourself a great deal, but most sellers have at least some room to negotiate as long as it is reasonable. It's when buyers aren't reasonable that negotiations deteriorate.
- Act quickly. It is now the spring market. And even though it may be somewhat slow, this is the time of year when buyers have the most motivation. There are some very good deals out there right now, and if you find the one that you feel is right for you, then it probably is! Don't delay, or you may be kicking yourself for a long time.
- Finally, if you are OK with doing some remodeling and fix-ups, there is an incredible supply of lake properties that fit into that bundle. And, as you can probably guess, many of those sellers have been battle tested for a year or more already, just hoping someone comes along to make them an offer...while they keep dropping their price. There are also some real gems in this group on great lots and very good lakes. So if you don't mind doing a little work, you can be a little more aggressive on your offers here, and you will find some bargains. And generally, even low offers will be more of a blessing than an insult to a lot of these sellers.
I hope this helps you look at this year's spring market with realistic eyes, whether you are a buyer or seller. If you have any other questions, please give me a call or email.
Dan Anderson
866-327-9889
info@lakehomes.com
Monday, March 21, 2011
List Your Lake Rental...Just $100 for 6 Months
With all the requests we've had this past week for rentals, we decided it was time to bite the bullet and start offering them on our site. We even decided to throw out a special price for people who wanted to take advantage of our lakeshore traffic to advertise their properties for rent. And not only will we put it on Lakehomes.com -- even highlighted as a Featured Property in the appropriate area -- but you will also be able to place it on LakehomesUSA.com as well, at no additional cost and for double exposure!
So email us or give us a call at 888-346-5253 if you are ready to get your property in front of more potential lakeshore renters than ever. Because lakeshore buyers are some of the best prospects you can find when you're looking to rent. And NOW is the time they are when they are searching!
Adding rentals to Lakehomes.com is something we planned to do quite awhile ago, because it is such a natural place for lake home and cabin owners to match their properties up with our steady stream of lakeshore shoppers. So we apologize to all of you for the delay, but we hope it was worth the wait.
So email us or give us a call at 888-346-5253 if you are ready to get your property in front of more potential lakeshore renters than ever. Because lakeshore buyers are some of the best prospects you can find when you're looking to rent. And NOW is the time they are when they are searching!
Adding rentals to Lakehomes.com is something we planned to do quite awhile ago, because it is such a natural place for lake home and cabin owners to match their properties up with our steady stream of lakeshore shoppers. So we apologize to all of you for the delay, but we hope it was worth the wait.
Best New Lakeshore Listings in Itasca County: March 21, 2011
I had a couple nice emails from visitors who enjoyed by blog post from yesterday, which highlighted some of the more attractive lake properties listed around Minnesota during the past week. Perhaps this is the type of information busy lakeshore buyers are searching for, instead of lengthy ramblings.
Those properties were out of the Twin Cities Multiple Listing Service, which covers much of the state -- except that not all listings end up in it. So I've decided to continue pulling out some of the best new lake listings from each individual mls area during the coming days and weeks, to make this even more comprehensive for you.
This group from today is a compilation of lake homes and cabins listed recently around Grand Rapids and Itasca County, so just Click Here to view these 22 lakeshore properties. As with yesterday's group, they are generally good lots, good lakes, and have features that I have found to be attractive to lake buyers over the years.
One thing that most lake cabin buyers seem to always ask for are lake places that "feel like being at the lake." If they are using it for a getaway, they don't tend to want something that feels more like a home in city. So I've tried to use that as criteria to sort through all the listings that have come on the market.
I hope you will enjoy these undertakings to help you cut through the clutter as more lake properties come on the market. And as always, please contact me at info@lakehomes.com for more information or showings on any of these listings.
Those properties were out of the Twin Cities Multiple Listing Service, which covers much of the state -- except that not all listings end up in it. So I've decided to continue pulling out some of the best new lake listings from each individual mls area during the coming days and weeks, to make this even more comprehensive for you.
This group from today is a compilation of lake homes and cabins listed recently around Grand Rapids and Itasca County, so just Click Here to view these 22 lakeshore properties. As with yesterday's group, they are generally good lots, good lakes, and have features that I have found to be attractive to lake buyers over the years.
One thing that most lake cabin buyers seem to always ask for are lake places that "feel like being at the lake." If they are using it for a getaway, they don't tend to want something that feels more like a home in city. So I've tried to use that as criteria to sort through all the listings that have come on the market.
I hope you will enjoy these undertakings to help you cut through the clutter as more lake properties come on the market. And as always, please contact me at info@lakehomes.com for more information or showings on any of these listings.
Saturday, March 19, 2011
Eleven Great Lake Properties Just Listed This Week
As the real estate industry continues to evolve, I try to look for new ways to use my experience to help lakeshore buyers the most. With over two decades as a waterfront specialist throughout most of Minnesota and Western Wisconsin, I've probably learned a few things along the way that can be of great value to many prospective lake property shoppers. So I thought it might be beneficial to our visitors to point out some of the more attractive lake listings on good quality lakes new to the market each week. Especially since the spring market is now starting to heat up.
This first group is made up of lake properties just listed during this past week in various parts of Minnesota. They are in no particular price range or area, but each had certain characteristics that stood out from the other new listings. Some have great lots, a few may look like attractive values, and others may just have that "lake feel" that a lot of people are in search of. All are on good quality lakes, and when you combine good properties with good lakes...you tend to get the best long term value!
This is certainly not to say that there weren't a lot of other nice lake properties listed during the past seven days. I will be adding more from other MLS areas as well, so I hope to make this an ongoing value to our visitors. Please email me at info@lakehomes.com if you have questions on any of these listings, or if you have suggestions on other lake properties to feature in this blog.
Thanks,
Dan Anderson
This first group is made up of lake properties just listed during this past week in various parts of Minnesota. They are in no particular price range or area, but each had certain characteristics that stood out from the other new listings. Some have great lots, a few may look like attractive values, and others may just have that "lake feel" that a lot of people are in search of. All are on good quality lakes, and when you combine good properties with good lakes...you tend to get the best long term value!
This is certainly not to say that there weren't a lot of other nice lake properties listed during the past seven days. I will be adding more from other MLS areas as well, so I hope to make this an ongoing value to our visitors. Please email me at info@lakehomes.com if you have questions on any of these listings, or if you have suggestions on other lake properties to feature in this blog.
Thanks,
Dan Anderson
Tuesday, March 15, 2011
Another Way To Find Great Lake Information
For several months, we've been putting together another great lake property site for Minnesota and Wisconsin, too. It is LakehomesMinnesota.com, and most of it is complete...at least a lot of the information you are looking for.
Unlike this site at Lakehomes.com, LakehomesMinnesota.com breaks out micro lake areas in each larger region, and then points out the best lakes in those locales. In many areas we have also completed the details about those smaller segments that help you understand what it might be like there. And, you'll find direct links to the DNR data for those lakes, so it is incredibly easy to use.
With spring almost here, we wanted to make your search for lake properties as easy as can be, so we hope to be adding new material to LakehomesMinnesota weekly. And between our two great sites, you should not be disappointed.
Unlike this site at Lakehomes.com, LakehomesMinnesota.com breaks out micro lake areas in each larger region, and then points out the best lakes in those locales. In many areas we have also completed the details about those smaller segments that help you understand what it might be like there. And, you'll find direct links to the DNR data for those lakes, so it is incredibly easy to use.
With spring almost here, we wanted to make your search for lake properties as easy as can be, so we hope to be adding new material to LakehomesMinnesota weekly. And between our two great sites, you should not be disappointed.
Wednesday, March 9, 2011
When the Rich Jump In, There's Probably Gold at the Bottom of the Pool!
It might be a silly headline, but it's probably pretty true. People with money didn't get there by making stupid decisions. And it isn't a bad idea to watch where they are spending their money -- especially when it comes to real estate -- because they will most likely come out OK on most of their investments.
The problem is that, oftentimes, the great majority of the population can't make decisions or move fast enough financially to get in the game at the right time. And when it comes to purchasing a lake home or cabin, the sense of urgency can be curtailed by family gatherings, summer vacations, and any number of other important events.
This article from CNN Money talks about the fact the million dollar plus homes are now the fastest ones moving. Obviously, in a pure dollar comparison, these homes have been reduced by more than most homes even sell for, so it is a huge savings...and most likely a very good investment. But there are tons of lower-priced properties on the market that have been reduced just as much on a percentage basis, and many of them are great bargains as well. And that is especially true in waterfront and vacation homes on good lakes and good lots, which will always be in demand by people of all income brackets.
So with spring almost here, maybe it is time to check back into that lake house shopping mode and see what's out there. If you're a highly qualified buyer, you may never get a better chance to find the most for the money in a lakefront property.
The problem is that, oftentimes, the great majority of the population can't make decisions or move fast enough financially to get in the game at the right time. And when it comes to purchasing a lake home or cabin, the sense of urgency can be curtailed by family gatherings, summer vacations, and any number of other important events.
This article from CNN Money talks about the fact the million dollar plus homes are now the fastest ones moving. Obviously, in a pure dollar comparison, these homes have been reduced by more than most homes even sell for, so it is a huge savings...and most likely a very good investment. But there are tons of lower-priced properties on the market that have been reduced just as much on a percentage basis, and many of them are great bargains as well. And that is especially true in waterfront and vacation homes on good lakes and good lots, which will always be in demand by people of all income brackets.
So with spring almost here, maybe it is time to check back into that lake house shopping mode and see what's out there. If you're a highly qualified buyer, you may never get a better chance to find the most for the money in a lakefront property.
Thursday, February 3, 2011
Lakehomes.com Takes a Big Step
If you are on this page -- which used to be our home page -- you have probably already seen a new look to Lakehomes.com. One that encompasses 48 more states than we used to have, and one that also adds an incredible amount of features and technological advances from our old programming.
But you will also notice, at the current time, the only new state in operation is Alabama. That may seem like somewhat of a disconnect, but there is a good reason for it.
Any new site, especially one with this much technology, needs a little time to work out a few bugs and make sure everything operates correctly. Because of that, we decided to keep our old design and functionality intact for Minnesota and Wisconsin for a little while, until we make sure everything is working great. We obviously don't want to confuse our visitors in midstream, so everything should still work for you just the way it did before. And sometime soon -- maybe in a few weeks, or a bit longer -- you will also have all the great features that Alabama has.
In reality, we have been working on this strategic plan for nearly two years. But going back further yet, we've always known that Lakehomes.com was the best domain name for lake properties, and sooner or later it had to grow. Now we are there, and what comes next should benefit all of our agents and visitors to a great extent.
So go ahead and use Lakehomes.com like you always have: as the best place to search for waterfront and recreational properties across Minnesota and Western Wisconsin. And when it comes time to launch our new features up in these parts, we will make sure they are even better than you have imagined.
Dan & Sandy Anderson
Founders of Lakehomes.com
Broker / Owners of Lakehomes.com Realty
But you will also notice, at the current time, the only new state in operation is Alabama. That may seem like somewhat of a disconnect, but there is a good reason for it.
Any new site, especially one with this much technology, needs a little time to work out a few bugs and make sure everything operates correctly. Because of that, we decided to keep our old design and functionality intact for Minnesota and Wisconsin for a little while, until we make sure everything is working great. We obviously don't want to confuse our visitors in midstream, so everything should still work for you just the way it did before. And sometime soon -- maybe in a few weeks, or a bit longer -- you will also have all the great features that Alabama has.
In reality, we have been working on this strategic plan for nearly two years. But going back further yet, we've always known that Lakehomes.com was the best domain name for lake properties, and sooner or later it had to grow. Now we are there, and what comes next should benefit all of our agents and visitors to a great extent.
So go ahead and use Lakehomes.com like you always have: as the best place to search for waterfront and recreational properties across Minnesota and Western Wisconsin. And when it comes time to launch our new features up in these parts, we will make sure they are even better than you have imagined.
Dan & Sandy Anderson
Founders of Lakehomes.com
Broker / Owners of Lakehomes.com Realty
Saturday, January 22, 2011
Wall Street Journal Can't Be All Wrong
As 2011 begins to unfold, I'm seeing more and more articles that the waterfront real estate market is probably...finally...on the rebound. As I had mentioned earlier, my conversations with waterfront brokers and agents around the country each week all seem to point to better days ahead.
Last week the Wall Street Journal put out this article, which talks about a resurgence in sales throughout many vacation home markets around the country. We have a few of those markets in Minnesota and Wisconsin as well, so I wouldn't be surprised to see activity heating up quite soon. Especially if the temperatures heat up a bit also.
Last week the Wall Street Journal put out this article, which talks about a resurgence in sales throughout many vacation home markets around the country. We have a few of those markets in Minnesota and Wisconsin as well, so I wouldn't be surprised to see activity heating up quite soon. Especially if the temperatures heat up a bit also.
Wednesday, January 12, 2011
A December to Remember
Typically, December is one of the slowest months for real estate sales across the country, and waterfront real estate is generally one of the least interesting during that month. But for some reason, this year's sales were somewhat robust for us. And brokers in waterfront markets across the country have told me the same was true in their areas.
One broker near Corpus Christi, Texas said it was the best December -- and starting out to be the best January -- they have had in ten years in the real estate business. A recent article in the Star Tribune talked about the resurgence of multiple offers again in Twin Cities market. Something we haven't seem a whole lot for quite a few years, and even then not as much in mid-winter.
As one of my long-time colleagues said the other day, "Perhaps the buyers are just worn down from waiting on the sidelines." Or maybe people just finally feel a little better about the economy and the fact that prices have dropped nearly 50% in some markets!
Whatever the reason, our website traffic is up about 50% from last year at this time...and inquiries from prospective waterfront buyers as well. We seem to be continuing into early January with a fair amount of sales, and many of those tend to be higher prices than we saw last year.
The bottom may have hit in 2010, and market activity seems to just be awakening once again. Even during this typical time for hibernation!
One broker near Corpus Christi, Texas said it was the best December -- and starting out to be the best January -- they have had in ten years in the real estate business. A recent article in the Star Tribune talked about the resurgence of multiple offers again in Twin Cities market. Something we haven't seem a whole lot for quite a few years, and even then not as much in mid-winter.
As one of my long-time colleagues said the other day, "Perhaps the buyers are just worn down from waiting on the sidelines." Or maybe people just finally feel a little better about the economy and the fact that prices have dropped nearly 50% in some markets!
Whatever the reason, our website traffic is up about 50% from last year at this time...and inquiries from prospective waterfront buyers as well. We seem to be continuing into early January with a fair amount of sales, and many of those tend to be higher prices than we saw last year.
The bottom may have hit in 2010, and market activity seems to just be awakening once again. Even during this typical time for hibernation!
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