One thing about specializing in lake properties that isn't so good...just trying to get to them in the winter - and to stay warm enough to enjoy the process. Lake homes aren't too bad, since people generally live in them year-round, but cabins that have been closed up since fall can be a little challenging when you have to trudge through a couple feet of snow to get to the door...and hope you can get both the lockbox and the door open after that.
Even some of the roads leading to Northern Minnesota and Northern Wisconsin cabins may not be on the radar screen of local plow operators, so the hike into those places can be even more difficult. I always try to warn my clients to bring boots and warm clothes if they want to take part in this activity.
A couple years ago I had some buyers from the Twin Cities who wanted to see a real estate listing I had on Crane Lake in mid-winter, which is on the Canadian border. It was a water-access only property, and there was some questionable ice between the end of the ice road and the property. I never think it is very good for business when your car plunges through the ice with clients in it, so we took snow shoes along for the journey and walked a couple miles to the cabin.
There were only a few injuries on that excursion, as the sun decided to sprinkle ice patches around the lake, only to cause one of my buyers to fall several times on the way back as she ran low on energy - but refused to shed her snowshoes. I don't think I sold them anything that day...or ever, come to think of it.
Fortunately, not all of these winter lake property searches are this extreme. Most of the time sellers are wise enough to have someone keep the snow cleaned off the walks and some heat on if they are going to have their lake cabin on the market. But when the heat isn't on, I guarantee you that it will be colder inside the structure than it is outside!
Overall, looking at lake properties in the winter months can be an enjoyable experience. There is no shortage of solitude, as lakes are void of the hum from boat motors, the laughing of children playing in the water, and even the rustle of leaves on the trees. Those are all part of the sounds that bring pleasure to the summer months at your lake place. But the quiet of the other seasons is just as enjoyable for many.
It does seem like some buyers prefer to look for lakefront cabins and homes this time of year. They realize that prices are probably going to be as good as ever, and they want to have their new place before the snow and ice disappear to get the maximum use out of it. A few of those buyers are starting to contact us now to take a look at some things...and we've made a few sales on these types of properties over the past few weeks.
Oh, and one more thing to keep in mind. When you are out searching for lake cabins in the middle of the winter, make sure to ask your agent to make a pit stop at a gas station now and then to use the facilities. It can be a little difficult to find many cabins this time of year with their water turned on!
Saturday, January 17, 2009
Monday, January 5, 2009
Agent Opportunities...Like No Other!
I've been around the real estate business for quite a few years now, and the one thing that has always remained the same is that there is never a shortage of real estate companies willing to hire new agents - both brand new and those moving from another company.
Generally, agents shop around for what they feel is the best deal and the best fit for them personally, and then choose who they want to work for. Many times the honeymoon doesn't last too long though, because they end up competing for business with the other agents in their office. This often leads to the "hoppers" who move from one company to another in search of the perfect home.
However, agents also sometimes realize that the decision to join a particular company may not have been the right one for them. And it is sometimes hard to recognize that before they get a feel for the new operation.
Other reasons to move from one company to another have to do with feelings of stagnation, boredom, or a need to be more independent - which is why some agents choose to start their own brokerages after working under another broker for several years.
At Lakehomes.com, we have a significantly different philosophy than other brokerages. We have gone out of our way to give our agents reasonably protected territories, as long as they are actively selling. On top of that, we are now paying out commissions from 70% to 95%, along with free leads. That allows our agents to have much more control over their respective market areas, and to run their real estate businesses like businesses...which is what ultimately benefits the buyers and sellers the most!
We don't provide fancy offices or a lot of other perks that have to be compensated for by charging higher commissions or junk fees to sellers, or taking it from the agents' bottom line. Instead, we are able to pass along high value at a low cost to our agents, giving them more latitude and flexibility with each client.
But don't be fooled by our ability to operate on a streamlined basis. With nearly all waterfront buyers - and sellers - searching the Internet for available properties and knowledgeable agents, it is not too difficult to see why our waterfront specialists are so successful in finding buyers for their waterfront and recreational listings.
A Google search such as Minnesota lakefront real estate or Minnesota waterfront property will generally display our site at the top of all results. And although it is impossible to be the number one result on every search all the time, you will typically see us within the top few on most every community or lake area name across Minnesota with terms like "lakefront," "waterfront," etc.
Here are a few other search terms relating to waterfront real estate that seem to be showing strong search results today for us: Duluth lakefront property, Park Rapids waterfront property, Longville real estate, Minneapolis lake property, Twin Cities waterfront real estate, Northern Minnesota lake lots, Northern Minnesota lake homes, St. Cloud lakefront real estate and Western Wisconsin lake properties...to name a few. You will currently see the same types of results across most of Minnesota, and as we add new listings and agents throughout the Midwest, we are generally displayed at the top of new areas rather quickly.
Search results are no doubt very important these days, in an age where buyers and sellers want specific information quickly. We can easily provide those, and be a great source of targeted marketing for all types of recreational properties. But it's our agents who use this technology to give their sellers the marketing capabilities they desire, and to provide easy searching and ongoing communication to buyers.
So, if you are a little tired of how your real estate business has been going, you might want to try ours. Spring is coming quickly, and now is a great time to take advantage of our differentiation.
If you are a knowledgeable lakeshore agent, and interested in becoming the Lead Agent in your market area, we may be able to offer you exclusive rights to your territory, along with immediate access to all buyer and seller inquiries there. And at listing appointments, you will truly have something valuable to offer...that no one else will be able to.
Oh, and by the way, even if you aren't ready to change companies there may be some opportunity to work together. We send a lot of leads out to various partner agents and brokers in areas where we think they can help the customers best. We just may be able to send some your way! Please feel free to contact me for more information.
Dan
Generally, agents shop around for what they feel is the best deal and the best fit for them personally, and then choose who they want to work for. Many times the honeymoon doesn't last too long though, because they end up competing for business with the other agents in their office. This often leads to the "hoppers" who move from one company to another in search of the perfect home.
However, agents also sometimes realize that the decision to join a particular company may not have been the right one for them. And it is sometimes hard to recognize that before they get a feel for the new operation.
Other reasons to move from one company to another have to do with feelings of stagnation, boredom, or a need to be more independent - which is why some agents choose to start their own brokerages after working under another broker for several years.
At Lakehomes.com, we have a significantly different philosophy than other brokerages. We have gone out of our way to give our agents reasonably protected territories, as long as they are actively selling. On top of that, we are now paying out commissions from 70% to 95%, along with free leads. That allows our agents to have much more control over their respective market areas, and to run their real estate businesses like businesses...which is what ultimately benefits the buyers and sellers the most!
We don't provide fancy offices or a lot of other perks that have to be compensated for by charging higher commissions or junk fees to sellers, or taking it from the agents' bottom line. Instead, we are able to pass along high value at a low cost to our agents, giving them more latitude and flexibility with each client.
But don't be fooled by our ability to operate on a streamlined basis. With nearly all waterfront buyers - and sellers - searching the Internet for available properties and knowledgeable agents, it is not too difficult to see why our waterfront specialists are so successful in finding buyers for their waterfront and recreational listings.
A Google search such as Minnesota lakefront real estate or Minnesota waterfront property will generally display our site at the top of all results. And although it is impossible to be the number one result on every search all the time, you will typically see us within the top few on most every community or lake area name across Minnesota with terms like "lakefront," "waterfront," etc.
Here are a few other search terms relating to waterfront real estate that seem to be showing strong search results today for us: Duluth lakefront property, Park Rapids waterfront property, Longville real estate, Minneapolis lake property, Twin Cities waterfront real estate, Northern Minnesota lake lots, Northern Minnesota lake homes, St. Cloud lakefront real estate and Western Wisconsin lake properties...to name a few. You will currently see the same types of results across most of Minnesota, and as we add new listings and agents throughout the Midwest, we are generally displayed at the top of new areas rather quickly.
Search results are no doubt very important these days, in an age where buyers and sellers want specific information quickly. We can easily provide those, and be a great source of targeted marketing for all types of recreational properties. But it's our agents who use this technology to give their sellers the marketing capabilities they desire, and to provide easy searching and ongoing communication to buyers.
So, if you are a little tired of how your real estate business has been going, you might want to try ours. Spring is coming quickly, and now is a great time to take advantage of our differentiation.
If you are a knowledgeable lakeshore agent, and interested in becoming the Lead Agent in your market area, we may be able to offer you exclusive rights to your territory, along with immediate access to all buyer and seller inquiries there. And at listing appointments, you will truly have something valuable to offer...that no one else will be able to.
Oh, and by the way, even if you aren't ready to change companies there may be some opportunity to work together. We send a lot of leads out to various partner agents and brokers in areas where we think they can help the customers best. We just may be able to send some your way! Please feel free to contact me for more information.
Dan
Thursday, January 1, 2009
Happy New Year
This past year has been a challenge for a lot of people, and certainly the real estate industry was one of the hardest hit. Sellers have had a tough time finding enough good buyers to generate reasonable offers - if any - on their homes, and so quite a few of them have decided to hold off for awhile until the dust settles.
Agents have left the industry in droves, with many of them not able to make enough money to even cover their expenses, let alone support their families and have any fun money left over. So...what will be next?
I'm optimistic about 2009. Our page views have shot through the roof on our website since the day after Christmas, and that means there are waterfront buyers out there starting to look already. That is generally what happens after a slow market like the one last year. And the 2009 sales may speed up even more quickly because of the low interest rates!
At the same time, we are making several changes to our overall marketing plan for our listings. In an attempt to make sure we find every possible buyer out there for our listings, we have created several new concepts that are proving quite interesting.
You will be seeing some of these on our website in the days ahead. But, if you're thinking of selling fairly soon, feel free to contact us for more information on how you can benefit from some of these cutting edge ideas.
Remember...the spring market starts way before spring. So don't let it pass you by!
Agents have left the industry in droves, with many of them not able to make enough money to even cover their expenses, let alone support their families and have any fun money left over. So...what will be next?
I'm optimistic about 2009. Our page views have shot through the roof on our website since the day after Christmas, and that means there are waterfront buyers out there starting to look already. That is generally what happens after a slow market like the one last year. And the 2009 sales may speed up even more quickly because of the low interest rates!
At the same time, we are making several changes to our overall marketing plan for our listings. In an attempt to make sure we find every possible buyer out there for our listings, we have created several new concepts that are proving quite interesting.
You will be seeing some of these on our website in the days ahead. But, if you're thinking of selling fairly soon, feel free to contact us for more information on how you can benefit from some of these cutting edge ideas.
Remember...the spring market starts way before spring. So don't let it pass you by!
Thursday, December 11, 2008
A Few Bright Spots
There was a good comment today on my last blog article about doing what you do best and staying positive. Those are definitely good recommendations, and we should all try to focus on the positive things going on around us.
As many of you may already know, we also own the websites at LakehomesUSA.com, RiverhomesUSA.com, and OceanhomesUSA.com. In doing so, we communicate each day with real estate agents and brokers across the country. Recently, although sporadic, I'm starting to hear more comments about good things going on in various markets, and that tends to shine a brighter light on days ahead.
Just in the last week, I've had positive comments from agents regarding their markets in California, Alabama, New Jersey, Florida and Mississippi. It's not all rosy out there, but there seems to be some sense of doom and gloom subsiding a bit.
We've also had a few more buyers contacting us recently, and in Minnesota you can't complain about that this time of year. See, I'm already in a better mood.
I spend a lot of time these days sitting at my desk and running this company, so it might be good for me to get outside a little more often. If any of you would like the company of an experienced lakeshore specialist in your search for just the right lake place, give me a call or email and we can get to work on it right away!
Dan
As many of you may already know, we also own the websites at LakehomesUSA.com, RiverhomesUSA.com, and OceanhomesUSA.com. In doing so, we communicate each day with real estate agents and brokers across the country. Recently, although sporadic, I'm starting to hear more comments about good things going on in various markets, and that tends to shine a brighter light on days ahead.
Just in the last week, I've had positive comments from agents regarding their markets in California, Alabama, New Jersey, Florida and Mississippi. It's not all rosy out there, but there seems to be some sense of doom and gloom subsiding a bit.
We've also had a few more buyers contacting us recently, and in Minnesota you can't complain about that this time of year. See, I'm already in a better mood.
I spend a lot of time these days sitting at my desk and running this company, so it might be good for me to get outside a little more often. If any of you would like the company of an experienced lakeshore specialist in your search for just the right lake place, give me a call or email and we can get to work on it right away!
Dan
Thursday, December 4, 2008
Heading For 2009
You may notice a slightly different look to our website today. Over the coming months we plan to bring Lakehomes.com to a new level of design and format, and the logo seemed to be a good first step.
You've probably also seen a few video camera graphics popping up to the side of some of our listings, which will make it easier for long distance buyers to get a better perspective of a property before they make a trip to see it. More and more of these will be available in the days ahead.
As the new logo points out, Lakehomes.com has been around since 1996 - longer than any other waterfront website. It is based on the simple concept the "Specialized Agents" can do a more productive job in guiding waterfront buyers and sellers to their desired goal. And with the Lakehomes.com name behind them, our agents have some of the best resources available in Internet marketing and expert knowledge to make sure their clients are getting the exposure and guidance they deserve.
The real estate business has changed immensely over the past twenty years, when I first started my career. The days of sending an ad for a new listing into the newspaper several days in advance, have now been replaced by immediate and thorough exposure for those properties on niche websites such as ours.
As a seller, it is probably more confusing than ever to try and figure out what types of online - or offline - marketing may work best. And with the slowdown in the economy, the decisions you make may be more important than ever.
I have had a lot of calls lately from prospective sellers asking me what kinds of things we can do - or they can do - to attract a buyer to their home or property. The most honest answer I can give is, "I'm not sure." Having great exposure is no doubt a big part in getting buyers to find you, but there will be many other factors that come into play on each particular property...and the expertise of the agent you choose to work with is a huge one.
It has been our goal for many years to provide a deeper value to Lakehomes.com than just as a website to find properties. The site - and the agents you see on it - are an extension of the waterfront niche that we built long before our competitors came around. And from personally working with thousands of lakeshore buyers and sellers throughout the years, we have a pretty good sense of what is important to them, in general.
The next stage of Lakehomes.com will be different from the past. I firmly believe the real estate industry will need to re-tool along with the automakers if they are to come out of this downturn in decent shape. Many brokers have continued to hang on to antiquated methods of doing business, and I don't plan to be in that camp.
So it is now time to move ahead with new ideas. Many of those are in my head, and I'll release them to the website now and then. But the real change will be the philosophy on how the business operates to benefit the consumer the most...far beyond changes in design or added features.
The one thing I'm sure of is that you will see a lot more of Lakehomes.com soon. And...you will see a lot more waterfront real estate sold because of it!
You've probably also seen a few video camera graphics popping up to the side of some of our listings, which will make it easier for long distance buyers to get a better perspective of a property before they make a trip to see it. More and more of these will be available in the days ahead.
As the new logo points out, Lakehomes.com has been around since 1996 - longer than any other waterfront website. It is based on the simple concept the "Specialized Agents" can do a more productive job in guiding waterfront buyers and sellers to their desired goal. And with the Lakehomes.com name behind them, our agents have some of the best resources available in Internet marketing and expert knowledge to make sure their clients are getting the exposure and guidance they deserve.
The real estate business has changed immensely over the past twenty years, when I first started my career. The days of sending an ad for a new listing into the newspaper several days in advance, have now been replaced by immediate and thorough exposure for those properties on niche websites such as ours.
As a seller, it is probably more confusing than ever to try and figure out what types of online - or offline - marketing may work best. And with the slowdown in the economy, the decisions you make may be more important than ever.
I have had a lot of calls lately from prospective sellers asking me what kinds of things we can do - or they can do - to attract a buyer to their home or property. The most honest answer I can give is, "I'm not sure." Having great exposure is no doubt a big part in getting buyers to find you, but there will be many other factors that come into play on each particular property...and the expertise of the agent you choose to work with is a huge one.
It has been our goal for many years to provide a deeper value to Lakehomes.com than just as a website to find properties. The site - and the agents you see on it - are an extension of the waterfront niche that we built long before our competitors came around. And from personally working with thousands of lakeshore buyers and sellers throughout the years, we have a pretty good sense of what is important to them, in general.
The next stage of Lakehomes.com will be different from the past. I firmly believe the real estate industry will need to re-tool along with the automakers if they are to come out of this downturn in decent shape. Many brokers have continued to hang on to antiquated methods of doing business, and I don't plan to be in that camp.
So it is now time to move ahead with new ideas. Many of those are in my head, and I'll release them to the website now and then. But the real change will be the philosophy on how the business operates to benefit the consumer the most...far beyond changes in design or added features.
The one thing I'm sure of is that you will see a lot more of Lakehomes.com soon. And...you will see a lot more waterfront real estate sold because of it!
Friday, November 21, 2008
A New Focus to this Blog
My dad was a math teacher for more than thirty years. I always thought it would be a terrible job trying to create new and interesting subject material each day from a basic foundation that really doesn't change. He was a great teacher, but I think he got a little bored near the end of his career.
There were a lot of other teachers I knew who also seemed like they had lost interest in new ideas as the years wore on them. Some would not even let their students have copies of the tests that they took, because they would surely get passed around and it would be extra work to think up new questions for the following year.
It certainly isn't just teachers that go through these stages during their tenure, but it may be easier to recognize since they tend to focus on a single main subject...from the time they enter their profession until the end of it.
Sadly, many of those intelligent people - who were very motivated when they began their careers - got tired. And that is pretty much the same thing that happens to any of us in time, unless we change our focus now and then.
As much as I enjoy writing about my experiences with lake property and the real estate market in general, the writing style becomes a little stale after awhile. Once that happens, I become less interested in providing new information, and you have less interest in reading it.
You may have already noticed that a lot of my earlier articles provided a reasonable amount of experiential knowledge on what types of things to keep an eye out for when buying or selling lake property. If you haven't read them already, you can easily look back at those jottings to get some insight into my two decades of work in this niche. Several people have mentioned to me how valuable some of that information was to them, and it made them think differently on how to approach the market either as a seller or a buyer.
However, as the 2008 market wained, it got a bit repetitious to think of new ways to talk about a limited bucket of items, like the difference in values between sandy shoreline or the mucky variety. So I started spewing my personal thoughts on several things tied to the economic doldrums. After all, I think blogs should be a direct flow of one's own beliefs from the brain to the keyboard...even if it is off the subject a bit.
Now, as we turn to the last page of the current calendar, I'm also getting tired of this subject. I've seen enough news reports on deflation and bailouts to sicken me for quite some time. So, I'm searching for a new slant to this blog! I'll happily accept recommendations, so if you have some ideas just throw them my way.
But until I get zapped with enthusiasm from some type of turnaround - or at least a teeny little glow at the end of the tunnel - I'm going to look around for subject matter from a few of my colleagues across the country. Maybe with less of a focus entirely on waterfront property, but ideas and successes that seem to be working for people in other areas who are attempting to play the real estate game during in this dreary climate.
So let's quit focusing on the bad news (like the Dow dropping almost 700 points today), and instead turn to all the positive things going on in the world of real estate. If nothing else, it will keep me pretty busy trying to dig some up! And if it helps a few of my readers with their 2009 real estate plans, I did my job.
Dan
There were a lot of other teachers I knew who also seemed like they had lost interest in new ideas as the years wore on them. Some would not even let their students have copies of the tests that they took, because they would surely get passed around and it would be extra work to think up new questions for the following year.
It certainly isn't just teachers that go through these stages during their tenure, but it may be easier to recognize since they tend to focus on a single main subject...from the time they enter their profession until the end of it.
Sadly, many of those intelligent people - who were very motivated when they began their careers - got tired. And that is pretty much the same thing that happens to any of us in time, unless we change our focus now and then.
As much as I enjoy writing about my experiences with lake property and the real estate market in general, the writing style becomes a little stale after awhile. Once that happens, I become less interested in providing new information, and you have less interest in reading it.
You may have already noticed that a lot of my earlier articles provided a reasonable amount of experiential knowledge on what types of things to keep an eye out for when buying or selling lake property. If you haven't read them already, you can easily look back at those jottings to get some insight into my two decades of work in this niche. Several people have mentioned to me how valuable some of that information was to them, and it made them think differently on how to approach the market either as a seller or a buyer.
However, as the 2008 market wained, it got a bit repetitious to think of new ways to talk about a limited bucket of items, like the difference in values between sandy shoreline or the mucky variety. So I started spewing my personal thoughts on several things tied to the economic doldrums. After all, I think blogs should be a direct flow of one's own beliefs from the brain to the keyboard...even if it is off the subject a bit.
Now, as we turn to the last page of the current calendar, I'm also getting tired of this subject. I've seen enough news reports on deflation and bailouts to sicken me for quite some time. So, I'm searching for a new slant to this blog! I'll happily accept recommendations, so if you have some ideas just throw them my way.
But until I get zapped with enthusiasm from some type of turnaround - or at least a teeny little glow at the end of the tunnel - I'm going to look around for subject matter from a few of my colleagues across the country. Maybe with less of a focus entirely on waterfront property, but ideas and successes that seem to be working for people in other areas who are attempting to play the real estate game during in this dreary climate.
So let's quit focusing on the bad news (like the Dow dropping almost 700 points today), and instead turn to all the positive things going on in the world of real estate. If nothing else, it will keep me pretty busy trying to dig some up! And if it helps a few of my readers with their 2009 real estate plans, I did my job.
Dan
Wednesday, November 12, 2008
Living In The Moment
They say that time passes us by if we don't "live in the moment." We miss out on all the beautiful things around us by always looking ahead. And later we look back on memories that we wish we would have spent more time enjoying when they were taking place.
Most all of us do it. We are excited to get on with the next stage of our lives, whether it is an upcoming wedding, a new car, a creative marketing campaign, or next month's vacation. But whatever that next big event is on our calendar or in our mind, we pass up opportunities to take advantage of the little things that can truly make us happy.
I believe there is also a variation of this "living in the moment" philosophy called "getting caught up in the moment," but not in the sense of just an isolated event. It could be that a great majority of the American public is now caught up in the moment of how bad the economy is...or seems to be. And this is pretty much just the opposite of its cousin: "living in the moment," because it won't let people move ahead - or even think about moving ahead.
It is no doubt true that there is a wide array of financial difficulties tied to this economic downturn. Financing is more difficult, and equity has been eaten up rather quickly. But there is still a lot of capital available, and we are seeing more cash sales than we used to.
No matter what situation we are in, there is always a group of people that look beyond the news stations and the barrage of negative reports, and just charge ahead. They don't do it carelessly or haphazardly, but there seems to be another driving force of self confidence involved that gives them comfort in making forward-thinking decisions that others wouldn't risk.
Everyone knows these types of people. Nothing bad really ever seems to stick to them, and they tend to be genuinely happy. Whereas, those who constantly worry about the terrible things that might happen today or next week - or the fact that their 401K has lost 27% of its value and may never come back - cannot pull themselves out this self-perpetuating rut of scarry thinking.
Obviously, real estate has become a large part of this worry. Those who can't seem to sell their homes are worried that the real estate value they perceived as rock solid may never come back, and they don't have enough equity left to even move on with their lives. These are real worries, and there are no great answers to that problem currently. Sellers in this position need to use every resource possible to figure out how to get the best exposure for their properties, and to make them as appealing as they can.
On the other end of the rope are the buyers that would never think of venturing into this imaginary vortex called the real estate market, where they might get swept away in a whirlwind of shrinking values. It's true that something like that might happen, but it's also true that I might get home tonight and find Martians have taken over my house and made "Ollie the Dog" their leader. We just don't know what the future holds, and that is what makes life so interesting.
If we are too petrified to take chances and are unable to consider what types of positive experiences may await us if we do, then we are simply "caught up in the moment." And we will pass by those opportunities, leaving others to take advantage of them instead. Only to later say, "Boy, were they lucky to buy that when they did! I can't believe the price they got that for!...blah, blah, blah, blah, blah!"
That is what is happening with real estate sales right now. Home prices in many areas are similar to prices from 2004, and some buyers who are peering into the future are seeing happy times at their new lake cabin or the enjoyment of an upgraded home they could never have afforded in the past. For many of them, the crystal ball is showing visions of instant equity as soon as this market turns around. They know that buying anything at the bottom is a matter of luck, and they are convinced that we are close enough.
Since most people purchase waterfront properties for reasonably long-term enjoyment, buyers in this category are assuming a little bit of risk while increasing their "utils of satisfaction." They don't need immediate gratification from all ends; instead they look to a steadily increasing level of enjoyment - both in new experiences with family and friends...and most likely in real estate value in the not too distant future.
To make this even more exciting for waterfront and recreational buyers, prices and availability for lake properties and large parcels of raw land are pretty impressive. In the two decades I've been in this business, I don't think I've seen such a wide selection of good vacation properties for sale. Not only are values low compared to construction costs, but there are plenty of choice properties that you would never have seen hit the open market in past years.
So try not to get too caught up in all the bad news. If the Dow keeps going down 400 points each day, we only have about 20 of them to go anyway. You probably won't even be able to close before then!
And if it doesn't keeping dropping, you'll have plenty of time to "live in the moment" at your new lake home.
Dan
Most all of us do it. We are excited to get on with the next stage of our lives, whether it is an upcoming wedding, a new car, a creative marketing campaign, or next month's vacation. But whatever that next big event is on our calendar or in our mind, we pass up opportunities to take advantage of the little things that can truly make us happy.
I believe there is also a variation of this "living in the moment" philosophy called "getting caught up in the moment," but not in the sense of just an isolated event. It could be that a great majority of the American public is now caught up in the moment of how bad the economy is...or seems to be. And this is pretty much just the opposite of its cousin: "living in the moment," because it won't let people move ahead - or even think about moving ahead.
It is no doubt true that there is a wide array of financial difficulties tied to this economic downturn. Financing is more difficult, and equity has been eaten up rather quickly. But there is still a lot of capital available, and we are seeing more cash sales than we used to.
No matter what situation we are in, there is always a group of people that look beyond the news stations and the barrage of negative reports, and just charge ahead. They don't do it carelessly or haphazardly, but there seems to be another driving force of self confidence involved that gives them comfort in making forward-thinking decisions that others wouldn't risk.
Everyone knows these types of people. Nothing bad really ever seems to stick to them, and they tend to be genuinely happy. Whereas, those who constantly worry about the terrible things that might happen today or next week - or the fact that their 401K has lost 27% of its value and may never come back - cannot pull themselves out this self-perpetuating rut of scarry thinking.
Obviously, real estate has become a large part of this worry. Those who can't seem to sell their homes are worried that the real estate value they perceived as rock solid may never come back, and they don't have enough equity left to even move on with their lives. These are real worries, and there are no great answers to that problem currently. Sellers in this position need to use every resource possible to figure out how to get the best exposure for their properties, and to make them as appealing as they can.
On the other end of the rope are the buyers that would never think of venturing into this imaginary vortex called the real estate market, where they might get swept away in a whirlwind of shrinking values. It's true that something like that might happen, but it's also true that I might get home tonight and find Martians have taken over my house and made "Ollie the Dog" their leader. We just don't know what the future holds, and that is what makes life so interesting.
If we are too petrified to take chances and are unable to consider what types of positive experiences may await us if we do, then we are simply "caught up in the moment." And we will pass by those opportunities, leaving others to take advantage of them instead. Only to later say, "Boy, were they lucky to buy that when they did! I can't believe the price they got that for!...blah, blah, blah, blah, blah!"
That is what is happening with real estate sales right now. Home prices in many areas are similar to prices from 2004, and some buyers who are peering into the future are seeing happy times at their new lake cabin or the enjoyment of an upgraded home they could never have afforded in the past. For many of them, the crystal ball is showing visions of instant equity as soon as this market turns around. They know that buying anything at the bottom is a matter of luck, and they are convinced that we are close enough.
Since most people purchase waterfront properties for reasonably long-term enjoyment, buyers in this category are assuming a little bit of risk while increasing their "utils of satisfaction." They don't need immediate gratification from all ends; instead they look to a steadily increasing level of enjoyment - both in new experiences with family and friends...and most likely in real estate value in the not too distant future.
To make this even more exciting for waterfront and recreational buyers, prices and availability for lake properties and large parcels of raw land are pretty impressive. In the two decades I've been in this business, I don't think I've seen such a wide selection of good vacation properties for sale. Not only are values low compared to construction costs, but there are plenty of choice properties that you would never have seen hit the open market in past years.
So try not to get too caught up in all the bad news. If the Dow keeps going down 400 points each day, we only have about 20 of them to go anyway. You probably won't even be able to close before then!
And if it doesn't keeping dropping, you'll have plenty of time to "live in the moment" at your new lake home.
Dan
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