A few months ago we began to change a few things on our website to give it a fresher appearance and more functionality. You probably didn't notice much difference until the last couple of weeks when the main design alterations began to appear. It is something we've wanted to do for a long time, but these aren't overnight projects so we tend to put them off when things work well. On top of that, we have several other waterfront websites that constantly need attention to keep operating effectively, so time is always a factor.
The changes at this time are still ongoing. Whenever you redesign a website you miss a couple of things that you would like to have, or notice items after the fact that seem out of place. Those fixes will come, but for the most part we are happy with the cleaner look and more efficient usability for our visitors.
Our site at Lakehomes.com has been a valuable tool for waterfront buyers and sellers since 1996. Each year we have tried our best to keep it that way and make it better as the technology became available to do so. Although some people may like the looks of the old site better, there are also those who carry an affection to things from the past such as rotary phones and 1965 Impalas. There is nothing necessarily wrong with those items, but sometimes new ideas make life a bit easier. We hope that our new website does that for you also.
Please be assured that we will continue to make Lakehomes.com a great place to visit in your quest for waterfront properties in Minnesota and Wisconsin. We will attempt to provide you with the most relevant content, knowledgeable lakeshore agents, and a comprehensive supply of listings to peruse. For additional information on any waterfront areas or real estate information, just give us or any of our agents a call or email.
Monday, February 23, 2009
Sunday, February 15, 2009
About Price Decreases
There was a comment on my last blog about what I have been seeing with price decreases in the market. I don't know if there is a general answer for this, but overall I have a gut instinct on how this is playing out.
About three or four years ago everything was moving along just fine...actually a little too fine. Interest rates were low and loans were extremely easy to come by. In fact it got a bit ridiculous in that some buyers were not happy with just putting nothing down on home purchases; in addition they wanted money back at closing. That, combined with a huge influx in new and inexperienced agents, created kind of a mess out there in property valuations.
As we all know now, the last few years changed that free-for-all mentality. Now the challenge has shifted to getting consumers feeling assured that values won't continue to decrease on their property purchases. Even lake properties, which were always considered a safe haven along with their attributes for enjoyment, have a smaller group of serious prospects hunting for them.
But, that doesn't mean that the market has dried up. The number of visitors to our website at Lakehomes.com has about doubled in the last two weeks, and we have had an increasing amount of calls and emails coming in. It seems to me that there is some pent-up demand in the waterfront real estate market, at least, but buyers have a lot of inventory to choose from...so well-priced properties and those with the best beaches and other amenities will be in highest demand.
Getting back to the question of how much prices will have to decrease for everything to turn around, this is my answer:
Good properties on good lakes will always be in demand. The problem is that most properties aren't good. I have found over the years that about 80% of buyers want sand beach, or at least a firm shoreline. If you have a mucky bottom, you probably paid about half as much for your lot as someone with hard sand frontage...or you should have if you were being represented by a knowledgeable waterfront real estate expert. Obviously, there are already less possible buyers for this type of lot -- no matter how nice the structure is -- so you will have to be priced accordingly.
Properties that are high up on hills overlooking the water have the same issues. Most lakeshore buyers are either looking toward retirement or have small kids, so this type of property is generally not conducive to either of them. Some people love the views that these eagles nest properties have to offer, but many others see them as a burden for access to the lake. Be prepared for longer market times on these types of homes and cabins, too.
Some people like the idea of quiet lakes that offer solitude from boaters and the constant assortment of activities available on larger water bodies. The key word here is "some" -- because "most" enjoy the idea of having lots of things to do at the lake. Again, there are buyers who will have the same mindset of living in peace, but be prepared for a smaller pool of them.
Lake cabins and homes with 70s decor, or designs such as split levels that feel more like they belong in Bloomington than they do on a Northern Minnesota lake, also don't typically sell as well on the water -- unless the lots are truly desirable! Most buyers looking for lake properties want to feel like they are at the lake, not like they are buying another house in the city. If there are things you can do to open up walls, add some tongue and groove to the interior, or create a more interesting waterfront ambiance, you will have better luck grabbing one of the buyers in today's market.
And then you have the homes and cabins that feel like lake places on good, clear recreational lakes with level lots and sand beach. They might be older cabins set amongst towering pines where the lots have sat undisturbed for decades, or they could be well-designed newer structures with quality finishing that have taken full advantage of their prime lots and views. If priced within reason, these are certainly the most sought after of all lake properties. I don't believe that demand for these will ever go away. But if sellers get too greedy on pricing these, too, will sit.
So there you have it. I didn't really answer you question...because there really isn't an answer to it. However, there has been a fairly substantial reduction overall in prices during the past year, and there are some pretty interesting properties available at great values right now. Some buyers will recognize this, and others will probably wait too long. None of us know when the bottom will hit, but it generally takes place sometime before we know it is happening.
In this type of market, the best suggestion I can make is to work with agents who understand values and can help protect you from making the wrong decisions. Sometimes, what may look like a good value is really a bad one in disguise. I don't think this is a good time to go it alone thinking you might save a couple dollars somehow, because many who did that a few years back have ended up in just the opposite situation today!
About three or four years ago everything was moving along just fine...actually a little too fine. Interest rates were low and loans were extremely easy to come by. In fact it got a bit ridiculous in that some buyers were not happy with just putting nothing down on home purchases; in addition they wanted money back at closing. That, combined with a huge influx in new and inexperienced agents, created kind of a mess out there in property valuations.
As we all know now, the last few years changed that free-for-all mentality. Now the challenge has shifted to getting consumers feeling assured that values won't continue to decrease on their property purchases. Even lake properties, which were always considered a safe haven along with their attributes for enjoyment, have a smaller group of serious prospects hunting for them.
But, that doesn't mean that the market has dried up. The number of visitors to our website at Lakehomes.com has about doubled in the last two weeks, and we have had an increasing amount of calls and emails coming in. It seems to me that there is some pent-up demand in the waterfront real estate market, at least, but buyers have a lot of inventory to choose from...so well-priced properties and those with the best beaches and other amenities will be in highest demand.
Getting back to the question of how much prices will have to decrease for everything to turn around, this is my answer:
Good properties on good lakes will always be in demand. The problem is that most properties aren't good. I have found over the years that about 80% of buyers want sand beach, or at least a firm shoreline. If you have a mucky bottom, you probably paid about half as much for your lot as someone with hard sand frontage...or you should have if you were being represented by a knowledgeable waterfront real estate expert. Obviously, there are already less possible buyers for this type of lot -- no matter how nice the structure is -- so you will have to be priced accordingly.
Properties that are high up on hills overlooking the water have the same issues. Most lakeshore buyers are either looking toward retirement or have small kids, so this type of property is generally not conducive to either of them. Some people love the views that these eagles nest properties have to offer, but many others see them as a burden for access to the lake. Be prepared for longer market times on these types of homes and cabins, too.
Some people like the idea of quiet lakes that offer solitude from boaters and the constant assortment of activities available on larger water bodies. The key word here is "some" -- because "most" enjoy the idea of having lots of things to do at the lake. Again, there are buyers who will have the same mindset of living in peace, but be prepared for a smaller pool of them.
Lake cabins and homes with 70s decor, or designs such as split levels that feel more like they belong in Bloomington than they do on a Northern Minnesota lake, also don't typically sell as well on the water -- unless the lots are truly desirable! Most buyers looking for lake properties want to feel like they are at the lake, not like they are buying another house in the city. If there are things you can do to open up walls, add some tongue and groove to the interior, or create a more interesting waterfront ambiance, you will have better luck grabbing one of the buyers in today's market.
And then you have the homes and cabins that feel like lake places on good, clear recreational lakes with level lots and sand beach. They might be older cabins set amongst towering pines where the lots have sat undisturbed for decades, or they could be well-designed newer structures with quality finishing that have taken full advantage of their prime lots and views. If priced within reason, these are certainly the most sought after of all lake properties. I don't believe that demand for these will ever go away. But if sellers get too greedy on pricing these, too, will sit.
So there you have it. I didn't really answer you question...because there really isn't an answer to it. However, there has been a fairly substantial reduction overall in prices during the past year, and there are some pretty interesting properties available at great values right now. Some buyers will recognize this, and others will probably wait too long. None of us know when the bottom will hit, but it generally takes place sometime before we know it is happening.
In this type of market, the best suggestion I can make is to work with agents who understand values and can help protect you from making the wrong decisions. Sometimes, what may look like a good value is really a bad one in disguise. I don't think this is a good time to go it alone thinking you might save a couple dollars somehow, because many who did that a few years back have ended up in just the opposite situation today!
Monday, February 9, 2009
The Spring Market Is Here!!!
I always enjoy springtime in the lake property business. There is just something that lifts your spirits as you travel from lake to lake through slush-filled gravel roads, sometimes barely passable as the frost begins to fade away in place of wobbly earth behind it.
When I walked outside today it was raining, so to me that was the first sign that lake cabin buyers will be coming out of hiding soon. The second sign was when we received several information requests from potential buyers...who must have also experienced that springtime sensation.
Winters get long up here in the Northland. With the difficult real estate market and fumbling economy we hear about nearly every day, this winter may have been a little worse. But the sun is feeling warmer -- and February goes by fast -- so things can only look up.
And with the drop in prices we've experienced in 2008, this year the early birds may really get the worm!
When I walked outside today it was raining, so to me that was the first sign that lake cabin buyers will be coming out of hiding soon. The second sign was when we received several information requests from potential buyers...who must have also experienced that springtime sensation.
Winters get long up here in the Northland. With the difficult real estate market and fumbling economy we hear about nearly every day, this winter may have been a little worse. But the sun is feeling warmer -- and February goes by fast -- so things can only look up.
And with the drop in prices we've experienced in 2008, this year the early birds may really get the worm!
Thursday, January 29, 2009
Don't Forget That Snow on Your Roof
I know that people who own lake cabins also keep a close eye on our website to see what else is on the market. Some of them are thinking about selling, but they need to be assured that there is some activity before they move ahead with getting their lake property listed.
One of the problems with lake cabins is that they tend to become burdens after people lose interest in them. It may be because the kids have all moved away, or it might be due to health issues, but almost everyone hits a point in their lives when they realize they have extra things they don't really want or need...and lake cabins fit into that category.
Besides the fact that the spring and fall bring a whole assortment of tedious jobs once considered enjoyable, such as getting the water drained and turned back on again - or moving the dock in and out of the water - winter is sometimes the worst. Even though your cabin is closed up, and like an icebox inside, someone should still check on things once in awhile to make sure there have been no major issues. And as the weather begins to give us a few of those days above freezing, you know what will happen if the two feet of snow on the roof begins to melt...from the bottom.
Unless you have a large pitch on your roof, or one that is made out of materials that are entirely waterproof, that water is going to get locked under all that snow. And you know what they say: "Water will find its easiest path." That is most likely straight down through your ceiling!
So, even if you just want someone to take your cabin away and relieve you of all these annual duties, don't let it get the best of you. Take a trip up there, or have someone else do it for you, and get the snow off the roof...before it is too late!
One of the problems with lake cabins is that they tend to become burdens after people lose interest in them. It may be because the kids have all moved away, or it might be due to health issues, but almost everyone hits a point in their lives when they realize they have extra things they don't really want or need...and lake cabins fit into that category.
Besides the fact that the spring and fall bring a whole assortment of tedious jobs once considered enjoyable, such as getting the water drained and turned back on again - or moving the dock in and out of the water - winter is sometimes the worst. Even though your cabin is closed up, and like an icebox inside, someone should still check on things once in awhile to make sure there have been no major issues. And as the weather begins to give us a few of those days above freezing, you know what will happen if the two feet of snow on the roof begins to melt...from the bottom.
Unless you have a large pitch on your roof, or one that is made out of materials that are entirely waterproof, that water is going to get locked under all that snow. And you know what they say: "Water will find its easiest path." That is most likely straight down through your ceiling!
So, even if you just want someone to take your cabin away and relieve you of all these annual duties, don't let it get the best of you. Take a trip up there, or have someone else do it for you, and get the snow off the roof...before it is too late!
Saturday, January 17, 2009
Bring Warm Clothes!
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!
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!
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!
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