6 Crucial Changes Coming To Lake Martin Real Estate
August 30th, 2007 Buying Tips, Investor Tips, Lake Martin, Real Estate Tips, Seller Tips John
As the Lake Martin real estate market shifts to a buyers’ market, away from sellers, what does this mean? If you are about to sell or buy waterfront property, how can you use this to your advantage? What changes can we expect? We can guess a few possibilities from studying other markets around the nation that have been experiencing this phenomenon for a longer period of time. I’m not saying that all of these will happen, but they are strong possibilities:
1. More pizazz from sellers - there are 5 times as many waterfront properties for sale now as there were in 2005. More competition means Lake Martin sellers need to do more to get noticed and get paid. Some examples:
a. more pictures - too easy not to do it
b. home staging- a must
c. talking homes - look for a sign on the home that says “tune in to FM XX.X for more info” where a commercial is played over and over
d. text message info for homes - like the talking homes above, they have a “for more info text #12345″ rider on the sign
2. Builder incentives to buyers - Builders who have extra spec homes sitting unsold are always among 
the first to slash prices. Some Lake Martin builders have already started doing some of the below:
a. free TVs
b. free boat storage
c. pay for first 3 months’ mortgage payments - haven’t seen this one yet, but just wait
d. extra commissions (above the 6%) to the realtor that brings the buyer. As a buyer, you need to ask your realtor if such an incentive exists. Not that that would affect your agent’s impartiality, of course……..
3. Less downward pressure on realtor commissions - A buyers’ market exposes the pretenders from the listing agents that really know how to market. If the sellers feel that they can pay the popular 6% in commission and have their waterfront home sell, instead of languish unsold for a year, they are less likely to go for the cheapest “low bidder.” In the Lake Martin sellers’ market up to 2005, sellers had so much influence they could almost name their commission. Not so now.
4. Proliferation of buyers’ agents? Since buyers hold the cards on Lake Martin now, many agents may shift their marketing focus to buyers. Some agents may even pitch themselves as exclusive buyers’ agents, refusing to list homes for sellers. In extreme buyers’ markets in other locations, they even go so far as to advertising that they will give part of their commission as a rebate back to the buyer. Could this happen at Lake Martin? It’s possible, but doubtful, I think.
5. Reduction in effective FSBOs - FSBO or For Sale By Owner - (pronounced FIZZ-bo) - again, in a sellers’ market, it was a lot easier for Lake Martin waterfront sellers to go it alone. Stick a sign in the yard, and get twelve offers tomorrow, right? Now that there is more supply out there for sale, it’s a lot harder to get it done, even for agents. See #1 and #3 above.
6. No change in BUDDY-BOs - I define “buddy bo” as sales by owners directly to that buddy or relative 
that told them “hey - if you ever sell that house on Lake Martin, let me know.” OK, so it’s not a change. But maybe the lack of change is crucial. These type sales are not as dependent on market conditions so I really don’t see a huge change here.
Did you like this post or others on Lake Martin Voice? Don’t take a chance on missing one. Enter your email address in the yellow box at the top right corner of this page and click “Subscribe.” You will be emailed a note every time I have a new post. Don’t worry, I hate spam as much as you do.
August 30th, 2007 at 10:10 am
[…] Zac Efron 6 Crucial Changes Coming To Lake Martin Real Estate » This Summary is from an article posted at Lake Martin Voice on Thursday, August 30, 2007 This article’s contents are copywritten by the author of Lake Martin Voice . Please click "View Original Article…" below to view the article. Summary Provided by Technorati.comView Original Article at Lake Martin Voice » 10 Most Recent News Articles About Noelia […]
August 31st, 2007 at 8:13 am
John - great information! Something else motivated sellers will want and need is an exclusive website featuring their property - like this one:
http://www.85honeysucklelane.com
August 31st, 2007 at 8:51 am
Toni- Thanks, I agree, stand alone property websites are a great way to help buyers remember how to get to the info about a home. I do them for all of my listings.
Here are a couple:
http://www.160Mariners.com (160 Mariners Road, a 3 bed 2.5 bath home near Real Island Marina, 100 feet of waterfront)
http://www.54Hickory.com (54 Hickory Way, a 3/2.5 off of the water in Stillwaters)
September 4th, 2007 at 10:48 am
Unfortunately, it seems that the professionals do not yet get it: the price of the properties on lake Martin are way too expensive for the commodity they provide: a cabin on a lake that you use at most 25 nights a year. Just look at those ridiculous zoom on granite counter tops in a cabin at a lake!!!
These goodies like free TV…etc will not make this reality fade away. Now that speculation does not pay anymore, it is time to ask whether you want to pay a 5 star hotel rate for a normal cabin on lake martin…
September 6th, 2007 at 8:31 am
Sam- I agree that some properties have their listing price too high. But I disagree with your cost / benefit / rental deal. Econ 101 - benefit is in the eye of the buyer. The fact is that many buyers are still flooding in from a larger and larger geographic area. This increases the number of people willing to pay “5 star” rates. Compared to other second home markets around the nation, we are still a relative bargain. See the Wall Street Journal article for proof.
For better or worse, prices will continue to rise over the long term. Lake homes, cars, and college educations are all more expensive now than they were in 1987. I don’t see any of them returning to those pricing levels, even though in the short term (12 months) you might not see any price increases.
Sam, thanks for sharing your honest opinion openly - this is what Lake Martin Voice is all about. Any other reactions out there?
September 6th, 2007 at 11:53 am
We have some properties that are overpriced - most areas do! But, we continue to see an influx of people from the gulf coast coming to Lake Martin. We represent a terrific value to them - prices are within reason for waterfront property; hurricanes don’t represent a huge threat to us; and property insurance is obtainable. Lake Martin is a second home/resort/retirement community and I believe it will continue to grow!
September 7th, 2007 at 2:06 pm
Florida, Alabama,or Wisconsin-waterfront is waterfront!
People will always desire it and it will always stand as a status symbol.
What I see effecting waterfront/second home markets, is the primary home. Homeowners are waiting to see what shakes out on their primary residence value before committing to another mortgage. They are asking themselves, “Will my home go up, go down or hold?”
In my experience many second home buyers are pulling equity from their primary home to make the purchase.
Great post! Great insights on what’s to come!
September 10th, 2007 at 4:44 pm
Lake Martin’s market has been fortunate if it is just starting to become a buyer’s market. Northeast Ohio and much of the country has already been suffering in this market.
I am so glad that you reinforce staging as a MUST. I totally agree. It is crucial in this market and a waterfront view should be showcased. If you’ve got it, flaunt it Lake Martin!
October 23rd, 2007 at 5:19 am
northeast property listings…
Very interesting post. A little bit confusing, but it still ok Hm….
June 17th, 2008 at 2:35 pm
[…] Buyers: […]
June 17th, 2008 at 2:37 pm
[…] in real estate shift back and forth like any other market in free nations. We can learn about what might happen in Lake Martin by looking at other markets - like one of the most high end markets in the nation - Silicon […]