Pricing your lake home

Living on the lake

Living on the lake

So how do you price your lake home?  It really doesn’t matter what part of Metro Detroit you are in or what lake you are on.  There is so much information out there to help you price your lake home correctly.  Having a experience lake realtor can tell you what a 2 car garage versus a 3 car garage will mean to you when you go to price your home.  Lake homes in the Metro Detroit area are so varied.  The are small 800 square foot ranches on crawl spaces with no garage.  They may have no updates and barely liveable.  Then there may be a cottage that is now a year round house.  It originally started out as a cottage with a basement but over the years it has been added onto and updated into a 2200 square foot colonial.  Then there are the newer colonials or contemporary homes on the lakes.  There might have been an old cottage that was torn down to build a brand new house.  All of these homes will vary so much in price just like regular homes.

However when you are on a lake here are some other factors that become part of the pricing of a lake home.

 

1.)  Where is the home on the lake?   Canal front homes will always be much, much cheaper than a lakefront home.  You may be able to buy a canal front home for $50,000 to $75,000 cheaper than a home right on the lake.  Some people will want a sunset view.

2.) How wide is the frontage?  Everybody loves space.  As you know many lakes around the Metro Detroit area are very crowded.  Many lots are 35′ to 60′  It was just the way they were sold back in the early 1900’s.  Who would have imagined 5000+ square foot homes on the lake.  The size of the lake frontage really adds or subtracts to the price.  Sometimes the price of the home is really the price of the lot.  The lot may be worth more than the home is.  Somebody may buy it to tear it down and build a brand new house in the future.

3.)  What is the lake bottom like?  Whether the lake bottom is sandy or mucky is a key concern for many lake buyers.  So a sandy lake bottom house is going to sell for more than a mucky one

4.)  What is the lake frontage like?  This is part of the mucky issue.  If you have lily pads and cattails in front of your lake home this will negatively affect the price of the home.

5.)  Parking.  Yes parking does make a difference when pricing a home, but not greatly.  How much room do you have to park.  Where will your family and friends park when they come over?  Some lake cottages only have 2 spots.

6.)  What sits next door to you?  Again this does not make a huge factor, but a dumpy small cottage can have a negative effect when buyers come a calling.

7.)  What is terrain of the lot like?  Is the home way above the lake on a hill?  Or is it a gently slope?  Or is it flat ground?  Sometimes hilly lake homes are harder to sell.  Some buyers think of grandma having to go down all those stairs.  Or having to carry a cooler up and down those stairs.  So a hillside can be a negative to some lake home buyers.

So when pricing a lake home it is not as simple as saying there was a house like mine that sold for ……………  You have to look at all these other factors too.  You have to be objective.  Look at the comparables, ask your realtor what they think.  It’s a great time to sell a lake home with the interest rates so low.  It makes all homes whether they are a lake home or not more affordable to home buyers.  One of  the points many lake home sellers forget is that lake buyers look at large areas to find a lake home.  They do not just look at your community.  They may be looking at all Oakland County Lake homes, or 4 or 5 communities lake homes.  So you have a larger pool to compete against.  So price your home so you can get the most money without sitting on it too long.

If you are looking for Electric Motor Lakes in Oakland County Michigan or want to know more about Lotus Lake – Maceday Lake Waterford Michigan check out these links

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