When do you Lower your List price on your lake home?

Pricing your lakefront home to high may have it sitting on the market

When I meet with lake home sellers many times their idea of initial list price is much higher than the recent sold homes.  Once in a while they sell at a higher price than the sold comparables, but many times the house sits and sits.  Why do seller’s list so high?  Sometimes it comes down to comparing their home to another home and thinking that their home is similar when it is not or sometimes it is just some number they thought of.  Yes, I know it sounds crazy but I have seen it too many times over the years.

When you have a lakefront home overpriced it boils down to getting that one buyer that has to live on the lake and wants the house.  Yes, there are certain buyers that want to live on certain lakes.  They are the ones that are willing to over pay for a lake home.  On White Lake I see that happen every few years.  The buyer either wants to upgrade their home or they want to be on the lake with friends.  Those type of buyers will over pay to stay or get on the lake.  So sometimes the over priced home does sell.  I have seen it happen.

This home is not for sale just an example of the beautiful homes on the lake

On the opposite side what happens when the home is over priced.  One of my examples is a home on Cedar Island Lake.  It was on a small canal that was weed invested and you could barely get a pontoon or small boat out.  You couldn’t swim in the canal it was so nasty.  It would take about 5 minutes or more to get out to the main lake.  There was no view of anything nice when you looked at the canal.  Yet the seller wanted to list the home at the same price as a home that sat on the lake, that had a sunset view, and that had a sandy beach.  The difference in price in his home to the lakefront home was at least $50,000, but this home seller thought his canal front home that you couldn’t even bring a speed boat to was worth every bit as much as a lakefront home.  Luckily the seller chose another agent to waste their time with.  Last I looked the home still sat on the market.

Do not chase the market down

So the question is “when do you lower the price on your lake home?  It depends on the real estate market in your area.  By having the realtor pull up homes that have sold in the last 30 to 60 days you can get an average of how fast homes are selling for?  In a sellers market good homes go under 30 days for sure and many times in the first seven to fourteen days.  So if you are in a seller’s market you may have to drop your price quickly.

Usually when I go into a home and talk to the seller we talk about the realistic expectations on when they should get an offer.  Let’s say it is spring and every lake house has sold in 7 to 10 days and they are getting $150 to $175 a square foot for a nice move in ready home.  There will be sellers out there that will want to ask $200 a square foot for a fixer upper.  That home is going to sit unless it has some features or an excellent lot.  Remember the three items that affect a home sale are:

 

These are the 3 factors in pricing a lake house

  1. Location
  2. Condition
  3. Price

Come relax on the deck with us

So if your waterfront home is not selling something has to change.  You cannot change the location, you can only change the condition or change the price.  So you either have to improve the condition or lower the price.  On the above example where homes were selling in 7 to 10 days, then if you did not sell in 10 days something is wrong.  Either the price or the condition.  Lowering the price is always the easiest and cheapest ways to go.   However sometimes sellers refuse to do the simple things that will help sell the house quicker.  So you should be looking at lowering the price if it has not sold in 7 to 10 days in a market that everything sold in 10 days or less.   Or invest the time and money to improve the lake house. If all the lake homes on Maceday Lake sold in 14 days and yours still has not…Then something is wrong…Especially if another one just came on the market after yours and sold already.

It’s time to lower the price. I know it’s hard to do, but you have to get the price to a point where buyers will put in an offer.  You have to lower the price until you start getting plenty of showings or you receive an offer.

If you could use a good realtor that will work with you, one that will tell you what your lake house should be priced at, but not dictate to you what you have to do.  After all it is all about you feeling comfortable in the home selling process.  It’s about your house, your money, and what you want.  If you want to hire a real estate agent that has the experience about Oakland County lake real estate and recent prices give me a call.  I love lake living! and that helps sells homes.

Hire one of the top agents in the area to get top dollar for your home

What are the best Electric Motor only Lakes in SE Michigan.  I have a couple of links of beautiful all sport lakes in Oakland County.  The first one Sylvan Lake is much larger than Loon Lake in Wixom.  Here are the links Sylvan Lake home in Waterford Michigan and Lake homes on Loon Lake in Wixom MI

Here is how to Buy an Oakland County lake house with a FHA loan

Click here to find out what has sold in your area like your house

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