(B2) To help be sure you do not over pay for waterfront property and to help you avoid future head aches please take a look at the custom written information below. This is not verbiage “shovel over” or curated from other web sites. Rather this information is written based on many years of experience representing waterfront buyers and sellers. This information is not available anywhere else!
1. Buying off the Sign – Some people think that if they deal directly with the Realtor who has the waterfront property listed (for sale), that agent will know more about the property than any other agent. By doing this, a buyer may think they can learn more details about the property as this agent is dealing with the seller and has an advantage in learning all the details about the property.
When listing a seller’s home for sale, that agent owes their fiduciary responsibility to the seller; often new buyers will simply call the listing agent’s phone number that is associated with that property. That’s like having the same lawyer represent you and your opposition!
The waterfront seller’s agent, or the listing Realtor’s job is to get the seller the highest possible price.
So, always use an experienced waterfront “Buyer’s Agent” when viewing waterfront property for sale.
2. Use a Buyer’s Agent – When you work with an experienced waterfront “buyer’s agent” (like me), as you look for lakefront property, you’ll be served, not sold, as your interests become my interests. As your buyer’s agent, I have a fiduciary responsibility to you, not the seller.
If a buyer (you) asks the listing agent how much they think the property being considered is worth, the listing agent is trained to answer with something along the lines of: “you should make an offer based on what you feel the property is worth, based on your knowledge.”
A buyer’s agent should be YOUR advocate, including all of the information you need to make a smart offer. A listing agent can provide comparable sales information regarding the property they have listed – to the potential buyers – but, they cannot LEGALLY, provide an opinion regarding what the property might actually be worth.
An agent who represents the seller will profit directly if YOU overpay! This is a direct conflict of interest.
A real estate agent who is serving as a “buyer’s agent” to a buyer can offer an opinion regarding what a water front property might actually be worth. By working with an agent that is your “buyer’s agent” you are represented by your own agent.
Waterfront Buyers – receive an eBook containing even more advise regarding how to make sure you do not over pay. This eBook also contains more waterfront buyer mistakes to avoid to help you prevent headaches in the future.
3. Many waterfront properties for sale today, reflect the Sellers’ list pricing.
The Sellers’ pricing means the price the owner hopes to sell for, not the market value an experienced real estate professional or appraiser would estimate it will sell for, given today’s market conditions.
Prior to the recession, waterfront homes sometimes sold for a number, higher than a Realtor might estimate as there was a ton of “demand.” Today, many sellers are still hoping for these high numbers however, the reality is: most waterfront sales are now about where an experienced and knowledgeable real estate agent or professional appraiser would estimate.
Example: A local waterfront house was listed for $1,200,000, at the seller’s direction. My comparative market estimate was $750,000 for this home. The price came down to $899,999 – was it a good deal at this price? It sold for $775,000.
As a waterfront buyer you want to know the “fair value” of the property, not how much the price has come down.
4. Waterfront bank financing – Many times, the “Big City” banks don’t understand waterfront values so they are hesitant to write larger or second home waterfront loans.
Example: Recently a “Big Bank” would not finance a well-qualified buyer because the residence on the property was marginally habitable. The buyers were planning on tearing down the residence to build a new home. The price the buyers had negotiated was totally based on the poor condition of the residence and the value of the waterfront – sand lake bottom.
We gave this buyer the name of a local banker and within just a couple of weeks, they closed on their future “new” waterfront home.
So, we always recommend using a “local” independent bank.
5. Shoreland Zoning Regulations are Always Changing
Over the past several years the State of Wisconsin has drastically changed shore land zoning regulations so it is imperative that you understand shoreland zoning as can drastically affect the value of waterfront property.
For example, assessors use a rule of thumb of about $4,500 dollars per foot when valuing a Waupaca Chain O’ Lakes property. So, properties with larger waterfronts have much more value.
Never, ever take zoning advice from a neighbor, friend or a Realtor if you are planning on buying a waterfront property and then improving it. Again, go see the experts and run your waterfront improvement plans past them – BEFORE YOU BUY!
To help you become a well-educated and waterfront home value expert, you can get several more valuable and headache saving tips for waterfront buyers by downloading this Waterfront Buyers’ Guide and as a bonus you will receive a complete list of all area waterfront homes for sale (including the Waupaca Chain O’ Lakes) and a complete analysis of all recreational lakes property sales over the past several years. This information is not available anywhere else!
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