What do you do when you receive a call from a potential client and they ask you how the real estate market is?
Recently I had such a call from a lot owner here at Lake Anna. I told him the truth.*
I told him few lots are selling especially non-waterfront, what we call access lots. (We are selling a good number of homes on access lots.) We have a very large inventory of access lots and the prices have come down to the point that he would probably be lucky to sell for $xx,xxx even though his lot has an assigned boat slip. He would have been able to get perhaps $20-30,000 more for it when the market was hot.
This evening I received a call from a potential buyer looking for investment property at Lake Anna. He
only wanted to buy a waterfront home to rent out. The requirement was that the rental income cover his monthly expenses, mortagage and taxes. Putting the minimum down, the mortgage payments would be quite high.
Waterfront homes begin around $500,000 and go up to over $2,000.000. The caller was looking for a waterfront foreclosure thinking we might have a number of those and they would now be priced very low. Well, thank goodness, that is not the case.
There are a number of beautiful waterfront homes now on the market priced well below what they could have sold for when the market was very busy. However, they are still nowhere near "fire sale" prices. I do not know of any properties here that will fit his requirements and I told him so.**
There are certainly investment possibilities here if the buyer is able to take the long view. Buying now at reduced prices and holding it until the market peaks again will net them a fine return but it is not going to happen overnight.
I believe I am very optimistic about real estate. I could not have been in it all these years through this downturn and the others I've experienced if that was not the case. Nevertheless, I do not want to give a false impression either. Sometimes that means turning away "business."
*At the end of our conversation, Mr. Seller thanked me for my honesty and said for me to call him when I thought it would be a good time for him to sell.
**Mr. Buyer said he would save my number and call me when he is able to buy a waterfront home for his family.
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If you or someone you know is thinking of buying or selling property at or near Lake Anna, please contact Kathleen "Kate" Elim. Kate lives at Lake Anna, knows Lake Anna, loves Lake Anna, and specializes in Lake Anna area real estate.
Call Kate at 540-226-1964 or by e-mail at lakeanna.kate@gmail.com. Be sure to check Kate's Web sites and blog at http://lakeannaandbeyond.com/ or http://lakeannacountry.com/
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Specializing in Lake Anna, Virginia Real Estate-Resident since 1992-Quality Service-Local Knowledge-Multi-Million $ Producer-Representing Buyers & Sellers- Homes & Land-Investment-Commercial
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I never predict the market only try to find out if it is the right time for each client. They all have different needs and capabilities.
I tell buyers that interest rates are good, inventory is high, sellers are willing to help with closing costs, it is a great time to buy. For sellers, if they have equity in the property and are willing to get the property in the best condition to sell and price it to sell, it is a good time to sell. If they are short on equity or upside down and don't need to sell, then this is not the time to sell.
Everyone has different needs so it might be a good time for one person to sell and the other to buy.
Every market is different and fortunately for you and Lake Anna the reality of what is happening other places in Northern Virginia is far away.
Each market is unique. Keep up the good work!
I like your honesty.
Bill
Kathleen, I am like you and just present the facts, good or bad. The market is what the market is and is always changing.
Hi Kathleen,
The truth is what our clients deserve, whether it is what they want to hear or not. Good for you, sounds to me like you gained this person's respect with your honesty.
I believe that honesty is the best policy. If someone has a problem with the truth, then they should work with someone else. It will not be a good fit.
I like what Rich said. That is what I try to say. I think he said it better, though. :)
Kathleen...The saying all RE is local would definately apply in a vacation area...they just don't make new waterfront...most people aren't going to sit around and wait for the price to drop!
Kathleen, I agree with you. Honesty is the best policy. The type of buyers and sellers I want to work with will appreciate that. You never know, but he may tell someone else about his experience with you and you could end up with a referral.
Kathleen - "Just the facts ma'am" - I tell people the truth, why do anything else? I have, however, suggested to people that if they don't have to sell their home and they do not wish to adjust their price to meet the market that they say put. You sound like a good egg.
KATHLEEN - There is no point in being anything but honest with people. If they still want to list in the current climate, at least their expectations will be realistic. As far as the investor is concerned, all you did was provide truthful information about what the investor was looking for. It's all part of finding motivated buyers and sellers. Why waste time pursuing transactions that are unlikely to happen?
Kathleen our markets are simular. Folks call asking me for forclosures and etc... Sorry we just don't have a lot of fire sales. There are some but you must move quickly and have the capital to do so. Real estate investing is not for the faint hearted and it is not as easy as the late night tv shows make it out to be.