September 08, 2009
Who’s Buying Now?
No matter where I go in Walworth County, I’m often asked, “How’s the real estate business?” During the past two weeks, I’ve been involved in 4 offers. So, who are these buyers and what are they looking for in real estate?
I’ve worked with one couple whose offer was recently accepted, for two years. They are very savvy buyers and are familiar with the real estate process. They have been looking for a secondary home in the lake area and wanted one that offered good space, was in good condition, was located in an amenity community, and offered very good value. They knew what they could afford, had spoken to their lender and felt extremely comfortable regarding their borrowing power. These buyers were properly positioned for making an offer and we are confident the transaction will move forward efficiently and smoothly.
This is an excellent market for investors, and I’ve been working with one investor from Illinois who is looking for a high-end property in an amenity-community that offers tremendous value. Knowledgeable and experienced investors look at “risk” vs “return”. While lakefront properties tend to be more stable, they may not offer the low price/high value investors seek. Communities where inventory is high, amenities are attractive, and prices have come down, may be the most promising to these buyers.
It seems that I’ve been working with secondary home buyers almost exclusively this year – and I’ve wondered why this is the case. Promises of “real deals” and “rock bottom prices” may entice some, but my recent experience indicates that there are buyers who have stayed on the sidelines for several years, hedging their bets and hoping the market might shift in their favor. It did. These buyers want value, with a capital V. They aren’t looking to steal a property, but they want to invest wisely. Planning to use their second home for several years or more, they are primarily concerned with buying smart. Many of these buyers pay cash or finance less than 70% of the cost of their home. They are financially sound and have confidence in their buying power.
Not one of my buyers this year was willing to negotiate from a premium price. They all knew the market they were entering and purchased wisely. The message to sellers is clear: if you are willing to create real value – buyers are willing to pay attention. Whether it’s the charming association of Cedar Point Park in Williams Bay or a Delavan lakefront estate, every buyer wants to feel they have purchased wisely. The message to sellers remains clear: price is king…but value and price must work hand in hand.
Posted by:
Janis Hartley
Tagged With:
lake geneva wi real estate,
lakefront properties,
real estate investments,
second homes
and walworth county
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