Written by: Jim Putnam, May 23, 2021
In a normal real estate market, buyers would have plenty of time to search for the exact home they are looking for—the perfect location, the right square footage, number of bedrooms & baths, lot size, etc. And once they had located the right property, they would have time to make an offer (typically below asking price) on terms that were favorable to them.
In today’s low inventory, high demand market for lake homes, that approach simply will not work. You may have already experienced what happens in this market: by the time you decide what offer to put together, the home is already under contract; or, there are multiple offers made (typically above the asking price) and you are competing with focused cash buyers (normally from out of state) who understand how to win in these bidding wars.
what can you do to increase the odds of successfully purchasing a lake home when competing against all the other buyers who want the same property?
the first step is to recognize and accept that this lake market really is different: with historically low inventory and a surplus of qualified buyers all looking to acquire lake homes, your competition is very intense.
the reality of the situation: if you want a home on Lake Sunapee with your own private (not shared) beach, you will have to be prepared to spend upwards of $2 million—if you can find one.
this can be very disappointing to the numerous buyers who would love to have such a lake home and have $1 million to spend, but it is simply not possible to find that property here on Lake Sunapee. You also may have to be open minded about where you want to buy a lake home—it may not be possible for you to find and purchase a home in your price range on your lake of first choice, will you consider other lakes in New Hampshire?
Buyers with success Consistently do this:
1) If you still want to be on Sunapee and have $1 million to spend, you can find properties with shared beaches and associations that will enable you to enjoy the lake with your neighbors.
2) consider other lakes in the state--there are currently about 30 lake homes in NH that are priced at $1M or less.
Will the lake homes market cool off and prices come down in the future?
It’s possible, but not likely.
Here’s why:
the buyers of lake homes in NH over the past few years are by and large younger, many of whom are paying cash for their dream homes. With the intention of building multi-generational memories for their children and grandchildren, these new owners are not likely to sell these homes in the near future, thus keeping pressure on the already low inventory lake home market.
These homeowners paid cash (in many cases) for their home, Regardless of what the economy does, they are secure with their lake home purchase.
Will you be paying cash for your lake home?
That gives you a distinct advantage in these bidding wars.
If you plan on financing, have a pre-qualification letter.
Most sellers in today’s lake homes market will not even consider an offer that does not have a pre-qualification letter attached, so you must arrange that ahead of time so you will have a chance to compete for a home.
Do you currently have a Realtor representing your interests?
if you're ready to take the first steps I want to hear from you! If you are already working with an agent, be sure you have a signed Buyer Agency Agreement in place.
Your Dream Home Awaits
Whether you’re a first time buyer or a seasoned Lake Life Family, the Lake Sunapee area is a wonderful location to create memories.
I’m here to help you every step of the way. I’ll provide expert, caring and candid advice throughout what will be one of the most important transactions of your life. Doesn’t it make sense to have a team of professionals (Realtor, lawyer, banker, building inspector, design/build) working for you, with your best interest in mind?
after you return a quick questionnaire with more specific details about what you'd specifically want, I will begin your active search for a lake home. communication with your Realtor is crucial, this will ensure success for our team.
When a lake home become available, be prepared to move quickly in order to have any chance of securing the property you’re interested in.
Let's Do this
with an open mind regarding location, proper preparation and a good team supporting you, it is possible to find your dream home.
isn’t that what it’s all about? Turning your dream of having a lake home into reality so you can start enjoying the lake life right away.
“Where we love is home - home that our feet may leave, but not our hearts”
Oliver Wendell Holmes
Lake Homes Realty is the nation’s largest lake-focused realty company.
Jim Putnam is the New Hampshire Lake Homes Expert, helping buyers locate and close on their dream lake home.