How can you locate a great deal on a lakefront property owned by a distressed seller?
Read this article and I will send you a current list of distressed lakefront property for sale.
I've been in the Michigan real estate market for more than 20 years now. I'm a bit young to remeber the high interest rates of the 1970s, however, I did endure the real estate recession of the early 90's. Back then, around 1989, the average price for a Lake Michigan lakefront lot was about $1000 per foot of lake frontage. Some of the more desirable lots in New Buffal, MI or in Union Pier, MI the better 100' wide lots with private beach rights, such as those in Gowdy Shores, Gordon Beach, or Riviera Beach, sold for as much as $150,000. During the recession, prices didn't really drop as much as the denand stopped growing and the overall market hit a plateau. A couple years later, prices began to sharply climb and did not stop until our current recession began in late 2007.
This time around, prices have certainly dropped significantly. It is now possible to purchase a 100' lakefront property in New Buffalo Michigan's Riveria Beach community for less than $2M, with a 4 bedroom house in decent condition, with a great beach and fantastic views over Lake Michigan. Now keep in mind, that only 2 years ago,similiar lots in the same neighborhood were selling for as much as $3M - and that is a vacant lot!
Here is the bottom line. Most owners of property of this caliber are not pressured to sell in a bad market. However, deals can be located. How do you locate a bank owned lakefront property or a lakefront home owned by a distressed seller? Find a REALTOR in the market you want to acquire the property and guarantee your loyalty to him or her. Sign an Exclusive Buyer Agency Agreement. This will not cost you anything. But, it assures the REALTOR that you will be doing business with him. Why is this important? Think about it. Put yourself in the REALTOR's shoes.
For example, if I learn about a seller who is willing to part with a very desirable property at a very reduced price, do you think I will openly put the information on my website, in my newsletter or blast out emails to everybody on my list without any guarantee of getting the business? Of course not! I will immediately call those clients who are under contract or those I know are loyal to me because of an existing relationship.
I can guarantee you that almost all of the best deals get done this way.
What REALTOR should you use? Of course, I would probably like to have your business. I definetly would at least like to speak with you to see if I can met your expectations. Otherwise, please do not pick somebody out of the blue, the phone book, or off of some pretty ad in a magazine. Get referrals if possible. Ask to see their production numbers. When I am looking for real estate outside of my market, I always try to locate the REALTOR in that area with is writing the most deals, Not the guy with all the listings, but the guy who has successfully brokered the most transactions for Buyers.
A Buyer's Broker typically sees more of the available properties because he is out showing property, not servicing sellers. The Buyer's Broker is always out there trying to locate property that meets the needs of his clients, regardless of the property is in the MLS or not.
I personally do not think its possible to be an expert at serving both Buyers and Sellers. In fact, some states have outlawed the practice, and for good reason. The Buyer Broker is simply a different animal than the Listing Broker.
Ok, now here is the payoff for enduring my rant. Check out this post at TheDailyListings to receive an immediate email reply with the latest list of bank owned property, short sales, REO, and other distressed sales in Southwest Michigan.