You're not going to find serenity on the highway...

More and more often, we get requests for buyers who want a high level of privacy and seclusion but they also want to be on a paved road with cable internet.  Good luck with that...  The reality is, true peace and quiet are most often found off the beaten path.  Another scenario never to be found is someone wanting a downtown condo with space for a large garden.  Not...  Gonna...  Happen...

I can certainly understand the desire to be close to amenities like health care, dining, shopping and the like, especially for those looking to live in an area full time or spend the entire season there.  In northern Michigan, however, access to those amenities from a secluded cottage in the woods most often involves travel down some gravel roads.

Connectivity to the internet is also very important to most people and frankly, essential for many in order to operate business while away from home.  Fortunately there are a number of options including satellite internet, cellular internet and others that don't require hard lines run to the property.  Better yet, take some time away from the internet!  (not right now, you should keep reading this blog)  Paddle a river, walk a woodland trail, lay in a hammock near running water or find any other way you can to truly unplug.  It's good for the soul.

I guess what I'm saying is, you usually can't have it both ways.  If you want to watch deer wander through your yard and see an eagle snatch a trout from a stream while enjoying your morning coffee, you're more likely to find it a few more miles out.  Add 10 minutes to the drive into town and it's amazing how much serenity can be found!

Consider these properties as great examples

Located on a phenomenal trout fishing section of The Manistee River, this well done 3 bed, 2 bath cottage home offers stunning river views, a huge river side deck and gazebo and over 1,100' of pristine, secluded frontage.  It's within 40 minutes of Traverse City and is adjacent to 100's of acres of state land.  Offered at $229,900.  Click HERE for details.

This one comes pretty close to that dream scenario.  It offers over 20 wooded acres within 10 miles of Traverse City with over 700' of frontage on both sides of the river.  A large building site and separate garage site have already been approved and developed offering great river views.  It's ready for your foundation and dream home or cabin.  Offered at $229,900.  Click HERE for details

The Market is NEVER Coming Back!

Believe it.  There are segments of the market in more rural areas that may never reach the pricing they did in the mid 2000's.  If you own a home or cottage in communities closer to downstate or areas like Traverse City, good times lay ahead in the very near future.  If, however, you're in rural northern Michigan away from amenities, the highest values for your property are in the rear view mirror most likely.

When those in the baby boom generation were in their 40's and 50's, they were clambering to buy their cottage "up north".  It was almost a sign that they had "made it:".  They didn't mind putting in a little work each weekend and had the know how to do many of the common household fixes that were needed.  This drove prices through the roof until 2007 or so.  Now those same buyers are still driving the market but they're looking for homes for retirement closer to amenities like health care, shopping and dining.  They want to live up north, but now that they're going to be there full time and not just for a weekend, the importance of a larger community has moved to the forefront.  A modest, charming little cottage was great for short getaways but many don't want to give up the comforts of their primary residence when moving to northern Michigan for good.

The next generation of buyers simply don't hold those same dreams or have the same skills.  Frankly, many young professionals are living beyond their means already and coming up with the 20% down payment for a cottage just isn't going to happen.  Even if they inherit the family cottage, the taxes may be too great and the idea of working every weekend they're up north doesn't sound too great.  Perhaps more importantly many, younger buyers simply don't know how to do basic home repairs and would have to hire everything out at a substantial cost.  They'd rather take a weekend getaway to Chicago or stay in an all-inclusive resort somewhere tropical.  The mentality is simply different.  There are, of course, exceptions and we're thankful there are more younger buyers entering the market all the time.  Many who are interested in getting a second home and have the means to do it don't seem to want to settle for a modest getaway, though.  Fine finishes and Pottery Barn decor are more the norm.

Where does this leave you as a seller?  First, recognize the situation and plan for it.  Simply waiting around for things to recover is not a strategy because it isn't going to happen anytime soon, if ever.  The best thing to do is make your property as appealing as possible to those who are in the market and be realistic with your price.

This is not going to work today...

#1.  Make sure your home or cottage is updated and very attractive to just about any buyer.  Paint any brown paneling, remove old shag carpet and update the appliances if necessary.  If buyers walk in and see a lot of remodeling work to be done, they'll likely walk right out the back door.  The fact that you were happy there for 30 years with your avocado green Ford refrigerator does not mean a buyer will like it.  Buyers today, especially younger buyers, are much more drawn to aesthetics than true quality.  It's unfortunate but it's the truth.  You may have 2" x 6" framing and the most energy efficient home in the area but most young buyers would rather have a less substantially built home with stainless appliances and granite counters.

#2.  Price your home right.  The market dictates what your home is worth, not REALTORS or anyone else.  A solid agent can help show you the recent sold properties that are most like yours and help you determine a price that is within reasonable limits of what the market will bear.  You may not have to sell, but many of the other sellers in your market do and they're going to be the ones to successfully do it because you're too stubborn to budge.  Yes, there may be some rich guy out of Indianapolis with a pocket full of money to spend on a cottage up north.  They did not get all that money by spending it on stupid stuff, however.  They'll buy the home they like AND is a wise financial purchase.

#3.  There are exceptions.  We're seeing great activity in the lower price ranges (up to and around $100,000) for cottages closer to areas downstate like Clare, Gladwin, Houghton Lake, etc...  We're also seeing an uptick in activity on nicer homes in these same areas thanks to the easy drive.  Once you get beyond 2 1/2 hours or so from these areas, interest seems to wain quite a bit in the cottage market.  It also appears that this distance from downstate areas has an impact on lakefront and riverfront getaways as well.

What does this mean for buyers?

#1.  There are some amazing deals in areas like Crawford and Kalkaska Counties or the very northeast corner of lower Michigan.  They're sort of falling in that gap where they're a little too far north for many and don't offer the amenities that a Traverse City, Charlevoix or Petoskey might offer.  Especially if you're willing to do some fix up or remodel work, there's perhaps never been a time to get more for your money in these areas.

#2.  You're going to have to get off your wallet in some areas like Traverse City if you want to get a great property.  These conditions are basically concentrating buyers in areas like this and competition is high!  All these articles you read about the amazing northern Michigan cottage market are mostly in areas closer to downstate and higher end communities.

3.  Now is a great time to buy.  Interest rates have bumped up a hair over the past year but are still absurdly low on a historic scale.  If you can scrape together the down payment necessary, you can get a cottage for your family so they can enjoy some of the same great memories your parents made possible for you (Obvious guilt play there:))

Don't get all sad upon reading this.  Consume the information.  Read some other stuff to find out if you agree.  Most importantly ACT!  Do the upgrades, get your price in line and move on to the next chapter in your life!

Motivated means you're going to sell for less

We hear very often that a seller is "motivated".  If you are instructing your agent to tell other agents that you're motivated, you're going to get low-ball offers.  Motivated and "desperate" are synonymous in the brain of a buyer and their agent.  There have been too many occasions where a listing agent advertised that their seller is very motivated only to then hold firm to their list price when the low offer comes in.  If you truly are motivated and want to sell your home as fast as possible, reduce the list price and stay more firm during your negotiations.  You're going to get more interest, more showings and potentially more than one party interested which could lead to achieving a much higher sales price.  If you've been on the market for three years at $350,000 and telling your REALTOR that you'd take $300,000, just drop your price to $314,900 and get it sold.  If you're home is only worth $250,000, this won't work.

Your cousin, Zeke, from Flint may not be the best REALTOR

Your cousin, Zeke, may be able to turn a squirrel into the tastiest pasty on the planet, and I'm sure you love him to death, but this is a big deal and he may not be the right choice.  Sometimes we get REALTORs from downstate working on behalf of family members or friends in the sale or purchase of property in northern Michigan.     I can't imagine trying to do an effective job representing a family member in an area I know nothing about. The schools, body of water, neighborhood, and many other factors play a huge role in a property's value and I wouldn't know the first thing about any of those things in an unfamiliar area.  If Zeke really wanted to help you, he'd help identify a strong local REALTOR and take a referral fee from them.  He can still help with advice and consult during the transaction with the other REALTOR if he really wants to look out for your best interest. 

It's okay to pay full price

Don't let your pride prevent you from getting the right property.  When you find the one that is best for you and your family, buy it if it's priced right.  Things are getting very competitive among buyers in many markets. We're seeing more and more multiple offer situations.   If a great house hits the market, go see it immediately. If it's perfect for you and the sales comps support the list price, pay the price or even more because there's a good chance someone else will and you'll be back to square one.   I'm not sure why it is, but many buyers end up missing out on multiple homes until they finally step up and do what's necessary to get a great home in a strong market.  This doesn't apply to every property and every market but a great agent will let you know when it's time to get off your wallet.

Some REALTORS stink at photography

I saw a listing photo recently that was apparently taken while sitting in a recliner and the photographer's bare feet were actually in frame.  I'm pretty sure The Dukes of Hazard was on t.v. too.  It threw me off so bad that I honestly can't remember what the house looked like.  It didn't help that the rest of the photos were so poorly lit that I couldn't tell if the counter tops were plywood or granite.  It could have been a well built home in a terrific neighborhood but anyone looking online likely did the same thing I did and simply clicked "next".  The reality is, if you find a house online that suits most of your needs from an objective standpoint and is in your area of interest, you owe it to yourself to go take a look.  Often times the photos are deceiving in either a positive or negative direction.  You may end up finding a hidden gem that no one else was willing to look at because of naked feet.  Don't make the decision to tour or buy a home solely from what you see online.  You still have to put your feet on the ground and actually visit the home or property you're considering.  Better yet, get a good agent who's willing to preview homes for you and trust that they'll make you jump in the car to come see the ones that suite your needs.  If you're a seller and can see your agents' feet in your listing photos, fire them.  That's just gross!

Pigs get fat, hogs get slaughtered

Too often we come across buyers who are seemingly out for blood and won't be happy until the seller has basically thrown their first born child into the transaction.  Don't be a jerk.  Many sellers are in a tough spot today and they're simply trying to get out of a bad situation.  If they're asking a fair price for their property based on the comps, just buy the house and let them move onto the next phase of their life.  Beating them up on price then nickel and diming them because of silly items during inspections isn't doing anything for your karma.

Great properties are expensive

No we cannot find you a newer 3 bedroom craftsman style home on Torch Lake for $200,000.  They don't exist.  Every buyer needs to determine what they want to give up on their "dream home" search if they're working on any sort of a budget.  If you're a buyer set on having a new home on a great body of water in an affluent community, it's going to be expensive, period.  The homes that people are getting terrific deals on are a little beat up or dated or maybe in a little less attractive community.  Everyone is looking to get the best deal possible but if you start out with unrealistic expectations, your home hunt will likely be frustrating, drawn out, and ultimately unsuccessful.  Contact a good REALTOR, give them your budget and your three or four "must haves" and they'll be able to guide you to the property that best matches your needs.  If you're willing to do some painting or landscape work, even better!