Blog : Sales

Notable November Sales

Notable November Sales

The month of November came in like a lion, or so I remember, and then it went out like a lamb. A tender, delicious lamb. Those early quitters found themselves baking in southern Florida, or dodging scorpions in Arizona. Others went on vacations to tropical locales, to avoid the dull of November.  These people missed out. November wasn’t terrible. November wasn’t awful. November wasn’t even tolerable. November was incredible. A perfect blend of fall and winter, a bit of cold here and some cold there, followed by sunshine and sunsets that would make July blush. November was quite a month at the lake, and like every month, there were sales that we should review.

The most expensive closing last month wasn’t really so expensive. $1.7MM for the house in the Elgin Club. This was my listing, as you’ll recall, but a buyer from a prior listing came back and bought it, so even though it closed my children still need new shoes.  The sale when viewed through a price per front foot prism is high ($34,000), but that’s because smaller properties always look high when judged by this blended average. The sale at $1.7MM was a terrific value. The seller decided it was time to move on, and the buyer took a flyer. The Elgin Club is an ideal spot on the water, and if you’re a buyer under $2MM and can find your way into the Elgin Club, you’re doing very well for yourself.

Next up is a dated modern house on a hill overlooking, at least from the top floor, Fontana Bay. The house on North Lakeshore Drive closed for $1.575MM, and the rumor around town is that this home will be torn down. If that’s the case, I will refrain from comment. No matter how hard it is for me to keep quiet, I won’t say a word. No, in spite of having so many things to say, so many cutting, terrible things to say, I won’t say a word. Not a peep from me, about this sale for $1.575MM. No boatslip here, by the way. But that’s all I’m going to say. Nothing more.

A home in Academy Estates closed for $950k, this one possessing a slip, and a pool, and some deferred maintenance. The price is okay, not great, not the worst thing I’ve ever seen. The house was one of those homes that couldn’t aspire to more than this price, so in that, I’d say the market provided a price that the seller felt acceptable, and that, is that. Academy Estates is a nice association to the East of the South Shore Club. If you’re an off-water buyer, there are far worse places you could end up.

The most interesting sale of the month was in the Lake Geneva Highlands. Earlier this year, I sold a small lakefront house for $925k. That was, at the time, the lowest price lakefront sale of the year. The house next door to that one just sold for $850k. That’s a nice price, no matter how difficult the house. I say it often, and I’m not wrong: the lake is running out of sub-million dollar homes. That’s because when one of these homes sells (perhaps one lakefront every other year sells below $1MM), the new owner rarely stands pat. Instead, they undertake some form of renovation. Perhaps a huge renovation, maybe an addition, maybe they tear it down.  No matter the course, a $900k lakefront home is rarely the same home a year or two after that low print. When that home comes back to market improved, it now commands a $1.5MM asking price, which removes one more sub-million dollar home from our lakefront. That’s why these low priced lakefronts are almost always a good idea.

Rounding out the activity that matters, I sold two smaller properties last month. In October I listed a ranch with a boatslip and dynamite proximity to the water in Oak Shores. Last month I sold that home for $610k. The home needs a bit of cosmetic updating, but it was a nice house in a wonderful location, and it made complete market sense.  Last week I sold a large townhouse in Abbey Ridge, near the Abbey Harbor, for $555k. That was a beautiful condominium, offering loads of square footage and upgraded finishes. Abbey Ridge is a unique creation in our market, as it offers two, three, and four bedroom condominiums in a resort setting for a reasonable price.

I was pleased that both of these sellers chose to list with me this fall. In doing so, they made the smart decision to not wait until Spring to list. That’s the common refrain at this time of year. Wait ’till spring. That refrain sounds nice only because it sounds familiar.  Sell to your competition, not to the season. This isn’t Door County. This isn’t Harbor Country.  Lake Geneva doesn’t close just because the temperatures drop. We just put on some sweet boots and play in the snow.

Geneva Lakefront Sales

A long time ago, I decided to write a real estate blog. Along the way, there have been some really bad posts. There have been a scant handful of good ones. There have been irrelevant ones, poignant ones, others. There have been times when I wished for nothing than to stop this writing and there have been other times when I wished for more time, to work harder at this, to effort on a different level. The blog was always intended to be somehow different than a typical real estate blog. For instance, I’ve eschewed the use of multiple exclamation points. I’ve also never pretended that posting a picture of a pretty pier was something that an insightful blog would ever do. I’ve made some people happy, and I’ve hurt some tender feelings. Let’s talk about those.

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Every day, all day, stock market pundits talk about stocks. They talk about this company and that company, about this CEO and that CEO. They talk about the things that make a company great, and they talk fearlessly about the things that makes the company bad. They’ll tell you to sell, or to buy, and when enough of them tell the audience to do one of those things in unison, the subject stock may rise. Often, when enough of the talkers tell their audience that a company is heading in the wrong direction, the stock falls. Billions are made and lost on these whims, yet the pundits talk and tell us what they know, hoping that what they know is more than what we already knew. I’d like to be able to do this for real estate.

And I have, to some tempered extent. Increasingly, however, if I say a sale is bad, or a house is bad, or a house is bad and the land is good, I hear the complaints. I hear of angry sellers, or angry buyers, or angry agents and their lemmings. I hear about the tender, easily hurt feelings of people who may have sold a house that I didn’t like. I hear from others who bought a house that the market didn’t like. I’m growing weary of the constant struggle to make everyone happy, and so I think I might stop commenting on the state of the market, on the state of a sale, on the state of this business.

Just kidding.

There was a sale last week on the lake, and I liked it. It wasn’t my listing, nor was it my buyer. I’m shamed by my absence from this sale, and from too many others this year, but not every buyer makes the proper representation decision and I must respect their mistake. The sale last week was of a shingle sided house in Cedar Point that first came to market in 2013 for $3.5MM. It may have been for sale before that, but I can’t recall the price or the year. That price was never right, but when the home finally sold last week for $2.185MM, I liked the sale. 103′ for that price in that location? I’m a big fan, and I always will be.

That sale was the 19th MLS lakefront sale of 2015. There have been two other auction sales, both achieving prices greater that my opinion of their actual value. Three of those sales have been in excess of $5MM. The 21 sales represent a huge swell of activity for the lake, and there are at least six more lakefronts pending sale right now. I’m expecting we’ll print those six, as well as three or four more before the end of 2015, making this year a most epic volume year. Last year at this date we had closed 15 lakefront sales, with nothing priced over $4MM.

For value minded buyers, consider this. November and early December offer some world class bargain hunting. Aged inventory generally feels like selling, and cool dreary days of November, the sort where fall slowly loses the fight against winter, those are the days we can make friends with rare value. While the year has been outstanding and lakefront buyers are milling about in record numbers, there is still value to be had if only you’ll look at those things that you’ve already passed over. Let me help you by pointing out the winners.