The Timeless Art of Compromise

When George Costanza famously disrobed to pose in his boxers for Kramer’s camera, the image was coined by Jerry as “the timeless art of seduction”. The scene is nothing short of hilarious, but it has very little to do with my post today. Instead, today the focus is on compromise, both perceived and realized, and how compromise affects the decision to look for, and ultimately purchase, a Lake Geneva vacation home. We certainly are living in an era of compromise, and I sell real estate in a market that is famous for requiring buyers to compromise in order to gain membership in the ever-exclusive Lake Geneva Vacation Home Club. LGVHC for short.

I was out yesterday showing lakefront homes to a lovely couple from the North Shore, and around midday we arrived at a truly magnificent home on the south shore of Geneva. That’s not exactly correct, because this property- complete with tennis court, swimming pool, boat slip, greenhouse, one and one half acre of manicured land, and a home worthy of the pages of Architectural Digest, was not lakefront. This home was fabulous, and yet, it wasn’t truly a lakefront home. When we walked through the home, I said something about give and take, or compromise, and the buyer was in agreement. This home, while tremendously tremendous, was not the lakefront home that they had originally set out looking for. But it was an unbelievable arrangement, and by the end of the day, the buyers still had that off-lake home on their list.

In the $2.5MM range, there is compromise. Even at $6MM, there is compromise. This is a market that is finite, with a known quantity of inventory, and a known parameter of the market. This is not Naples, Florida- a market that can grow and expand through annexation Eastward all the way to the Big Cypress National Reserve- this is Lake Geneva, a lake with established boundaries and a shore line that can never be expanded. This exclusivity is a bonus, but it can also be viewed as a detriment by buyers who are seeking that “perfect” property.

It’s obvious to me now that buyers are more selective than they once were. They’re more selective for a number of reasons, but the primary reason in my mind is that they no longer view real estate as a liquid asset. Times were, buyers would buy to get their foot in the door, then move up in the market, then move up even further. What began as a lakefront condo might morph into an association home with slip, which in turn might give way to a private lakefront home. The evolution complete, buyers would finally have what they had long hoped for. In the market today, the same path exists, but buyers are wary of buying something that will not be salable in the near future, should they decide to make a move. Since the market is no longer as liquid as it once was, buyers take the time to seek out the “perfect” lake home- be it a condo, association home, or lakefront, thinking this is their only shot at a vacation home. They wait for the market to deliver the exact thing they’re looking for, and while they’re waiting, something happens. They over-think the process, and pass up opportunities that match 80% of their criteria, but balk because of the 20% that they think they so desperately need.

It’s the search for perfection that causes a stalemate, and while I’ve sold copious quantities of vacation homes to buyers that indeed found their perfect match, I’ve also sold many homes to people that are using them as stepping stones. These are buyers who are aware that a summer not spent at the lake is a summer wasted. Sounds cold, but it’s exactly how I see it. No matter how much money a person accumulates, no one can buy an extra summer. It’s this awareness that might cause someone who would love a lakefront home to buy an off water home, or a lakefront condo. Sure it’s not perfect, but in the compromise, there is the promise of a summer spent at the lake. Once a buyer realizes that a weekend spent splashing under the warm Lake Geneva sun is a blessing, they’ll laugh at the idea that they had to compromise to achieve this lifestyle.

Compromise is a difficult thing. It’s also a very subjective thing. What is compromise for one buyer may represent perfection for another. Compromise is also incredibly fickle. For a buyer with two children who is looking for a three bedroom house, buying a two bedroom might represent an overwhelming compromise. But the same buyer who is ideally looking for four bedrooms, might easily compromise and purchase a three bedroom. A buyer looking for a boat slip might instead find a home in their price range with a lake view, and decide the view might suffice. These compromises are everywhere in this market, whether the object of your affection is a $200k cottage or a $3MM lakefront, without some degree of compromise, there’s a good chance you’ll find yourself sitting on the sidelines for another summer, sweating and thirsting for a drop of refreshing Lake Geneva water, hoping and wishing for that perfect vacation home that might never come.

While the brick and mortar aspect of the purchase might require some compromise, rest assured that in spending your weekends by the water, there is no compromise. I cannot think of anything I’d rather do than hop in a boat and take a leisurely cruise around my beloved lake, and I’d gladly accept any imagined compromise that affords me the opportunity for another summer spent at the helm.

About the Author

I'm David Curry. I write this blog to educate and entertain those who subscribe to the theory that Lake Geneva, Wisconsin is indeed the center of the real estate universe. When I started selling real estate 27 years ago I did so of a desire to one day dominate the activity in the Lake Geneva vacation home market. With over $800,000,000 in sales since January of 2010, that goal is within reach. If I can help you with your Lake Geneva real estate needs, please consider me at your service. Thanks for reading.

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