Lakefront homes on Geneva come in all shapes, sizes, and more obviously, price points. By now, you know that I’d give a kidney, several toes, a couple fingers, and at least one ear for a Geneva lakefront home. It’s that overwhelming desire I have to be on the lakefront and to live the incredible lifestyle that accompanies such a purchase that leaves me confused when buyers who are capable of buying lakefront don’t. You already know the normal, boring reasons that the lakefront is so intriguing, you know, reasons like deep, crystal clear, world class waters that afford boating, sailing, fishing, and swimming options that blow other midwestern lakes out of the, um, water. But the lakefront is visually intruiging as well due to the varying architecture, size, and complexity of the residences built along the shore. Those differences in size and finish create an incredible price range that begins around $1.1MM for an entry level cottage, and escalates to a dizzying $10MM for a lakefront estate worthy of the most internationally discriminating vacation home lover.
Entry level lakefront is wonderful, and such a purchase in the low to mid $1MM range, gain the purchaser membership in a very exclusive club. I’d be lying if I told you that entry level lakefront is the same as upper bracket lakefront, and we all know that Realtors never, ever, lie… The upper bracket, those homes priced over $3MM, is really where Lake Geneva dreams come true. In this market, $3MM+ can typically buy you either a nice, newer home, or a beautiful piece of land. It rarely buys you both in the same transaction. There are currently fifteen lakefront homes for sale on Geneva priced in excess of $3MM, including those in the South Shore Club. Of those fifteen, ten are priced over $4MM, and even more surprising, seven are priced over $5MM.
For some historical perspective as to the liquidity of these higher priced Geneva lakefront homes, consider that during 2009 only two lakefronts have sold for prices that exceeded $3MM. In 2008, four sold for $3MM or more, and in 2007, six. From 2002-2006, those five years recorded 24 such sales, so it’s pretty easy to see that the typical absorption for lakefront properties valued at $3MM and above, averages about five properties per year. Not a bad number really, but a number that shows 2009 wasn’t a particularly good year for upper bracket sales on Geneva Lake. There is another private sale, expected to close around $3.8MM by the years’ end, but that hasn’t happened yet, so let’s ignore it. That property is actually one that I was supposed to list earlier this year, and had a signing appointment scheduled until the owner cancelled at the last moment with news that a nearby neighbor bought it instead. I don’t want to talk about it anymore.
Before you jump all over the market, consider a different reason for the lack of sales during 2009. What if there were only two upper bracket sales simply because most of the inventory priced over $3MM is pretty lame? What if the inventory is largely stale, and significantly overpriced? This Realtor thinks that’s exactly why the lakefront market at the upper end hasn’t been moving this year like it has in years past. There are buyers active in those price ranges, but those buyers aren’t finding much that is worthy of their time. If a property priced in the mid $3MM’s, with more than 100′ of lake frontage, and an ample, solid home with some higher end finishes hit the market right now, it would probably sell within a couple weeks. There are buyers, but that home I just described doesn’t exist in the active inventory right now. There are some decent high end homes for sale right now, but outside of the South Shore Club, the homes priced under $3.75MM aren’t exactly going to impress you. There are some fabulous properties for sale in the $4.5MM to $5.5MM range, but even those offerings are more about the land than they are the actual house. You can spend $7MM+ and get a beautiful home, but that shouldn’t come as any surprise.
As I continually strive to make my buyers happy, there is another option that exists for buyers searching for a lakefront property in that price range. Ask me. That’s right, just ask me. If you know what you want to buy, tell me to find it for you. If you know you want a 100′ lot, along a certain stretch of lakefront, and you want to pay a certain price for it, then tell me about it. If I know what your vacation loving heart desires, chances are, I can be pretty effective at digging up an off market option for you. As with all specific property requests, price must be reasonable. If you want a 100′, two acre lot, with a 4 year old Orren Pickell home on it, and you want it for $2.4MM, then I’m going to have to direct you to another lake, because Geneva won’t have a package like that.
December is the best month to negotiate a deal here, yet I find buyers operating with a fair lack of motivation, which is pretty classic really. Buyers know the best time to buy, but they don’t feel the motivation to buy a summer home in the dead of winter. I understand that, but for buyers who can get past it, there are opportunities right now that probably won’t be there in May. Remember, every property isn’t a deal, and every location is definitely not equally desirable, but value does exist, and lopping off an extra 10% for your December discount just might be a good idea.