In real estate, as in life, there are hero’s and villains. Sometimes, the villain is an outright miserable human being, dripping with horrible intentions and even worse behavior , and their villain-hood is undebatable. Even their mother knows they’re a villain. In real estate, most times the villain/hero comparisons are found in the gray area, where a simple twist of fate or procedural hiccup can reduce even the most heroic hero to a vilified villain. There have been times when I have played the role of villain. Like earlier this year when I accidentally left a clients door unlocked. Careless buffoonery on my part was translated as calculated undermining, and my profuse apologies were ignored. Other times, I have played hero- a role that I relish and find most fitting of my day to day behavior. Some times, I don’t do much and still reach hero levels, other times I do everything I can to be found heroic and still receive the villain label when the dust settles. With the sale of 556 Sauk Trail last Friday, I have played both hero and unwitting villain, depending on who you ask.
The cottage at 556 Sauk Trail in Fontana’s Indian Hills has long been a cottage I have adored. To find a cottage with good, unmolested character in the entry level lakefront price range is not an easy task. I sold this lakefront home on Friday for $1.313MM, a price that would have normally relegated a buyer to the far reaches of some obscure Linn Township road, or perhaps a tear down on the bluff of Cedar Point or the marshy flats of Williams Bay’s Walworth Avenue. The home was originally listed a few years back for $2.4MM, though even at the absolute peak of our market it was never worth that. Still, the home was probably liquid somewhere near $2MM at the height of our market, and at the sale price it reflects a market that has dropped some 30% from those previous highs. The value was solid here, with a terrific location, elevated, but not steep frontage, and a house that could be enjoyed as is without any pressing alterations or repairs. It was a rare bird on the lakefront, and I was pleased to bring this property to a buyers attention to close the deal on their behalf. While I haven’t expressly been labeled a hero by the new owners, I’m quite capable and willing to make that determination myself.
The same transaction that helped me carve another hero notch into my belt has caused several others to carve my name onto their own villain list. There were no fewer than three other buyers who were interested in this property at the time that I sold it. The difficult thing about selling unique properties at Lake Geneva is that the supply is finite. When several buyers want to buy one property, it’s like a very cruel, unforgiving game of musical chairs, and the only good thing about being sans chair when the music stops is that you get to hang onto your $1.313MM. The bad thing is that it leaves a miserable taste in the mouth of those who had a shot that missed the target. The easy blame falls at the feet of the broker, but in this case, there are several buyers who have beefs with their brokers over the missed opportunity, though it’s difficult to blame when one buyer found the motivation needed to force their way into a deal while others were content to wait.
The sale proves my thought that lakefront values have dropped as much as 30%, a decline that brings the entry level lakefront market to the $1.15MM to $1.35MM range, where previously the range was $1.5MM to $1.8MM. Values will continue to be found throughout the fall and winter selling season. The best available lakefront deal at the low end of the market is my lakefront at 6 Upper Loch Vista. That listing is in play for several buyers at the moment, and will most likely sell in the next 45 days as the value is noticed by more and more buyers. The Congress Club listing at $1.1MM is another potentially potent bargain for the right buyer who is in a cash position and wants to get as close to the lake as possible.
To the buyer who harnessed their motivation and purchased the charming cottage on Sauk Trail, I congratulate you on your fine purchase. I’m honored that I was able to help, and hope that you’ll find your weekends at the lake to be the best times of your life. I’m pretty sure you will. For the buyers who didn’t have the opportunity to purchase this lakefront, I apologize for playing the unwitting villain, and hope that there will be another house that is even better suited for your own lakefront desires. 6 Upper Loch Vista would be a great place to start the next phase of your search.