Lake of the Ozarks Real Estate Blog

Are you considering purchasing a 2nd home or condo at the Lake of the Ozarks? 

Here are my top 5 Points that you should consider before you jump into your car and cruise to the lake for a weekend of searching.

1)   Will you be paying cash or will you need to get a Loan?  If you are getting a loan it is a good idea to speak to a Loan Officer to get Pre-Qualified for a loan.

i)   If you are one of the lucky individuals that is capable of paying cash then good for you; you can effectively skip this first step and move right on to the second step.  However if you will require some financing it is a good idea to visit with a Loan Officer and get them to pre-qualify you for a loan.  This will effectively let you know what you can afford and prevent you from spending your time and your Realtors time touring properties that you may not be capable of purchasing.

ii)   I always recommend to my clients that they at least contact a lender at the lake.  All areas are unique and the lake certainly has some unique hurdles to obtaining financing.  Using a local lender will help prevent any problems with closing a loan.

2)   House or Condo?  There are very clear advantages and disadvantages owning a home and/or condo at the lake.

i)   If you are a person that really values privacy, peace and quiet then you’re a good candidate for a house.  But be warned when you own a house along with it comes the responsibility of maintaining the interior and the exterior.  I have been a Realtor for 11 years and in that time I have helped many clients sell their lake house and move to a condo because they are tired of all the work they have to do when they come to the lake.  Remember you are buying a home at the lake so you can enjoy the lake with your family and unless you enjoy yard work then you may want to consider a condo.

ii)   If you plan to spend most of your time boating, shopping or golfing then you may want to consider purchasing a condo.  Owning a condo alleviates all the responsibility of maintaining the exterior of your home.  All you have to do is pay your assessments and all of the grounds are maintained for you.  This allows you to maximize your enjoyment of the lakes recreational opportunities or simply sit down and relax.  However, be warned if you are a very private person and not much for socializing then a condo may not be your best choice.

3)   What area of the Lake do you like to spend your time?

i)   The Lake of the Ozarks is a large area with lots of different communities surrounding its 1,300+ miles of shoreline.  There are many different areas of the lake for a person to purchase a 2nd home; a few of them are Lake Ozark, Four Seasons, North shore, Porto Cima, The Villages, Osage Beach, Linn Creek, Camdenton, Greenview, Sunrise Beach and Laurie.  All of the communities have unique features and amenities worth considering.

ii)   Chances are if you are considering a 2nd home at the lake then you probably already know which area of the lake you want to be in.  However, if you are not sure then be sure to speak with your Realtor regarding the different qualities of each community and let them know what is important to you.

iii)   Another consideration is what area of the lake do you like to boat on.  Remember there are two sides to the lake; if you like to boat between the 20 and 30 mile marker but do not like Osage Beach then you should consider a house in the Greenview and Sunrise Beach area.

4)   What do you Need and what do you Want?

i)   Once you have determined if a house or condo would be better for you, you should start a list of what features you Need and what features you Want. 

ii)   Take a piece of paper and draw a line down the middle, on the left write Needs and on the left write Wants.  On the needs side you should list all of the features that you absolutely have to have in your 2nd home and under the Wants side make a list of the features that you would like to have but are not necessarily deal breakers.

iii)   Some examples of Needs are 3 bedrooms, 2 bathrooms, 2 slip boat dock, garage, etc.  Some examples of Wants are Level driveway, minimal steps to the lake, cove location, main channel view, dock with slide.

5)   Pick your Realtor.  You should pick your Realtor carefully; make sure your Realtor has your best interest at heart.  There are too many Realtors out there who are eyeing that commission and only care about the commission.

i)   Chances are you probably know someone who owns a property at the lake and they probably purchased the property through a Realtor.  Ask your friend about their Realtor and if they would use them again.

ii)   Some key points you should look for in your Realtor are; Experience (this can be the Realtor or the Broker that he/she works for), Availability (make sure the Realtor is Full time and not part time; if you needed Surgery You wouldn’t use a Part Time Surgeon Would You!), Knowledge (how well does the Realtor know the lake area and the current condition of the market) and Personality (it is a fact that most people like to work with people that they like. Try to find a common interest with the Realtor this will make your time together more enjoyable).

Jonas Farrell
Broker / Officer
John Farrell Real Estate Co.

Over the past few months I have been creating a database to track sales of real estate over the last five years.  It is still a work in progress and I plan to take the numbers back even further to include up to year 2002.  With that said, I would like to share what the sales have been like at the Lake of the Ozarks since the beginning of 2005 for Lake Front Homes.

A quick disclaimer: I have compiled this information from the local Multiple Listing Service.  This information is not guaranteed to be 100 % accurate.  If the average sale price seems low it is because this information takes into consideration all sales at the Lake of the Ozarks. 

		Number of Units Sold
		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Year Total
2005		142		169		326		218		855
2006		169		302		240		170		881
2007		132		251		231		120		734
2008		99		157		145		101		603
2009		80		91		0		0		171
		Average Sale Price
2005		$       297,702		$        311,359		$       277,246		$       308,895		$    298,800
2006		$       355,219		$        343,068		$       343,092		$       356,559		$    349,484
2007		$       349,476		$        367,659		$       401,677		$       353,385		$    368,049
2008		$       357,483		$        389,531		$       340,321		$       328,172		$    353,877
2009		$       272,206		$        338,326						$    321,469

 

As you can see from the numbers above, 2006 was the peak year for the Real Estate Market at Lake of the Ozarks.  The year 2006 peaked at 881 total sales with an average sale price of $349,484.  While the average sold price of Lake Front homes continued to climb in 2007 the total number of homes sold declined by 147 units sold or nearly 17%.  Then in 2008 the average sale price dropped from 2007 but remained higher than the peak sales year of 2006 but the number of units sold dropped again another 131 units or an 18% drop from 2007 and 32% lower than 2006.

If you compare the first quarter of 2009 with the first quarter of previous years you will see that there has been a significant drop in the number of units sold and the average sale price of those units.  Comparing the first quarter of 2009 with the first quarter of 2006 you will see that the number of units sold has dropped by 53% and the average sale price has dropped by $83,013 or 23%.

What does all this mean for the Lake of the Ozarks?  Well obviously it means that we are not recession proof.   As of today, June 19, 2009 there are 1,244 Lake Front homes for sale with an average list price of $520,730 and an average day on market of 143.  The highest price home on the market is listed for $9,695,770 and the lowest price is $47,000.

Clearly it is a Great time to be a buyer!

Staging your home for showings is a key element to selling your house.  Staging your home does not necessarily mean the need to spend a lot of money to add new furniture. Here are a few of my favorite tips for sellers that are minimal in cost.

1.Create focal points for rooms:

Find the most visible corner of the room and stick a plant there. Silk trees work real well in living rooms and family rooms.  Set a nice silk tree in a corner and if you can, set a light to shine up on it.  Make sure the tree is not too big.  It should fill the space but not stand out like a sore thumb.

2.Set up a Chat Room: 

If you have two living areas, arrange the furniture to encourage conversation.  Buyers should be able to envision themselves sitting in a space with their guests.  This brings a sense of caring and pride of ownership to your home.

3.Remove Personal Photos:

Remove the photos of your family and friends.  Buyers will tend to stop looking at the home and start looking at the photos.  Their attention should be on the house and not your family.  Replace the photos with scenic photos of the area you live in.  For homes at the lake, use some of the many lake photos that are typically found in calendars.  Remind people that they are buying a home at the lake.

4.Tighten It Up:

Tighten any loose doors, cabinets, knobs and re-stain, re-paint and re-finish any areas that need to be touched up.  Buyers like to open all doors and peak at all corners.  If a potential buyer finds a lot of knobs that are loose or walls that are banged up from door knobs they will have a sense that they house is beaten up and not well cared for.

5.Freshen the Landscaping:

A home needs to make a good first impression.  Buyers will often do a drive by of a home before actually scheduling a showing.  What they see from the outside will drastically affect their desire to view the home.  So you may well be showing the home and not even know it.  Keep the lawn cut, the sticks picked up and the leaves gone.  Plant some fresh flowers and spread some new mulch.  Pick up the kids toys and put them in the garage.  If a buyer sees a yard that is not well cared for they will believe that the house is not well cared for either.

6. Repaint the house:

If the paint on the outside of the house is faded, repaint the house.  Ask your REALTOR what the current color trends in your area.  When painting the house try to differentiate it from your neighbors; if your neighbor’s homes are all blue with a Grey trim, paint your house Brown with a Green trim.  This will help distinguish your home from the neighbors and will make it more appealing.  Buyers don’t want to buy what they feel is a cookie cutter home.

7.Open the Windows:

  Natural light is the best kind of light for showing a house.  The brighter a house is the better for showing it.  Natural light can make a home feel bigger and all buyers like a home that feels bigger then it really is.  Buyers like to be able to see the house and all its features with ease.  A buyer can be turned off of a home if they walk into a poorly lit, dark room.
Each of these suggestions should come at minimal expense and you should be able to complete them without hiring a professional.  When selling your home, you should take a long hard look at it and try to imagine yourself as a buyer seeing it for the first time.  What kind of impression does it make?

-Jonas Farrell
Lake of the Ozarks Real Estate Agent