Lake Vermilion Real Estate

Cabin Life is a very nice periodical that focuses on the cabin (or cottage) lifestyle.

The current issue features, as their cover story, a lake home on Lake Vermilion.  You can read the story online at the Cabin Life website (it requires a free registration) or you can view the features of the home here.

I can send you additional information if you would like to know more.

Recently it’s been tough to find a positive real estate news story… regardless of where you look.  But, as they say, all real estate is local.  Which begs the question… How is the Lake Vermilion area real estate market?  Well, using year-to-date Lake Vermilion cabin and home sales as a gauge the report is encouraging.

To date in 2010 the number of completed sales is nearly twice 2009, almost tripled 2008, two more than 2007, and just one less than 2006!  (Data sourced from the local MLS.)

I’d say the credit goes to Sellers with the ability and willingness to work within the challenges of a heavily weighted Buyers market.  Also, credit should be given to successful Buyers who have done their due diligence, researched their numerous buying options, and negotiated in good faith to a mutually beneficial agreement with their Seller of choice.

The opportunities are there but it takes an extra effort by all parties to overcome the significant changes in a market that is the subject of so much less-than-positive news.

(Fantabulanistical)

To buy or not to buy… that is THE real estate question of the day.

Here are five reasons to buy now and five reasons to not buy now.  (I have added, in parentheses, a few Lake Vermilion area market comments.)

Buy now! 1) Interest rates are at record lows.   (The future for interest rates is up.  The long term advantage of a +/-4% interest rate cannot be overstated.)  2) Some markets have begun to recover.  (The Lake Vermilion market has improved from 2009.)   3) High inventory levels mean lots of choices.  (In a lakeshore market, higher inventory levels are a very rare Buyer advantage.)  4) Homes are much more affordable than just a year or two ago.  (Very true in the Lake Vermilion market.)  5) The cost to rent a home is going up.  (Probably true but not a high concern in a recreational property market.)

Do not buy now! 1) Asking prices may continue to drift downward.  (Very possible but if we’re not at the bottom, we’re very close.  That’s my opinion.)  2) Lower asking prices may be around for awhile.  (Not necessarily true for a market with relatively small inventory levels.)  3) You have minimal money for a downpayment.  (A valid concern for all real estate purchases.)  4) You are not thinking long term.  (A long term plan is lower risk for recreational property.)  5) The current market is unstable.  (The Lake Vermilion market is very stable when compared to other areas of the country.)

To read the full article go to this real estate blog.

Here are a couple of premium lakeshore homes that have seen substantial price reductions since their entry to the marketplace.

MLS 113358– SOLD! Burntside Lake, Ely, Minnesota,  Now offered at $959,500, originally offered at $2,200,000.  Described as follows:  “Stainless & granite kitchen has slate floors inlaid w/pewter & beveled glass doors to formal dining room with fireplace and French doors to deck overlooking the lake.  Wonderful relaxing spaces with sounds of waterfall and wind in towering pines. 13,000 square feet, 6 bedrooms, 5 baths, library, pool, sauna, hot tub, wine cellar, home theatre.  5.4 acres, 205′ of waterfront, garages, large storage building, boathouse, permanent dock.  Inexpensive to heat.  Easy to accomodate private guest quarters.”

MLS 114113– Lake Vermilion, Buyck, Minnesota,  Now offered at $749,900, originally offered at $1,495,000. Described as follows:  “This impressive, recently built, Lake Vermilion log home features over 5000 square feet of living area. 5 bedrooms, 3 baths, loft, sauna, family/theater room, game room, bar, spacious kitchen, Great Room w/ dining area, screen porch, spacious decks, and outdoor spa tub. Extras include 2 large garages, 200 ft lksh & 32.5 wooded acres near public lands, dock on protected bay, scenic lake views. The ideal luxury lake home for the outdoor enthusiast!“

I have additional details if you would like more information.  Call (218/750-0299) or email (bill@lakevermilionrealestate.com).

The current market is pressed for improved interaction (of any sort) between Sellers and Buyers.  The offer of money for ownership rights is certainly the traditional model for a real estate transaction.  But the unusual market conditions may call for non-traditional options to increase the number of successful transactions.

I believe some Sellers would accept something other than 100% cash to secure a sale.  I think there are some who would consider another real estate holding as partial compensation.  The potential combinations in the Lake Vermilion market are numerous…  a water access cabin + cash for a road access lake home, an undeveloped lakeshore lot + cash for hunting cabin with acreage, a rural building lot + cash for a residential home, and so forth.

Do you own a home, cabin or vacant acreage parcel?  Would you consider a trade (or partial trade) for something else?  If so, let me know.  There may be a Seller interested in your proposal.

Call (218/750-0299) or email (bill@lakevermilionrealestate.com).

Too many graphs, numbers, facts, updates, and statistics can make for a dull boy. Maybe a drive through the countryside would be a reinvigorating experience!

(Warning: Sorta harsh.)