From a tiny cottage by the sea to a grandiose estate by a lake, waterfront real estate always has value. Beyond the many amenities of waterfront living, a house on the water is also an investment property. Discover seven smart strategies to market these properties to investors.
Focus on Exclusivity
Unlike landlocked homes, a limited inventory of waterfront properties is available which puts them in high demand. While exclusivity drives up the initial price of the house, it also opens up a myriad of profitable opportunities for investors. Water views, access to a dock, a sandy beach, and seeing wildlife in its natural habitat make these properties desirable. An investor with multiple homes can diversify his or her real estate portfolio by adding a coveted waterfront property. Regardless of size or price, agents should market a waterfront property like a luxury home to attract the most qualified buyers. Affiliated Better Homes and Gardens® real estate agents have access to specialized materials to help market these unique properties.
A Million Dollar View
Few people can resist a million dollar view, especially if the property sells for less. A waterfront home provides breathtaking views. Pull back the curtains and show off the beauty of the surroundings. A savvy agent invests in professional photos showcasing the exterior benefits of waterfront life. Include aerial images of the house, so investors see the proximity to the water. Amazing views are a way for investors to attract vacation renters of all ages and backgrounds. Connect with investors on social media and share the best photos and a video of the house to grab their attention. The Better Homes and Gardens® Real Estate brand provides excellent content to its affiliated agents, so they can build a successful online presence to help them connect with more investors.
Location, Location, Location
Not all waterfront homes are created equal. A savvy agent is realistic about the value of the property. Some areas are prone to natural disasters, making it riskier to own these homes and driving down their cost. Others are in a desirable place near a beach, marina, and other nautical features. As a result, a mansion in a high-risk zone might cost the same as a well-appointed cottage with prime dock space. Know the location and sell it to investors based on its actual worth and potential. Let them know a federal study revealed the values of coastal properties have appreciated at a 7 percent rate over the last fifty years, making them a worthy investment.
Often investors purchase waterfront homes to rent to vacationers. The location, access to waterfront amenities, and condition of the house all determine its rental value. A house that offers year-round enjoyment is an excellent investment. Mention this fact to investors who might wonder about rental income, and if there will be months when the house will be vacant. Properties that are easy to rent year-round are a substantial investment.
The Resale Value is High
The resale value of waterfront properties remains high, even during tough economic times. Buyers want to find homes as close to the water as possible and will pay a premium for the opportunity. Handy investors who fix up a waterfront house can make a huge profit when they decide to sell it. Agents should always remind investors they can do an updated valuation when the repairs are done, and help investors sell the house for maximum dollar. Connect with investors by talking to attorneys, accountants, bankers, and other professionals who know people that want to buy waterfront properties.
Discuss Supply and Demand
Investors are concerned about supply and demand patterns. A limited number of waterfront properties exist. When the investors are ready to sell the house, they are sure to find buyers. Agents should encourage investors to contact them for advice about selling a house. Busy investors will soon discover how time-consuming it is to stage, market, and sell a home. When this happens, agents have a golden opportunity to swoop in and remind the sellers they can assist them in selling the house quickly and getting top value.
The Joy of Hobbies
Another benefit of waterfront property is the enjoyment factor. Many people have waterfront hobbies, such as boating or fishing. Do the research then talk to investors about the potential of the property, such as renting boat slips and the potential income based on other local renters. A property with a dock can also become a place to put out traps to catch bait then sell it to local fishing enthusiasts. Investors with the right waterfront property can attract these people and earn an ongoing income from renting a boat slip selling bait, and other water-based activities.
A Waterfront Soiree
Skip the usual afternoon open house with sandwiches. Plan a waterfront open house with all the bells and whistles. Turn it into a sensational soiree people will talk about for years with delicious food, refreshing beverages, and waterfront activities. Invite industry professionals, local celebrities, and respected business owners to attend the party. Stage the property to show off its most exceptional features, such as a balcony in the master bedroom overlooking the lake. People may not need the house, but they will want it after the party. Instantly investors will see the property’s value and want to make a reasonable offer before someone else does.
Use these smart strategies to market waterfront real estate to investors. View a waterfront home as an investment property in all marketing campaigns. Prove the value of the house and how investors can make a profit by buying it. Mastering this limited niche can be lucrative for agents who know the waterfront market well and help investors make money. One successful deal is sure to lead to repeat business and referrals.