Lake Martin Voice Realty
2 Ways Creative Marketing Sells Specialized Real Estate
Are you selling “specialized property” on Lake Martin?
If so, you need to 1) lead with creativity, then 2) knock ‘em out with information.
Let me explain . . .
In mid 2009, a regional bank foreclosed on a waterfront home on Lake Martin.
I was honored to be selected as the listing agent. But as soon as I walked through it the first time, I knew it would be a special property that would take some ingenuity to find the right buyer.
Let’s face it – vacation homes on Lake Martin, or anywhere for that matter, are pretty specialized properties. Each one is unique, with its own set of selling points and challenges.
But the home on Castaway Island road was doubly so. First, it was a leased lot home. Secondly, its location in the Castaway Island community might seem awkward at first glance.
1. The Lead – Creativity
I knew I had to get some attention to the property fast, so I turned to video. I love video as a medium to highlight the Lake Martin area and my listings in particular.
Normally my listing videos are pretty formal. I move slowly through the property, with narration and soothing music playing in the background. But I felt this wouldn’t do for the Castaway home. Check it out:
As you can see, I went with a more avant-garde, home movie feel. I offered to buy someone flip flops. I felt this captured the feel of the community. That’s what is so fun about having a home there: being able to walk to the marina, the restaurant, everywhere, with your family. I knew this from growing up nearby, and visiting friends there now. I knew that the eventual buyer would be someone that would appreciate this.
Hey, I’m selling lake homes! Can’t I just let loose and have fun sometimes? Now that I had the market’s attention, I went for the:
2. The Knock Out Punch – Great Information
Let’s face it, fun might get you to splurge for a pair of goofy flip flops, but creativity alone won’t spur you to make the investment of a lake home for your family.
Especially this one. It’s affordable price was explained by the fact that it is a leased lot home. This means that you own the bricks and sticks, but pay a modest monthly lease amount to Alabama Power for the lot.
For people that are new to Lake Martin, the concept of leasing dirt, and buying the home that sits on it, can be puzzling. Let me be plain, I have talked to many long term lakers that have no clue about it either.
Solution? Information. I wrote and researched about leased lots on this blog. I talked to Alabama Power leasing representatives. I reviewed the current lease, and proposed lease renewals. I talked to lawyers. I interviewed people that have been leasing for years and years.
The result was I was able to help the buyer get educated on the process, thus removing the uncertainty of the unknown. Voila.
What about you?
Do you own a waterfront home, lot, or condo at Lake Martin that is highly specialized? Concerned that you can’t find an agent with sufficient creativity to market it properly? Contact us, we would love to take a swipe at it.
Or are you a buyer, and have you been told you are too picky? Can’t find what you want? Have you made offers, but have been told you’re crazy? Call us, we may be just crazy enough to take on the challenge.
Lake Martin Open House Video – Mariners Road
My listing videos of Lake Martin homes have proved so popular that this year I have decided to come up with a new series of videos and blog posts:
Lake Martin Open House Videos!
These will (mostly) not be my listings. I thought it would be fun to tour through open houses at Lake Martin and video them for viewers and buyers. Since we are in a rural area, and since most people work during the week, I figure that there are a lot of folks that would like to see inside some of these lovely homes. So stay tuned for more open house videos!
Also, please keep in mind that, as a member of the Lake Martin Area Assoc. of Realtors- I can help you if you are interested in this or any other home, even though I’m not the listing agent.
The listing agent on this home is my friend and office neighbor Becky Haynie with RealtySouth. Their office is right next door to mine (Lake Martin Voice Realty) in the Nail’s commercial mecca, downtown Kowaliga.
This was a fun open house. The weather was beautiful (if not a little windy) and clear. I knew these particular sellers to be excellent cooks. I was not disappointed! They had some tasty sausage balls and coffee to fight off the cold, plus some strawberry cupcakes and some sort of raspberry-esque fruit juice to cleanse the pallet.
Their home is on a point, almost an island, in the Real Island area of Little Kowaliga Creek on Lake Martin. From the water, if you are riding west with Real Island Marina on your right, after you pass the marina, this home is on the next point on your right. The lot and the home design make it very distinctive.
Also – it’s a leased lot. If you are unfamiliar with how leasing waterfront lots from Alabama Power goes, please click here to read more about Lake Martin leased lot homes.
Stay tuned to Lake Martin Voice for more open house video tours!
Low CPI Is Good News For Leased Lot Homeowners On Lake Martin
Every cloud has a ray of sunshine, to mix cliches. The latest news from Washington means more money in the pocket of people who own leased lot homes from Alabama Power on Lake Martin.
According to this article in the Wall Street Journal, Consumer Price Index, or CPI, has hit a 53 year low.
This is significant to leased lot homeowners because in the lot leases with Alabama Power, the yearly change in the lease amount is tied to CPI. Every lease is different, of course, so consult a lawyer to look over the fine print. But speaking generally, every waterfront lot lease on Lake Martin that I have ever seen has a clause that addresses lease increases and decreases. Every year the lease amount changes by the CPI. According to the WSJ, core CPI last year was up 1.7%. Many people don’t realize that. They think that Alabama Power locks you into a lease and then can “raise the lease to whatever they want.”
Untrue. Even in real estate boom years like 2005, the lease increase is capped by CPI. In slower years, they still can’t go up willy nilly.
That’s how a weak CPI is good for leased lot homeowners on Lake Martin!
Curious about leased lot homes on Lake Martin? They are an extremely affordable way to own a home on the lake. I have three for sale starting at $274,900 and about $355 a month lease. Your total payments would be less than owning a condo, plus you would have the privacy of a home. Check out the homes of 19 Longleaf, 26 Claytons Lane, and 145 Captains Road. I think you will be pleased.
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Mythbuster: Alabama Power Leased Lot Homes On Lake Martin
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Mythbuster: Alabama Power Leased Lots – Lake Martin
Alabama Power has leased waterfront lots on Lake Martin for decades. Yet, so much rumor, speculation, and innuendo surrounds the topic it remains mysterious to many people, real estate agents included.
Allow me to try to bust the myth on this subject.
Why are there leased lots on Lake Martin?
Lake Martin was created in 1923 when the Southern Company (Alabama Power) built Martin Dam on the Tallapoosa River. They bought up all of the eventual waterfront at the elevation of 490 feet above sea level. Since old Mr. Ben Russell (founder of Russell Mills), already owned the damming rights to the Tallapoosa, the Power Company swapped him those rights for one half of the waterfront. Pretty much every inch of the 700 miles of waterfront of Lake Martin at one time or another was owned by either Alabama Power or Old Mr. Ben.
When did Alabama Power begin to lease lots on Lake Martin?
Sometime around in the 1960s, Alabama Power allowed people to build homes on the waterfront, but they retained ownership of the land underneath the home. The people own the sticks and bricks, the company owns the dirt. The people paid a monthly lease to do so. Over the years, depending on the opinions of officers at Alabama Power, the homeowners were given the chance to buy the dirt under their homes. No rhyme or reason to it, some years they would decide to sell, other years they would institute leases. That policy continues today. Who knows, they may decide to start selling lots to leaseholders tomorrow. They might not.
How does a lot lease work on Lake Martin?
These days, when Alabama Power leases a waterfront lot to homeowners, they have a written lease, just like you would for an apartment. The lease specifies the monthly rate (currently around $400), the length of the lease (currently twenty years), and the yearly increase of the rate. The key here is that every lot is different, so if you’re concerned, consult a lawyer. Alabama Power assigns the lease amount when they offer new lots for lease. They offer the lots in a bid system, meaning, the homeowners bid offers of cash to pay for the privilege of entering the lease. If you are the top bidder, then you must pay the monthly lease rate on top of that.
What happens at the lease end?
Again, you must examine each lease to be sure of how it works. But generally speaking, at the end of the lease, one of 4 things can happen:
1. Alabama Power renews the lease
2. Alabama Power sells you the lot
3. Alabama Power buys the house from you
4. You pick up the house and leave.
My family has been selling real estate in the Lake Martin area since 1953. We have never heard of Alabama Power buying a house, or making someone move their house away. Not that it is impossible, but it is, in my opinion, highly, highly, improbable. Most of the time they either renew the lease or sell you the lot. Once again, if in doubt, talk to a lawyer.
Can you sell a leased lot home?
One word answer – YES. There are plenty of great leased lot homes
for sale now (like this one) on Lake Martin and many that have sold in the past. Generally speaking, you can get more house or view for your money on a leased lot house than you can on a deeded lot home, because of the existence of the lease. The transaction works just like a deeded lot sale, except you have the added step of transferring the lease to the new owner. Alabama Power must approve this transfer, but usually it’s just a matter of paperwork.
Can you finance a leased lot home?
YES – easily. I almost always recommend that Lake Martin buyers use lenders from around the lake. Not because I am related to any many of them, but because lake financing is usually a bit different than your standard McHouse in McSuburbia. Local lenders are especially handy when it comes to financing a leased lot home. They are familiar with all of the documentation, so it’s a lot easier to work with them.
Do you own a leased lot home and have some advice to add? Or maybe you have questions that I haven’t answered here. If so, please comment on this post and I will do my best to answer anything else.
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