Maybe you are a buyer looking for that vacation home; maybe you are an investor looking for a much safer place to put your money; or maybe you are just relocating to one of the most beautiful places in America. Regardless of what your goals are, if you are not familiar with Okoboji, how do you know what you are getting into? In any and all cases, if you are going to be procuring real estate, you should always consult a realtor. That of course is a pretty general statement, but it’s especially true in Okoboji. We’ve all heard the mantra “location, location, location”. Nothing affects the market value of a home in Okoboji more than that. Location, location, location. Let me give you a general overview of what to expect if you have little or no experience with real estate in Okoboji. And if you are a seasoned veteran, you might be surprised at some of the numbers I discuss.
We are all aware of the real estate bubble and the impact the bubble and financial crisis has had on the average American. Whether it be Vegas, Arizona, or Florida, many areas in the US have taken a substantial hit in market value of real estate. Those folks that purchased overvalued homes in the early to mid 2000’s have seen crushing blows to their livelihood and/or retirement funds. Some areas throughout the US have been less affected however, and Okoboji is one of those areas. Even though we’ve seen a little deflation here in Okoboji, it has been nothing compared to what we’ve seen in other parts of the country. Home values are down, but only slightly. We’ve seen the biggest deflation taking place in the condo category, but this is more due to the fact that too many condos were built in such a short amount of time, and less to do with the economy. Regarding current housing prices however, prices are only down now because the current prices are being compared to what they were selling for in the early to mid 2000’s . Like the rest of the country, it was a complete seller’s market and sellers were making money hand over fist selling their Okoboji homes, condos, and/or investment properties for a tremendous premium. I don’t thnk we’ve seen so much deflation, rather we’ve seen a more normalized market. Yes, it is a buyer’s market. Buyers are offering as low as 70% asking price and seeing those offers accepted. Even though this is not the norm, it is happening. However, we are not seeing a huge swing in lower asking prices. We have seen a little of this on lake properties, but off-lake and in town properties have really been holding their value. West Lake and East Lake certainly aren’t as lucrative for a home owner as they were 8 years ago, but no properties are being given away. With that said, though, there are great investment opportunities for lake homes right now, especially on West Lake. We have not seen this many lakeshore properties being sold on East and West in years, and it has continued into the fall. There has been a good variety of properties between $450,000 and $750,000 that has really attracted those consumers looking to get on the lake, but the big ticket items, 1.5 mil plus have been selling. Yes, there are bargains out there, but none of these properties are being given away. Right now there are 3 or 4 GREAT investment opportunities out there. Shoot me an email or give me a call, and I’d be happy to share my thoughts with you. Now, let me take a minute to give you a run down on what the current property values are from my perspective.
West Lake was once approaching $20,000 per linear foot just a few years ago. Property values on the lake are very dependent on location and quality. Are you facing the sunrise or the sunset? Do you have to walk 50 steps or do you have a sand beach? Are you close to the action or are you in a fairly peaceful setting? There are a number of factors that go into valuing West Lake and East Lake. On West Lake, you
can buy properties now for under $10,000 per linear foot, but you might pay as much as $14,000 or $15,000 if you are buying primo land. On East Lake, the two primo areas are Moore Lake and Loch Knolls. These properties will range from anywhere between $5000-$7500 per linear foot. The further north you get on East Lake, the further the values drop, especially if the property is north of the narrows. Those properties will sell for $3500-$5000 per foot, depending on the approach to the lake and location of course. Minnewashta is a pretty popular lake actually and we really don’t see a lot of properties come on the market because it’s still a nice lake but without the traffic. I compare Minnewashta property values to that of North East Lake, $3500-$5000.
Many people enjoy the Big Spirit Lake lifestyle where they take a great amount of “ownership” in “their” lake. This lake is not connected to the Iowa Great Lakes chain of Lakes, but it still provides excellent fishing, less traffic, and simply great days on the boat. Prices on Big Spirit will be comparable to East Lake depending on location. Then there is upper gar and lower gar. These properties when available can sell for anywhere between $2000-$3500 per foot, again, depending on location and quality.
So, what about off-lake properties? The first thing to understand with off-lake properties is that not all “off-lake” advertised properties are truly “off-lake”. Personally I only consider off-lake properties to be those properties that have deeded lake access through an association like Echo Bay, Arthur Heights, or East Oaks Estates as examples. Many realtors will advertise their property as “off-lake” with lake access, but many times this may only be non-deeded public access or access by permit etc. Be very careful when you look at off-lake properties and make sure you fully understand how you can gain access to a hoist spot. If you do have deeded access, in general I consider this a $20,000 upgrade for your property. This would be a little more for a quality lake like West Lake, and little less for other lakes, but it’s a good rule of thumb.
In 2012, there has been a tremendous response to in-town homes between $75000 and $150,000. They have been getting swept up almost as soon as they have been put on the market. $150,000 to $200,000 has been a little more difficult for sellers, and the market for plus $200,000 has probably been the weakest of the market.
Folks, that is a general rundown of what to expect in your search for Real Estate in Okoboji. I hope that you find this information helpful, and if I can be of assistance, please contact me, day or night, rain or shine. Have a wonderful day.