The market is changing here at Smith Lake. This post is for those of you that have been thinking about looking for a place on Smith Lake but are unsure when you should start the process because of the questions in the marketplace: Are prices dropping? Are there deals out there? Do I still have to compete for houses?
Are prices dropping? Prices are dropping but not dramatically. I am still seeing good/great houses hold the higher values as a cool house will sell, the seller just has to be patient. If a seller is not patient, price is their obvious lever to use in attracting more attention. The houses that are marginal or have issues have to be priced more aggressively as buyers are getting more picky, because they can be, and more patient as inventories are rising. So…patience for the buyer and seller can benefit them. I am recommending to my buyers right now to be as picky as you want to be as long as they can be patient.
Are there deals out there? The majority of the houses are still be priced aggressively for the first 30 days or so. That time period will tell a seller pretty quickly if they have an attractive property or if it is priced right. Again, if a buyer can be patient and only look at houses 30+, or even better 60+ days, on the market…you might just get a discount. The DEALS I see are typically when a seller is wanting to move the house quickly (i.e., they are not patient). This might be the result of the seller wanting to purchase another house, it might be a badly performing Short Term Rental (see more below on STRs). BTW, the number of buyers looking for deals in the less than $1 million price range is the most crowded. So…be prepared and ready to pounce on these. You need to be highly educated on the market or be using an agent who knows a deal when they see one.
Do I still have to compete for houses? The days of multiple offers, escalation clauses and over asking offers are far a few between….thank goodness! You do still have to compete but it is more about speed than price. If a property that is a deal hits the market, you should be looking at it within 24 hours of it hitting the market and that may be too late as many times by the time a property hits MLS/Zillow it has been on the market for a week or so waiting on pictures or a repair or some other reason. The house is getting shown during this interim time by agents in the know.
Short term rentals. (STRs) With the ballooning of the STR inventory from ~125 properties pre-pandemic to over 400 in 2024, the occupancy rates and profits in this segment has plummeted. (Ex. I own a house that brought in 78-80k pre-pandemic and now brings in ~50k). Many owners that purchased needing the rentals to help pay for the house are getting hurt and working to move those properties. There are a number of properties on the market in this category.
Recommendation to buyers Now more than ever is the time to make sure you have a solid agent that specializes in Smith Lake and is connected to the major listing agents on the lake. This knowledge and these connections is the difference in either getting a great deal or knowing which houses require a sense of urgency to act on.
One other point, many buyers are always wanting to get a deal regardless of whether the house is already a deal or not. Be careful here as this is how you lose the perfect house. If a house is perfect for you then be prepared to pay full price or close to it. When you find the perfect house for you, it is not the time to negotiate….it is time to get what you want…which is the house. $10k, 20k, 30k will not matter 10 years from now near as much as the enjoyment you will get for the right house.
If I can answer any questions about Smith Lake, feel free reach out to me at 205.492.3211 or Jeff@SmithLakeRentals.com. Thanks for reading!