Lakefront or Lakeview - Reality Check!
Folks come to Norris Lake for many reasons. While vacation and retirement are in the top 10, we see folks who are looking for bargain properties to buy with the intention of reselling for profit in the future. This is most prevelant when folks succumb to the glitzy ads and marketing campaigns for new developments, purchasing property for "investment" without thoroughly researching the idea or the investment.
With over 44 communities around Norris Lake, there is plenty of lakeview property on the market - every community has lots. Buyers always have a good selection but, during these difficult economic times, this selection is larger than we have ever seen it. Buying lakeview now with the intention of building your dream home makes a great deal of sense. Buying to hold and resell does not. Firstly, there is simply too much competition. Secondly, the property will cost you annually to hold it in the way of homeowner's fees and taxes. For Sale By Owner's (FSBOs) typically do not do well around the lake and reselling generally requires the assistance of a real estate professional. Once you factor commission, taxes and HOA into the equation, it becomes difficult to do more than just break even, if that. Developers have told me that view lots are made to build on, not to resell. While there are a few exceptions, they are just that - exceptions.
Folks who purchased in the newer communtiies typically paid more for their property intially than did folks who bought years ago, so it becomes even more difficult to find a buyer as there will be many more properties priced much lower than what the newer developments charged.
Because the amount of lakefront on any lake is limited (and even more so on Norris Lake with so little of the shoreline available for development) resale of lakefront properties has, in the past, done rather well - depending upon the character of the property and the selling price. Today's market has more lakefront properties for sale than we have ever seen before. It is still a buyer's market and there is a lot of competition but, as the market improves, the economy is healthier and the recession becomes a chapter in a history book, we expect that lake front properties will increase in value again.