The waterfront property market is one of the most fragmented yet valuable segments in U.S. real estate. While many brokerages pursue growth through agent headcount and transaction volume, Lake Homes Realty has taken a different path – building what may be the nation’s largest lake-focused brokerage by prioritizing a small, expert agent network and deep market knowledge.
Glenn Phillips, CEO and Lead Economic Analyst at Lake Homes Realty, did not plan to upend the real estate industry. A former software engineer, Phillips was initially brought in to assess a struggling startup’s lead generation portal. What he and COO Doris Phillips found was the foundation for a specialized brokerage model focused on waterfront properties.
“We told them it had some flaws, but if you made it a brokerage, that might be an innovative idea,” Phillips recalls of that turning point over a decade ago.
Finding Opportunity in Fragmentation
The decision to focus on waterfront properties was grounded in extensive data analysis. Phillips and his team spent 15 months evaluating the market, starting in Alabama.
“Even during the real estate bust, each year a billion dollars worth of lake property changed hands in Alabama alone,” Phillips says. “So we knew this was a massive market that was disjointed. Nobody had put it together on scale.”
The scale of the opportunity was surprising. Phillips notes that two Alabama lakes, though barely visible on a map, each have more usable shoreline for housing than California’s entire Pacific coastline.
This fragmentation created a unique opening. Lake properties often span multiple MLS systems, and agents in one system typically cannot see listings in neighboring areas. Lake Homes Realty now aggregates data from about 160 MLSs across 39 states, providing comprehensive access and eliminating blind spots.
“There are markets where four MLS systems will have property on that lake,” Phillips says. “If you’re just a member of one MLS, you don’t even see all the property in your own backyard.”
A New Brokerage Model
Traditional brokerages operate on what Phillips calls a “casino model” – recruiting as many agents as possible and hoping some will produce results. Lake Homes Realty reversed this logic.
“Their business model is not that different than a casino. They need a lot of people, agents, players, into their casino,” Phillips says. “We said, what if we used tech to take this disjointed property that typically has a remote buyer and put them in one shop?”
Instead of maximizing agent count, Lake Homes Realty focuses on maximizing agent productivity. The company operates virtually across 39 states, selecting agents for their expertise and commitment to the niche.
“We’re actually designed to have as few agents as possible and make them very successful,” Phillips says. “I’m focused on how few agents can I get to gain meaningful market share, and I want to accelerate those agents as far as they’re willing to go.”
Technology development follows the same disciplined approach. Rather than chasing trends, Phillips insists on mainstream, sustainable platforms.
“Some engineers can get very fascinated with the latest toy, and it’s a fad, and in three years, nobody’s using it,” he says. “We want to stay fairly mainstream in what platforms we’re using.”
Market Realities and Price Sensitivity
Phillips has publicly stated that 2024 is the worst year for residential real estate in nearly three decades, but he points to more than just rates and inventory. He highlights the psychological dimension of affordability.
“Real estate is based on what people think they can afford,” Phillips says. “Once the Trump tariffs started oscillating, the stock market started oscillating, and people with money became cautious.”
Lake Homes Realty’s data shows that properties priced more than 8-10% above current market value simply do not attract offers. Homes that sit unsold for weeks are almost always overpriced.
“If a home has sat for weeks, that alone says it’s overpriced. How do we know it’s overpriced? Because it didn’t sell,” Phillips says. “If there’s a magnificent house for sale for five bucks, you and I go buy it. If it’s for sale for three times what it should cost, nobody’s buying it.”
This pricing discipline reveals “phantom inventory” – homes listed at unrealistic prices that inflate inventory statistics but do not reflect true market activity.
Migration Patterns and Market Impact
With operations in 39 states, Lake Homes Realty tracks migration trends that directly affect waterfront markets. The continued exodus from California is a major driver, with buyers bringing higher price expectations to more affordable regions.
“If you sell your million-dollar home in California, it may not be very impressive, but if you move to different parts of the eastern US in a rural area, you can buy three times as much house and still have money left,” Phillips says.
This migration disrupts local pricing, as California buyers routinely outbid local norms but do not consider themselves overpaying. The company also observes traditional age-based migration from northern to southern states, with many buyers now choosing lakes over beaches to stay closer to family while avoiding harsh winters.
Navigating the NAR Settlement
The August 2024 National Association of Realtors (NAR) settlement changed commission structures industry-wide. Phillips had anticipated this shift for years.
“Before we even agreed to do the business, it was part of our modeling that this sharing of commission would end, and we actually were expecting that to be a good thing for the industry and a good thing for us,” he says.
The new rules favor brokerages with clear expertise and service value, rather than those relying on sheer agent volume. Phillips expects the settlement will eventually eliminate agents who added little value but earned significant commissions simply for facilitating transactions.
“For brokerages like ours, where we have highly professional agents who produce, we believe this is an advantage, because we bring a lot of value,” Phillips says. “We almost look at our team as financial advisors for the real estate transaction, not just salespeople.”
Expanding the Specialized Model
Lake Homes Realty is extending its niche approach to new markets. The company has launched Beach Homes Realty in 17 states and recently rolled out Mountain Homes Realty across 24 states. Each expansion applies the same data-driven, selective strategy, though mountain markets present new challenges due to less clearly defined boundaries.
Climate Risk and Buyer Activity
Despite frequent headlines about climate risks, Phillips says there is little evidence that buyers are changing behavior due to long-term environmental concerns. He attributes this to what he calls “temporary immortality” – buyers acknowledge risks but do not believe they will be personally affected soon.
“We get almost no inquiries related to what’s going to happen with climate in these environments at this point, for buyers, and people are not selling because they’re concerned,” Phillips says. “Watch what people do with their time and their money if you want to find out what’s important to them. In this case, they’re still buying these properties.”
Insurance costs from climate events are a real concern in states like California and Florida, but buyers treat this as a financial calculation rather than an existential threat.
Advice for Buyers and Market Outlook
Phillips encourages buyers to focus on readiness and clear criteria rather than timing the market. Because many lake and beach homes are purchased with cash, interest rates have less influence than in primary home markets.
“Don’t time the market. You’ll never time the market, particularly if you’re buying and selling at the same time,” Phillips advises. “Know what you want and be ready to move quickly, because if it’s priced appropriately, it will move fast.”
Lake Homes Realty’s data shows that properties selling within 60 days usually achieve at or above list price, while those on the market for over 90 days typically see 8-10% price reductions.
Looking ahead to 2030, Phillips projects continued growth across lake, beach, and mountain markets, all without raising outside capital. The company remains committed to proving that a specialized, expertise-driven model can scale nationally while maintaining service quality.
At a time when much of the industry focuses on agent recruitment and transaction volume, Lake Homes Realty shows that deep specialization and selective growth can yield lasting advantages in overlooked segments of the real estate market.
