Opportuinties are Knocking!
March 7, 2008
Now that we all agree (or most of us) that the real estate market is cyclical, and prices will someday turn around, it is time to go bargain hunting!
South Lake Tahoe does not have the huge numbers of foreclosures and short sales that Sacramento or Stocton is having, but we are seeing our fair share.
I recently put a new 3400+ square foot home in escrow in which the banks asking price was $649,900! This home was previosly listed at $1,050,00 then reduced to $888,000, and then fell into foreclosure.
Most new construction houses in South Lake Tahoe are selling for between $280 to $300 per square foot. At $193.00 per square foot for nice new construction with radiant in floor heat and a driveway snow melt system, my buyers are extremely happy.
There is going to be some work involved with this foreclosure. The house has not been completely finished, and will cost around $30,000 to finish. This would bring the finished price per square food to just over $200 per square foot if my buyers paid full asking price ( I will let you know when it closes!).
The big question is: What do you think this property will be worth in 10 years? I would think that it will be worth a lot more than what my buyers paid for it!
Foreclosures in South Lake Tahoe
March 5, 2008
All foreclosures in South Lake Tahoe are not created equal!
I have a lot of clients tell me that they want to buy a “foreclosure.” There is a common misconception that just because it is a foreclosure, it is a bargain. There have been some incredible deals on foreclosures listed on the South Lake Tahoe MLS, and there are some not so great deals. The keys to foreclosures are research, preparation, and the ability to act quickly when the right opportunity arises.
Research means knowing the current inventory on the South Lake Tahoe MLS. If you do not know what homes to compare the new foreclosure to, how will you know if it is a good deal? There are always the clients that just want me to call them when a good opportunity on a foreclosure comes up. I always suggest that we go look at the current inventory, and become informed what is available in there particular price range. Having this knowledge will allow you to decide if a new foreclosure, or any new listing is a good deal, or a not so good deal.
Preparation is very important when looking for foreclosures in South Lake Tahoe. There are other buyers looking for these opportunities also! It is essential that you have been pre-approved by a lender for a loan, or that you have proof of the funds that you wish to purchase with. Make sure that the lender gives you a pre-approval or buyer-ready letter. In most cases, the bank that owns the house will require this letter to accompany the offer.
Once you know how to evaluate foreclosure in South Lake Tahoe, and have your pre-approval letter, it is time to shop! If there are not any homes currently on the South Lake Tahoe MLS that will work for you, you will be prepared when the right home hits the market! You should be using the “New Listing Notification” feature on my website www.JohnsonsTahoeRealEstate.com.
When I see a new foreclosure or a good opportunity on a new listing, I contact my clients in that price range as quickly as possible.
Submitting the first offer on a foreclosure can be the difference between winning, or loosing out on the deal!
Real Estate In South Lake Tahoe Is Getting Creative!
March 4, 2008
Buyers and Sellers of Real Estate In South Lake Tahoe are getting creative!
I was recently received an offer on one of my listings that has been on the market for about 180 days. After countering back and forth with four counter offers, we finally came to an agreement. This property is now in escrow, so I can not disclose the exact terms. I can discuss the creative part, which involves a trade. The buyers came in with a combination of cash, a loan, and a vacant lot as a trade. A vacant lot for a trade probably would not appeal to most sellers of homes in South Lake Tahoe. My seller does not want another lot, he already has three, but the holding cost of a vacant lot is quite a bit less than a million dollar spec home.
This is the first time that I have sold a home in South Lake Tahoe that involved a partial trade for another piece of real estate, but I am sure that it will not be the last.
My seller seems happy, he will be able to pay off his construction loans which are costing him almost $6,000 a month!
I have a feeling that he will be putting the lot on the market as soon as this deal closes escrow. Sometimes you must get creative and be flexible to buy or sell real estate!
