Tahoe Keys Real Estate is Heating Up!
August 25, 2008
After a slow start this year, home sales in the Tahoe Keys are finally starting to heat up!
Last night I was bass fishing in the Tahoe Keys near the entrance to Lake Tahoe. It was another incredible Tahoe summer evining. I couldn’t help but overhear some vacation renters outside on a deck talking about the offer that they had just submitted on a house in the Tahoe Keys. After staying a week in the vacation rental home on the water, they decided that they had to take advantage of the market and to buy in the Keys.
Winter and spring were scary for Tahoe Keys sellers. It took until May 15th for the first Tahoe Keys sale and then May 20th for the second. Once summer began, the the Keys buyers began to snatch up houses from motivated sellers and a couple of banks (REO’s). According to the South Lake Tahoe MLS, there have been 17 closed escrows in the Tahoe Keys this year, and 15 of them have been in the last couple of months.
The average sale price in the Tahoe Keys has been $898,395 this year.
Median sale price $845,000
Minimum sale price $410,000
Maximum sale price $1,900,000
In the Tahoe Keys there are currently seven houses in escrow on the South Lake Tahoe MLS:
1997 Garmish- list price $799,000
1882 Cascade Ct.- list price $995,000
524 Christie Dr.- list price $1,088,000
1961 Kokanee Way -list price $1,495,000
484 Carson Ct. -list price $1,100,000
417 Christie Dr.- list price $849,000
One of the reasons that houses have started selling in the Tahoe Keys is that sellers are starting to price their homes to sell. You can now buy a nice 2000 sq. foot home with lake access in the $700,000′s!
The only down side to the Tahoe Keys is that you will have to watch me bass fishing in your back yard once a week!
Short Sales In South Lake Tahoe
August 24, 2008
Short sales are becoming more and more common across the country. A short sale occurs when a lender agrees to accept less than what is owed on the property as payment in full. Short sales have become common due to the decrease in home values, and the popularity of low and no down loans during the recent real estate boom.
Here is an example of an active short sale on the South Lake Tahoe MLS:
1835 Mohican
This home was listed previously for $1,199,000. This is a five bedroom, three and one half bath, three car garage, 3300 square foot home.
This home was recently re-listed for $769,000 as a short sale, and soon after sold for $780,000!
One thing to know about making an offer on a short sale is that your offer may take weeks or even months to get a response from the bank. If the seller and the listing agent have done their job, and submitted a complete short sale package to the lender prior to listing the home, this time period should be shortened. If the seller and the listing agent have not contacted the bank and have not submitted a short sale package, I would be wary of wasting your time with an offer.
A short sale can be a beneficial situation for every one involved. The seller will be getting out from under a payment that he or she can no longer afford, the buyer may be purchasing the home below the current value, and the bank will not have to foreclose on the owner.
The down side to a short sale is that the seller will be damaging their credit score and the bank will be loosing money on the loan discount. Another possibility with short sales is that after a long wait for lender approval, your offer may be declined, and you will have wasted valuable time in this buyers market.
Here is Wikipedias definition of a short sale:
Short sale (real estate)
From Wikipedia, the free encyclopedia
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In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.[1] In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank’s Loss mitigation or Workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will remain while the mortgage broker, real estate agent / broker, loan officers, title and closing agents retain their profit. No regulatory agency governs this hybrid transaction.
Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower’s financial situation.
A short sale typically is executed to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.
Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults
More Changes For South Lake Tahoe Vacation Rentals
August 21, 2008
On Tuesday August 19th, the South Lake Tahoe City Council approved several rule changes for vacation rentals.
Starting September 19th, vacation renters will not be allowed to use the house for commercial activities, including wedding receptions and large parties.
Restrictions on occupancy and overnight parking will now be from 10 p.m. to 6 a.m., changed from midnight-to-6 a.m..
Vacation rental homes will also be required to post signs on the homes that state the maximum number of occupants and vehicles allowed at any one time. The phone number and e-mail address of the police will be required to be on the sign for potential complaints.
Permit fees for vacation rental homes will be increased to cover the cost of a new community-service officer who will enforce the new rules and respond to complaints.
Regulating vacation rentals in South Lake Tahoe is a much better solution to correct concerns than the previous idea of a vacation rental moratorium.
I have quite a few clients looking for homes in Lake Tahoe that plan to supplement some of the ownership costs by renting the house out as a vacation rental. If vacation renting was not an option, they may not be able to own a house in beautiful Lake Tahoe!
“The Donald”
August 18, 2008
Every day clients ask me if I think that the real estate market will keep going down. To answer this question, I look at the local market statistics, listen to Real Estate analysts, and give my personal opinion. Prices for Real Estate in South Lake Tahoe may or may not go down any more, but Real Estate mogul Donald Trump says “Now is the Time to Buy!”.
Last week “The Donald” was on Good Morning America, and gave his opinion on the Real Estate market.
“If you want to buy a house there’s probably never been a better time,” Trump said. “It’s a tough market. It’s a horrible market,” he said. But “this is the absolute time to buy. It’s not the time to sell.”
According to Trump, the golden real estate rule of location, location, location still applies.
I can’t think of a better location than Lake Tahoe! Lake Tahoe is a resort destination area with year round activities that draws people of all ages and interests.
Donald Trump has made millions on real estate in his career, and is definitely a reliable source for real estate advice!
I personally do not know if we are at the “bottom” of the market, but I know we are close. We are close enough to the bottom that I am putting my money where my mouth is. I just put a seven unit apartment building in South Lake Tahoe in escrow for myself. I feel that now is the time to buy, and that is what I am doing!
South Lake Tahoe House for Sale Just Sold!
August 9, 2008
JUST SOLD!!!
1476 Glenwood Way, South Lake Tahoe
3 bedroom, 2 bath, 2 car garage
1406 square foot single story ranch style home
Sales Price $375,000
I recently had the pleasure of helping first time home buyer Thia Mullikin purchase her first house. First time buyers are finding some great deals on Real Estate in South Lake Tahoe. The house that Thia was able to buy was twice the size of the house that she almost bought in 2006. Thia had been looking at homes in South Lake Tahoe for almost three years, and decided that now is the time to buy. Thia also said that it was well worth the wait!!!
Here is what Thia had to say about her home buying experience with my wife Jill and I:
“As a first time home buyer I was very inexperienced in the details, follow up and continual negotiations involved in buying a home. Further, in a place like Lake Tahoe where there are many Realtors to choose from, I fortunately had the luck and pleasure of working with Brent and Jill Johnson. This team not only was available at my convenience to view listings, but also truthful and ethical in helping me make a decision to buy my first home. The process was seamless, the negotiations and follow up prompt, and the personal relations delightful. As a Tahoe local I would recommend the Johnsons to any of my friends or family who need help buying or selling a home.”
-Cynthia Mullikin MPAS, PA-C
South Lake Tahoe, CA
