South Tahoe Real Estate Blog-$15,000 Tax Credit is Shot Down
February 12, 2009
The $15,000 home buyer tax credit that the Senate had proposed in the massive stimulus bill has been modified by Congress. The Senate had added a proposal that would have given all home buyers a $15,000 (or up to 10% of the purchase price) tax credit.
According to the New York Times, the tax credit will likely only be for first time home buyers that meet certain income requirements, and be reduced from $15,000 to $8,000. The proposed tax credit is still in negotiations, and all of the details have not yet been worked out.
The Stimulus Bill was also cut in other areas, and now is down to an estimated $789 billion dollars. The House and the Senate are hoping to have the bill on President Obama’s desk by Monday (Presidents Day)
The Senates proposed $15,000 tax credit would have made a much bigger effect on the housing market because it would have been available to ALL home buyers.
If the tax credit is passed as it stands, the South Lake Tahoe real estate market probably will not benifit as much as other areas. The South Lake Tahoe real estate market is in a resort area and is different than the majority of other markets. Most buyers looking at South Lake Tahoe homes for sale are not first time home buyers, but are vacation home buyers, and investors.
In order for South Lake Tahoe houses to see an upward trend in prices, we need to see a decline in foreclosures and short sales. South Lake Tahoe foreclosures have been selling for an average of $216 per square foot, 21% less than non-foreclosures which have been selling for $274 per square foot. The investors that are buying houses in South Lake Tahoe are looking for deals, so they do not mind buying a foreclosure that needs a bit of work.
Like I had said earlier, the $15,000 tax credit for all home buyers would have benefited the South Lake Tahoe real estate market more because it would have added an extra incentive to second home owners and investors. As soon as the details of the first time home buyer tax credit are worked out, I will be sure to post them on my South Lake Tahoe Real Estate blog!
This South Tahoe real estate blog was posted by South Lake Tahoe real estate agent Brent Johnson. Contact Brent and Jill Johnson for more information regarding homes for sale in South Lake Tahoe, South Lake Tahoe real estate, or South Lake Tahoe foreclosures!
Houses For Sale in South Lake Tahoe May Not Have BMP’s
January 29, 2009
If you are thinking about purchasing a house for sale in South Lake Tahoe, you need to know about BMP’s. Best Management Practices (BMP’s) are an erosion control measure designed to help prevent storm water
runoff from entering Lake Tahoe by capturing and infiltrating it. Storm water runoff carries sediment and nutrients into the lake which reduces the lakes famous clarity.
In 1992 the Tahoe Regional Planning Agency (TRPA) created the TRPA retrofit ordinance. The ordinance requires all developed properties in the Lake Tahoe Basin to have BMP’s installed by October 15th 2006. Although new houses in South lake Tahoe built after 1992 have BMP’s installed due to regulation through local building departments, most other homes still do not. The TRPA has fines set in place for properties that do not have BMP’s installed yet. The fees are as follows:
- non-compliance for over 1 year $1,000
- non-compliance for over 2 years $2,500
- non-compliance for over 3 years $4,000
We are already 3 years past the ordinance deadline of October 15th 2006, so I called the TRPA to find out more about the fines. I was told that no one has been fined, and that they would rather see property owners spend the money on installing BMP’s instead of fines. The TRPA did say that there are 3 different watershed priorities, 1,2, and 3. If your property is in a priority 1 watershed, they will begin enforcing the ordinance. First they will send a letter to you telling you about the requirement. Then they want to see that you are making reasonable progress in installing your BMP’s. If you show reasonable progress, they will not issue a fine.
Each property will have different BMP requirements based on slope, soil, location, and your structure. You can have the Tahoe Resource Conservation District (TRCD) preform a BMP evaluation and design the BMP’s foryour property. The TRCD is a grant funded, non regulatory agency that focuses on assisting single family homeowners with controlling erosion, native and adapted landscaping, and many other conservation initiatives. The TRCD currently has a waiting list for BMP evaluations, and will not evaluate a property until the snow has melted, so you should sign up soon!
BMP requirements are different for each property, but generally BMP’s consist of three basic requirements.
- Installing gravel filled infiltration trenches about 6″ deep under all dripping roof lines.
- Installing about 3″ of gravel under all elevated decks, overhangs, and cantilevers.
- Having a paved driveway for parking, and maintaining all of the runoff from the driveway by either a drywell or gravel filled trench.
BMP’s can be installed by the homeowner, or a licensed contractor. The TRCD has a list of contractors that specialize in BMP installations. Depending on the size of the property, BMP’s can cost anywhere from a few hundred dollars if you choose to do the work your self, to many thousands if you hire a contractor or need to pave a driveway.
If you have a house for sale in South Lake Tahoethat does not have BMP’s, it would be a good idea to have an evaluation done for your property. If you are thinking of purchasing real estate in South Lake Tahoe, make sure that you find out if the property has a BMP certificate or not. If there is no BMP certificate, be prepared to install your BMP’s!
This South Lake Tahoe Real Estate blog was written by South Lake Tahoe Realtor Brent Johnson. Brent Johnson sepcilizes in houses for sale in South Lake Tahoe, South Lake Tahoe Real Estate, and foreclosures for sale in South Lake Tahoe. For more information about any properties on the South Lake Tahoe MLS, contact Brent Johnson today!
South Lake Tahoe MLS Listing-2323 Utah Ave.
November 4, 2008
2323 Utah Ave.
Offered at $699,000
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Hickory Hardwood Floors
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Stainless Steel Appliances
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Granite Slab Counter tops
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Custom Knotty Alder Woodwork Throughout
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Two Fireplaces
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Fire Sprinklers
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Much More!
The attention to detail is noticed the second you walk through the front door of this two year new home! This 3 bedroom, 2.5 bath, 2 car garage 2300 square foot home has a large office that may be used as a fourth bedroom. The bright and open floor plan is great for entertaining, and would make a great vacation home. Centrally located in Tahoe Island Park, this home is close to the Lake, Skiing, and all that Lake Tahoe has to offer!
View all Houses in South Lake Tahoe
Homes in South Lake Tahoe to get Curbside Recycling!
October 2, 2008
For years the South Tahoe Refuse would have to pick through the trash on a giant conveyor belt (The Murphy) for recyclables. Beginning in January the Refuse will finally be launching a curbside recycling program for the city residents. Blue trash bags will be provided for aluminum cans, tin cans, glass bottles, and newspapers. The “blue bags” are to be put out on normal trash days along side with the non-recyclable trash.
The recycling program does come at an expense to all South Tahoe Refuse customers. A 4.33 percent rate increase was approved by the City Counsel to help offset the cost of the program. All houses in South Lake Tahoe are required to have Refuse service weather they are occupied or not.
I am happy to pay the rate increase knowing that it will be helping the environment!
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!
