The True Costs of Owning Real Estate in South Lake Tahoe

With all of the first time home buyers and investors diving into the South Lake Tahoe real estate market, I figured that I would write a blog post about all of the costs that should be taken into consideration before purchasing a home. In this blog post I will go over the costs associated with purchasing and owning a home in South Lake Tahoe. With the most active recent price range being under $300,000, I based my costs on a single family home with a sales price of $300,000.

When owning a home in South Lake Tahoe, you need to be aware that there are more expenses than just your mortgage payment and taxes. Other expenses include the South Lake Tahoe Public Utility District (water and sewer), the South Tahoe Refuse (garbage collection), Taxes, Insurance, Maintenance,  possible snow removal and landscaping.

The South Lake Tahoe Public Utility District charges $231.01 per quarter for water and sewer fees in the City of South Lake Tahoe. Water use is not metered at this time and is charged as a flat rate.

The South Tahoe Refuse charges 65.28 a quarter for trash pick-up. It is mandatory in South Lake Tahoe to have trash pick-up even for vacation homes and vacant homes.

The real estate taxes are based on the purchase price and are about 1.1%

Hazard insurance is a must, and is a requirement if there is going to be a loan on the home.

It is a good idea to have a snow removal company clear your driveway in the winter for second homes. The snow can really pile up and get as hard as concrete if it is not cleared often. Second homeowners will also want to consider hiring a landscaper to keep their yard looking nice during the summer.

Homes in South Lake Tahoe are exposed to a harsh environment and will need regular maintenance and up-keep. Wood houses will need to be stained every 3 to 5 years and paint grade houses should be painted every 5 to 10 years. Furnaces and water heaters should be serviced annually and chimneys should be cleaned to prevent chimney fires. All other normal maintenance costs should also be taken into consideration.

Here is a breakdown of the costs associated with purchasing a $300,000 home in South Lake Tahoe. The title and escrow fees were provided by Placer Title. I used a conventional 30 year 80% loan of $240,000 at 5% interest amortized over a 30 year period.

Buyers Estimated Net Sheet

123 Main Street

                                                                                  Charges                      Credits

Sales price                                                                  $300,000

New Loan                                                                                                       $240,000

CLTA Standard Title Policy, 1/2 Buyer                   $486.50

ALTA Loan Extended Coverage Policy                   $441.50

Recording Fee                                                              $75.

Escrow Fee, 1/2 Buyer                                                $485.

Outside Notary Fee if Applicable                               $125

Hazard Insurance                                                         $800

Termite Report                                                              $200

Home Inspection                                                           $300

______________________________________________________________________________________

******SubTotals******

Due From Buyer                                                     $302,912.50                $240,000

                                                                                                                         $62,912.50

Totals                                                                     $302,912.50                  $302,912.50

Including the hazard insurance, there would be $3,112.50 in closing costs to purchase the home. There would also be prorations for the taxes, refuse, and water and sewer on the closing statement.

The monthly costs associated with owning the house in South Lake Tahoe are as follows:

Mortgage payment on $240,000 at 5%                    $1288.37

Taxes based on a $300,000 sales price                    $275.

Hazard Insurance                                                    $66.67 ($800/12 months)

Water and Sewer                                                      $77. ($231.01/ 3 months)

Refuse                                                                     $21.76 ($65.28/ 3 months)

_____________________________________________________________________________________

Total Monthly Cost                                               $1,728.80

I did not include any snow removal or landscaping in the monthly cost because they are optional. I also did not include any maintenance costs because they are variable, but should also be considered. One last consideration would be any costs associated with the loan such as loan origination fees, appraisals, ext..

It is a great time to purchase real estate in South Lake Tahoe, but first you should make sure that it is in your budget. Buyers who are planning on purchasing a home and renting it out will most likely not be able to cover all of the costs associated with owning the house. There will probably need to be some money invested by the owner in order to cover all of the holding costs. Purchasing a home in South Lake Tahoe may still be a great investment if you purchase a home with the current low values and low interest rates. Once the market rebounds, owning a house in South Lake Tahoe could be an incredible investment!

Please call Brent and Jill Johnson for more information regarding South Lake Tahoe real estate today!

 

 

 

 

South Lake Tahoe Real Estate Deals Under $400,000

Out of the 59 single family listings on the South Lake Tahoe mls priced between $300,000 and $400,000, I have choosen 3 that I think are great values. With most buyers targeting foreclosures in South Lake Tahoe, there are only 2 that are currently available in this price range and they are on my list. Click on the address to see a complete mls listing report.

South Lake Tahoe Real Estate deals under $400,000

776 Panther St, is a bank owned property offered at $324,000. This house has been on the market for 118 days, and was first priced at $369,900. This house is a 2240 square foot, 4 bedroom, 3 bathroom, 1 car garage home in the Gardner Mountain area. The inside of this home has been remodeled by the bank and looks great. The inside is very clean with new carpet, vinyl, and paint. The bedrooms are large, and the master bedroom is huge! This house is a little plain on the inside, but could easily be dressed up. The exterior needs a little work, maybe some paint and deck repairs. At only $145,00 per square foot, this house is priced well below the competition. The average list price per square foot of the other South Lake Tahoe homes between $300,000 and $400,000 is $256.

1286 Mt Rainier is a bank owned foreclosure out in the county on a 31,799 square foot lot. Built in 1983, this 4 bedroom, 3 bathroom, 1 car garage home is priced at $369,900. This house needs a little TLC and is near the Angora Fire area, but is priced well at $186.54 per square foot. This house has been on the market for 38 days now. I would keep an eye on this home, if it does not sell soon I would expect the bank do drop the price. This good deal could end up being a great one.

2177 Harvard is neither a foreclosure or a short sale. This home is my listing, and is a great value. This 3 bedroom, 2 bath, 2 car garage home is located in the Tahoe Island Park area. Completely remodeled on the inside, the floor plan is bright and open. There are granite slab counter tops, Maple cabinets, and tile flooring. This home was voted the South Lake Tahoe mls home of the week priced at $399,950, and is now priced at $379,000! I think that this is one of the best priced city Houses for sale in South Lake Tahoe!

Looking at South Lake Tahoe real estate on the mls or on the Internet can sometimes be deceiving. Houses that look good on the computer screes can just have great pictures, or great homes can have bad pictures. This makes having a real estate agent very important in helping you with your search for real estate in South Lake Tahoe.

If you have any questions regarding any of the houses for sale in South Lake Tahoe  that you have been seeing on the Internet, please call Brent and Jill Johnson today!

Foreclosures in South Lake Tahoe Year to Date

Foreclosures in South Lake Tahoe have been changing the South Lake Tahoe real estate market for the last year. Most of the buyers that are investing in real estate in South Lake Tahoe are looking to take advantage of low prices and searching for deals. Bank owned properties seem to be topping the list for the buyers seeking good deals on homes. Are buyers really getting that good of a deal? Lets start off with the statistics.

So far this year there have been 77 single family houses in South Lake Tahoe that have closed escrow according to our mls. Out of the 77 sold homes, 27 were bank owned foreclosures. The reason that I say that the foreclosures are changing the South Lake Tahoe real estate market is because they change the statistics so dramatically.

Foreclosures in South Lake Tahoe vs non-foreclosures/ Price per square foot

Lets look at the average price per square foot. The average price per square foot of the 77 houses in South Lake Tahoe that have sold this year was $231 per square foot. That is 20% less than the same time last year in which the average price per square foot of the sold homes was $287.

Lets look further into price per square foot. The average price per square foot for the 27 foreclosures in South Lake Tahoe that have sold this year is only $196 per square foot. If I take out the foreclosures and re-run the statistics the average price per square foot jumps up to $252. With out the sold foreclosures in the comps the average price per square foot is only down 12%.

Foreclosures in South Lake Tahoe/ average sales price

The foreclosure listings also brought down the average sales price substantially. The average sales price for the 77 houses in South Lake Tahoe that have sold year-to-date was $408,874. The average sales price for the foreclosures in South Lake Tahoe was $309,185. Again, if I re-run the statistics with out the foreclosure listings, the average sales price jumps up to $458,508.

South Lake Tahoe Foreclosures/ Days on the market

There is one statistic that foreclosures are bringing down that is not necessarily a bad thing, days on the market. The average days on the market for the houses in South Lake Tahoe that have sold year-to-date is 170. The average days on the market for the sold foreclosures is only 97 (including the escrow period which is an average of 45 days). If I take out the foreclosures, the days on the market goes up to 190 days.

Not all foreclosures in South Lake Tahoe are “Great Deals”!

Now that you know that foreclosures in South Lake Tahoe are selling for less per square foot and have an average sales price that is less than non-foreclosures, you may be thinking that foreclosures are the way to go. Not all foreclosures are created equal! There is a reason that foreclosures in South Lake Tahoe are selling for under $200 per square foot. Yes, banks price foreclosures to sell quickly, but be aware of the repair and upgrading costs.

Lets say that you have narrowed down your possible home purchase to two homes, a foreclosure that needs some work for $300,000, and a non-foreclosure that is in move in condition for $350,000. Currently 90% of the buyers will go for the foreclosure. This means that you may be competing against other buyers, and may need to pay close to full price, if not over full price to get the foreclosure. The non-foreclosure on the other hand may have been on the market for 120+ days and has motivated sellers waiting to see their first offer! Now lets look at the condition of the homes. If the foreclosure needs paint, carpet, appliances, and minor repairs you may end up paying even more than you would have paid for the non-foreclosure.

Some foreclosure listings in South Lake Tahoe are very good deals, but many buyers are overlooking the non-foreclosure listings that may also have great potential.

Give Brent and Jill Johnson a call today to set up an appointment to view the non-foreclosure and foreclosure listings on the South Lake Tahoe mls. Feel free to contact us today with any of your South Lake Tahoe real estate questions!

Real Estate in South Lake Tahoe Meyers Area

For South Lake Tahoe real estate buyers looking for a quiet county neighborhood, Meyers is the place to look. Meyers is located about five minutes west of the “Y” on Highway 50. The South Lake Tahoe mls defines the Meyers area as beginning at the Lake Tahoe Golf Course on the north side of Highway 50, and extending to where the South Upper Truckee River and Highway 50 intersect.

Houses in the Meyers area are very diverse, like other areas in South Lake Tahoe. Some Meyers homes back the Lake Tahoe Golf Course, the Upper Truckee River, or National Forest. The homes in these locations have some of the best mountain views of any homes in South Lake Tahoe. The bigger and newer homes in the nicer parts of Meyers are priced up to a million dollars.

Most of the homes in the Meyers area are situated on 6,000 square foot lots and neighbor other lots or homes. There have been foreclosures and small cabin/ fixer type homes that have sold under $200,000. The majority of the houses in Meyers are priced from $250,000 to $450,000. Although the houses located along the edges of Meyers that back open land are private, the middle of Meyers definitely feels like a residential neighborhood.

Outdoor enthusiasts looking at real estate in South Lake Tahoe will enjoy the Meyers area. The Lake Tahoe Golf Course and Tahoe Paradise Golf course are with-in walking distance to most of the homes in the Meyers area. Sierra-At-Tahoe and Kirkwood are the ski resorts that most Meyers residents ski and snowboard at regularly. Meyers also has great hiking and mountain biking trails that easily accessible.

The Meyers Environmental Magnet School is also located in the Meyers area. This elementry school is a great feature of the Meyers area. The Magnet school is considered one of the best schools in Tahoe. (My daughters attend this school)

In the first quarter of 2009 there have been three homes that have sold in the Meyers area. Two of the homes were bank owned foreclosures. 2021 Piute was a 2 bedroom, 1 bath, 1204 square foot home that sold for $180,000 and 1065 Mohawk was a 3 bedroom, 2 bath 1510 square foot fixer that sold for $170,000.

Here are the South Lake Tahoe real estate statistics for the Meyers area provided by the South Lake Tahoe mls:

First Quarter 2009 Sold South Lake Tahoe mls listings in Meyers

• There were 3 homes that sold in the first quarter of 2009
• Two of the homes were bank owned foreclosures
• The median list price of the sold homes was $251,900
• The median sales price of the sold homes was $180,000
• The median square footage of the sold homes was 1,294
• The median days on the market was 114

 2008 Sold South Lake Tahoe mls listings in Meyers

• There were 19 homes that sold in Meyers in 2008
• 6 of the sold homes were bank owned foreclosures
• The average price per square foot was $260 for the sold homes
• The median list price for the sold homes was $399,000
• The median sales price for the sold homes was $399,000
• The median square footage for the sold homes was 1,404
• The median days on the market was 108

2007 Sold South Lake Tahoe mls listings in Meyers

• There were 17 homes that sold in Meyers in 2007
• The average sold price per square foot was $309
• The median list price for the sold homes was $395,000
• The median sales price for the sold homes was $383,000
• The median square footage for the sold homes was 1,256
• The median days on the market was 98

2006 Sold South Lake Tahoe mls listings in Meyers

• There were 13 homes in Meyers that sold in 2006
• The average price per square foot for the sold homes was $299
• The median list price for the sold homes was $449,000
• The median sales price for the sold homes was $440,000
• The median square footage for the sold homes was 1,328
• The median days on the market was 129

2005 Sold South Lake Tahoe mls listings in Meyers

• There were 24 homes in Meyers that sold in 2005
• The average price per square foot for the sold homes was $318
• The median list price for the sold homes was $399,450
• The median sales price for the sold homes was $395,500
• The median square footage for the sold homes was 1,369
• The median days on the market was 73

2004 Sold South Lake Tahoe mls listings in Meyers

• There were 34 houses that sold in Meyers in 2004
• The average price per square foot for the sold homes was $257
• The median list price for the sold homes was $334.000
• The median sales price for the sold homes was $329,500
• The median square footage for the sold homes was 1,208
• The median days on the market was 81

2003 Sold South Lake Tahoe mls listings in Meyers

• There were 30 houses that sold in Meyers in 2003
• The average price per square foot for the sold homes was $228
• The median list price for the sold homes was $279,00
• The median sales price for the sold homes was $271,250
• The median square footage for the sold homes was 1,347
• The median days on the market was 85

With six foreclosures in Meyers that sold in 2008, Meyers has one of the higest percentages of foreclosures in South Lake Tahoe. The high percentage of foreclosure listings in Meyers is due to the lower priced property values in the area. The lower valued homes have a higher foreclosure rate in general. There are also a lot of local home owners in the Meyers area. With the slowing of the economy and the local building industry, some of the local Meyers residents lost their homes to foreclosure.

Here are some pictures of sold South Lake Tahoe MLS listings

With interest rates at historic lows and home values to their lowest in years, now is a great time to buy real estate in South Lake Tahoe. Schedule your appointment today with Brent and Jill Johnson to view the available Meyers homes. For more information regarding houses for sale in South Lake Tahoe, South Lake Tahoe mls listings, or South Lake Tahoe real estate contact Brent and Jill Johnson today!

South Tahoe Real Estate Statistics for 2009 First Quarter

South Lake Tahoe real estate statistics are important for both buyers and sellers who are thinking about timing the market for their next real estate transaction. With all of the South Lake Tahoe real estate statistics available on various websites and blogs, consumers are now informed more than ever. I try to make my South Lake Tahoe real estate statistics the most in depth and easy to understand as possible. With that being said, here are the 2009 first quarter statistics for single family sold homes in South Lake Tahoe.

According to the South Lake Tahoe mls, there were 73 single family homes that sold between January 1st and March 31st 2009. That is 8% more homes than the first quarter of 2008 in which 67 single family homes closed escrow.

• 73 homes sold in the first quarter of 2009
• 27 of the sold homes were bank owned foreclosures (up 44% from 15 in the first quarter of 2008)
• 6 of the homes were short sales
• The median list price was $356,250 (15% less than than the first quarter of 2008 which was $419,900)
• The median sales price was $340,000 (15% less than the first quarter of 2008 which was $400,000)
• The median days on the market was 114 (down from 156 in the first quarter of 2008)
• The median square footage of the sold homes was 1,584 (up from 1,431 in the first quarter of 2008)
• The average sold price per square foot was $234 (19% less than the first quarter of 2008 which was $290)

The number of sold houses in South Lake Tahoe was up and the median sold price was down due to the distress sales and foreclosures. Foreclosure listings in South Lake Tahoe are usually priced about 10% below current market value. The attractively priced foreclosures are what buyers seeking good deals are going after. Many of the foreclosure homes received multiple offers and sold quickly which also brought down the median days on the market to 114 for the first quarter. Buyers targeting South Lake Tahoe foreclosures should be aware that it will be an “as is” deal, and buyer investigation inspections are very important.

Here is a comparison of the South Lake Tahoe foreclosure listings to the non-foreclosure listings that sold in the first quarter of 2009.

• 27 of the 73 houses that sold during the first quarter of 2009 were bank owned foreclosures.
• The median list price of the foreclosures was $279,000 (28% less than the non-foreclosure properties which was $389,000)
• The median sales price for the foreclosures was $264,500 (27% less than the non-foreclosure properties.
• The median days on the market was 84 (45% less than the non-foreclosure properties which was 154 days)
• The median square footage of the foreclosures was 1,510 square feet (7% less than the non-foreclosure properties which had an median square footage of 1,616 square feet.
• The average price per square foot for the foreclosures was $196 (24% less than the non-foreclosure properties which had an average sales price per square foot of $258)

2009 First Quarter South Lake Tahoe Real estate statistics by Number of Bedrooms

Sold two Bedroom Homes in South Lake Tahoe

• There were 15  two bedroom housesin South Lake Tahoe that sold in the first quarter of 2009 according to the South Lake Tahoe mls.
• The average list price for the 2 bedroom homes was $249,620
• The average sales price for the 2 bedroom homes was $233,853
• The average square feet of the 2 bedroom homes was 986
• The average percentage list price to sales price the homes sold for was 93.68%
• The average days on the market was 154 days

Sold three bedroom homes in South Lake Tahoe

• There were 32 three bedroom homes that sold in the first quarter of 2009
• The average list price for the 3 bedroom homes was $381,595
• The average sales price for the 3 bedroom homes was $361,750
• The average square feet of the 3 bedroom homes was 1565
• The average percentage list price to sales price that the homes sold for was 94.8%
• The average days on the market was 154

Sold four bedroom homes in South Lake Tahoe

• There were 21 two bedroom homes that sold in the first quarter of 2009
• The average list price for the 4 bedroom homes was $551,051
• The average sales price for the 4 bedroom homes was $525,000
• The average square feet of the 4 bedroom homes was 2346
• The average percentage list price to sales price that the homes sold for was 94.59%
• The average days on the market was 177

Sold five bedroom homes in South Lake Tahoe

• There were 5 five+ bedroom homes that sold in the first quarter of 2009
• The average list price for the 5+ bedroom homes was $941,850
• The average sales price for the 5+ bedroom homes was $798,000
• The average square feet of the 5+ bedroom homes was 3262
• The average percentage list price to sales price that the homes sold for was 84.75%
• The average days on the market was 179

This South Lake Tahoe real estate blog statistics post was written by real estate agent Brent Johnson. If you are a buyer or a seller of real estate in South Lake Tahoe and would like more information regarding any of the statistics in this post please let me know. For more information regarding foreclosures for sale in South Lake Tahoe, houses for sale in South Lake Tahoe, or would like to schedule an appointment to view any South Lake Tahoe real estate contact Brent and Jill Johnson today!

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