| Greetings!
Retirement Planning Food For ThoughtIf you plan to retire in the next few years, now is the time to start planning. If you want to stay put, there will be much less planning but what if you want to downsize or pick a new location? Perhaps you should consider buying the new home now and capitalize on today's weak market while remaining in your current home for the next few years until you retire. We all hope that home values will recover in the next five years when you will be ready to sell your current home. There is no question that supporting two properties can be a bit risky, but if the retiree's home is paid for or carries a low mortgage payment this could be the time for you. If you rent out the home until you are ready for the move rather than keep it for vacations it may make better financial sense. Let's do the math; suppose you bought a $309,000 home with a $69,000 down payment. The standard 30 year fixed-rate mortgage currently averages approx. 5.367%, which would give you a monthly principal and interest payment of $1,343. That translates to $80,580 over five years, so the property would have to be worth $380,580 five years down the road to justify spending $300,000 today. That's a 27% gain - could be a lot to expect in just five years, or not? If the new home would generate $1,000 per month in rental income that will produce $60,000 over the five year period reducing the net mortgage to $20,580. That's just 7% of the purchase price and appreciation could well exceed that in five years. Now that could make sense! Be sure to calculate your federal income tax deduction on interest payments and remember to include local property tax and homeowners insurance in your costs. It might be wise to consult with your accountant or tax advisor. The 30 year fixed-rate mortgage is an awfully good deal these days, but the near retiree could save even more with a five-year or seven-year adjustable mortgage. These carry a fixed rate for the initial period, then adjust every year. But if retiree will sell his current home is less than five years and pay off the loan, the risk would be eliminated. Just a little something to consider for you folks lucky enough to be retiring in the near future.
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| Market Update - July 2009 |
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Here's the wrap up for this month of July 2009. The amount of homes (including condos) sold increased from 63 last month to 82 this month. Tahoe Donner continues to lead the way with a total of 25 single family residences changing hands. Sales at Lake Tahoe seem to have increased with Tahoe City finally registering some statistics and Kings Beach and Tahoe Vista weighing in with more sales. The Westshore at Lake Tahoe also continues to carry its own increasing its sales from 5 to 8 this month. Some of the distressed properties, namely short sales are finally showing up in the "Sold" status. This means that banks are finally figuring out a strategy or at least a system for pushing these properties out of their pipeline. Clearly with 12 short sales and 8 REO's (bank owned) sold transactions (out of the total of 82), the distressed properties are playing a big part in the market. Here are the statistics from the Tahoe MLS. Solds from July 1 - 31, 2009:
Tahoe Donner: 20 homes, (2 short sales), 5 condos (1 REO)
Northstar: 2 homes, 4 condos (1 short)
Glenshire, Cambridge, Juniper Hill, Juniper Creek, The Meadows: 8 homes (3 short sales)
Prosser Lake Area: 3 homes (1 short)
Sierra Meadows, Ponderosa Palisades, Winter Creek: 2 homes, 1 condo (REO)
Martiswoods, Ponderosa Ranchos: 0 residential properties
Olympic Heights: 0 residential properties
Lahontan: 2 homes (1 REO)
Martis Camp: 1 home
Old Greenwood: 0 residential properties
Gray's Crossing: 0 residential properties
Truckee Proper: 2 condos (1 REO)
Adjacent to Tahoe Donner: 1 home (short sale)
Donner Lake: 2 homes (1 short sale)
Donner Summit: 3 homes (1 REO)
West shore Lake Tahoe: 7 homes (1 short sale), 1 condo
Tahoe City: 4 homes (1REO), 1 condo
North shore Lake Tahoe: 3 homes
Kings Beach & Tahoe Vista: 7 homes (1 short, 2 REO)
Alpine & Squaw Valley: 2 homes
Shared Ownerships - entire region: 1 (short sale) $64K in Old Greenwood
Mobile Homes - entire region: 0 sales
Condos and Homes sold over $1M in Truckee and North Lake Tahoe: 12
Highest priced home or condo sold: $3,600,000 Golf Course home in Martis Camp. A 6048 square foot home with 5 bedrooms, 6 baths, 3 car garage on 1.6 acres. Listed for $4,450,000 and sold after 363 days for CASH.
Lowest priced home or condo sold: $200,900 for a little 3 bedroom, 1 bath home in Kings Beach, built in 1955. Banked owned (REO) sold for CASH after 6 days on the market.
The list to sell ration on the median was 97% . In other words, the homes sold within 97% of the list price.
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| Screaming Hot Deals |
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In this particular spot, we feature the 3 properties in the multiple listing service that we feel are well priced. These are the properties that we wish we had buyers for because we know they are of such value that they will not last long, even in this market. So, for this month, come and get 'em before they are gone. . . .
1. Now we are really getting someplace. 4 bedrooms in the Glenshire-Devonshire subdivision for $309,000 -- our listing at 10132 Laburnham Circle is truly a first time buyer's delight. Clean, close to the elementary school, fully fenced backyard, large corner lot . . . . what more can one ask for? This Best Buy gets slot number one! 2. Got a big family . . . . or 2? Then 16359 Skislope Way in Tahoe Donner is just made for you. Located alongside the creek and adjacent to greenbelt this 6 bedroom home boasts awesome privacy and lots of room. At approx. 3200 square feet, we think this is a lot of house for the money at $760,000.
3. Such a cool house -- 11732 Tinkers Landing, located in Pannonia Ranchos (Truckee). Totally retro and billed as "the FUN House", this place delivers on its reputation. Swimming pool, hot tub, game room, frisbee golf course, lighted sport court, horse shoes, it goes on and on with 17.5 acres and 5692 square feet. If you have $1,325,000 this is the buy of the century. Down from its original offering price of $1,548,000.
Be sure to contact us if you would like to take a look at any of these properties! |
| Worst Deals on the Market |
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These are the properties for sale that we feel are the worst priced homes on the market in our multiple listing service. Every month we will choose 2 or 3 properties which, for one reason or another (usually price) are something we would not be inclined to show our buyer clients. So for this month, here they are:
1. 8677 King George Drive. This little house comes with a truly "royal" price of $599,000. A lot of money for an older home of 1200 square feet, even it if is located in Rubicon Bay. This was originally priced at $685,000 when it was put on the market 76 days ago. Chasing the market down we think. Best of Luck!! 2. After 212 days on the multiple listing at the same price -- $1,390,000 wouldn't you think that someone would have gotten the idea that the price was too high? This stylish home located at 12710 Zurich Place in Tahoe Donner is unquestionably beautiful. It has incredible finishes, decor and the contractor has an impeccable reputation, there is no argument there. But all this comes with a very dear asking price: $464.57 per square foot. Maybe it just isn't the right time to sell this piece of art.
3. This property owner has been trying to sell his home at 11886 Lausanne Way in Tahoe Donner for over 2 years now and continues to chase the market down. Rather than getting out in front of it, he has been lagging behind creating a stale listing that is skipped over. Two years ago $625,000 may have been a good deal for this home, but not today with the bargain shoppers. Be sure to let us know what you think that any of these properties will sell for by contacting us here and when it does, the entry closest to the actual sale price will win a gift certificate.
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| Our Favorite People - Our Clients and The People We Work With |
 Rob & Kate Gwozdz are our most recent success story and have earned their status as our "Featured Client". First time buyers, Kate & Rob shopped around for sometime while the market and lending climate changed dramatically. Their patience paid off in the end, but it wasn't easy! They made an offer on a house listed as a short sale and learned a lot about how the short sale process works. When all was said and done they got a great price on their home, but it wasn't pretty. Seller's of a short sale have less motivation to leave a pretty package behind for the new owners, but the Gwozdz' are transforming their home as we speak. We had more fun house hunting with these two and working with them was a real joy. Best wishes to the both of you and congratulations on your beautiful new home! | |
Kappy and Jennifer have a combined 38 years in the Real Estate Profession. We are committed to giving our clients the most up to date Real Estate information and Stellar Service because, We Love Our Work and So Will You! Call us or e-mail us for information about the Tahoe Truckee Real Estate Market. By the way, if you think any of this information might be of interest to anyone you know, feel free to forward this newsletter. We would really appreciate it!
Sincerely,
Kappy Mann & Jennifer Boehm
Keller Williams Real Estate |
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| Featured Article |
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| Advice from OUR Corner.
If you are Selling . . . . here's how to price your home in the current market. It's a combination of science, pro-activity and motivation. First you must consider the immediate area where your home is located. Look at homes that are currently on the market, homes that have sold in the past month and the turnover rate.
SCIENCE, but not rocket science: You will have to consider the actual price received for a similar home within the past 3 months (yes, that is how fast the market is changing these days). Why use this number? There are a couple of reasons. These are the numbers that appraisers are using when helping banks to decide if they should make a loan on the property (most people cannot purchase a home without a loan). Also, with Realtor.com, Trulia and all of the other online information systems, Buyers are really savvy. They know what similar homes are going for it is impossible to fool them.
Consider the competition. Is there lots or just a little? Let's use this example: there are 11 homes on the market that are similar to yours and in your area. ¼ of these are priced 5% or more above market value (market value being the actual SOLD price of a home not the listing price); ½ are priced at 5% over market value; ¼ are priced 5% or more below market value. If you were a Buyer, from which portion of the market would you select a home from? Like I said, not rocket science.
PRO ACTIVITY
The market is still sifting down but at what rate? There is no crystal ball that allows us to see what it will be like in 3 months, much less 3 days. A home's market value is only as good as it reflects the market on the day it is listed. Our suggestion is to price the home 5% below the market (science) so it looks like a deal to the Buyer. Look at the situation as if you were a buyer - you probably will be, soon as you sell your home.
MOTIVATION
Finally, we are looking a 4-6 years before homes get back to the high that they were in August of 2005. If you don't need to sell, do yourself and your neighbors a favor. Wait.
If you want our advice on what we think you could sell your home for in this market, be sure to contact us for a free, no obligation evaluation. We won't lie to you, just the facts.
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Glenshire Homeowner Association President
Don Boehm |
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The Glenshire/Devonshire Development is located about 6 miles east of Downtown Truckee. Our Association represents approximately 1275 property owners in a mostly year round family community. For a mere $275 per year, residents can enjoy the pool and tennis courts, clubhouse, BBQ area with volleyball court and play area for the kids. The open space trails around the pond and meadow are daily enjoyment for walkers and kids alike. Having the Glenshire Elementary School and Grocery Market in our neighborhood is a convenience we all appreciate. We are also thankful for our close proximity to the Boca & Stampede Reservoir & Recreation area where you can regularly find many of our residents enjoying boating & outdoor activities. We are excited that the Town has purchased the piece of property just west of the development with the intention of making it the trailhead for the Legacy trail - won't it be great to have a trail along the river connecting Glenshire to Downtown? Those of us lucky enough to live here love the peace and quiet that our community offers.
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