| Greetings!
Some Good News on the Mortgage Frontline
Changes are in the air and it feels like time for a mortgage update: On Nov. 5th lawmakers voted to extend the first time buyer tax credit of up to $8,000 that was due to expire on Nov. 30, 2009. This will be the second extension to the revised tax credit which has helped to encourage first time buyers to take advantage of today's low home prices. Congress has grappled with the decision to continue to supplement the floundering real estate market, but it seems in the end they decided that the real estate and related industries continue to struggle to stabilize and have extended the expiration date for the first time home buyer tax credit. A buyer must enter into a contract to purchase a home no later than April 30th and close escrow no later than June 30th 2010. Additionally, they have extended the tax credit to all home buyers with an income of up to $125,000 for individuals and $225,000 for married couples who have lived in their home for the last 5 out of the last 8 years. You can get answers to more questions if you read what our colleague Ephraim Schwartz provided us by clicking on this link. Another point to note in the mortgage arena is the decision by the FHFA - Federal Housing Finance Agency, to extend the High Balance Conforming Loan limits to the end of 2010. This also was about to expire. Currently the limit for FHA conforming loans is $417,00. However, for some high-cost areas, as in many parts of California, the conforming High Balance Loans can rise to as high as $729,750 such as in the Greater Bay Area. The limit will vary depending on the median home values for a particular area. For Nevada County the High Balance Loans will cap out at $562,500, while Placer County it set at $580,000. These Fannie Mae, Freddie Mac guaranteed loans act as a bridge between the standard conforming loans and the higer cost Jumbo Loans. For more information on these, contact your mortgage advisor. We continue to hold out hope that the HVCC, the laws regulating the way appraisals are ordered, may soon be repealed. The HVCC has caused perfectly good real estate transactions to fall through. So we wait with fingers crossed! |
| Market Update - October 2009 |
We are on a roll.
This month's stats say that 134 condos and homes sold in our Truckee
North Lake Tahoe area. It seems as though the Lake Tahoe side is picking up
some steam especially in the Kings
Beach and Tahoe Vista
area. Lots of people are taking advantage
of the low prices. Out of the 134 sold,
only 17% of the properties were distressed (again more REO or bank owned
properties than short sales). This is
probably the result of buyers giving up on the slow moving process of the short
sale and either getting into a sure thing like a bank owned property for sale
or a non-distressed but competitively priced standard sale. Note the increase in the median sale price
over last month (October-$477,500, September-$449,000), maybe there is some
positive news here? Here are the
statistics from the Tahoe MLS.
The solds
from October 1 - 31, 2009:
Tahoe Donner: 30
homes, (3 REOs,), 5 condos (1 REO)
Northstar: 2 homes, 9 condos (1 REO)
Glenshire, Cambridge,
Juniper Hill, Juniper Creek, The Meadows: 11 homes
(2 ss 2 REOs)
Prosser Lake Area: 6 homes (2 REOs)
Sierra Meadows,
Ponderosa Palisades, Winter Creek: 5
homes (1 REO) 1 condo
Martiswoods,
Ponderosa Ranchos: 0 residential properties
Olympic Heights: 0 residential properties
Lahontan: 2
homes
Timlick: 0
residential properties
Old Greenwood: 0 residential properties
Gray's Crossing: 0 residential properties
Martis Camp: 1 home
Truckee Proper:
1 home (REO), 2 condos (1
REO)
Donner Crest: 0 residential properties
Donner Lake: 3
homes
Donner Summit: 1 home
West shore Lake Tahoe: 20
homes (1 REO), 1 condo
Tahoe City: 5 homes, 3 condos
North shore Lake Tahoe: 1
home, 2 condos
Kings Beach & Tahoe Vista: 13 homes (2 ss, 2 REOs), 3 condos
Alpine & Squaw Valley: 13
homes (1 REO), 3 condos (2 REOs)
Shared Ownerships -
entire region: 2 sales
Mobile Homes - entire
region: 0 sales
Condos and Homes sold over $1M in Truckee and North Lake Tahoe: 13
Highest priced home or condo sold: a $4,750,000 Lake Tahoe Lakefront home
located in Homewood
at 5090 West Lake Blvd. This 3700 square foot 4 bedroom, 4.5 bath, 2
car garage home was on the market originally for $5,900,000 and after 365 days
on the market, it sold for - HOLD ON HERE FOLKS - CASH!
Lowest priced home or condo sold: at $99,000 this studio condo located at Tahoya Shores,
again a Lake Tahoe lakefront condo
project. After 70 days on the market it
sold for its asking price, again CASH.
The list to sell ratio on the median was 94%. In other
words, the homes sold within 94% of the list price. The median list price for this period was $509,450,
median sale price was $477,000. Moving up.
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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. . . .(by the way if when you click on the link you get nothing -- they have already gone under contract)
1. This sweet little house needs an owner and it is now priced so low at $56,000 it cannot be seen as anything but a great deal. Space 77 at the Village Green Mobile Home Park has 2 bedrooms, 2 baths, covered entryway, storage shed and is located on the quiet back street. Qualified people will be able to get a loan. Call us and we can help!! 2. Looking for a getaway that is centrally located in Truckee, near grocery shopping, restaurants and under $400K? Well this 2 bedrooms 2 bath condo located at 10620 Boulders Road just may fit the bill. Priced at a reasonable $349,000 it includes an association swimming pool. Be close to everything. You will only need your car to get yourself to Alpine, Squaw or Northstar. Did I mention it has a 1 car garage also?
3. Speaking of Screaming Hot Deals, when was the last time you looked at residential lots in the Truckee and North Lake Tahoe area? It wasn't that long ago that you couldn't touch an unimproved piece of dirt for under $200K. Now look at what is available for under $100,000 -- talk about opportunity knocking. Some of these properties have very little holding costs at these prices. Check them out.
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. Another one of those listings you love to have -- don't worry you will keep it forever at this price $1,100,000 for 525 Club Drive on the Westshore of Lake Tahoe. 2453 square feet and 6 bedrooms is its only claim to fame. The fact that it has been on the market 437 days and the seller has only reduced the price by $50,000 make us wonder what gold mine it must be sitting on. 2. Is it your dream to live in Squaw Valley? The owner of this home located at 150 Tiger Tail Road must think he has no competition. The price he is asking is so dear that the property has been on the market 830 days. Originally priced at $1,500,000 they are now down to an asking price of $1,050,000 -- maybe too little too late??? 3. This house located at 5873 Dodowah Road in Agate Bay wins the honor of being the worst deal on the tour today. $775,000 gets you a shake roof, steep driveway a funky floor plan and quite a bit of deferred maintenance. 2112 square feet with 3 bedrooms and 2 baths, ho hum . . . maybe the Agate Bay Beach Club Pool makes it worthwhile.
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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Mike and Denise World Travelers
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 Two very fine people that have been our clients since 2005 are Mike Foley and Denise McNair. Not only are they our clients, they have grown into friends and worthy opponents (in the Mexican Train department). The two of them were employed in the Silicon Valley during its heyday and managed to set themselves up to retire early, originally moving to Discovery Bay. That area got a little too rowdy for the couple who only wanted to seek the peace and quiet of the mountains, so they ended up in Truckee. Besides spending and sharing much of their time with their two young grandsons, Mike and Denise LOVE to travel either in their motor home or on any other mode of transportation -- like trains and canal barges. Mike likes to fly light aircraft and both of them love skiing, people, wine and the outdoors. Just another reason why we love our work -- awesome people. | |
Kappy and Jennifer have a combined 40 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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How Good A Deal is a Bank Owned Property?
Today everyone is talking about what great deals buyers can get out there. The press, the real estate industry, even your next door neighbor. We have talked a lot about the "short sale" property but how about the good and scarry points of purchasing a "bank owned" or REO property. What are the ups and downs here? Well of course, the up is that the house is generally priced by the bank at a value 20-30% lower than the market (as elusive as that number is). So, if you are a savvy buyer, you can really get a steal here. There are websites that locate REOs for prospective buyers. First you can look at the bank's website, such as BofA.com where you can find a section devoted to the advertisement of their bank owned properties. There are also private, money making websites such as RealtyTrac.com which for a fee ($50 per month) will provide you with a list of REO properties in your area, or you can just ask your trusted real estate agent who will provide you with a list of local REOs and Short Sales to find you some -- they are most often listed on the local multiple listing services.
So now you have found a few REOs to look at, there are a few points that you need to remember. Bank owned properties are generally sold "as is" and there are no claims or warranties on the properties. A lot of properties have been vandalized by their former owners, perhaps in a fit of anger (either at themselves or their bank). There may be things missing that are not readily apparent. As one article I read stated: "You don't need to be told the toilet is gone, but an inspector can tell if there is damage 20 feet down the water line because of the way that toilet was ripped out." Be sure to have the house thoroughly inspected. Banks do not have the duty of disclosure that private sellers have. Be sure to check out what environmental zone the hope is located in -- earthquake or fire zone maybe, or perhaps the house may have been the site of a known meth lab. Another thing, buyers think that because the bank owns the property they will be interested in accepting a offered price way below their asking price. Typically, banks will price their properties agressively and will not lower the price until the house has had a couple of weeks to be marketed.
One other thing to be aware of, the Banks usually require that a buyer use their (the Bank's) purchase contract. This contract is totally different than the California Association of Realtors' Purchase Contract in that it has passive removal of contingencies. Those who are used to writing on a CAR contract can be caught unawares on this point. Be careful -- even if you are a real estate agent!!
Timing is everything again but beware a wolf in sheep's clothing!!
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| The Family Resource Center of Truckee |
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The Family Resource Center of Truckee is a community-based, non-profit that promotes social and economic success of local families by providing education and mobilizing resources. They have been helping the most vulnerable members of our community since 2007, including working poor and unemployed, seniors and families in need of help. Over the past three years, their client base has increased from 198 families per year to 551 households in '08-'09; this is a nearly 300% increase. Their services include parent/child classes, legal services, housing assistance, emergency assistance, prevention of child abuse and neglect, healthcare referrals and access, peer-to-peer classes, and non-profit partner referrals for hunger relief, senior services and domestic violence. The FRCoT has just recently moved into a new facility located at 11695 Donner Pass Rd. and can be reached at (530) 587-2513 or www.truckeefrc.org and welcomes donations of all kinds. |
THANKSGIVING 2009
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It is really hard to believe that it is Thanksgiving time again. This time of year makes us think of all of our friends, family and clients who mean so much to us. And no matter what we are so lucky to have all of you. There is no other holiday where the giving of thanks is so simple and unattached. We want to wish you and yours a HAPPY THANKSGIVING!!
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