How Mortgage Rates Move
February 28, 2010
Invest Now Before Rates Climb
What should you do? Be proactive. Act now before mortgage rates move up.
Staging for First Impressions
February 14, 2010
Do it Yourself or Hire a Pro?
In today’s Truckee real estate market, sellers and their Realtors are looking for new ways to get homes sold. Staging, or creating vignettes, can be an important and strategic move in facilitating a positive first impression. It can also be fun and creative. You can do it yourself or hire a pro.
DOING IT YOURSELF: In real estate, first impressions matter! We often suggest to sellers that they approach the home they want to sell as though they are the buyer seeing it for the first time. Start at the street. Does your driveway need to be repaired or sealed? How does the yard look? Is it clear of pine needles, debris and are the trees trims trimmed and thinned appropriately? Does the house need staining? Are there any exterior repairs that have been neglected? What about the front entry? Now step inside the house. Does it feel inviting? Be honest about the clutter – do you need to put a few things away? Does your furniture arrangement show off your home’s potential? Does your home need a fresh coat of paint? Are you missing any key pieces of furniture? Does the carpet need to be cleaned? Clean out the refrigerator. Put nice towels in the bathrooms. Get rid of ugly bedspreads. Make sure the windows sparkle. Are your pantries and closets organized? Ask yourself, “Am I impressed”?
HIRING A PROFESSIONAL: Some sellers choose to hire professional Staging Consultants. We see this more frequently in brand new homes or spec homes. The staging consultant will typically come to your property (for a fee) and evaluate your home. The consultant will then come up with a plan that proposes the scope of their project including labor and materials. In new homes, the staging consultant will usually recommend that she stages the front entry (inside and out), kitchen, great room / living room, dining area, master bed & bath and a powder bath. Bonus rooms are often staged as well. The next step, if you choose to hire a staging consultant, is that they will bring in a houseful of furnishings and stage your home. The fee for this usually encompasses a delivery fee and set-up fee (the actual staging). A monthly fee is then assessed that is typically a percentage of the value of the furnishings placed in the home. Most staging consultants have a 3 month minimum for staging. Every Staging Consultant is different and it is very important to work with the one that you feel comfortable with. Keep in mind, staging is not meant to make your house sell for more but rather staging entices and captures the attention of your prospective buyers. You still need to make sure your house is priced strategically for the market you are in. Call us today to review what your home is valued at in this market and we’ll also be happy to provide a list of qualified Staging Consultants.
Real Estate, You, the Fed and Interest Rates
February 4, 2010
The Fed has certainly been affecting our economy with their bailouts. What effect will this have on real estate in Truckee and Tahoe Donner? The Fed’s Mortgage Bond purchase program has artificially created demand in the bond market, and in turn kept mortgage rates near all times lows even as the stock market had some upturn. The Fed has now confirmed the MBS (mortgage backed security) purchase program will end on March 31st. This means mortgage rates will creep higher in the months ahead. Bond prices, which drive mortgage rates, will once again be dictated by normal economic factors.
So, here are some things to keep in mind for the coming “real market” conditions:
- Inflation leads to higher interest rates.
- If you are a seller, it is time to cut your price and be decisive. If you’re serious about selling your property, adjust your price to where the market is moving, take your lumps and move on, or you’ll be waiting a long time.
- If you are a buyer, it is time to purchase or miss out on the current opportunities. Don’t make the mistake of waiting for everybody else to make a move before you feel comfortable enough to purchase. Many people have made a purchasing decision already, and we never know what the bottom of the market is until it has passed. Here’s one thing you can take to the bank—higher interest rates are the equivalent of a price increase. Don’t wait for prices to drop, the market is indicating we have reached the bottom. When rates go from 5% to 7%, it is the equivalent of a 20% increase in price to the borrower.
Look at the difference just 1 point makes in these loans:
Loan Amount Type of Loan Interest Rate Monthly Payment
$250,000 30 Year Fixed 5% $1342.05
$250,000 30 Year Fixed 6% $1498.88
$250,000 30 Year Fixed 7% $1663.25
Tahoe Donner® Real Estate Sales: January 2010
February 1, 2010
Tahoe Donner® Real Estate
Single Family Homes Sold - January 2010
Single Family Homes SOLD = 9
Median List Price = $400,000
Median Sale Price = $382,000
Average Days on Market = 42
YTD TD SF Homes Sold = 9
Active Listings = 73
| Address | Original Price | Sales Price | Square Feet |
| 14050 Davos Drive | $299,000 | $279,000 | 1264 |
| 11046 Bolzano | $330,000 | $325,000 | 1512 |
| 16549 Northwoods | $446,900 | $3820,000 | 2000 |
| 12753 Hillside | $435,900 | $375,000 | 1792 |
| 10974 Bolzano | $420,000 | $378,000 | 1550 |
| 14680 Copenhagen | $539,900 | $478,000 | 1568 |
| 13314 Roundhill | $515,000 | $495,000 | 1800 |
| 13559 Weisshorn | $699,000 | $699,000 | 11914 |
| 14137 Glacier View | $1,399,000 | $750,000 | 3957 |
Tahoe Donner® Condos Sold - January 2010
Condos SOLD = 4
Median List Price = $381,975
Median Sale Price = $377,250
Average Days on Market = 200
YTD TD Condos Sold = 4
Active Listings = 27
Tahoe Donner® Lots Sold - January 2010
Lots SOLD = 1
Median List Price = $59,900
Median Sale Price = $56,500
Average Days on Market = 427
YTD TD Lots Sold = 1
Active Listings = 36
(YTD = Year-To-Date)
This is provided as a quick snapshot of the monthly market activity in Tahoe Donner®. Keep in mind, numbers only tell part of the story. We would be happy to share our day-to-day insight
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Truckee Real Estate Sales: January 2010
February 1, 2010
This chart represents the number of single family homes sold in the last three months in the Truckee real estate market. The chart also shows the median sale prices for these homes. 
Compared to January 2009, single family home sales for the Greater Truckee area are up 35% (from 20 to 27) and sales in Tahoe Donner, comparing January 2009 to January 2010 are equal (9 to 9). Keep in mind these winter months tend to be slow!
