Truckee Home Buying Tips Revealed

Avoid Common Buying Mistakes When You Purchase Truckee Real Estate…

Most buyers want to make sure they get a good deal on the new home they buy and this is especially true if they’re buying in a soft market like we are experiencing right now. For a property to be a “good deal”, a buyer has to take a look at its condition, the location and the price they’ll wind up paying when the negotiations are all said and done! 

The first rule of thumb for buying a new home is to get very involved in the inspection process and to leave no stone unturned. The Home Inspection is very important. There are several home inspection companies in Truckee and Robbie and Karen Huntoon can make recommendations. The home inspector will spend several hours inspecting the home to make sure that all systems are in working order and that there aren’t any serious defects that might affect your decision to buy. Home inspections range in price depending on the size and condition of the home. We usually see price tags between $375 and $450. Most of the reports are easy to read and even go so far as to give estimates of how much it will cost to fix items deemed as defective. 

In addition to the home inspection, most buyers also hire a Termite or Pest Company to perform a pest inspection. The findings on a termite report are typically described as Section 1 and Section 2. Section 1 items are current and ongoing problems and, depending on your contract negotiations, the seller is usually responsible for taking care of Section 1 problems. Section 2 items are those that are not active but “could” become problems down the road. The Buyer is typically responsible for Section 2 items.

A recommendation that is often overlooked is to research the permit history. A quick call to the Town of Truckee building department can reveal if there are any pending or expired permits. If you don’t check the permit history, you could find out later, when you want to take out a permit for a renovation, that there are expired permits for work that never received a final approval from the town’s building department. You might then be required to reinstate the expired permits and finish the job to the building department’s satisfaction before you can take out a permit for a new project. This could be expensive, take time and at the very least be a hassle.

Another item buyers ignore is the cost of routine maintenance. Some homes cost more to maintain than others. Well-maintained homes will be easier to maintain because you’ll have little deferred maintenance to repair. Ask the sellers for information about how much they pay per year for tree trimming, painting and servicing house systems such as the roof, furnace, and drainage systems. Also ask about utility bills in an average winter. All of these things will factor into the cost of owning the home.

The area that your home is located in is also an important, yet often overlooked, component to wise home buying. The home is not a good value if you find out a year later that the neighborhood is declining. Check out the neighborhood. Look at the other houses. If you are in a planned development with amenities, look at the amenities. You’ll get a pretty good idea and feel for the new place you are thinking about calling home!

A little homework in the beginning will have great pay-offs down the road. Take the inspection process seriously. 

Truckee Real Estate - Make an Offer the Seller Won’t Refuse

It’s No Different in the Truckee Real Estate Market - There is Strategy to Making Your Offer Attractive…

Look at negotiating as a back and forth process and strive for a win-win scenario for everyone. You and the seller may have different ideas about what price the property should sell for. However, you’re united in a common goal of consummating a deal. The challenge is to resolve your differences through a process of give and take until you either reach your common goal, or decide to go your separate ways. Sometimes this will happen quickly and sometimes it’s a drawn out process that can take several days or even weeks. In our current Truckee real estate market, we are seeing as many as 5 and 6 counter offers pass between buyers and sellers before a deal is negotiated.

Buyers often think that if they start out offering too high initially, they’ll end up paying too much. Your initial offering price should be high enough to entice the seller into a dialogue. It’s a price to get the ball rolling. From there, you can move up in small increments. As your Truckee Realtors, we will help you determine the offering price that puts you at the best advantage throughout the negotiations.

When you make an offer and there’s no competition from other buyers, your initial offer price should leave you room to move up in price. But, it should not be so low that it’s insulting to the seller. Otherwise the seller might not respond at all. Working with both seller and buyers, we have been on both sides of the negotiating table with our clients and we know from experience that an offer that’s too low could give the seller the impression that you’re too far a part, you can’t afford more, so there’s no point in issuing a counter offer.

It’s important not to get so caught up in negotiating the price that you overlook other opportunities for building a good relationship with the seller. Good negotiations have a sense of fairness about them. During the process of your negotiation, we will collectively brainstorm all the possible ways that we can accommodate everyone. Keep in mind that a win-win scenario will have the best outcome.

Price, while important, is not the only thing that makes an offer appealing. Do the sellers need a quick close? Would they prefer a longer close because they have other obligations and can’t be moved out in 30 days? If so, the sellers might be willing to give up more on the price for a close of escrow that accommodates their particular needs.

If you are not planning to finance your purchase, an All Cash offer can be very appealing to a seller. Sometimes a seller will accept a lower price if they know the deal is not hinging on a loan contingency.

In the Truckee market, many homes are second homes and it might be worth asking if it would it be easier on the sellers if they don’t have to move all of their furnishings out of their home. Maybe you will want to negotiate and purchase some or all of the furnishings. This can be convenient for the seller and also for you.

Lastly, it always makes a seller feel confident when you are timely in making responses. Selling and buying can be stressful on both parties and being honest and upfront can go a long ways in making a deal come together.

We like to negotiate win-win transactions for our clients and we will give you different options for starting points and strategies that we think may be best for you and a particular purchase. Give Robbie and Karen a call today at (530) 412-0583 and we’ll help you get started.

We also encourage you to leave any questions and comments here. Thank you.

Getting Your Home Ready to Sell

Small Things Can Make a Big Difference…

The Truckee real estate market is no different than any of the others. Getting your home ready to sell is very important. Don’t be tempted to put your house on the market until it is in “show” condition. First impressions count.

There are basically two reasons why sellers go to the effort and expense to prepare their homes for sale. One is that it helps to bring a higher price. The other is that it usually results in a quicker sale.

It’s important to make cost-effective cosmetic improvements in order to realize an increase in profit when you sell. Major renovations made just before selling — such as completely remodeling kitchens and bathrooms — are not cost-effective. Although they improve the appeal of the home, you aren’t likely to recoup the full amount of your investment on a quick turnaround.

But other cosmetic improvements such as refinishing hardwood floors, replacing outdated floor coverings, replacing outdated light fixtures and painting are worth the money. The reason these improvements tend to bring a higher price is that most people have difficulty imagining what a house will look like fixed up. You do the fix-up work so that you don’t leave the sale of the house to chance.

If you leave the work to the buyer, fixer-uppers appeal to those who usually want a break on the price to compensate for the condition of the property. By sprucing up the property for sale, you appeal to a much broader audience. The more interest there is, the more chance there is for a sale at a higher price.

Buyers are less likely to reject a house that is “move in” ready. Often, with vacation homes, buyers don’t want to do alot of work before they move in.

Buyers are pickier than they were a year ago when home prices were rising quickly. Many buyers are concerned that prices are falling. So, their enthusiasm for paying higher prices regardless of the condition of the property has waned. Buyers are looking for value.

Sellers often resist spending money on a property they’re selling. This is particularly so in the current market, where they may have less chance of receiving multiple offers and a generous price. However, properly preparing your home for sale can give you an advantage in today’s challenging market.

Staging for First Impressions

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.

Selling in Today’s Market

What’s in Store for Buyers and Sellers?

We’re in the midst of a challenging market in the Truckee and Lake Tahoe real estate markets. One of the most difficult realities for most sellers to face is that prices in their neighborhood may have dropped during the last year or two. The trick is to price your home right for today’s market.

This is a great time to “move up”. In Tahoe Donner, for example, with today’s lower prices, it is an advantageous time to buy a newer, bigger or different house. As a seller, you may have to sell for less than you would have a few years ago. But, as a buyer, you may also pay a lot less for the next home you purchase.

When should you list? A seller usually has an advantage selling when there isn’t much competition from other listings. Listing before the busy summer months can put you ahead of the game. There will be more listings coming on the market in June and July and the vacation home market in Truckee is in full swing by August and September.

Thoughts about pricing: Today’s home buyers are extremely price-conscious. If there is alot of inventory to choose from, price will certainly be a big factor. A price that’s too high for the market won’t bring the desired result.

In the current environment, buyers are more cautious about what they buy because they know that the property they buy might drop in value before it starts appreciating. They buy for the long term and are less prone to make compromises.

Condition and maintenance: The condition of your property will be scrutinized more carefully in the current market than it would have been a few years ago. You can sell a property that has deferred maintenance. But, you will sell it more quickly and for a better price if you can repair defects and have the property looking great when it hits the market. If this is not possible, take this into consideration in your list price.

Price reductions: It’s difficult to hit the market price for a property if there haven’t been many recent sales in the neighborhood. If you miss the target and find that your home is priced too high, lower it as soon as possible. A price reduction is no longer a stigma in this market. Letting a listing sit on the market too long at a high price sends the wrong message to buyers and could result in a lower sale price if market prices in your area continue to decline.

When we work with you to sell your home we will provide objective opinions about pricing, repairing, replacing and staging. We want to help you get your home sold in the shortest amount of time for the most money. Give us a call at 530-550-5142.