Keller Williams Real Estate Update: June 2010

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

Keller Williams Real Estate Update: May 2010

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

Martis Camp – 20 Sales in First Quarter 2010

Tahoe’s Luxury Second Home Market Stays Hot Into 2010 With $18 Million Sold in the First Quarter at Martis Camp, a Four-Season Family Retreat
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TRUCKEE, Calif., April 1 /PRNewswire/ – Developers of Martis Camp, a very successful private real estate community located in North Lake Tahoe, announced 20 sales in the first quarter of 2010 equaling $18 million, giving signs that the luxury second home market is alive and well in Lake Tahoe.

“We are very excited to see continued sales momentum into the 2010 winter season,” said Brian Hull, director of sales for Martis Camp. “This is the best we’ve ever done in previous first quarters since we began sales in 2006.  We have never had a winter like this – even in the best of real estate markets. Prior to 2010, our pinnacle winter was 2006/2007 when we had eight sales.”

Even in these uncertain times, families are still making the commitment to enhance their lifestyle.  Buyers are mostly from the western U.S. with heavy concentrations in the San Francisco Bay area as well as Los Angeles. Approximately 75 percent of buyers are paying cash and the other 25 percent have used Martis Camp’s preferred lenders for financing.  According to Hull, there are some attractive loan programs currently being offered, and with some cases, buyers are only being required to put 30 percent down. Rates are in the 5% range.  

Scott Keith and his wife, Lori, of the Bay Area recently purchased a home site in Martis Camp.  When they first pondered the purchase, Keith said, “I thought, ‘No one’s going to be doing this, are we crazy?’ But still it seemed to be the right time to us. We wanted to set up that kind of vacation property where we could enjoy family time.”  The couple and their three children hope eventually to build a four-bedroom house on their site. And one added bonus: Prices for contractors are lower than a few years ago, Keith said. “It makes things much more doable.”

Martis Camp Club is a phenomenal offering and features an 18-hole Tom Fazio golf course, direct ski access from Martis Camp to Northstar-at-Tahoe™ via the Martis Camp Express Lift and a vast array of Club amenities, including a Family Barn complex with summer swimming venue, bowling alley, art loft, movie theater, indoor basketball court, soda fountain and outdoor concert park.  Martis Camp home sites range from $450,000 to $2 million.

The Martis Camp community is bustling with construction activity with 12 completed homes, along with 30 single-family custom homes currently under construction and a $42 million clubhouse, called the Camp Lodge. Another 20 homes are expected to start construction this summer.

Martis Camp is growing rapidly thanks to a financially sound and responsible development team. DMB/Highlands Group, LLC, is comprised of two of the country’s premier recreational-residential community developers, DMB Associates and Highlands Management Group.  This team is responsible for the creation of Lahontan, North Lake Tahoe’s premiere golf course community. The developer’s track record and financial strength provides security to owners/prospects.

Which Tahoe Donner Price Range is Hottest?

“How’s real estate?”  This is a question we hear often. During the 1st QTR of 2010, 38 single family homes  sold in Tahoe Donner and 50%  (or 19) of these homes sold for under $500K.  34% (or 13) of the homes sold in the $500K to $750K category, 13% (or 5) sold in the price range of $750K to $999K while a mere 3% (or 1 home) sold in the price range over$1 million dollars.  So, what is the hottest category? The hottest, right now, is the under $500K category with the $500K to $750K category coming in as a close second.

Today (4/16/10) there are 77 Active single family home listings in Tahoe Donner. Prices are at an all time low and there are great opportunities. Whether you want to buy or sell, you should give us a call. We can help you buy with discrimination and if you want/need to sell we can price your property correctly and provide a marketing program that will get your property exposed and sold. Call us!

A Buyer’s Market is a Trading Up Market!

Falling Home Prices Provide Opportunities…

Falling home prices in the Truckee real estate market, including Tahoe Donner real estate and North Lake Tahoe real estate, provide great opportunities for confident homeowners looking to ”trade” up. Even though your home sale price may be lower, the smaller loss at sale can be compensated by greater savings at purchase.

If home prices dropped by 5%, here’s what it could look like if you decided to trade up:

Home Price = $200K                          Home Price =$400K
Sell at $190,000                                   Buy at $380,00
= $10,000 Loss                                    = $20,000 Savings

More now than ever we are hearing reports from Media spokespeople that “now is the time to buy real estate”.  If you are thinking about buying or selling your Truckee real estate, call us today for free advice.

Buyers You Can’t Time the Market – It’s Time Right Now!

Hindsight is 20/20 Vision…Insight for Buyers

Buyers often wait on the sidelines for a clear sign that the market has reached rock bottom before they make an offer on the property they’ve been eyeing. There are two problems with this strategy. Too many times, the “other guy” that was eyeing the same property makes his move and purchases the property before you. The other problem is that too often we don’t know that the market has hit the bottom until it has turned the corner and starts going back up. You can only know for sure that a market has turned through hindsight. In other words, you can’t time the market

A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or, prices could stay flat for some time, which means that you won’t build equity unless you pay down principal on your mortgage. If you should have to move during a time when prices are soft, you might not be able to sell for the amount you paid. To decrease this risk factor, don’t buy for the short term. Buy for the long term.

Give careful consideration to how you finance your purchase. Stay away from mortgages that have short due dates and balloon payments. If the market in your area stays soft for longer than anticipated, you don’t want to be caught having to refinance at a time when your home might not appraise for the price you need to complete the transaction.

A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price. But the key is to buy the “right property” at the “right price”. As professional Realtors, we can help you determine if a property is a “good buy”. We will give you solid advice about the home you may want to purchase and we will help you throughout the entire process.

Sellers – Pay Attention to All Offers!

Selling Your Truckee Real Estate

Whether you are selling real estate in Truckee or somewhere else, selling a home can be an emotional experience because most sellers have a lot more than money invested in their homes. So, it’s understandable that sellers might be reluctant to respond to an offer that is for less than the asking price.

Most sellers have a difficult time being objective about their homes. Detachment is something sellers should strive for, particularly when the market favors buyers. To be a successful seller in a buyer’s market, you need to be able to put yourself in the buyer’s shoes. Ask yourself, if you were a buyer, would you pay the price you are asking for your home?

In a soft market, like we are currently experiencing in Truckee, buyers are prone to making low offers. The exception is when a listing is priced so competitively that a buyer recognizes a good deal and buys the property before others have a chance.

Some sellers might be inclined to inflate their asking price so that they will have room to bargain with a buyer. This is a risky strategy for serious sellers. In a buyers’ market where there are a lot of homes for sale, the best listings at the best prices sell.

The listings that don’t sell usually need price reductions to get them to a marketable range. If the market is trending downwards, this could mean selling for a lower price than might have been possible if the listing had been priced competitively to begin with.

Sellers whose homes are not competitively priced are prime targets for low offers. Even if your home is not badly priced, you could receive a lower-than-asking-price offer if market conditions are uncertain. Rather than being insulted by a low offer, sellers should view it as the beginning of a dialogue that could result in a sale.

Pay close attention to the buyer’s financial capability. Gone are the days where buyers could buy a home with little or no cash down, and without verifiable income. Today’s buyers are subjected to far more financial scrutiny by lenders than they were a year ago. Ideally, buyers should be pre-approved for the financing they need before they make an offer. If they are not, make sure there is a clause in the purchase contract that requires the buyers to apply for financing within a several days of acceptance.

There is more to an offer than price. The terms and conditions of an offer are very important as well. For instance you will want to be aware of the length of the contract (close of escrow), is the offer All Cash or is the buyer going to obtain a loan?, who pays for what?, what is included? – is the buyer asking for all of the furnishings, the snow blower, etc., what are the contingency release time frames? These are all important parts of the negotiations. Buyers and sellers often don’t know in advance what price they’ll accept until they’re in the midst of a negotiation.

If you aren’t satisfied with an offer, you will enter into the counter offer phase. The counter offer process can happen quickly or it can be long and tedious. These days, sometimes, we see counter offers going back and forth a half a dozen times. Be prepared to explore all options before letting a negotiation fail.

Selling in Todays Real Estate Market

Seller Considerations for Selling in Todays Real Estate Market

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 few years. 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.

Keller Williams Real Estate Update: April 2010

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

Pricing Your Home for Todays Market

You Don’t Want to Chase the Market…
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Things change, kids grow up, jobs transfer us to new places and all of a sudden there’s a house that needs to be sold. In our current market, sellers are often asking us what they need to do to get their homes successfully sold. The first thing a seller must do if he wants to sell his house is to price it correctly for the market we are in. Many of the homes that aren’t selling are priced too high. According to MLS data, the median sales price for single family homes sold in Tahoe Donner during the 1st QTR,  dropped 35% from 2005 to 2010.

[Illustration: If sellers fall behind a market with falling home values, they can end up chasing the market down, because home values tend to fall faster than their price reductions].

If you need to sell your property now, it is important to price “on the money” right from the start. Chasing the market is not the position you want to be in when you are trying to sell your house. In other words, you don’t want to be two steps behind the market. You want to be slightly ahead and if you want your house to sell it should be priced better than your competition.

Pricing a home for sale is not an easy task for anyone. It’s tough to be objective because a house represents so many things to each person. It is often said that sellers are the last to know when it comes to the value of their home and buyers, on the other hand, are often ahead of the game. Buyers know the market better than most sellers and they are aware of the risks involved in todays market and they gauge the price they’ll pay accordingly.

When it comes to pricing your home for sale, we give you individualized and objective information so that you can make an informed decision. In addition to determining the right price for your property, based on an in-depth analysis of comparable active and sold listings, we will also create a marketing program for your home. We utilize Internet resources, print advertising, open houses, virtual tours and more. We work hard at creating a win-win opportunity for everyone.

The state of our current real estate market has provided some excellent opportunities for new buyers to invest in the Truckee real estate market and it can also be a good time for others, who already own, to sell and buy a bigger or different place while the prices are so good.

Our goal is to help you sell your home for the most amount of money in the shortest amount of time and to help find good investments for those who are ready to make purchases.