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 todays market. 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. 

Thinking About Listing Your Property?

Active Listings vs. Recent Sales

When we analyze the current active listings vs. the recent sales we can gain some knowledge about what people are buying and how a new listing should be priced.

Of the Tahoe Donner single family homes that sold during the month of February, 82% sold under $750,000. One half of those sales were under $500,000. It has been very evident in the last couple of years that buyers are looking for “the deal”. When it was a seller’s market, buyers would often be willing to step up their purchase price a bit to get the nicer house, location, etc. Now, given a choice between places, most buyers lean towards the lower price and are choosing based on price/value.

For sellers, the good thing right now is the inventory is low with only 71 single family homes on the market. This summer will most likely bring the number of listings to 150 or more. So, if selling is a consideration, we recommend getting your property on the market now (less competition). Pricing is important as always and if your home is value is teetering around $750,000 or so, we recommend trying to price it so it falls into the lower brackets. You want to have your house listed in the price groups where people are looking.

In the end, pricing too high historically leads to a lower selling price and increases your carrying cost of the property, i.e. the “cost of money”, taxes, and other expenses. Pricing well is the key, your property will sell faster and offers usually come in much closer to asking price.

We often hear people say they will hold onto their place until the market gets better. If you want to get the use out of your place then that is a fine strategy, but be prepared to wait 2 years or so. Even then don’t expect the value to skyrocket. So, holding the house to get a higher price is not a good plan if selling is what you ultimately want to do. Sell now and eliminate those carrying costs.

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.

How Mortgage Rates Move

Invest Now Before Rates Climb

What should you do? Be proactive. Act now before mortgage rates move up.

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.

Real Estate, You, the Fed and Interest Rates

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 31^st.  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:

1. Inflation leads to higher interest rates.
2. 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.
3.  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

Frequently Asked Questions…

What is the best way to view properties I am interested in…?
A good starting point is to come up with a list of things that matter to you in a home or lot. Based on what you tell us, we can help you dtermine which area(s) of Truckee would best suit your wishes. Once the area and criteria are known we can then narrow the search to homes that meet your needs. Call us or send an email at Karen@HuntoonRealEstate.com and we’ll get started.

Why do I need a Real Estate Agent?
As your Realtors, we will do far more for you than show you property. We will work with you to establish an offer strategy and negotiate the best price and terms. After an acceptance, we will ensure the escrow process goes smoothly. Even for years after your purchase, we are here for you as your local resource and connection with local vendors and people who will assist you with your property.

What Real Estate office does the most volume in Tahoe Donner…?
Keller Williams Realty does almost half of the sales in Tahoe Donner. All other offices in Truckee do the remainder of the business. Our office is the most widely recognized real estate office in Tahoe Donner – more buyers and sellers come to our office than any other office in Tahoe Donner.

When is the best time to buy property in Truckee …?
The largest inventory of homes for sale in occurs in the summer months, typically from mid July to the end of September. For choices in available homes this may be the time to buy. However, don’t rule out the winter months, the market dynamics change and it could be a great time to buy.

What is escrow?
Buying or selling a home (or other piece of property) usually involves the transfer of large sums of money. For the protection of the buyer, seller and lender, the escrow process was developed. As a buyer or seller, you want to be certain that all conditions of the sale have been met before the property and money changes hands. It is imperative that the transfer of these funds, and related documents, from one party to another be handled by a neutral third party, in a secure and knowledgeable manner. This third party (Escrow Company) holds the money or items until the happening of a specific event or the performance of a specific condition.

What is title insurance?
Title insurance is a written guarantee as to an interest in a particular parcel of land, along with a detailed list of the rights or interest that others have in the parcel. Some examples would be: taxes, liens, loans on the property, easements, the rights others to use the land, etc. Unlike many forms of insurance which protect against events that may take place in the future, title insurance protects against events that may or may not have happened in the past – at any time prior to the date that the written guarantee (policy) is issued. Title insurance may insure a variety of interest in the land. The proper amount of title insurance (liability) is determined by such things as the value of the property, the loan under negotiation, and other factors. Unlike many other forms of insurance, once the title policy is paid for, no additional title insurance premium will be due in the future for that particular policy. Therefore, if you bought a piece of land and received a policy of title insurance, the protection afforded under the policy would continue, with no additional premiums, for as long as you own the property. Some of the things a title search uncovers are: any unpaid taxes or mortgages, judgments against previous owners, easements and many other court actions or recorded documents which can affect title to real estate.

Take your next step in real estate with us…

The listings provided to you here can only get you so far in the process of purchasing real estate. Sure, you need to know the market, what is available and the prices. Now is the time to work with a professional Real Estate Agent. Robbie and Karen can provide the local knowledge to help you make intelligent choices in the purchase process.

Wouldn’t it be nice to have your selections “pre-screened” or just talk to a knowledgeable person about the property?

Could market data, such as recent sales prices and time on market be beneficial in your analysis?

In addition to providing local knowledge, Robbie and Karen will guide you in making an appropriate offer on the property you have decided on. Beyond purchase price, there are a myriad of things to consider when presenting an offer. A good agent works on your behalf, helping you to get the best price possible as well as keeping the whole transaction as smooth as possible. We work with lenders, appraisers, builders, home inspectors, movers, and a variety of local service providers. We are really your link to completing the real estate transaction.

Isn’t it time for some personal communication?

Take the next step with us!

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Martis Camp – Hottest Real Estate Buy in U.S. Today!

$35 Million Sales in 2009 for Martis Camp Defies Economy, Making Tahoe’s Four-Season Family Retreat Hottest Real Estate Buy in America
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TRUCKEE, Calif., Dec. 7 /PRNewswire/ – Developers of Martis Camp, a very successful private real estate community located in North Lake Tahoe, announced 50 sales in 2009 equaling $35 million during the worst economy in 70 years, making it the hottest real estate buy in the U.S. today.

Sixty-one percent of the sales were from buyers in the San Francisco Bay area, and 20 percent are from Southern California, according to Martis Camp Sales Director Brian Hull. “Martis Camp embraces everything that the iconic Lake Tahoe area has to offer and is engaging families with a mountain lifestyle that is not found anywhere else in the Western US,” says Hull. “Even in this economic climate, families are still making the financial commitment, which affords them the incredible lifestyle experience at Martis Camp.” Since sales were launched in 2006, more than 240 homesites, representing approximately $200 million in sales have been made.

Why? Martis Camp is a private, premier playground, offering families a year round, four-season retreat on the finest piece of land in Tahoe. “And Tahoe is really becoming the “in” destination now by wrapping the best every season has to offer into one place,” says Hull. ” Many families have a favorite ski destination and a favorite summer destination in a different resort area. But in Tahoe, you can enjoy all your favorite recreational activities anytime of year. Ski Magazine just recognized the area for an abundance of winter amenities and with the Ritz Carlton opening its newest hotel here, the area is simply hot!”

In the winter, club members at Martis Camp can enjoy direct ski access from Martis Camp to Northstar(TM)-at-Tahoe Resort via the Martis Camp Express quad lift. In the summer, they can enjoy exceptional golf on the 18-hole Tom Fazio-designed course, classes at the Martis Camp Folk School, reading in the Lost Library, listening to an evening concert at the Martis Camp Amphitheater, multiple outdoor adventure activities and much more. The Family Barn is a family recreation and entertainment complex that anchors the 2,177-acre private gated community. With a summer swimming venue, bowling alley, art loft, movie theater, indoor basketball court, soda fountain and outdoor concert park, the Family Barn is the consummate gathering place for year-round social events including dances, wine tasting, karaoke, volunteer events and summertime concerts. Owners view Martis Camp as a family playground offering unlimited access to the natural world with authentic experiences.

“From the design of the community Gatehouse to the Family Barn, Martis Camp is a big family place offering a National Park-like experience,” said Dean Rider of San Francisco. “I looked all over the country, coast-to-coast, for the ultimate family community. Martis Camp is exactly what I was looking for. We were looking for a vacation home where everyone in our family could bike, ski and hike.”

As 2010 approaches, Martis Camp is bustling with construction activity with 30 single-family custom homes currently under construction along with the $42 million clubhouse called the Camp Lodge.

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. The team is responsible for the creation of Lahontan, North Lake Tahoe’s premiere golf course community. The developer’s track record and strength provides security to owners/prospects. “Martis Camp is an intelligent choice for second home buyers who want something year-round that appeals to all age groups,” says Hull. “We are successful in these difficult and challenging times because a ‘legacy’ purchase is in demand. Our Owners want something that’s useable year-round plus something every person in their family will enjoy that can be passed down through the generations.”

Keller Williams Real Estate Update: Aug 09

Keller Williams Real Estate Update – YouTube Broadcast

Truckee Real Estate – Buying, Selling & Market Conditions

Selling your real estate in Truckee is not about guessing- it is both a science and an art.  The science is in the numbers and the art is finding the balance between a special property and market conditions. We have all heard the terms “sellers market” and “buyers market”. These are fundamental measures of market conditions.

• “Sellers Market” conditions exist when there are between 1 and 4 months of inventory.
• “Balanced Market” conditions exist when there are between 5 and 6 months of inventory.
• “Buyers Market” conditions exist when there are 7 months and more of inventory.

So what is “Absorption Rate and Months of Inventory”? 

Absorption rate and months of inventory are mathematical calculations, based on current and past market trends that help us estimate how long it will take to absorb the current active inventory in a given area or market segment. The total number of available homes is divided by the total number of homes sold in the previous month. The resulting number represents the number of months it would take, at that same pace, to sell the entire inventory of homes.

For example, let’s say that there are 24 similar homes currently on the market in Tahoe Donner and last month 3 comparable homes sold. The absorption rate is 3 (3 sales/1 month = 3) and the months of inventory is 8 (24 current inventory/3 absorption rate = 8).

The chart above shows us absorptions rates and months of inventory for Tahoe Donner single family homes. The absorption rates were based on a monthly average of sales over the last 3 months (2nd QTR stats) for each price segment. Current inventory for each price segment was divided by the corresponding absorption rate and months of inventory were determined.

The market segment for homes up to $500K, with 6 months of inventory, is the most balanced while all other segments are strong  ”buyers markets”. There have been no sales prices over $1,250,000 in 2009 therefore it is not possible to calculate an absorption rate (nothing has been absorbed) nor months of inventory.

Understanding market conditions is powerful knowledge for both buyers and sellers. It can help in the following ways:

1. For Sellers – Realistic Selling Prices:
   As a rule of thumb…The longer your property is on the market the more likely it is that you will see price reductions. This means that it is of utmost importance that you price your property correctly for the current market conditions. If you need to sell your home, it must be better than its competition. In a given market segment, the most desirable home at the best price will sell first. Absorption rate is a concept and practice that is often over looked by many Realtors and lack of knowledge can lead to properties that don’t sell, expired listings, numerous price reductions and disappointed sellers.
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2. For Buyers – Realistic Purchase Offers:
   Knowing the market conditions in the specific areas you are looking to buy in will prepare you for negotiating.  As a buyer you may have greater success negotiating in an area or market segment where there is more inventory and the seller may be more motivated to sell!

If you have considered the idea of selling, please give us a call at 530-412-0583 or send an email to karen@huntoonrealestate.com .We will establish a value for your property and design a selling strategy and marketing plan. We thoroughly research market areas both before and during our listing periods as good knowledge of the market is critical in selling a home and allowing Sellers to get the most money out of their homes and to sell in the shortest period of time.

Now, more than ever, it is important to take the guess work out of selling and talk with a Realtor that understands the art and science of pricing a home in todays market conditions. Give us a call 530-412-0583.