5 Tahoe Short Sale Buyer Tips for the Vacation-Resort Second Home and Condo Market

It’s that time of year and buyers are once again getting serious about getting a vacation-resort second home, or condominium in Lake Tahoe, California. Interest rates have never been lower, and prices in the area have really corrected from the peak of the market a few years ago. Mountain homes, including lakefront properties have dropped by 40% since 2007, and condos depending on the complex have dropped 50% or more.

By now, everyone seems to know at least one person that has either purchased a REO (Real Estate Owned – bank foreclosure), or short sale. Everyone has their tips and suggestions on how to be successful in getting a deal. If you’re thinking about buying a Tahoe resort-vacation second home, or condo and you’re considering buying a short sale in our area, here are 5 Tahoe Short Sale Buyer Tips for vacation-resort second homes and condos for 2012.

Short Sale Buyer Tip #1 – Listing Status: In the Tahoe Sierra Multiple Listing Service (TSMLS) our short sales can be shown as “Active”, or “Active-Contingent” when searching for properties currently offered for sale. “Active” means no offer has been accepted. “Active-Contingent” means the short sale listing is still being offered for sale, and is considered active, but the Seller has already accepted another Buyers’ offer. Buyers need to focus on just the “Active Listings” for sale, not the “Active-Contingent” listings.

Short Sale Buyer Tip #2 – “Active-Contingent” Distraction: Buyers look for homes on-line, and they can easily be distracted by the “Active-Contingent” listings – the one that got away syndrome. While it is believed that 50% of all first offers accepted on a short-sale will be canceled, that number will continue to drop as agents and the lenders become better at the short-sale process. Hoping for a cancellation on an “Active-Contingent” listing is big distraction that can cause a Buyer to miss a new short-sale opportunity.

Short Sale Buyer Tip #3 – Short-Sale Situation: Not all Tahoe short-sales are equal. Our vacation-resort second home market means not everyone will qualify for a short sale. Learning what the short-sale situation is on each Tahoe property can make a big difference on the over-all success of the transaction. A few questions to ask your Tahoe REALTOR® are as follows:

Is the property a primary residence, or second home?

What is the hardship?

Is this a strategic default – short sale? Has the seller approached the lender? Has the lender approached the seller? Why does the listing agent believe they can close this second home short-sale?

How many short-sales has the listing agent closed in Tahoe? Tahoe is a small community of agents, and a good REALTOR® will know what type of track record the listing agent has with short-sales.

How many loans, or liens are against the property? The more loans, and liens to clear, the harder it will be to close the transaction. Knowing as much information about what is owed, and who is it owed to can really impact the success of the short-sale and the ability to close it.

Short Sale Buyer Tip #4 – Who is negotiating for the Seller: Not all listing agents do the negotiating for the seller. Some hire a third party negotiator, and others share the listing with another REALTOR® who has extensive short sale experience and staff. Knowing who is doing the negotiating and will be working with the lender to get them to agree to the short-sale is very important to know. Inexperience can be a fatal error in the short-sale process for both the buyer and seller.

Short Sale Buyer Tip #5 – No Repairs: When buying a short-sale property what you see is, is what you get. Don’t expect to negotiate for home repairs with the Seller, or lender after you are in escrow. There are always exceptions, but don’t count on it.

These quick 5 Tahoe short sale Buyer tips for vacation-resort second homes and condos for 2012 should help you in your search for the perfect Tahoe vacation property. For more Tahoe buyer short sale Buyer tips and information visit my website, or give me a call.

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For all of your Tahoe real estate needs –

Laura A. Allen | 530.414.1260 | Laura@TahoeLaura.com
BROKER ASSOCIATE, Tahoe Real Estate Agent
CalRE# 01473598
Coldwell Banker, Tahoe City, CA CalRE#01908304

All information is deemed reliable, but is subject to change, and/or correction without notice.

5 Tahoe Short Sale Buyer Tips for the Vacation-Resort Second Home and Condo Market