Ten Questions Every Tahoe Second Home Buyer should Ask

Here are the ten (10) questions every North Lake Tahoe – Truckee Second Home Buyer should ask before they make an offer!

1) Is this property located in a Planned Unit Development (PUD), or Master Community that comes with a mandatory Home Owner Association (HOA)? If yes, what are the HOA Fees? How often are they billed? Current Special Assessments – how much and how often are they billed?

Tahoe Home owners like access to recreational amenities (beaches, pier, buoys, pool, tennis courts, etc…) but they sometimes forget that when buying a single family home with recreational amenities/access there will be a mandatory HOA (some HOA groups are optional in our area) that will come with rules, regulations, and fees. Most PUD’s, or HOA groups in our area bill on an annual basis.

In addition asking what the current HOA fees are for the neighborhood you are considering buying into, always ask if there are any current, past, or proposed special assessments that a new owner would be responsible for and how will that special assessment be billed.

Remember in the Tahoe area homes are located in mandatory HOA’s and there are optional HOA groups where membership is restricted by geography property ownership. Think of the optional HOA groups as a Country Club group, as they do not fall under the CA Civil Code requirements for disclosure rules. HOA groups may also have a base membership fee and then charge extra for additional amenities/services.

For example: A home located in the Tahoe Donner neighborhood in Truckee, has a mandatory HOA fee for all property owners, and then they offer an additional fee option called the “Rec Pass”, which gives up to four members in a household unlimited access to private amenities rather than paying the daily rate.

On the lake side many local neighborhood HOA’s offer use of a buoy, or kayak storage for an additional fee, in addition to the annual fee everyone pays.

Buyer Tip: Making sure the fees quoted on-line (Multiple Listing Service (MLS)) include all fees, or you get a breakdown of add-on changes. For planning purposes, it is important to know all of the pieces of information.

2) Is there a Private Transfer Fee? If you are buying into a PUD/Master Planned Community, or a neighborhood that has an optional HOA group do they have a private transfer, and/or doc prep fees.

In addition to the HOA Transfer Fees, in some of the newer developments in the Lake Tahoe – Truckee area there can be a Private Transfer Fee that is a percentage (%) fee of the final sales price. Not all developments have this additional fee, so ask!

3) What does the HOA fee(s) Cover? Not all HOA fees cover the same items, some include snow removal on the streets (some include driveways), common area insurance, maintenance of the HOA buildings, maintenance of the grounds/common area/parking/road maintenance, shuttle services, professional accounting/HOA management, annual clean-up dumpsters (seasonal trash removal), subdivision water, just to name a few items.

Buyer Tip – Are there special add-on fees for classes, events, food, water, golf, tennis, lessons, storage, you get the idea.

4) Does the roof type make a difference when it comes to getting home owners insurance? Getting fire/hazards insurance has become a challenge in the North Lake – Truckee area.

If the home has a wood shake-shingle roof you may find it very difficult to get home owner insurance. Homes that have composite, or metal roofs have not had as much difficulty getting fire/hazards insurance, but your insurer may require you to put on a new roof within 90-120 days after starting the policy if the home has a wood shake shingle roof on it.

If a home has a wood shake shingle roof be sure to ask your real estate agent if the current owner has received any roofing bids, if not, will they be able to help you get a new roof bid while you are in your investigation period and it can be a negotiation item.

Buyer Tip – Start working on getting insurance as soon as you know you are going to make an offer on a property. You may find that your current home insurance company for your primary residence will not write a new policy in the Tahoe area, so the more time you set aside to deal with home owner insurance, the better.

5) What is the water supply for the property? Most of the time we turn on our facets and water just appears, we don’t think about how it is supplied, but not every home is on a public utility department (PUD) water system in our area. Water can be supplied by a PUD, a small private water company, or by a shared/private water well. Ask who supplies the water for the property you are considering buying.

6) Is there a Bear Box? In your primary home market you probably roll out the trash barrels once a week, and we do the same here in Tahoe, but what do you do if you aren’t here on Wednesday to roll your trash out? Answer: A Bear Box!

A Bear Box is a metal container that can hold up to two trash cans in it. It’s called a Bear Box because it most likely has been made out of metal and has a special way for you (humans) to open it. The enclosed box is designed so that our local bears can’t get it open and spread your trash all over the neighborhood.

A property that is on a vacation rental program needs to have a bear box on it, and while it isn’t required, if you’re a second home owner, chances are you’ll want a bear box so you can leave your trash behind in a secured container. If you don’t then you’ll be stuck hauling your used stinky garbage back home with you.

7) Is the subdivision development completely built out? Some of our newer subdivision developments in the North Lake Tahoe – Truckee are not completely built out. Even developments that were started back in the 1970’s are still not completely built out.

What that means to a Tahoe Second Home buyer is at a later date those uncompleted single family lots around you could be built on, which means the value of your home could be impacted by the new construction home(s) and you could have several years of construction noise, debris, and the number of owners using common recreational area facilities could increase.

Buyer Tip – If you see what appears to be vacant land next to, or behind the home you are considering, be sure to investigate who owns what, and is it buildable. Open space is great, but if it has been allocated for future building, you need to be aware of what could happen down the road.

8) Can you fence your property in? If you have pets, or want the privacy that a fence can provide, not all areas allow for a property to be fully fenced in, or even just the back yard area. Be sure to ask about fencing, if this is important to you.

9) Are short-term vacation rentals allowed? In the North Lake Tahoe – Truckee area you’re more likely to be interested in the short-term vacation rental policy. Even if you don’t plan to rent your place out, you’ll want to know if your neighbor can, so ask, or check with local government agencies to find out the current rules and regulations. While the county, or town may allow rentals if you are buying in a PUD/master planned community they may not allow them, or they may have a special rental tax that is in addition to the Transit Occupancy Tax (TOT) so ask about restrictions, local rules, regulations and taxes.

10) Does the property have a fire suppression system, radiant heating, yard irrigation system, or any type of system that uses a back-flow device? You may not realize that if a property has a fire suppression system, in-floor radiant heating, or a yard irrigation system that those systems can come with a back-flow device that needs annual testing to make sure it is still working. What is the purpose of a back-flow device? It is to prevent bad water/additives from going back into the clean drinking water supply.

There are a lot of questions a Tahoe second home buyer will need to ask before they complete their real estate purchase. The ten questions every Tahoe Second Home Buyer should ask are questions to put on your home buyer list!

Ten Questions Every Tahoe Second Home Buyer should ask, or should plan to ask!

Thinking about making Lake Tahoe, California your second home? Check out the homes that are for sale here:

Want to see what condos are for sale in Lake Tahoe? Here are the current listings:

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.

All information is deemed reliable, but is subject to change, and/or correction without notice.
Buyers and Sellers should investigate and verify all information to their own satisfaction.

Ten Questions Every Tahoe Second Home Buyer should Ask