Tahoe Real Estate – Cash Buyer – Do I need an Appraisal?

May 25, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate – Cash Buyer – Do I need an Appraisal?

Buyers who are getting a loan to purchase their Tahoe property will most likely be required by their lender to get an appraisal on the property. When a cash buyer is purchasing a property they also have the right to get an appraisal, but do they have to?

When a buyer makes an offer on a property, they are most likely taking into account the market value information their Tahoe REALTOR® put together for them in the Competitive Market Analysis (CMA) on the property. A CMA is based on recent sales and current active listings in the area.

The difference between a CMA and a professional appraisal are the details and different valuation methods the appraiser will use to determine the Fair Market Value (FMV) for the property being purchased.

In our area, either the lender, or your Tahoe real estate agent will select, or recommend several appraisers from a local area list of insured, licensed, certified professionals. In the Tahoe market it is typically the buyers’ responsibility to pay for an appraisal.

Regardless of whether you’re a loan buyer, or a cash buyer if you get an appraisal and the property appraises for the price being paid then the appraisal contingency should become one you can remove. If the Tahoe property does not appraise for the full purchase price, then you as a buyer have four options:

1) Price Reduction – The buyer can ask the seller to lower the price.

2) Pay the Difference – The buyer can make up the difference between the appraised value and the amount you have agreed to pay. This option is typically for buyers getting a loan.

3) Pay the Agreed upon Purchase Price – A cash buyer always has the option of paying the agreed upon price even if the property does not appraise to the purchase price.

4) Cancel the Purchase – The buyer can cancel the contract.

In Tahoe most agents use the California Association of REALTORS® Residential Purchase Agreement (CAR-RPA) and one of the standard contract contingencies that both loan buyers and cash buyers have is the option to have an appraisal contingency.

The appraisal contingency will run with the time it takes for you to remove your loan contingency, or it can be a stand-alone contingency for the cash buyer. The appraisal contingency allows you to cancel the contract if the property does not appraise, without penalty on your good faith deposit.

Most Tahoe buyers like to have the option to have an appraisal done even if they are paying cash. Remember if you’re going to get financing after the transaction closes, you’ll want to be able to show your lender that the property did appraise. If you have any doubt about the price that you are paying for your Tahoe property, the cost of an appraisal is a small when compared to the investment you are making in our area.

If you’re a cash buyer and you’re in a multiple offer situation, dropping the appraisal contingency can be a smart negotiation tactic and give you the edge over your competitors. Remember as a cash buyer you still have the right to have an appraisal done even if you don’t have the contract contingency.

Does a cash buyer have to have an appraisal? The answer is no, but having an appraisal contingency is always a good option for a buyer to have.

Tahoe Cash Buyers have options and getting an appraisal is just one of them.

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

Tahoe Real Estate – Cash Buyer – Do I need an Appraisal?

A Vacation in my own back yard – Lake Tahoe, California!

May 24, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

A Vacation in my Own Back yard – Lake Tahoe, California!

I live in one of the most beautiful locations in the United States – Lake Tahoe, California! I know I’m very fortunate to get to work, play, and live in a place that thousands of people travel to each year for their vacation.

Living in a vacation-resort, second home market, I often work every day, including the weekends when visitors are in the area, and I love it! No regrets on a crazy real estate schedule that comes with last minute changes, but I also look forward to making my time-off count.

In the past, my better half, Craig and I have taken advantage of all of the summer fun that occurs while we’re in our peak tourist season. This year we plan to do the same. As crazy as this may be to many, by attending many of the special events that our area offers each year, it often feels like we are on vacation in our own back yard, without any of the hassle that comes with vacation travel.

This year I have special plans for some time off. My parents are scheduled to visit us in late June. This will be my summer vacation. I can’t wait to see my Dad. He’s in his 80’s and I miss seeing him every day. He’s an amazing man, and I’m counting the days until I see him again, only 29 days to go!

Their visit will be a short one, only 5 days, so I plan to make the most of our time together. What will we do while my folks are here? We’ll go to the beach. Take the sunset ride on the Tahoe Gal. Dine out at one of the local lakefront restaurants. If time permits we’ll do the Tahoe City Wine Walk. Maybe ride our bikes or take a hike depending on how everyone feels. I’ll spend every minute I can with them. It’s a vacation I can’t wait to take.

While I’m taking some time off to be with my family, I’ll still respond to email, but only once a day. I’ll return any phones calls in the morning before my day gets started and my amazing transaction coordinator, Juli will handle any escrow issues that may come up, something she does whether I’m on vacation or not.

I look forward to spending time with my family and enjoying a quick summer vacation, right here in my own backyard. What will you do this summer to make the most of your free time? Will you take a vacation in your own backyard too?

Lake Tahoe! It’s the place to be this summer!

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

Want to see what condos are for sale in Tahoe City? 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.

A Vacation in my Own Back yard – Lake Tahoe, California

Tahoe Real Estate – Who pays the Buyers’ Agent Commission?

May 22, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate – Who pays the Buyers’ Agent Commission?

Real estate is a local market.

What may be typical in one area, or nationally may not be how things are handled here in the greater North Lake Tahoe – Truckee area.

In the Tahoe real estate market “who pays the buyers’ agent commission?” is a common question I’m often asked by my out-of-area, second home/condo buyers.

In the greater North Lake Tahoe – Truckee area, as of late summer 2024, how Buyers engage with real estate agents will change.

As of August 17, 2024, Buyers need to be prepared to do the following:

All Buyers must sign and enter into a Buyer/Agent Representation Agreement (also known as a Buyer Broker Agreement) prior to seeing/viewing/being shown any properties.

Buyer Commissions, which were offered by Sellers (paid by Sellers) are no longer published in the Multiple Listing Service (MLS).

What does this mean?

A Buyer Broker Agreement will establish how much their Buyer Agent is paid, upfront before seeing any properties. Buyers and their agents will agree to how much (%, or $ amount to be paid).

The agreement will establish if the agreement is “Exclusive” or “Non-Exclusive”.

An “Exclusive” agreement means the Buyers’ Agent gets paid regardless whether you use them or not during the agreement period.

“Non-Exclusive” means the Buyers’ Agent only gets paid on the properties/search parameters identified in the Buyer Agreement. That means as a Buyer you could work with more than one Buyer Agent, but only owe a fee to the agent that helps you buy a specific property if your agreements are “Non-Exclusive” and are specific to properties.

Buyer Caution Tip: If you are more general and just identify a zip code, or neighborhood, you have the potential to create a situation where you owe more than one agent fee for just one sale, so Buyers need to take caution as they enter these agreements.

If you are asking yourself:

“Do I have to sign a written agreement and agree upfront as to how much the Agent that shows me a property will be paid, by the Buyer, before I’ve even seen any properties by them?

That answer is YES, no exceptions.

How real estate is purchased, negotiated, and the terms a Buyer will now agree to, will include how much their Buyer Agent is paid.

The Cost of a Tahoe Buyers’ Real Estate Agent is Negotiable!

Starting August 17, 2024 (as a FYI the State of California is looking to make this a law for all licensed agents/brokers by January 2025):

All Buyers will need to enter into a written Buyer Broker Real Estate Agreement prior to doing any real estate activities, including looking at property for sale.

The days of calling a local Tahoe real estate agent and asking to see a home they have identified that is for sale either on-line, or by physically seeing a sign on the property has changed. This change is not just for the North Lake Tahoe – Truckee area, or for just California this is a nationwide change!

Most likely last minute showing will become less frequent, and you are going to have to share your information in order to have the paper work prepared in advance of seeing any property.

This isn’t the end of the world, and once you’ve gone through the process, it won’t feel so over-whelming moving forward.

Depending on the real estate agent, they may be able to accomodate last-minute showings, and they may agree to a non-exclusive, 30 day or less agreement to see the property, but you will have to enter into an agreement.

You will have to agree upfront to pay the buyer agent a fee. What the fee will be is up to you and the real estate agent to agree to upfront.

If you aren’t willing to agree in writing, then you need to be prepared for that real estate agent to say:

“I’m sorry I can’t help you…”.

Before you call the Listing Agent (also known as the Sellers’ Agent) to see the property believing they can show without a written agreement and jumping through the hoops – think again. This rule also applies to them.

Let’s back up and review what has happened.

The governing rules for real estate agents (right now REALTORS, but soon will require all California Real Estate licenced sales persons and/or Brokers) will now require for Buyers to enter into a written Buyer Broker Agreement prior to seeing any property, or engaging in any real estate activities with an agent.

Think of this procedural change similar to a Seller listing their property for sale. A real estate agent can’t just put a “For Sale” sign, or tell others what the listed price is without first putting a written listing agreement in place.

Buyers and their Real Estate Agents will now agree upfront, how much the agent is to be paid. Just like a listing agreement agrees to pay the Sellers’ Agent upfront a fee before they have found a buyer and sold the home.

It’s the same concept. Buyers are going to agree to pay their agent a fee before they have found a property to buy.

Yes, this is a big change in how things will be done in the industry. Why make this change? The change is a direct result of recent litigation.

Bottom Line: A Buyer Broker Agreement will identify in writing how much a Buyer will pay for real estate representation and services with the goal of creating transparancy on how real estate agents are paid. How much they are paid. What services and expectations both sides will have of each other!

OPEN HOUSES | So this is a moving target on what rules agents are following. Since late May the rules and guideline

Some agents may ask you to sign in.

Some may have Buyer Agreements ready to hand out before entering.

Others may just have you see the property and if you do not have representation, at that time, in order to answer more detailed and specific questions a Buyer may have to enter into a Buyer Broker Agreement.

Buyers may decide to not sign, or provide any details, and that is their choice.

Buyers do need to be prepared that if they decide to not provide personal information that they may be denied access.

In my opinion, I think Open Houses will offer Buyers the easiest opportunity to see a property with the least amount of paper work.

These are significant changes in how real estate transactions have worked in the past and as a Buyer you need to be prepared for these changes.

You will have questions and you can call me at 530-414-1260 at any time to learn more about the new rules and procedures that will govern how we do things.

Why change? The goal, in a word is – “Transparency”!

While real estate commissions/fees have always been negotiable that negotiation was done by the Sellers’ Agent with the Seller. They negotiated how much would be offered to a Buyers’ Agent. That practice is being stopped.

Moving forward, Buyers will take a pro-active role in setting the fee their agent is paid.

A Buyer can also identify to their agent how they would like for that fee to be paid, including, only seeing properties that the Sellers Agent is identifying that their Sellers are open to, or have indicated they are offering a Buyer Financial Concession of either $X’s, or a percentage (%) of the sales price. It is your choice.

As an agent, I would recommend seeing all properties that may meet you needs in the area you what to purchase a property, so that you don’t miss out on an opportunity.

Even if it is a property that the Sellers’ Agent has said, no the Seller won’t pay any Buyer financial concessions, you may still want to see it.

Buyers and Sellers change their minds all the time, so I would go with “Everything is Negotiable Approach” and give yourself as many opportunities as possible when looking for the right property and situation.

If you are asking, do I really have to pay my agent, can’t we negotiate with the Seller to pay it? Yes, we can negotiate, but Buyers need to be prepared to pay for their side of representation. Be prepared to work your numbers forward and backward, so you are not caught without having enough funds for your transaction.

Buyer Agent payment options may include:

Buyers pay the fee directly with no financial Seller assistance.
Buyers negotiate through their offer for the Seller to pay (Partial Payment) a part of that fee.
Buyers negotiate through their offer for the Seller to pay the entire Buyer Agent fee.

Will a Buyers’ Agent know what Sellers are offering? Are they offering Buyer financial concessions, or offering to pay the Buyer Agent Fee? Is a Seller open to negotiating that cost as part of the purchase?

Your Buyer Agent should ask each Listing Agent/Sellers’ Agent what their Sellers are thinking when it comes to Buyer financial concessions.

In my opinion, an organized Buyers’ Agent that uses check lists, and has their list of questions they ask a Seller Agent before showing a property really becomes an asset for their Buyers, and adds value to the purchsing process as they gather information for you to consider on a property that may not be part of the public listing information on the Internet.

Information obtained from the Sellers’ Agent on potential Buyer Agent Fee Payment, or Buyer Financial Concessions is NOT A GUARANTEE that those terms will be agreed to in a purchase offer until that offer is in writing and the Seller agrees to it in writting.

Any term, including paying for the Buyer Agent Fee, or offering a dollar amount in the form of a Buyer Financial Concession, is not enforceable until it is agreed to by all parties in writing.

This means a Sellers’ Agent in good faith can tell a Buyers; Agent one thing, only to have the Seller say no when presented with those terms in an offer.

Sellers have the right to change their minds, so it is important to work with your Buyers’ Agent and understand your options when you prepare your offer to purchase.

Again, another big change is the elimination of Buyer Compensation in the Seller Listing Agreementm which use to be the provision that put paying for the Buyer Agent fee in writing, and allowing that information to be communicated to others with confidence. That is now gone, which means, everything is up for grabs.

What happens if a Buyer cannot through the purchase contract negotiations successfully get the Seller to provide a Seller financial concession to pay a part, or the entire Buyers’ Agent Fee?

If the Seller says no to paying for, or offering a financial credit for payment of the Buyers’ Agent fee, then the Buyer will be financially responsible for paying their own agent at the close of escrow, or based upon the terms they have agreed to in their Buyer Broker Agreement.

If you don’t have the extra funds to pay for your Agent, be honest, and let your Agent know upfront.

As a Buyer if you need the Seller to pay for your Agents’ fee, then you may need to limit your property search to only those properties that are promoting that the Seller is offering that financial concession and that the Sellers’ agent high a higher degree of confidence that they really know their Sellers’ position, or the Seller has agreed to that item as an additional term.

Asking questions of the Listing Agent will become a critical task moving forward.

Buyer Tip: Buyers should ask the Listing Agent if the Seller is offering to pay them (the Listing Agent) a separate Buyer Agent Fee (in addition to their listing fee) if a Buyer uses them to represent them on the sale of the property when they also represent the Seller.

This will tell you several things about the Seller, their motivation, and their perspective on Buyer Agent compensation:

First, it will tell you if the Seller is open to paying a Buyers’ Agent Fee.
Second it will give you an insight into their negotiation strategy. If the fee is very low, or is currently zero, and needs to be negotiated, it may indicate that as a Buyer you may end up paying for part, or all of your agents’ fee.
Third, a Buyer may find that the Seller has already set a reasonable Buyer Agent fee, and that you may get that same amount for having your own Agent.

The question becomes do you want your own advisor, your own professional, your own advocate to help you through a significant financial purchase and is only worried about your side of the transaction, the Buyer, or to use an agent that is working for both parties in the transaction. It’s a choice for you to make.

As your Tahoe Buyer’s Real Estate Agent, it is my goal to put money in your pocket, and to help you get you the best terms, and deal. Understanding the process, and asking the questions, getting information so that you can make the best decisions at the time they need to be made is our number one goal.

If you are in a multiple offer situation, we want to help position your offer in its best light given your situation.

My focus is on you and not divided between you and the Sellers’ goals and objectives.

Everyone should have representation; talk to Laura Allen your Tahoe Buyers’ Real Estate Agent.

Need more help in trying to figure out your North Lake Tahoe – Truckee home/condo buying options?

Do you want to learn more about the different neighborhoods, locations, developments and their amenities, HOA fees and the ones that will best meet your needs?

Call me at 530.414.1260 and I can help you find the right place to buy!

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:

Search the Truckee – North Lake Tahoe area by map here: homes, condos, lots!

Here are some popular North Lake Tahoe Communities:

How about making Truckee your second home? Check out what is for sale here:

Here are some popular Truckee area neighborhood options:

For all of your Tahoe real estate needs –

Laura A. Allen | 530.414.1260 | Laura@TahoeLaura.com
BROKER ASSOCIATE | North Lake Tahoe – Truckee Real Estate Professional, Advisor, and Agent
CalRE# 01473598
Coldwell Banker | Tahoe City – Truckee, CA

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

Tahoe Real Estate – Who pays the Buyers’ Agent Commission?

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7610 North Lake Blvd, Kings Beach, CA, Tahoya Shores, Unit # 6 – Just Sold!

May 19, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

7610 North Lake Blvd, Kings Beach, CA, Tahoya Shores, Unit # 6 – Just Sold!

Tahoe Sellers do you need help selling your Tahoe property? My closing rate for my sellers is over 82%! I’m getting results, so call me at 530.414.1260. I can help you sell your Tahoe real estate too – house, condo, or lot!

7610 North Lake Blvd, Kings Beach, CA, Tahoya Shores, Unit # 6 – Just Sold in only 33 days, and had a back-up offer on the table!

Perfect Tahoe getaway! Super cute, updated studio condo located in a North Lake Tahoe lakefront complex that is close to everything.

Recent updates included: paint, carpet, window coverings, kitchen appliances–refrigerator, cooktop, counter oven, Air Number Mattress in Murphy Bed, wall heater, and furnishings.

The Murphy bed folds up to maximize this living space. Granite counter tops in kitchen. Open your sliding glass doors to a view of the pool area. Tahoya Shores offers owners amenities such as a seasonal pool, spa/hot tub, picnic and BBQ areas, common laundry, shared pier, and private beach area.

This Tahoya Shores unit was offered mostly furnished and was ready for you to enjoy today!

Tahoe Buyers if you missed out on this amazing deal call me at 530.414.1260 and I’ll help you find the perfect Tahoe getaway for you too!

Want to see if there are any other units for sale in Tahoya Shores?

If the search results come up with “No Results Found” that means there are no current units available for sale in this small condominium complex, so check out all

North Shore Lake Tahoe Condos for sale here!

Tahoya Shores Unit 6 – Just SOLD – 7610 North Lake Blvd., Kings Beach, California 96143

Ready to make Kings Beach your second home? Check out what is for sale here:

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.

7610 North Lake Blvd, Kings Beach, CA, Tahoya Shores, Unit # 6 – Just Sold!

Tahoe Real Estate – What are BMP’s?

May 16, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate – What are BMP’s?

Each time I show Lake Tahoe property to a prospective buyer the subject of BMP’s comes up. What are BMP’s and how does that impact the purchase of my Tahoe home?

BMP’s stands for Best Management Practices, which is a program implemented by the Tahoe Regional Planning Agency (TRPA). The TRPA is a regional bi-state compact between California and Nevada, which is charged with protecting the environment in the Lake Tahoe Basin.

The BMP program is designed to help protect Lake Tahoe and the local environment. The BMP’s are TRPA methods developed to help properties function more like natural, undisturbed forest and meadowland.

Water that is conveyed to a lake by an undisturbed watershed is usually quite pure, because the watershed’s soils and plants act as a natural water purification system.

BMPs help developed properties mimic natural conditions, preventing sediment and nutrients from entering our surface waters and filtering runoff water through the soil.

BMPs are prescribed for residential properties falling into the following categories:

· Vegetating and mulching bare, disturbed soils

· Infiltrating storm water runoff from impervious surfaces

· Paving dirt driveways and roads

· Stabilizing or retaining steep slopes and loose soils

BMP work on a property can be done all year long, but due to our heavy snowfall, BMP work is typically done in the late spring, summer, or early fall months.

Signs that an owner may have done their BMP’s are visible rock drainage around the home and decks, a paved driveway with a metal slotted drain at the end of the driveway, and wood chips spread out over bare ground.

Once a property owner has completed the necessary work to become BMP compliant, after an inspection, the TRPA will issue a BMP certificate.

All property owners should have a BMP certificate, but many do not. Currently, not having a BMP certificate will not stop the transfer of property in the Tahoe Basin, even though all property owners should be compliant.

If the property you are considering does not have a current BMP Certificate, Tahoe buyers should consider the following tips:

1) Negotiate to have the seller complete the BMP work and get the BMP certificate prior to closing.

2) Negotiate to have the seller give you a financial credit for you to complete the work after escrow has closed. This is a more practical option given the time constraints in escrow and our seasonal limitations on competing BMP work.

3) Can’t get the seller to do the BMP’s, or give you a credit, then the buyer should get a cost estimate during their investigation (contingency) period so you’ll know what it may cost to implement the BMP program at the property you are buying.

4) The cost to implement BMP’s will vary from property to property. Don’t assume the cost at one home will be the same at the next.

What buyers need to know about BMP’s and their Tahoe real estate.

Need more help in trying to figure out your Lake Tahoe – Truckee home/condo buying options?

Ready to start your Lake Tahoe Property Home Search?

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

Tahoe Real Estate – What are BMP’s?