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?

Tahoe Home Buyer – What happens with Multiple Offers?

May 14, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Home Buyer – What happens with Multiple Offers?

This past week I was asked by a Tahoe Home Buyer “What happens if there are multiple offers?” It’s a great question that needs to be asked as the Tahoe real estate market heats up and buyers are once again in multiple offer situations, or back-up offer positions.

Here’s the situation. I have a buyer that has found a great Tahoe home, but it’s new on the market and buyer competition is fierce. They make an offer and before the ink is even dry on the contract, the sellers’ agent lets us know they’ve gotten another offer. What happens when a Tahoe seller receives multiple offers on their property?

Seller Options for Multiple Offers:

First, buyers should be aware there are no standard rules on how a seller has to handle multiple offers that come in on their property. Here are some common Tahoe seller options:

1) Counter All Offers – Counter all offers received to get the highest and best terms. If the buyer and seller are using the California Association of REALTOR® Residential Purchase Agreement (CAR-RPA), buyers should be aware that the seller is not required to counter all offers with the same terms. Each offer can be countered with unique terms including different sales prices.

Buyer Tip: If multiple offers are all being countered, including yours, don’t just agree to the sellers’ terms, agree to the sellers’ terms and sweeten the deal by counter offering something more. It can show a seller you really want the property over your competition and swing a seller to your side.

2) Ask for the Best Offer – It’s not uncommon for the seller to ask all of the buyers for their best terms and highest price before selecting just one buyer to negotiate with. They want to be fair to everyone, but they don’t want to formally counter everyone on paper, so they verbally ask everyone for their best offer upfront and then select one buyer to negotiate out the final terms.

Buyer Tip: This is the time to give your best offer and terms. No regrets. Listen to the advice your Tahoe REALTOR® is giving you. Take a hard look at the comps and current market conditions and then give your best terms and pricing. This is your one opportunity to be selected as the buyer. Everyone has their budget limits, so respect yours, but give your best terms when asked. There probably won’t be a second chance, or do-over if your offer isn’t selected.

3) Only Counter the First Offer – Some sellers can’t decide who to counter, especially when the offers are very close in price, are similar in financing, and come in at almost the same time. So they negotiate with the first offer received. While fairness is a good thing, countering in the order the offers were received is often not in the sellers’ best interest, but I’ve seen sellers do just that, so the first one in the door can often give themselves an advantage.

Buyer Tip: If your Tahoe agent tells you to write-up your offer right now, don’t wait until the next weekend to follow-up. As crazy as this is, more than one seller has gone with the first offer received approach in the Tahoe area. If you’re going to write-up an offer, do it now!

Real estate is a local market and how multiple offers are handled here in the greater Tahoe area is going to be different than in other markets and areas. A good Tahoe agent will advise their clients how to respond based on what is best for their client.

Tahoe real estate “Dealing with Multiple Offers” buyer and seller tips

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

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

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 Home Buyer – What happens with Multiple Offers?

North Lake Tahoe Homes for Sale, Real Estate Market Report, May 2012

May 9, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

North Lake Tahoe Homes for Sale, Real Estate Market Report, May 2012

North Lake Tahoe homes for sale are known for their central location, easy access, and all-day sunshine. This area has approximately 11 miles of Lake Tahoe shoreline and starts in Tahoe City, California where Highway 89 South meets Highway 28 ending in Kings Beach at the California – Nevada Stateline.

North Lake Tahoe Homes for Sale:

North Lake Tahoe is made up of several communities and all are located in unincorporated Placer County, California. This area is close to the popular ski resorts – Northstar, Alpine Meadows, and Squaw Valley. This area is also close to biking, hiking, golf courses, restaurants, shopping, and all of the water sports that Lake Tahoe is known for.

Each year visitors come to North Lake Tahoe to experience the beauty and amazing outdoor lifestyle the area has to offer. North Lake Tahoe has a number of popular public beaches and parks that are maintained by either the Tahoe City Public Utility Department, or the North Tahoe Public Utility Department.

Well known neighborhoods and communities in North Lake Tahoe include: Tahoe City, The Highlands, Dollar Point, Cedar Flat, Ridgewood, Carnelian Bay, Agate Bay, Tahoe Vista, and Kings Beach.

Sold Single Family Homes in North Lake Tahoe, California:

In North Lake Tahoe, California, lakefronts, mountain homes, and cabin prices averaged $360,500, which was a -14% drop in price from 2010. Remember we are comparing the first 4 months of the year, to the entire 12 month period of 2012 and sales data is always trailing current market conditions. Since the market peak in 2006, the average median home sales price on North Lake Tahoe has dropped -50%.

North Lake Tahoe Homes for Sale, Real Estate Market Report, May 2012

There were 48 single family homes sold for the first 4 months in 2012. Of those sales, 5 were lakefronts ranging in sold price from $900,000 to $8,600,000. North Lake Tahoe luxury lakefront sales were 10% of the market. Homes sold up to $499,999 represented 73% of the market.

Cash sale transactions for North Lake Tahoe area are up slightly to 42%, which is above the Lake Tahoe – Truckee, California regional trend of 34%.

The current absorption rate for North Lake Tahoe, as of 05/08/2012 is at 8.9 months. Anything above 7 months of inventory is considered a Buyers’ market, 5-7 months is a balanced market, and below 5 months is a sellers’ market. If the inventory levels continue to drop, the North Lake Tahoe market will become a balanced market.

There were 24 distressed sales (bank foreclosures- real estate owned (REO’s) and short sales), or 50% of the market was a distressed sale for the first four months of 2012. As of 05/08/2012 only 20% of the active homes available for sale were currently distressed sellers, which is a significant improvement, and may be signaling a fundamental change in market conditions.

There were 98 Active – available homes, cabins, and lakefronts for sale on North Lake Tahoe as of 05/08/2012. The North Lake Tahoe available inventory has dropped -16% over the past 60 days. Homes, cabins, and lakefronts ranged in price from $99,999 to $6,985,000. Of the 98 homes offered for sale there were 3 REO listings, 16 short sale listings, and 1 court approval listing which represents 20% of the market as a distressed seller, which is a 6% improved over past 60 days. There were 22 pending sales on North Lake Tahoe ranging in listed price from $127,500 to $1,500,000 as of 05/8/2012.

Given the tight, North Lake Tahoe housing inventory situation, the next step for the North Shore market will be price stabilization.

North Lake Tahoe, California Homes for Sale, Real Estate Summary for Sold Single Family Homes:

Year	Homes Sold	Median Average Sales Price	Lowest Price Sold	Highest Price Sold	% Cash Transactions	Absorption Rate < 5 months Sellers Mkt 5-7 months balanced Mkt >7 months Buyer’s Mkt	% Distressed Sales	Breakdown of Distressed Sales
2012*	48	360,500	80,000	$8,600,000	42%	8.9 Months Buyers’ Market	50%	13 REO’s 11 Short Sales
2011	140	$420,000	$120,000	$6,450,000	39%	NA	32%	24 REO’s 21 Short Sales
2010	152	$430,000	$106,500	$10,000,000	36%	NA	35%	29 REO’s 23 Short Sale 1 Court Approval
2009	119	$475,000	$130,000	$6,000,000	26%	NA	29%	17 REO’s 16 Short Sales 1 Court Approval
2008	85	$590,000	$115,000	$5,915,000	16%	NA	0%	0 REO’s 0 Short Sales
2007	99	$675,000	$250,000	$12,500,000	17%	NA	0%	0 REO’s 0 Short Sales
2006	149	$715,000	$225,000	$6,300,000	18%	NA	0%	0 REO’s 0 Short Sales

*YTD period is 01/01/2012 – 04/30/2012. Absoprtion rate as of 05/08/2012. Data Source: Tahoe Sierra Multiple Listing Service (TSMLS) TSMLS Areas 1-3 and is subject to change and/or correction without notice.

North Lake Tahoe Real Estate for Sale. Need help buying or selling, call me, I can help you!

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.

North Lake Tahoe Homes for Sale, Real Estate Market Report, May 2012

Tahoe Real Estate Agent comes up with Creative Solutions that Saved the Deal!

May 9, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate Agent comes up with Creative Solutions that Saved the Deal!

As a Tahoe real estate agent working in a second home market we often face special challenges that are unique to our area and our clients. The value we bring to our clients is often in the form of creative solutions and extra services so our buyers and sellers can make and close their sale.

A good example of how this Tahoe real estate agent came up with a creative solution that saved a deal in our area was during the negotiation process.

Here’s the situation. I represented the seller. It’s a condo that they used as a second home. My sellers lived in the Bay area and the property being sold was located here in Tahoe City, California. The buyer wanted to buy the condo unfurnished, but the seller didn’t want to come-up, pack, and haul away the furnishings and wanted to sell the unit full-furnished, turn-key ready.

At this point the two parties were so close to having an agreement, if only they could do something about the furnishing. My seller didn’t want to lose the deal, but they didn’t want to move the furnishings and the buyer had already said no-way to taking the unit fully-furnished.

Negotiation isn’t always about the price, but about the options we can give our clients. In this case, I had remembered that the Salvation Army, located in Reno, Nevada, about 50 miles away would come up to Lake Tahoe and haul away an entire home. It just has to be packed up (loose items) and someone needs to be at the home during the pick-up window.

While I’m not a moving and storage company, I am willing to pack up some items for a client and meet someone who will haul it all away. After all these items will go to a local charity and unlike a full-time residence, second homes are often like hotel rooms – furnished, but not a lot of junk, or personal items to be removed. It’s an easy win-win for everyone.

I offered that service and option to my seller. Problem solved. My seller agreed to sell the condo without furnishings making the buyer very happy and we had a deal. During the escrow I spent a few hours packing up the loose items in the condo. I meet the Salvation Army who came up and took away a household of items that would benefit a lot of people, and the deal closed.

If you’re looking for a Tahoe Real Estate Agent that has creative solutions, call me. I can help!

Want to see what homes 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.

Tahoe Real Estate Agent comes up with Creative Solutions that Saved the Deal!

Tahoe Home Buyer – What is a Back-Up Offer?

May 4, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Home Buyer – What is a Back-Up Offer?

This past week I was asked by a Tahoe Home Buyer “What is a Back-Up Offer?” As the Tahoe real estate market heats up, buyers and sellers are once again dealing with back-up offers.

Here’s the situation: I have a buyer that has found a great Tahoe home. They made an offer and the seller accepted. They are currently in escrow. Things have been moving right along, inspections, title report, property disclosures, etc.… Then it happened. I got the email update from the sellers’ agent “…My seller is getting a back-up offer on the Tahoe home your buyers are in escrow on. Just wanted to keep your people in the loop….”

The Tahoe market has changed in the past few months. Buyers are finding a lot of competition with their offers. It’s tough enough with multiple offers in our second home market, but once again we’re getting back-up offer situations. What does this mean for a Tahoe Buyer who already has an agreement with the seller to sell? “What is a Back-Up Offer?”

In California, if you are using the California Association of REALTORS® Residential Purchase Agreement to buy your property, once a property owner has accepted an offer to sell with a buyer, they still have the right to accept additional offers from other buyers. Any accepted offer after the first accepted offer is accepted in a back-up position subject to cancellation of the offer that is currently in escrow.

To put it very simply a back-up offer is another offer to buy the property, but doesn’t have the right to buy unless the current buyer fails to perform and that transaction is cancelled.

Remember, the seller has agreed to sell to our first buyer. Both parties have a legal contract and as long as both the buyer and seller do what they’ve agreed to do, and perform pursuant to the agreed upon timeline, the current buyer will get their Tahoe home and the back-up offer will become extra paper work for the seller to put into their file.

As a buyer, when a back-up offer is made on a property you’re purchasing, the tone of the escrow changes. When a back-up offer arrives it’s a lot like being on a date for two and suddenly your date becomes a threesome. No warning, no notice, it just happens. They just sit down and join you for dinner and you can’t ask them to leave. You have unwanted competition. It’s just not the same when it was just the two of you. If you’re the one being pursued, it’s a great time, if you’re the one that’s in danger of losing the deal it’s not a lot of fun.

The most common reason for a Tahoe Buyer to lose a home to a back-up offer is because they were not prepared to perform in a timely manner. The most common delay is a problem with getting the buyers’ loan. If you find yourself as a buyer with the seller accepting a back-up offer the best thing you can do is stick to your contract deadline schedule, let your lender know immediately that you have buyer competition in the form of a back-up offer, and close on time.

Tahoe real estate “Back-Up Offers”.

Want to see what luxury 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.

Tahoe Home Buyer – What is a Back-Up Offer?