Tahoe Real Estate – What’s the crime rate here?

June 5, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate – What’s the crime rate here?

Tahoe real estate agents are loaded with local information, and we’re happy to share it with everyone, but there are times when we can’t give you the information you need, or have asked for.

What real estate agents can’t tell you often comes down to either violating Fair Housing Laws, or potentially violating those laws by inadvertently steering a buyer into, or away from a neighborhood, so we don’t answer the question at all.

What’s the crime rate is one of those questions that can get us into trouble.

What’s the crime rate in this area?

Is this area safe?

This area looks bad, how dangerous is it?

While I can’t answer this question, “what is the crime rate in this area”, there are people who can give you that information.

If you have questions, or concerns about crime in a Tahoe neighborhood, or community, I recommend that you contact the local authorities that cover that area and ask them about the neighborhood. You can even give them an address if you’ve narrowed your search to a specific home. The local authorities will tell you what is going on in an area, and if there have been any problems at a specific location. Our local Tahoe law enforcement contact information is as follow:

El Dorado County – El Dorado County Sherriff’s Department at 530.621-5700
Nevada County – Nevada County Sherriff’s Department at 530.265-1471
Truckee Police Department 530.550.2323
Placer County – Call Placer County Sherriff’s Department at 530.581.6300 (press #2)

As your Tahoe real estate professional my goal is to help you find the perfect Tahoe lakefront property, home, cabin, or condo and help you get the information you need to make a good decision.

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.

Tahoe Real Estate – What’s the crime rate here?

Tahoe Real Estate – How much will my property taxes be?

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

Tahoe Real Estate – How much will my property taxes be?

Once a Tahoe buyer has found the right Tahoe lakefront property, home, cabin, or condo to buy, one of the most common questions I’m asked is “How much will my property taxes be on my Tahoe real estate?”

While I am not an accountant, or tax professional, for general planning/budgeting purposes, in the greater Tahoe City – Truckee, California areas, a buyer can generally expect their first year of property taxes to be approximately 1.25% of the purchase price. Some agents go a little higher, some a little lower, but I’ve found that for planning purposes, using 1.25% of the purchase price is a reasonable number for our area. The breakdown is as follows:

1% of the real estate purchase price (California Proposition 13)

Add an additional 0.25% for additional tax payer approved measures such as education, fire, and other local public programs, for a total of 1.25% of the purchase price.

Tahoe Real Estate Example:

Purchase price of the Tahoe cabin is $500,000

Property taxes for the first year should be about $6,250, or 1.25% of $500,000.

California Prop 13 does allow for the underlying property value to be increased by 2% each year. That means that after the first year a Tahoe property owner could see the base value of the property increase, which means the total tax bill will also increase.

Our $500,000 Tahoe property in year one could become $510,000 the next year (2% increase in the base value of $500,000). That means the property tax would be 1.25% of $510,000, or $6,375 in year two. The following years could follow a similar formula. An increase in the property tax over the first year due to the escalation property value clause is also something a California Tahoe Buyer should plan for.

If the Tahoe real estate you are buying currently has a lower tax basis than the purchase price you are paying, you’ll get a supplemental tax bill about 90 days after you have closed escrow. So be prepared for that extra bill and payment.

If you are buying a property that has a higher tax base than what you are paying, you’ll receive a tax notice that gives you have a tax credit, and they will apply that towards your next tax bill.

If a buyer needs an exact property tax amount for the Tahoe real estate they are purchasing, or if they need tax planning advice, I always recommend speaking to a tax professional.

Lake Tahoe, California Real Estate property taxes.

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

Do you want more information on the different neighborhoods, HOA fees, home owner amenities, locations, and which ones will best meet your individual needs? Call me at 530.414.1260 and I can help you find the right place to buy!

Overview and summary completed by:
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.
Buyers and Sellers should investigate and verify all information to their own satisfaction.

Tahoe Real Estate – How much will my property taxes be?

Tahoe Real Estate – What’s the difference between a Short Sale and REO/Bank Foreclosure?

May 30, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate – What’s the difference between a Short Sale and REO/Bank Foreclosure?

A common question I often get from Tahoe buyers is “What’s the difference between a Short Sale and REO/Bank Foreclosure? Aren’t they both owned by the bank?”

It’s important to know the different types of sellers in the Tahoe market including Short Sales and REO sellers.

In a normal market, distress real estate sales are expected to make up 2-5% of the sales at anyone given time. Since the real estate market turned, Tahoe distressed sales are well above normal rates. In 2011 distress sales made up approximately 1/3 of all condo and home sales. That means 3 out of every 10 homes and condos sold were distressed and the remaining 7 sales were a standard sale.

Currently we have four different types of sellers in the Tahoe market today: the Standard Sale (68%), the REO / Bank Foreclosure Sale (17%), the Short Sale (14%), and the Court Approval Sale (less than 1%).

[youtube=http://www.youtube.com/watch?v=_ry5Fhwf7Qc&w=420&h=315]

What is a Short Sale? The current market value is less than the total debt owned. The seller does not have the money to make up the difference between the sales price and the debt owed to close the sale, there is a shortfall – a short sale.

In order to close the transaction, the seller has to get third party participation and the debt holder(s) have to agree to take back less in order to close the sale.

Unlike the name, there is nothing quick about the short sale process. A short sale is between a buyer and seller, with third party agreement to make the sale work. Unlike a REO/bank foreclosure property, the lenders do not own the short sale property, the seller still does.

What is a REO (Bank Foreclosure)? REO stands for Real Estate Owned. This is the term banks use to identify their bank foreclosed properties. At this point in the process, the lender has completed legal action against the property owner, and the bank is now the new owner.

REO’s are very similar to a standard sale. The owner, which is the bank, has the ability to agree to the price, terms and conditions that the buyer has proposed. As a buyer of a Bank REO property you need to know that the seller is most likely to propose an addendum to the contract you have given them. This bank addendum can dramatically alter the contract terms, conditions, contingency periods, and deadlines. You need to be prepared for the REO seller to give you little in the way of repairs, or concessions once you’re in escrow, and you need to be prepared for delays in getting the signed paper work back from the REO seller to you.

What is a Standard Sale? A standard sale is when an owner of a property puts it on the market for sale and they can close the transaction without the help from anyone else. This is our most common type of Tahoe real estate sale with over 68% of our Tahoe real estate transactions being a standard sale last year.

What is a Court Approval Sale? A court approval sale is similar to a short sale since a 3^rd party, the court, must approve the terms of the sale. A few common reasons for a court approval sale are – divorce, bankruptcy, or settlement of an estate. Court approval sales accounted for less than 1% of all sales last year, but buyers will come across them.

Knowing the type of seller you are dealing with will help you determine your buying strategy. Seller type can impact the condition of the property, the negotiation strategy, the type of contract used, the length of the escrow, property disclosures, possible repairs, not to mention deadlines, and their willingness to work with you. These are just a few of the items to keep in mind as you look at your Tahoe property options.

Tahoe Real Estate – Standard Sale, Short Sale, REO/Bank Foreclosure, and Court Approval Sales – know the different seller types.

Short Sale Homes for Sale Lake Tahoe:

Short Sale Condos for Sale Lake Tahoe

Want more home buying options? 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.

Tahoe Real Estate – What’s the difference between a Short Sale and REO/Bank Foreclosure?

Tahoe Real Estate – What are Bear Boxes?

May 28, 2012 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Tahoe Real Estate – What are Bear Boxes?

When Tahoe buyers look at property in our area the subject of Bear Boxes is a topic that always comes up. What is a Bear Box, and why do you need one for your Tahoe home?

The answer is quite simply a bear box is a bear proof (animal proof) container that houses your garbage cans. So why do you need a bear box for your Tahoe property? Convenience. Safety. Respect for our wildlife.

Each week you roll, or carry out your garbage to the curb on your designated day, and then the local municipality hauls it away. So what makes this routine different Lake Tahoe? Why do you need a bear box?

Reason #1: Convenience If you have a bear box, you can put your garbage out at any time. If you don’t have a bear box, then you need to put your garbage out early on the morning of the same day as pick-up. No leaving it out the night before. Why? Because we don’t want the local bears, raccoons, coyotes, birds, or other wildlife to tear into our trash and spread it out all over the neighborhood. We limit out garbage exposure to just a few hours before we expect it to be picked up.

Reason #2: Practical Solution For second home owners without a bear box, they can either leave their trash in their homes and pray that a local bear doesn’t break into their home and destroy it looking for those tasty treats, or they can take it with them back home and dispose of it there. A bear box allows second home owners to put their trash out at any time without risk of a local animal getting into the trash and making a huge mess.

What does a bear box look like? The pictures here are of a typical bear box. They are normally made of metal, and can hold a couple of garbage cans inside. They range in price from $500 – $1,000. What makes a bear box unique? Notice there are no handles on the box. There is an Allen wrench (hex key) that is attached by a wire on the side of the box. This tool is placed in a small hole, twisted and the door opens. Once the garbage is inside the door is locked, and the tool removed. It’s important to remove the tool from the door as our local bears know how to turn a handle and open the doors.

Are all Tahoe property owners required to have a bear box? The answer is no. They are required to have one if they are going to do vacation rentals at the property. A Tahoe property owner can be required to install one if they’re garbage becomes a problem with local wildlife and more than two complaints are made. Lastly, if you get a building permit for your property, or you are going to build a new home, one of the conditions of your building permit will be to install a bear box if you don’t already have one on site.

Tahoe Buyer Tip: If the property you are considering buying doesn’t have a bear box on the property, you may be able to negotiate with the seller to install one, or get a credit to put one in after the close of escrow.

Investing in a bear box is worth the convenience it gives to a Tahoe property owner and it helps keep our bears and other wildlife safe by keeping them from getting into our garbage and causing a neighborhood problem.

Bear boxes – a value added feature in Tahoe Real Estate.

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 Bear Boxes?

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?