Ten Tasks Every Tahoe Condo Seller Should Do!
Now this may look familiar from the Ten Questions Every Tahoe Condo Buyer should ask, so here are the ten (10) tasks every North Lake Tahoe and Truckee Condo Seller should do before they put their condo on the market!
Task 1) Find out what the Home Owner Association (HOA) Fees are for your development and how often are they billed? In addition, if you know your group has Special Assessments – how much and how often are they billed? Every condo buyer wants to know this information, and as a seller is it your job (Task) to provide this information to your Tahoe REALTOR (seller agent).
The condo HOA property management company most likely will not provide this information directly to your agent as you, the owner, are the only one authorized to ask and receive this information from the HOA until a contract is signed and agreed to between you and a buyer.
If there is more than one HOA involved, you also need to get those fees and information to your agent too.
Be prepared to disclose, upfront, before an offer comes in, all HOA fees, including any current, past, or proposed special assessments that a new owner would be responsible for and how often are they are expected to being billed.
If your HOA has a public website and this information is on it, make it easy for your agent by providing direct link to those items. Remember, as an owner you may think all of the HOA documents, financials, and fees are public because you can always access all parts of the website, but those areas may be for “owner-eyes” only, so make sure the information you can access is also available for your agent.
Seller Tip: Create a file of all HOA docs that contain HOA rules, regulations, CC&R’s, By-Laws, Budgets, Audits, and Minutes, along with critical HOA contact numbers so you can pass as much information along to potential Tahoe Condo Buyers.
Tahoe Condo buyers will want as much information before they make an offer as possible, so for planning purposes, it is important to know all of the pieces of information.
Task 2) What does the HOA fee(s) Cover? Not all HOA fees cover the same items, so every Tahoe Condo Seller needs to make a list of what items their HOA fee covers: Condo building/common area insurance, exterior maintenance, grounds/common area/parking/road maintenance, snow removal (parking lot, paths, to your doorstep) professional accounting/HOA management, internet, cable, trash, water, sewer/sanitation, electric, gas, just to name a few items).
Some HOA fees are all inclusive, while others are bare bones. As a Tahoe Condo Seller don’t leave it to chance that the Tahoe Buyers’ agent knows what is included in your Condo HOA. Make a summary list! This is when the details count! If your HOA fee covers trash, water, internet, or cable TV, now is the time to toot your horn!
Task 3) Are there Owner Usage restrictions? Will this condo development qualify for a loan? Some of our Lake Tahoe and Truckee condo developments do have occupancy (owner use) restrictions even though the condo is not fractional ownership and is 100% owned by owner.
Your Tahoe Seller task is to make sure you know if your condo does not have an occupancy restriction, make sure your Tahoe agent knows it. If your condo has an on-site vacation rental desk, know the hours of operation. Rental desks that are not open 24 hours a day, 7 days a week may qualify for a loan, while 24 hour desk operations may not.
As a Tahoe Seller it is your job to ask, and let your agent know your HOA circumstance. It’s better to know as a Tahoe Seller if your buyer needs to have all cash to make a purchase in your development.
Task 4) Does the HOA fee cover doors, windows, and decks? As a Tahoe Seller you probably already know the answer to this question, so Seller Task 4 is to make another list and let potential buyers know what the HOA will cover and take care of and what you’ll be responsible for as a new owner.
Task 5) Is there a HOA Transfer and Document Prep Fee? Surprise! Many Tahoe HOA groups now have private transfer fees that are charged when ownership changes hands. You may not know that California Civil Code has changed how fees are disclosed and that you, as a Seller, may be required by law to pay for certain items. While everything may be negotiable, the financial responsibility starts on the Tahoe Seller side for many of the costs and fees involved in the sale.
The HOA transfer fee may be in addition to HOA doc prep fees (Davis-Stirling Act CA Civil Code 400-6150 on HOA’s and their disclosure requirements). Tahoe Seller Task – ask your HOA property manager how much your organization is charging and if there is a HOA Transfer Fee.
As an FYI if the condominium development in located in a master planned community, there may be more than one HOA and there may be multiple HOA transfer fees, along with multiple HOA disclosures. As a Tahoe Seller is your job to disclose and figure things out. Your agent does not have the legal authorization to collect this information before an offer comes in, so it is up to you to get this information and organize it for a buyer.
In the California Association of REALTORS (CAR) real estate contract that we use here in the North Lake Tahoe –Truckee area, we have specific HOA documents that addressed all of the disclosures requirements under the act. Seller Task – Ask your agent for a copy of CAR-HOA-1, CAR-HOA-2, and CAR-HOA-3, so you can see the forms, and the items a buyer is going to ask for, and the CA Civil Code that requires you, as a Tahoe Condo Seller to disclose it.
Task 6) Is there a Private Transfer Fee? 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 as a Tahoe Seller you need to know what that percentage (%) is, and who is going to pay for it.
Task 7) What type of Insurance does the condominium or townhouse development have? As an owner, you are carrying some type of condo insurance on the property, and you should receive a copy of the HOA insurance certificate. Is it walls-in coverage that a new owner will need, or does the HOA cover everything, so only content and deductible insurance coverage is needed? Seller Task – make copies of the HOA master policy and certificate.
Task 8) Are pets allowed? This question will be asked by potential buyers, so your Seller Task is to get out your CC&R’s, or ByLaws and put that information into a Pet Summary sheet. Knowing the Pet Policy is important to know whether you have pets, or not. The last thing you’ll want is a cancelled purchase contract because the Buyer had animals that were not allowed in the complex.
Task 9) Are short-term vacation rentals allowed? Past vacation rental income and costs. Are there restrictions on long-term renters? In the North Lake Tahoe – Truckee area buyers want to know what they can and can’t do. If your condo has been on a short-term vacation rental program, organize your past rental income history, identify who has been the property management company, management fees you have been paying, and any other information you may have on being a rental.
Buyers that are doing a 1031 Tax Exchange want to know this information, so be prepared and have your documents and information ready to go.
Task 10) Complete a Pest and Home Inspection on your unit! One of the best things a Tahoe Seller can do, when selling their property in addition to organizing their HOA information, is to have a pest and home inspection done on their unit. Nothing sends a more positive impression on your property than by being able to provide to a prospective buyer a recent pest and home inspection reports.
There are a lot of questions a Tahoe condo, or home buyer will need to ask before they make an offer on your property, or before they complete their real estate purchase.
By completing the ten tasks every Tahoe Condo Seller should do, will help Buyers in their decision making process, and make for a stronger price negotiation, along with helping to minimize the chances for a purchase contract cancellation!
The Ten Tasks every Tahoe Seller should do before they put their condo on the market will help a buyer decide if your property is the one for them!
If you have more questions on buying, or selling a condo here in the North Lake Tahoe, or Truckee area, give me a call 530-414-1260. I can help you too!
Want to check out your competition? See what condos are for sale in Lake Tahoe? Here are the current listings:
- Tahoe City Condos for Sale
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- North Shore Lake Tahoe Condos for Sale
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- Tahoe City Homes for Sale
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- West Shore Lake Tahoe Homes for Sale
For all of your Tahoe real estate needs –
All information is deemed reliable, but is subject to change, and/or correction without notice.
Ten Tasks Every Tahoe Condo Seller should do!