The way it used to be: Meet a new buyer client and when I asked them what they wanted in a home, they would say something like, "3 bedrooms, 2 baths, and a 2 car garage". Things have assuredly changed. Most times these days my homebuyers say something like, "I want to buy a foreclosure." These comments mean I need go the extra mile to determine the reasoning - and help them thru the process with as little aggravation as possible.

The New Client ~ when a new client recently insisted that he absolutely only wanted to see bank-owned homes because he didn't want to pay what the current market was demanding in ‘standard sales' I was anxious to expand his sphere of properties by dealing directly into this issue. While discussing the desire to buy a foreclosure or bank owned property, it was readily determined my buyer wanted the best bang for this money.

We should all note that primarily there is nothing intrinsic about a foreclosure that means that it's a great deal or otherwise more desirable than a standard sale. Banks are just as likely to price their properties unrealistically as individual sellers, and individuals can be easier to negotiate with. Some of the homes on the market in his price range are bank-owned homes, so we do need to be prepared for what those transactions will look like and for you to be well qualified and ‘show' well to a bank-seller.

The Getting Started Phase ~ I started briefing my client on what to expect if he went the foreclosure route, which about 50 percent of my current clients do, looking for that great deal. I informed him not be outraged if he encountered multiple offers, long delays in responses from the bank, and a somewhat sketchy escrow due to the fact the bank insisted on using their own escrow company, rather than one as a local I am familiar with. His thoughts are that the banks can't wait to unload these ‘toxic assets'.

Next Step ~ A most important aspect of buying a home from the bank is to immediately understand that this is not a logical individual you are dealing with. This is an institution and each decision runs through an inefficient administration and involves people whose motivations are not as logical or obvious as with an individual seller.

So consider that there are five houses for sale in one neighborhood - three are bank owned and two are private sellers. Due to the fact the bank owned homes are in the same area and for sale, the private sellers are going to price their properties accordingly. When the time comes for potential repairs to be done and requests the repairs, do you really expect the bank to do as much as the private seller?

And in order to keep things clear, out in the open, we again discussed the potential to purchase a bank owned or a private sale property. After my coaching and his new understanding, the market became much more attractive to my buyers as he now would consider ALL homes for sale ~ not just foreclosures/bank owned properties.

The Market Monitor

August 3, 2009

Re: Truckee Area Real Estate Market

Dear Client;

Market Overview

We are in the midst of the summer selling season and July was off from the big numbers in June but in line or ahead of the same selling period the last 4 years. The number of sales is still significantly ahead of last year and numerous subdivisions are seeing lots of activity.

The market segment that is getting the most attention is the lower end, under $500,000. It was not very long ago that this market segment did not even exist. First time homebuyers are able to get into the market with lower prices, tax incentives and favorable loan rates.

The upper end especially over $1 million is very challenged. The sales numbers are down dramatically and inventory is up. There have been 50 sales over $1 million this year versus 98 last year. The reduction has been fueled by Tahoe Donner where there are 35 less sales over $1 million this year. The overall inventory has not grown significantly this year and is still below normal levels.

The land market continues to be anemic and prices are down 50% to 75%.

Tahoe Donner®

There were 20 home sales with the highest being $859,000. The over $1 million market is way off from last year. There have been 6 sales this year versus 41 last year to this date. From this time forward until the end of 2008 only 2 more homes over $1 million sold. So in other words there were 41 sales the first 7 months of 2008 and there have been 8 in the last year. Currently there are 35 for sale indicating a 4 year supply at this sales level.

The short sale category, those homes that have a higher mortgage than the home value are now growing exponentially. Over 50% of the sales are now short sales.

Inventory levels for the total housing market are below last year.

There were 2 lot sales, one being a multi family lot.

Lahontan/Martis Camp/Timilick

There was 1 home sale in Lahontan and 1 townhome in Timilick. There have been 7 sales so far this year which is right on the historical pace.

There were 2 lot sales in Martis Camp.

Old Greenwood/Grays Crossing

There were 2 home sales in Old Greenwood. There have been 11 home sales in Old Greenwood this year which is right off the charts for sales numbers. There have been 2 home sales in Grays.

There were 2 lot sales in Old Greenwood and 1 in Grays Crossing.

Northstar

There were 3 home sales, 2 village condo sales and 1 townhome. There have been 11 home sales this year which is right on historical pace.

Glenshire/Sierra Meadows/Prosser/Donner Lake

There were 42 home sales which is a very big month. The median price is $394,000 so it is the entry level of the market. Of these sales about 50% were short sales.

Squaw Valley / Alpine Meadows

There were 8 sales in Squaw and 3 in Alpine Meadows. Prices especially in Squaw have eroded to a level that buyer interest is being generated. There have only been 10 closed sales in Squaw up to this date, so 8 sales in one month is a big jump.

If you would like more detailed information or specific information related to your property, please do not hesitate to call.

If you know anyone that we can assist to become an owner in our beautiful area and be one of your neighbors, please let us know. If there is anything we can do to help you with your business, we would like to know.

Thank you for your support and referrals.

Sincerely,

Bob and Nancy

The Davis ♦ Yoder Realty Group

Keller Williams Boice Realty

www.truckeeinfo.com

ryoder@truckeeinfo.com

530-550-5175

Truckee Real Estate - Lake Tahoe Real Estate and The Tax Benefits of Home Ownership

Bonnie Jessee, ABR 530 412 3984

Everyone knows that owning a home is the American dream, but did you know that borrowing to pay for one is a taxpayer's dream? Home mortgage interest is deductible on your income taxes if you itemize. You can deduct the interest on up to one million dollars of home mortgage debt, whether it is used to purchase a first or a second home. You can also deduct the interest on up to $100,000 of home equity debt, even if you don't use the money for home improvements. Real estate taxes are deductible as well.

What could the home mortgage deduction mean to you? What follows are two examples of the potential tax savings.

"Bob" rents a home at a cost of $1,200.00 per month. He is single with no children and takes the standard deduction on his income taxes. His adjusted gross income is $128,000. He has $3,500 in state income tax withheld from his paychecks throughout the year, but doesn't qualify for any other itemized deductions. Bob's federal income tax liability for 2008 will look something like this:

Adjusted gross income $128,000-less standard deduction, Single $4,400-less personal exemption $2,800

Taxable income $120,800

Bob's 2008 federal income tax $32,129

Suppose there is another "Bob" out there. This Bob is single with no children and is paying the mortgage on the home he purchased a few years ago. Bob has been saving up and this year he fulfills his dream of purchasing a vacation home. It's not much, just a cabin in the woods, but it has a bedroom, bath, and kitchen. Here is what Bob's second home does to his tax liability for 2008:

Adjusted gross income $128,000-Less itemized deduction for state income taxes $3,500-Less itemized deduction for real estate taxes on 1st home $1,500-Less itemized deduction for mortgage interest on 1st home $7,800-Less itemized deduction for real estate taxes on 2nd home $1,100-Less itemized deduction for mortgage interest on 2nd home $10,200-Less personal exemption for Bob $2,800

Taxable income $101,100

Bob's 2008 federal income tax $26,022

The $1,100 Bob pays for real estate taxes on his 2nd home and the $10,200 he pays for mortgage interest on his 2nd home save Bob approximately $3,500 on his federal income taxes in 2008. Bob is so efficient, fulfilling his dream of owning a 2nd home and saving money on his taxes.

Mortgage Rates Fall to Lowest Level on Record

Bonnie Jessee, ABR 530 412 3984

Rates on 30-year mortgages fell to the lowest level on record for the second consecutive week after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.78 percent this week, from 4.85 percent last week.

It was the lowest in the history of Freddie Mac's survey, which dates back to 1971. Rates are down by more than a full percentage point from a year ago.

Mortgage rates fell dramatically over the winter and have fallen further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.

Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to those with solid credit.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed-rate mortgage dropped to 4.52 percent this week, from 4.58 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages fell to 4.92 percent, compared with 4.96 percent last week. Rates on one-year, adjustable-rate mortgages fell to 4.75 percent, from 4.85 percent.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac's survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.

The trees on this property with Donner Lake views caught my attention. Not that the lake views didn't, but there's just something about this shade of green!

I love the texture of the trees. How they've survived the years and the "character" they express.

I love this tree and the way it proudly wears the scars of the years...

Original photo copyright: Tamara Perlman. Any duplication without express written consent is prohibited. Tamara Perlman Coldwell Banker San Rafael, Marin County, CA. Tamara represents buyers and sellers in Lake Tahoe, Truckee, and Napa CA. Please call: 530-550-1299 or email Tamara at tperlman@coldwellbanker.com for more information on either market or general real estate inquiries. Search listings at www.TamaraPerlman.com