Bonnie Jessee

Home with Views ~ Homes with a panoramic of the mountains and lakes always sell at a premium above similar homes without the view here in the Sierras. However, if a view is important to you buy it mostly for your own pleasure and not as an investment. You may place a considerable dollar value on the view and future buyers will also.

~ Even though most real estate value is usually concentrated in the building, the lot is important as well. It should be as level as possible, considering the winter weather we endure. Assuming the property is in a typical neighborhood, such as Tahoe Donner the lot should be easy to access both in winter and summer.

Do not purchase an extensively landscaped property unless that is exactly what you desire. You would normally pay a premium for that maybe which you ought to be able to recover when you sell. You can always improve the landscaping during your ownership by improving the grass and adding native plants.

~ In each residential neighborhood in the Sierras, houses will vary in size and rooms, as many of the homes are custom. If resale value is an important consideration you might consider not buying the largest in the neighborhood. When determining market value, the homes nearest to yours are most important. If most of the nearby houses are smaller than your house, they can act as a pull on appreciation.

On the other hand if you buy a medium house for the area the larger homes can help push up your value. Buying what you require in a more prestigious neighborhood may provide more financial reward than getting what you desire in a less desirable neighborhood.

~ Three and four bedroom houses are the most popular among homebuyers and if you can stay in that array you will have more potential buyers when it comes time to resell.

There should always be at least two bathrooms in a house, preferably at least two and a half. One bathroom with a place to wash up for day-to-day visitors, one for the master bedroom, and at least one to be shared by the other bedrooms.

~ Family activity centers on the kitchen so this can be the most important room of the house. Open concept living is especially important to most buyers in our area - everyone wants to be ‘together'. The dining area should be located adjacent to the kitchen.

There should be easy access to the back yard and deck areas as there will be occasions for barbecues and outdoor entertaining. Also consider that it should be a short walk between the garages to the kitchen so hauling groceries in from the car does not become a horrendous chore.

~ The only room where you absolutely have to have a fireplace is the family room. A fireplace in the other rooms may be nice and you pay extra for it and this is a good investment in this area.

People buy things for their use and the pleasure or service received from a product or service -house cleaning, a car, a television, a computer, a hair cut, or their vacation home.

I might tell you from first hand experience that when I show potential homebuyers a home, I don't hear that buyers are typically looking to the day they sell the home or see it primarily as an investment. They are looking at a home for its potential use and family lifestyle they are seeking.

This does not signify the homebuyer should not be prudent with their money. Most people should eventually buy a home, but not everyone and not at every point in their lives are ready for a second home lifestyle.

There are those that argue that a home's future appreciation is extremely important in making a purchasing decision. With this I totally agree. While assisting my buyers to find that perfect vacation home, I will always point out the advantages and/or disadvantages of certain neighborhoods and the potential re-sale situation.

There are those potential buyers who are completely unmoving to do anything in fear of home prices falling. Unfortunately they are missing out on taking advantage of the currently low mortgage rates, and sellers who are willing to negotiate, the opportunity to become a new second lifestyle homeowner, and will continue to dream.

It is sensible to consult with a Realtor who is familiar with the local market.

On the other hand, buyers looking to purchase a home for its income potential and as an investment have a completely different set of objectives. The main concern for purchasers for these types of properties is capitalization rates, incomes, and return on investment. Interestingly enough, many of my buyers are these two objectives in mind. In buying the second home lifestyle for family and friends while also ‘leasing' the home out for part of the term of a year to provide additional income can be the perfect solution for many folks. This can be the best of both worlds for many buyers!

While there are always active buyers in the real-estate market in Truckee and Lake Tahoe it seems many of them seem to be looking to buy a foreclosure or a short sale property.

The basic foreclosure is a fairly well-understood process and as "short-sale" signs pop up on occasion your buyer may wonder what it really means.

When a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner, it's called a short sale. Most often the lender forgives the remaining balance of the loan owned by the homeowner.

Who Really Wins?

Short sales are a combination of good and bad for the buyer, the seller and the lender.

As the seller a short sale is likely to damage your credit but not as roughly as a foreclosure. You will also walk away from your home without and money from the deal.

The buyer will get the property at a reduced price and it might have problems; and the new owner will need to go through considerable red tape to make the deal happen.

The lender will take a financial loss but perhaps not as large as it would have if it had foreclosed on the property.

There are two situations in which an attempt at a short sale is almost certain to result in failure ~

A. No default on loan. Lenders almost never will accept short-sale offers or requests for short sales until the borrower is far behind in payments and a notice of default has been issued.

B. Bankruptcy. If the seller has filed for bankruptcy, forget it. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy because negotiating a short sale is considered a collection activity, and collection activities are prohibited in bankruptcies.

Can it work for your buyer?

Buying a home in a short sale can be a mess of documents, questions and communication, so why should you consider it? Frankly it could be the low price you pay. You might get the property for a significant discount. Because the lender is eager to get back as much of the money it lent out as it can, you may also get favorable financing terms.

Because the sellers will likely play an active role in the short-sale process, you will have their cooperation. This is not always the case with a property that has gone through foreclosure.

Buying an REO is similar to buying a short sale except the property is already owned by the lender. The property has already gone thru the foreclosure process and the bank typically lists the property with a qualified real estate agent. Hopefully the agent and the lender have open lines of communication to enhance a smooth sales and purchase

Sometimes the lenders will sell foreclosure homes for less than the past loan balance. Most lenders have ‘guidelines' for the amount they will accept. In our Truckee and Lake Tahoe areas most lenders are looking for a number within 5% to 8% of the amount currently owed.

Bank owned properties (land or homes or apartments) are called REOs, meaning real estate owned by the lender.

Banks might end up owning the property when no offers come in at the public auction bid enough to cover the amount owed against the property. REO homes are often considered the best way to buy a distressed property because the seller is already out of the picture. At this point you are dealing with the investor's agent, the bank and the bank's agent who are negotiating the transaction. Some REOs can be purchased directly from the lender.

For more information, seek the advice of a real estate lawyer, and work with a competent buyers' agent.

You are already settled into the perfect primary home. Your family vacations in Truckee and Lake Tahoe at least three times a year and you are tired of leasing or staying at hotels. You have been ‘watching' the local market...Whatever the reason, you want to buy that second home and obtain the family lifestyle you so desire.

Similarly as to when you bought your primary home it is time evaluate your situation and run the calculations to see if it's the right time and place for you to purchase. Merely ‘wanting' a second home in Truckee or Lake Tahoe doesn't mean it makes sense for you to buy now.

Decide What Your Goals Are

If you're considering a second home, you must have disposable income. Do you really want to invest your extra money in real estate? Take a good hard look at your life and goals and decide if buying a vacation home or investment property will best achieve them.

What do you want and need in a second home? A place where you can retire? Write down everything and create a wish list for your second home. Use this as a framework for what houses to look at.

Ask yourself these questions:

How long will it take you get to your second home here in Truckee or Lake Tahoe? Will the location suit your family's future lifestyle?

How often will you go?

How will you get financing?

Will you need rental income to offset the monthly mortgage payment?

Can you afford the maintenance and insurance?

How will it affect your taxes?

How is the property appreciation rate in your desired location?

Choose a location that meets the criteria on your wish list, or you may decide to hold off on buying. For instance, if you want a vacation getaway but don't expect to use it for more than a week each year, it doesn't make financial sense to buy. Consider fractional ownership or a timeshare.

Consider sharing ownership of a second home. Consider researching co-ownership options, such as a joint tenancy or tenants in common as an ownership position. If you don't feel comfortable dealing with strangers, perhaps consider buying with family or friends.

Let me help you with the answers to many of these questions! As a local for many, many years and a full time professional Realtor, I know the market, understand the areas and I am here to assist you from point A to settling into that perfect second home your family deserves.