Thinking of Moving Your Money From the Market to Real Estate?

Now may be the time. With overall markets losing on a daily basis, watching your portfolio dwindle can be frustrating to say the least. It’s not your fault, you made good investments at the time, but with things changing so rapidly it’s a difficult situation to deal with.

Is there a safer alternative to invest your monies? With real estate prices at all time lows, interest rates holding at the current lows, now may be the time to get out of the market and into real property for many.

Currently I am working with a buyer who intends to do just that. Unfortunately, the bank has been slow in responding to her all cash offer and during a one week period, her portfolio dropped in value by a whopping 4%. Her situation could change tomorrow if the bank continues to wait to respond to a great offer. Common sense would tell us that cash for property is better for the bank being in the property holding mode.

So let’s look back at history…here in the Greater Truckee area, the past few years have seen close to 18% in price fall off. Not such great news for those who just entered the housing market during or purchased during the highs of the 2005 and 2006 years and need to sell now. Those, however, who purchased earlier or are purchasing now with a long term hold are in good financial positions.

The Why and How of it: interest rates are down from those years and those able to qualify can refinance into lower rates. Those that don’t have to sell know that historically property values have always increased in eventuality.

Your personal goal, like many, was to leave a legacy for your family thru wise investments. Property legacies have been the alternative for many wise investors over the years – rather than those stocks and bonds that are losing value all too rapidly. The family vacation home and lifestyle might just be the perfect optional legacy for you to pass on to your family.

Give me a call and we can discuss your thoughts while I can provide you with detailed insight into our current market. As a relatively stable housing market has provided many with family legacy trusts – it just might be the best option for you to consider.

Always your best in mind! Bonnie Jessee 530 412 3984

Why Banks Reject Short Sales ~ Truckee Real Estate ~
Banks demand a overabundance of documentation before approving a short sale. Contrary to popular belief, sellers do not need to be in foreclosure or have fallen behind in making mortgage payments, for a short sale to occur. The most prevalent reasons banks turn down short sales offers:
Short Sale Offer Price is Too Low
Banks will request an appraisal, and may also order a broker price opinion. When the listing agent submits the short sale offer, the agent should also include a comparative market analysis that justifies the price in the short sale offer. If the bank believes it can make more money by taking the property from beginning to end foreclosure proceedings, the bank will most likely reject the offer.
The Short Sale Package is Deficient
Ask any short sale specialist and you’ll hear shock stories of how banks lose documentation. In some cases, it doesn’t matter how many times the package is expressed overnight or faxed; the bank might be unable to find it. Worse, an important document might not be in the file, and without every single required document, the sale will not be granted.
The Seller May Not Qualify
If the seller is asking for debt forgiveness, the bank will want to see a hardship correspondence from the seller that explains why the seller cannot afford to pay back the shortfall difference. Sellers who have taxable assets are at a disadvantage if the sellers are unwilling to work out a repayment plan with the bank.
The Buyer Does Not Qualify
A desire to buy a home and the financial means to afford a mortgage payment does not mean a buyer qualifies to buy a home. A buyer’s lender will examine credit history, length of time on the job, debt ratios, and a host of other criteria to determine a borrower’s qualifications. To gain credibility with the seller’s bank, buyers need to submit a loan prequalification letter along with the offer, but a loan approval letter carries more weight.
Dickson, Truckee as well as our other offices have completed numerous short sales transactions. It takes patience, knowledge and proper documentation to bring a short sale to a viable conclusion for both buyers and sellers. Give me a call – I can help – Bonnie 530 412 3984.

Ah, if we had a crystal ball for buying a property at just the right price! Most of us would have retired real estate millionaires. There are several reasons that we need to explore prior to writing that offer. In the first place, although inventories might be slightly higher in most places than perhaps in years past, all sellers are not equally motivated to sell. This can be especially true in resort areas.
There are sellers who would like to sell, however there is no immediate necessity to sell. If the sellers don’t reach their price point, they either stay put or some rent out the property until they feel the market might turn. Sellers who don’t have the immediate requirement to sell are basically resistant to negotiating the price.
Motivated sellers, on the other hand, have that requirement to sell and sell now. It could be transfer by their employer and have to relocate quickly. Or, they might be facing financial troubles. Or, in some cases they have already purchased another home. These types of sellers have a timeline to meet. They are typically open to considering offers.
More factors that will affect what price you decide to offer is the condition of the local real estate market. National, statewide and even regional home-sale trends may not apply to the town where you are searching for property.
Before making a decision on how much to offer initially conduct thorough investigation of the local housing market. Find out as much as possible about the most recent comparable sales in your target town or neighborhood. This is where your Realtor is of the utmost value to you as you are their client and they owe you a fiduciary responsibility.
Have homes similar to one you’d like to buy sell for close to the list price? Or, for much less, or maybe even for more? Is there a good supply of inventory to choose from, or is the kind of house you’re looking for in rather scarce? Your Realtor can provide you this information with in depth analysis.
Your Realtor can find out if there is flexibility in the seller’s list price. Your Realtor should be able to get a feeling of the seller’s willingness to bargain by having a discussion about price with the seller’s agent. Ask your Realtor to present your offer in person to the sellers agent ~ and it is always a good idea to provide a comprehensive cover letter explaining why you have made an offer at the price you have. Providing loan pre-approval is always a great idea to send along with the offer.
Your first offer could make a lasting impression on the seller. Very low offers can be verbally rejected outright. In this situation, discuss this with your Realtor. Then, if you are still extremely interested in this property you might raise your price some and make another offer.
An ideal offer price is one that is close enough to the seller’s ideal price that they won’t risk listing you as a buyer by countering back with a higher price. Many sellers counter any offer that is lower than the list price; therefore you might want to offer less than you might willing to pay so that you have an option to increase your price when and if the seller counters back with a higher price. None of this might apply if you are competing with other buyers. If you are in competition, your first offer may need to be your best offer.
Your Realtor can tell you precisely if you need to stick to your price, and be willing to walk away if you don’t reach agreement.
Have fun and work closely with your Realtor!

The spring/summer home-buying season is here for many of the US population. In cities and towns across the country, “Open House” and “For Sale” signs are popping up. It just might take more than pleasant weather to melt the cold real estate market in some parts of the Country.
Some Buyers – especially those not educating themselves to the local area in which they are contemplating a purchase; are reluctant to take a chance on real estate due to potential price declines, foreclosures, record gas prices, job losses, and general economic uncertainty in many areas.
Spring is traditionally the busiest time for real estate, largely because parents, readying for a summer purchase, don’t want to move during the school season. In our area, it’s all about being able to ‘see’ the house out from under the snow!
Realtors in our local markets are predicting an increase in buyers ~ fewer listings, stabilizing prices (some areas actually are seeing increases) and most are on target with their opinions.
Our local Sellers, who were once clinging to boom-time expectations, are trimming asking prices to become market ready. Keep in mind the news is not bad for buyers. In fact, for some the timing couldn’t be better. Some properties in the area are going for very reasonable prices ~ some below market value due to various reasons: families need to move, downsizing, getting out of the second home situation; and families ‘scattering’ as college approaches.
Any Good Deals in Truckee~North Tahoe? Oh, yes ~ there are deals to be had. How long will the deal making go on is anyone’s guess. However, factor in the weather ad the beauty of this region; the wealth of activities and varied pleasures to enjoy coupled with the planned new developments here and we just might see the ‘deal making season’ pass by rather abruptly!
Markets with declines of 20% or more include Phoenix, Los Angeles, Las Vegas, Atlanta, and San Diego. So what we as Realtors see is an influx of potential buyers seeking that fabulous deal that they might get at their primary residential area and are typically quick to learn that buying in Truckeee~North Tahoe just might provide them with Recession~Proof Property! Therefore pushing that potential budget a little higher the savvy buyers understand they are getting a great deal ~ although different due to the localization of the markets elsewhere.
Not the Best Time to Sell? If you’re a seller, it’s a good time to get that For Sale sign on the front lawn. Those who purchased in the great Truckee~North Tahoe area, and paid a fair price at the time, know that when they list with a Realtor to sell, they have previously purchased in a rather Recession Proof area and know the pricing they are asking may be possible to achieve.
Check out what’s available at http://www.welcomehometruckee.com
Have a great day! Bonnie 530 412 3984

Eight Reasons to Own Your Own Lifestyle Home
Truckee Real Estate
Bonnie Jessee, ABR 530 412 3984

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Nest egg. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Choice. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Permanence. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships.

8. Lifestyle. With your own home, you are able to provide your friends and family with the Sierra Lifestyle you want. With the endless list of fun and exciting activities to enjoy you will find yourself happy year after year.

Truckee Real Estate News ~ March 2009 Update ~ Bonnie Jessee, ABR 530 412 3984

During the month of March the Tahoe Sierra MLS shows that a total of 43 Single Family Homes were sold/closed. The Median Listing Price was $649,000.00 and the Median Sold Price was $574,000.00.

What is interesting is that the Average List Price was $875,332.00 and the Average Sold Price was $747,869.000.

Of those 43 Single Family Homes, five were Short Sales, Three Bank Owned and One ‘Court Approval’.

As is typical in any market, those home that are priced well are selling very quickly. And again, those that are priced well are selling very close indeed to asking price.

In Tahoe Donner thirteen properties closed escrow with Median List Price at $659,000.00 and Median Sold Price at $630,000.00, while Average List Price was $712,474.00 and Average Sold Price was $656,076.00.

Featured Home – 12727 Northwoods Boulevard, in Tahoe Donner, priced well at $529,000.00. Three Bedrooms and Two and One Half Baths. Two car garage and located right across from local markets, swimming and other facilities.

Yes, I featured this previously and there is now only one of the three units left available. It is located at the rear of the complex and is extremely private. This is great pricing for this brand new unit.

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.

Truckee Real Estate Short Sales Negatives by Bonnie Jessee, ABR 530-412-3984
Current Owner Paid Too Much~If a home sold for $500,000 a few years ago and is now for sale at $400,000, that doesn’t assure the buyer is picking up $100,000 of equity. Perhaps the seller paid so much in a rising market and now the market has fallen. It means the seller has no equity or little equity.
Current Owner Borrowed Too Much~Banks that were eager to lend money in appreciating markets sometimes allowed borrowers to over extend on the home, meaning the borrower’s loan balance exceeded the value of the property when the prices might have fallen. Appraisals are subjective, and not all appraisers will place the same value on a home.
Lender is Owed Too Much~Lenders aren’t inexperienced or ignorant of the value of a home. Lenders will insist on a comparative market analysis, known as a CMA, or broker price opinion, known as a BPO. If a lender believes a better price can be obtained by taking the property back in foreclosure over a short-sale offer, the lender may hold out for a higher price. That price will be close to market value. Lenders accept short sales when the home is worth the short-sale price, which means market value.
Most Homes Sell “AS IS”~If a mortgage company agrees to a short sale, it is most likely also paying the settlement expenses in the transaction. Lenders ask buyers to purchase the home in its present condition. Lenders typically will refuse to pay for repairs, home warranties or other associated costs.
Time from Offer to Close~Depending on when the Notice of Default was filed, the lender’s back-log of foreclosures and how much paperwork the seller has already submitted, it could take anywhere from two weeks to two months to get a reply on a purchase offer from a lender.
Lenders Change Conditions~Some lenders reserve the right to renegotiate the terms of the short sale at the last minute. If the market changes, new laws pass or new information crosses the lender’s desk, the lender can attempt to change the terms of the contract.
Lenders Discount Commissions~I don’t know of many lenders who are paying traditional real estate commissions to real estate agents. They will want a discounted commission’s structure. Moreover, agents end up doing two to three times the work of a conventional transaction.
More Buyer Closing Costs~Because lenders rarely will pay for any extras, like a seller might be willing to do, if you want any of those extras, you will pay for them yourself. Sometimes lenders will refuse to pay for standard seller closing costs such as transfer taxes, too.
Difficult Transaction~If you need to close escrow by a specific date, say you are relocating to a new job, a short sale home closing process can take an indefinite amount of time. The seller’s lender calls the shots, not the buyer nor the buyer’s lender. If you are trying to close escrow concurrently with the sale of your home, you might not be that lucky.
Next blog we’ll discuss the Positives! And there are many! Bonnie 530 412 3984

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.

Truckee Real Estate Bonnie Jessee, ABR 530 412 3984
Buying a second home has become one of the fastest growing trends in the entire world; and especially the United States. More than 30 million Americans are expected to enter the second home market within the next decade. With a few steps of knowledge you can learn how to turn buying your second home into a recession proof, exciting adventure.
Think about what, if you have a special place that you love the most in and around Lake Tahoe and Truckee, and the amount of time you might be spending in your vacation home.
If this house will be for weekend getaways, and your primary home is the “Bay Area” then Truckee~North Tahoe is the place for you at less than a short drive away! For those of you who have aircraft, the Truckee Airport is a full service airport with an FBO for all your trips with rental cars, hanger space and of course tarmac space for parking!
Condo units and town homes typically have relatively low maintenance, making them a good option for those using their homes one season a year, or for those who want a place which happens to be a great distance from their primary home.
When considering a condo or town home, be certain to thoroughly read the HOA rules and regulations – determine the amenities available and the cost and discuss this with your family. Golf, equestrian center, tennis, swimming – what things are important to you and how much are you willing to pay?
With a single family home, you might have additional privacy however; you will be required to handle all the maintenance. A positive to this is that our area has several options to hire professionals to attend to your home during your absence. Additionally, we here at Dickson are dedicated to you in that we will gladly keep keys on hand for vendors, check on your property on a regular basis and in general keep a ‘watchful’ eye out on your property during your absence! This service is free of charge.
Many time shares or shared ownership possibilities are available in our beautiful area as well. Timeshares vary from two to twenty owners and offer all the services of a hotel, but yet you’re still able to benefit from the appreciation of that property.
A good indicator of a great town is its access to recreation, which is unparalleled in our area compared to anywhere in the world!
Find out from your professional Realtor how the town might change, what’s being built and what types of people are moving to the area.
It might be worth your while to visit us during each season to get a good idea of what it’s like year-round. Driving in heavy snow can be frightening the first time around. The altitude of your chosen neighborhood should also be a consideration.
Should you be considering retiring in your second home one day, knowing that Tahoe Forest Hospital ranks among the best in the nation, with up to date facilities and constant improvements being made.
Have Fun! Bonnie Jessee, Realtor 530 412 3984