www.welcomehometruckee.com

Lake Tahoe, California

WAITING FOR THE BOTTOM TO DROP OUT on HOME PRICES? 

Bonnie Jessee 530 412 3984

Whenever the market slows and prices decline as they sometimes do in certain areas, I have noticed some buyers are extremely tempted to wait on the bench to find that incredible bargain in terms of price, location and whatever other amenities you are searching for.

My professional advice is to not let yourself be tempted for too long!  Keep these things in mind - when prices turn, interest rates usually follow the upswing.  A home that appeared to have a bargain price and great financing can lose both those advantages as quickly as overnight.  Remember also, once the market has truly turned upward, history tells us it is likely not to descend again and if so that time period could be decades.

Also, there are considerations other than money when making that very important decision to purchase.  If you have found the home for your own future and the future of your family, risking the potential loss over a few hundred or even a few thousand dollars just isn’t worth it!

Purchasing your vacation or second home isn’t all about financial issues of course.  It means living your dreams and those of your family.  Waiting for the bottom might find you buying on the upswing! 

Please call me anytime and allow me to share our current market information with you.

Bonnie Jessee 530 412 3984

www.welcomehometruckee.com

WHY BUY NOW?  LET’S CHECK IT OUT!

What’s Donald Trump Up To These Days?

Bonnie Jessee, Realtor 530 412 3984

Truckee, California Real Estate Market Snapshot

Bonnie Jessee, Realtor 530 412 3984

www.welcomehometruckee.com

What’s Happening Truckee/Tahoe?   As of June, 2008, a slight increase in pricing in Truckee from the previous month.  While some markets across the country are seeing the opposite of these numbers, here in Truckee~North Tahoe we are witnessing stabilization with moderate increase in pricing.

Currently there are approximately 220 single family homes in the greater Truckee area listed for sale. While some of these properties are in ‘escrow’ we see the median asking price is currently $759,000.00 while the median DOM (days on market) is currently 74 days (a reduction of 14 days since the previous month) as well as many days less than the previous several months and many days less than many other market areas.  It is taking less time for (SFR) single family residences to sell as of June and July of 2008.

Being that the median asking price is $729,000.00 ~ the lowest priced property (SFR) is currently $299,000.00 while the highest is $8,000,000.00 ~ The median asking price is actually a little lower than the prior month due mainly to price of current inventory.

As a potential buyer in the greater Truckee~North Tahoe area I would encourage you to make your move ~ head up the hill and check out what is for sale!  While we are aware that other parts of the state and country are in flux markets, it is extremely important that you as a consumer/buyer, understand that there are ‘pocket’ areas within markets even in our greater Truckee area.  Get with a professional, full time Realtor that has the depth of knowledge of understanding of this current marketplace for the service you deserve!

Happy Home Hunting!  Bonnie Jessee, 530 412 3984

TRUCKEE TAHOE GARDENS

Bonnie Jessee

530 412 3984

Most people, even veteran gardeners from lower altitudes might think gardening is impossible to control in a climate that some have commented is ‘ridiculous’!  However, as you will see below, there are many who have mastered the planting and resulting beautification of high altitude gardening ~ mainly thru trial and error and mostly by being forgiving of those plant species that refuse to grow here…chemicals are out of the question if you have a cognizant attitude.  All one needs to do is spot those birds and rabbits, deer and other living beings (neighbors) to know that if something requires chemicals to prosper, it probably should not be growing here.

Columbine are exceptionally beautiful flowers as well as a personal favorite

of mine.   Their graceful flowers nearly always have backward projecting nectar spurs

with contrasting petal and sepal colors. Solitary flowers borne atop

narrow, leafless stalks lend an airy feel to any stand of columbine. And most importantly ~ it always seems there should be a ‘tahoe~truckee’ fairy/gnome sitting atop the petals.

Thank You ~ and please come and enjoy our beauty and call me, 530 412 3984.

Key Tactics for Buyers

Bonnie Jessee, Realtor

530 412 3984

How Does One Determine Offer Pricing?

Work closely with your Realtor to learn as much about local market values as you can. Check out comparable properties; both asking prices and sales prices. Ask your Realtor to prepare a comparative market evaluation of the property.

When market values are rising, there is a bit of guesswork involved in preparing an offer and offer pricing. You may consider offering a price close to asking (with the assistance and expertise of your Realtor) if the property is priced well.  It can be devastating to make a low ball offer only to be rejected rather than countered.

Are Sellers Required to Inform Buyer of Other Offers?

Sellers are not legally obligated to disclose the terms of other offers to prospective buyers or the buyers Realtor.

How Do I Confirm Facts?

Home inspections, seller disclosure requirements and the Realtors knowledge and experience will help. Disclosure laws vary by state, but in some states, the law requires the seller to complete a real estate transfer disclosure statement (California has such a document).

A brief summary of the things you should expect to see in a disclosure form:

In the kitchen — a range, oven, microwave, dishwasher, garbage disposal, trash compactor.

Safety features such as burglar and fire alarms, smoke detectors, sprinklers, security gate, window screens and intercom.

The presence of a TV antenna or satellite dish, carport or garage, automatic garage door opener, rain gutters, sump pump.

Amenities such as a pool or spa, patio or deck, built-in barbeque and fireplaces.

Type of heating, condition of electrical wiring, gas supply and presence of any external power source, such as solar panels.

The type of water heater, water supply, sewer system or septic tank also should be disclosed.

Sellers also are required to indicate any significant defects or malfunctions existing in the home’s major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems. The form also asks sellers to note the presence of environmental hazards (an NHD or Natural Hazards Disclosure should be part of your documents), walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without or with the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property. People buying a condominium must be told about covenants, codes and restrictions or other deed restrictions, as is applicable for any HOA. It is important to note that the simple idea of disclosing defects has broadened significantly in recent years. Also, the home inspection and home warranty industries have grown significantly to accommodate increased demand from buyers. Work with your Realtor about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.

Are Contingencies Standard and What Are They?

Most purchase offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers’ ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. As a buyer, you could forfeit your deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract. The purchase contract must include the seller’s responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

Do You Have Negotiating Tips?

There are several fundamental rules to negotiating successfully. One is do your research, in conjunction with your Realtor. Do not allow yourself get hurried into any decisions without the thought and consultation of your Realtor. The more you and your Realtor understand a seller’s motivation, the stronger a negotiating position you are in. For example, a seller who must move quickly due to a job transfer may be amenable to a lower price with a quick escrow. Other so-called "motivated sellers" include people going through a divorce or who have already purchased another home. Remember, that the listing price is what the seller would like to receive but is not necessarily what they will settle for. Some real estate experts discourage making deliberate low offers. While such an offer can be presented, it can create an unpleasant situation regarding the sale and discourage the seller from negotiating at all thereby a rejection rather than a potentially workable counter offer.

Happy Home Hunting!

WHAT’S HAPPENING WITH REAL ESTATE IN TRUCKEE?

BONNIE JESSEE, Realtor®

530 412 3984

www.welcomehometruckee.com 

New Properties for Sale

Over the past few weeks, I have had several new friends from out of the immediate area calling to view and potentially purchase properties in Truckee, North Tahoe and the Soda Springs area.  It has been quite a surprise to our out of town friends (or our part timers as I like to think of everyone) to see that low-ball offers are not the norm and if placed are being rejected.

For instance, today (Friday the 25^th) 25 new listings were on the MLS – of those 25 new listings, 8 were single family residences, 6 were in Truckee and pricing ranged from $459,000 to $1,350,000.  The remaining were shared ownerships, out of the immediate area properties and even 2 boat slips in Tahoe City listed for $375,000 and $385,000 (yes, a boat slip in Tahoe City)!

Bank Owned Properties

Despite the fact there are bank owned properties on the ‘market’ and there truly are some fabulous deals to be had, for the most part, these bank owned or pre-foreclosure properties sell almost immediately when displayed in the MLS.  The down fall can be that the ‘bank’ or lender will typically provide no assistance with repairs and what you see (or don’t) is what you buy!  In relation to what is for sale and what is selling, the number of these types of properties available is quite insignificant.

What is Truly Happening

On a very personal note, I have a buyer I am working with who owns a property (vacant land) that we are attempting to use as a trade/down payment.  We made an above full price offer on a new property which I felt as a professional was a terrific offer.  In any case, the following day, the seller received an additional three, yes three offer, on the same property and the result was a sale well above listing price.    Not uncommon for this much localized area.

What Does Localized Indicate?

Although Truckee has a full time base population of around 17,000 individuals and approximately 12,000 properties (including Northstar and Squaw) it appears that each ‘neighborhood’ is currently rather independent of another when it comes to the sales price point being reached in negotiations.  In other words, a property in Tahoe Donner may command a price of $750,000 which in Serene Lakes that property would be close or higher in price, in Glenshire it may command $675,000, regardless of the fact they may be almost identical properties.  And, of course, the North Shore of Lake Tahoe is another localized area.

What Now?

While most of you know I work almost exclusively with buyers, my goal has been to get the best deal for my buyers.  I do see economic healing on the horizon; I also see with that an increase in the cost of owning in our beautiful Sierras!  I truly believe, from what we see daily in this real estate industry/market (localized) now is the time to buy.

Bonnie Jessee

530 412 3984

Escrow Exposed~Everthing You Wanted To Know!

Bonnie Jessee 530 412 3984

Escrow is not an everyday word for most of the population. It can be confusing as a word because in a real estate transaction it can mean many things.

When you made an offer on your new home,  you wrote an earnest money check that was to be placed in “escrow,” which meant it was to be given to an impartial third party while you and the seller negotiated a purchase contract. Your Realtor probably took care of creating this escrow.

Now your lender (bank) is talking about creating an “escrow” account, also called a “reserve” or “impound” account, where money for property taxes and homeowner’s insurance will be held.  The lender may have an in-house department that handles this type of escrow.

Even more confusing is that the “closing of escrow” is being described by someone called an escrow officer.

All of the above are accurate uses of the word. An escrow is something of value such as your earnest money check, or documents such as your purchase and sales agreement, that are given to an impartial third party to hold until specific conditions are met. When everything is finished — everybody paid and the deed recorded with the county, the escrow will close.

If you remember nothing else about the word escrow, remember the concept of the impartial third party — someone with nothing to gain or lose from your real estate transaction. Depending on where you live, that third party — an escrow agent, title agent, or closing attorney — is the person handling your escrow process.

They will juggle all incoming paperwork and money from buyers, sellers, agents, lenders, and assorted others. They will arrange the title search, give each party instructions, schedule the closing meeting, disburse all funds, and see to it that everything that needs to be recorded with the county is completed. 

Hold-Back Monies

There are circumstances when funds will continue to be held in escrow after the ownership transfers to the buyer.

For example, perhaps you’ve agreed to let the seller’s family stay in the house for another week until school is out. You signed a “rent back” agreement, and under its terms the seller is paying you a daily rate to stay in the house.  You likely were advised to have the escrow agent hold back a portion of the seller’s proceeds until they’ve moved out and left the house in the condition specified in your contract.
 
Or perhaps you found something requiring repairs on your final walk through the house. The seller agreed to make the repair, but the work couldn’t be completed by closing day. Money is then held back in escrow to cover the cost.

If you’re purchasing a new home, it is quite common to have funds held back in escrow until unfinished work is complete. 

Close of Escrow

When buyer and seller have signed all the paperwork and all the funds have come in, the closing agent disburses the funds and oversees the recording of the documents with the county.
When the deed is filed, title to the property is transferred to you, the new owner. The deal is complete. Escrow has ‘closed’.

You and the seller will receive a final closing statement and other documents in the mail.  Check the statement carefully and call the closing agent immediately if you spot an error. File the statement with your most important papers. You’ll need it when you file your next income tax return.

The Business Cycle and Buying a Home ~ Home Buying Advice

How to Time Your Home Purchase to the Market Cycle?

Bonnie Jessee, Realtor

530 412 3984

Ah, if only we had that special real estate crystal ball!  Then timing your purchase to the cycle would be an easy task!

Attempting to time your purchase to the “business” cycle is sometimes getting lucky and sometimes paying attention to the small signs.  Even economic advisors and consultants have inconsistencies accurately predicting the future economy. Even when these experts are relatively successful, the real estate market does not necessarily move in tandem with the economy as a whole.

Part of the reason is the timing and inconsistency of interest rates.

During periods of economic growth, interest rates are generally higher. Therefore fewer people can afford to purchase a home or second home unless they are cash purchases. When the economic situation is slower, interest rates fall, and more people can afford to purchase a home by obtaining a mortgage.

As you can see, this cycle does not move in conjunction with the remainder of the economy. It is also influenced by levels of employment, pay scales of various jobs, and consumer outlook for the future. Such facts make it difficult to know ~ ahead of the time ~ whether the housing market is going to be a wise investment.

The best advice is to preview the market where you intend to purchase, deal with a professional Realtor®, and plan on holding for as many years as possible. 

Unless, of course, you have a crystal ball!

The Differences Between REALTORS® & ‘Real Estate Agents’

Bonnie Jessee, Realtor® 530 412 3984

People use the terms REALTOR® and real estate agent interchangeably, however, this is not appropriate or correct. There are many differences between REALTORS® and real estate agents. The names alone are similar. Although both are licensed to sell and or list real estate, the basic difference between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Therefore, the main difference that we hear a lot about and might be confused by is that a REALTOR® must subscribe to the Realtors Code of Ethics. But what does this mean to you as the consumer or client of either?

The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice.

These are not ‘suggestions’ but rather rules that REALTORS® are sworn to uphold and adhere to at all times under all circumstances. The Standards are much more restrictive and confining as to conduct than those governing ‘real estate agents’ who simply hold a real estate license. Of course, there is no guarantee that all REALTORS® are morally and ethically better than unaffiliated real estate agents, it is a goal set by the industry to regulate and of course deserves recognition.

Here are 17 things that a REALTOR® promises, that a ‘real estate agent’ is not sworn to.

1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.

2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.

5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

6) Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.

7) Shall refuse fees from more than one party without all parties’ informed consent.

Shall not co-mingle client funds with their own.

9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

12) Must engage in truth in advertising.

13) Shall not practice law unless they are a lawyer.

14) Shall cooperate if charges are brought against them and present all evidence requested.

15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.

16) Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.

17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

The National Association of REALTORS® was founded in 1908 and has more than one million members

NEGOTIATE LIKE A PROFESSIONAL – TRUCKEE REAL ESTATE

Bonnie Jessee 530 412 3984

Either working alone or working with your Realtor, negotiating can make you want to ‘get away’.  The seller’s may feel the same way, as might your Realtor!

However, in the goal of a successful purchase and closing, we can learn from the problems encountered during our first situation and negotiate a deal that leads to a satisfactory conclusion for all involved. Good negotiating is certainly not about ‘beating’ up the other side; rather it is about knowing and understanding the seller’s motivations and your own motivations, and concluding a deal that satisfies you both.

Beginner’s potential mistakes and how to avoid them.

Price is the only concern
Terms can matter more than pricing!  One might negotiate quite a bit of value into a contract besides the purchase price, so think about the best closing date, determining who would be motivated to pay closing costs, any personal items you might like the seller to leave behind, and options or upgrades for a newly constructed home – as well as any other thoughts on timing or additional terms.

Time is of the essence
Have your financing in order from the start of your house-hunting, and be ready to write immediately on the home you want. Make a firm, direct and clean offer to a motivated seller, including in your offer a time limit for a response, and you might get precisely the terms you asked for.

The immediate response
Yes, you want to move swiftly, however, never respond verbally to an offer or counter offer. Ask for it in writing, and respond in writing.

Lowball offers ‘just to see’ where the seller is
If you want a seller to reduce your purchase price, have factual reasons besides the amount of money in your bank account. For example, the market is down, the roof and carpeting needs replacement, or perhaps other similar homes in the neighborhood sold for substantially less than the current asking price on your choice. Increase your negotiation position by being prepared to justify your request.

Making the assumption the price is as asked
You might have heard, for example, that there’s no price negotiation room on pricing for new construction. Or you might think that there’s no way the seller would leave behind that fabulous grand piano. Not always so! Ask for what you want and be willing to be flexible on other requests.

Making it “personal”
The seller reacts to your offer by getting frustrated and yelling,  or oozing condescension and calling you honey or;  pretending he doesn’t understand it "Did you really mean this number right here? This must be a mistake."

Some experienced negotiators will try to set you off guard on purpose; others may just be rude. But stay calm and be consistently direct. Ask the seller to be specific about any terms he or she might not be comfortable with and to make sure you understand exactly what he means, ask questions!  If the seller appears to be totally uncooperative, be prepared to walk away from that particular house. Your philosophy so always be ~ This is business, and there are other houses from which to choose.

Waking, sleeping and totally focusing your being on this purchase
Of course you are working hard at negotiations and you should keep your cell phone on.  However, remember to take care of your physical and emotional self as well.   Staying calm, under control and consistent will assist to make this a smoother transaction and a pleasant experience for all.