South Lake Tahoe, CA Market Statistics
- All Sales in the last 365 Days
- Absorption Rates - Last 365 Days
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- Al Tahoe, CA
- Bijou, CA
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- Meyers, CA
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- North Upper Truckee, CA
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- S. Lake Tahoe Condos, CA
- The Tahoe Keys Condos, CA
- Stateline Area, CA
- Tahoe Island Drive, CA
- Tahoe Island Park, CA
- The Tahoe Keys, CA
- Tahoe Paradise, CA
- Y Area, CA
Stateline, NV Market Statistics
- All Sales in the Last 365 Days
- Absorption Rates - Last 365 Days
- All 2011 Stateline, NV Sales
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- All Current Escrow - Stateline, NV
- Cave Rock, NV
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Archive for February, 2010
South Lake Tahoe Short Sales: A Primer for Investors (Pt Eight)
February 28th, 2010 categories: For Buyers, For Sellers, Foreclosures, Lake Tahoe Real Estate, short sales, South Lake Tahoe Statistics, South Lake Tahoe, CA
Closing the Short Sale… the end of a sometimes epic journey.
This is the seventh in an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.
The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.
It should be noted to all potential South Lake Tahoe buyers that the short sale process varies somewhat from lender to lender, sometimes substantially; that a successful short sale purchase can be a tedious, uncertain, time consuming process. Not all offers on short sale properties meet with success, to be certain, and it is not uncommon here in South Lake Tahoe to find multiple offers on attractive, reasonably priced short sale homes.
(current South Lake Tahoe, CA short sale summary and statistics here)
Step One: The Property Evaluation (here)
Step Two: The Short Sale Application (here)
Step Three: The Hardship Letter (here)
Step Four: The Short Sale Package (here)
Step Five: The Offer and Purchase Agreement (here)
Step Six: The Lenders Decision (here)
Step Seven: The Negotiation (here)
Part Eight : The Closing
The end result of a successful negotiation with the short sale lender is acceptance of the offer. From that to closing is not conceptually much different than closing the sale of a non-distressed property, though there can be a few out-of-the-box things to encounter.
Title Company and Escrow :
Escrow is normally set up with a title company of a buyer's choosing, though some short sale lenders may insist on using a specific title company that is "approved" by them as a condition in their accepted contract.
Fortunately, not all short sale lenders elect to use a title company of their choice, but for those that do, the primary basis for that decision, so it seems, is the lender gets a break in the escrow fee. In other words some lenders insist on using a particular title company because it makes them more money.
When this occurs, our experience has noted a few realities in doing business with a lenders title company of choice: (1) they are usually out of area, (2) they can be exceptionally busy handling many of the lenders transactions, (3) they may not perform as fast, or as efficiently as we are accustomed, and (4) we have little leverage to do much about it.
What this means is the possibility that the buyer will have to once again exercise more patience than normal.
Due Diligence and Home Inspections :
While in escrow, the normal due diligence period is 17 days. That is the default language in most of the real estate contracts we use, though a buyer can ask for a longer period of time for home inspections and other research on a property if they so choose. This is the same for a short sale property as well.
Some short sale contracts may contain that states that the lender is selling the property "as-is." What this means is the lender is selling the house in its present condition and that the buyer is responsible for the cost of any and all repairs, whether the are discovered in the home inspections or not.
"As-is" language can appear in the accepted contract for the sale of any property, short sale or not. But it is never binding, which means it does not preclude the buyer from asking for relief for anything he so chooses, which can certainly include repairs.
One of three outcomes will occur if a buyer asks a lender for repair relief on a home, whether as-is language is found in the contract or not: (1) the lender will pay for the repairs (usually in the form of a credit), (2) the lender will negotiate for partial payment, or (3) the lender will refuse.
If the lender's position on any requests for repairs is not acceptable to the buyer, the buyer can choose to terminate the sale.
We have not had one of our buyers walk away from a sale over the cost of repairs that we can remember, though it can and does happen. Our counsel in general is there is almost always a way to work things out, though the particulars of which are usually specific to the unique situation at hand, rather than a general rule.
Speed (close it quickly):
Though lenders of foreclosed and short sale properties can be slow in getting up to speed, it's our experience that they wish to move as quickly as possible once they are.
Conversely, we counsel our buyers to be patient with the lender to begin with, and to be prepared and plan on moving as quickly as possible to close the sale once it is approved and goes into escrow.
Step One: The Property Evaluation (here)
Step Two: The Short Sale Application (here)
Step Three: The Hardship Letter (here)
Step Four: The Short Sale Package (here)
Step Five: The Offer and Purchase Agreement (here)
Step Six: The Lenders Decision (here)
Step Seven: The Negotiation (here)
| Discussion: Please leave a comment.
South Lake Tahoe Short Sales: A Primer for Investors (Pt Seven)
February 26th, 2010 categories: For Buyers, For Sellers, Foreclosures, Lake Tahoe Real Estate, short sales, South Lake Tahoe Statistics, South Lake Tahoe, CA
Negotiating with the Short Sale Lender… the heart and soul of much real estate business today.
This is the seventh in an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.
The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.
| Discussion: Please leave a comment.
South Lake Tahoe Short Sales: A Primer for Investors (Pt Six)
February 23rd, 2010 categories: For Buyers, For Sellers, Foreclosures, Lake Tahoe Real Estate, short sales, South Lake Tahoe Statistics, South Lake Tahoe, CA
Which is More? What the Lender does to make a Short Sale decision.
This is the sixth of an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.
The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.
| Discussion: Please leave a comment.
South Lake Tahoe, CA Real Estate Listings Sales in the last 365 Days
February 23rd, 2010 categories: For Buyers, For Sellers, Lake Tahoe Real Estate, Major Market Reports, Market Performance Updates, South Lake Tahoe Statistics, South Lake Tahoe, CA
South Lake Tahoe, CA. Real Estate Trends, Conditions and Median Sold Price
We’ve updated home sales summaries and Market Performance for South Lake Tahoe, CA.
The median sold price is $298,500. ( It was $301,875on February 2nd, and $305,000 two months ago.) This is based on all single family sales in South Lake Tahoe, CA in the last 180 calendar days (Tahoe Keys homes not included).
The median sold price for the last 365 days is now $305,000. (that same number was $314,000 on February 2nd, and $319,000 two months ago.)
The key contributing factor to South Lake Tahoe decline in home prices is the effect of foreclosed home sales on the real estate market.
Since the first of this year, we have seen an increase in the percentage of both foreclosed homes sold and those in escrow. Of all homes sold in South Lake Tahoe in 2008, about 20% of them were in foreclosure. That same number was 39% in 2009.
- At present 46.6% of South Lake Tahoe home sales in the last 180 days are distressed properties.
- Of the 97 homes currently in escrow, 71 (73.2%) of these are also distressed sales (Either foreclosures or short sales. This same number was 57.7% two months ago.)
All South Lake Tahoe home sales in the last 365 days, here.
| Discussion: Please leave a comment.
South Lake Tahoe Short Sales: A Primer for Investors (Pt Five)
February 22nd, 2010 categories: For Buyers, For Sellers, Foreclosures, Lake Tahoe Real Estate, short sales, South Lake Tahoe Statistics, South Lake Tahoe, CA
The Offering Strategy really depends on the property involved.
This is the fifth of an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.
The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.
| Discussion: Please leave a comment.
South Lake Tahoe, CA Real Estate Demand and Absorption Rates
February 22nd, 2010 categories: Absorption Rates, For Buyers, For Sellers, Lake Tahoe Real Estate, Major Market Reports, South Lake Tahoe Statistics, South Lake Tahoe, CA
An Increase in South Lake Tahoe Housing Demand.
We’ve updated current demand for the South Lake Tahoe, CA real estate market. Looking at the market from the perspective of monthly absorption rates is the most accurate method possible for tracking South Lake Tahoe housing performance over time.
At present we're seeing a slight increase in housing demand over the last 180 days, details below.
Find market-wide absorption rates for South Lake Tahoe, CA here.
Below is a bullet-point summary of the current housing demand in South Lake Tahoe.
| Discussion: Please leave a comment.
South Lake Tahoe, CA 2010 Real Estate Home Sales
February 22nd, 2010 categories: For Buyers, For Sellers, Lake Tahoe Real Estate, Major Market Reports, Sales Reports, South Lake Tahoe Statistics, South Lake Tahoe, CA
47 South Lake Tahoe, CA 2010 Single Family Home Sales.
58.3% of them are distressed properties.
We have just updated all 2010 South Lake Tahoe, CA single family home sales. There are 47 homes sold in South Lake Tahoe, CA this year as of today.
Note the category below that addresses the number of bank owned properties (REOs) and short sales v. those that are not. This can also be viewed on our spreadsheets and stat charts as well (links directly below).
All South Lake Tahoe 2010 home sales here.
Statistics for all 2010 home sales here.
| Discussion: Please leave a comment.
South Lake Tahoe, CA Real Estate Listings in Escrow
February 22nd, 2010 categories: Escrow Report, For Buyers, For Sellers, Lake Tahoe Real Estate, Major Market Reports, South Lake Tahoe Statistics, South Lake Tahoe, CA
97 Homes in Escrow in South Lake Tahoe… 73.2% are Distressed Sales!
We have just updated the South Lake Tahoe Real Estate Market Escrow Report. There are 97 homes in escrow at present. (This same number was 81 three weeks ago, 93 two months ago, and 97 three months ago.)
Escrow is 32% of the current 303 active homes listed on the market in South Lake Tahoe, CA.
- Throughout the last calendar year the percentage of homes in escrow has ranged from 9.5% to 29.9%.
- We are at a higher percentage of homes in escrow than at any other time in the last year.
- 14% of available homes was in escrow at this same time last year.
Note the new category below that addresses the number of bank owned properties (REOs) and short sales in escrow v. those that are not. You'll also find this on our spreadsheets and statistics charts as well. (here)
All homes in escrow, here.
Statistics on all homes in escrow here.
| Discussion: Please leave a comment.
South Lake Tahoe Short Sales: A Primer for Investors (Pt Four)
February 21st, 2010 categories: For Buyers, For Sellers, Foreclosures, Lake Tahoe Real Estate, short sales, South Lake Tahoe Statistics, South Lake Tahoe, CA
The Short Sale Package includes documents on property value… and all of the reasons the owner can't pay the loan.
This is the fourth of an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.
The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.
It should be noted to all potential South Lake Tahoe buyers that the short sale process varies somewhat from lender to lender, sometimes substantially; that a successful short sale purchase can be a tedious, uncertain, time consuming process. Not all offers on short sale properties meet with success, to be certain, and it is not uncommon here in South Lake Tahoe to find multiple offers on attractive, reasonably priced short sale homes.
(current South Lake Tahoe, CA short sale summary and statistics here)
Step One: The Property Evaluation (here)
Step Two: The Short Sale Application (here)
Step Three: The Hardship Letter (here)
Step Five: The Offer and Purchase Agreement (here)
Step Six: The Lender's Short Sale Decision (here)
Step Seven: Negotiating with the Lender (here)
Step Eight: The Closing (here)
| Discussion: Please leave a comment.
South Lake Tahoe Short Sales: A Primer for Investors (Pt Three)
February 20th, 2010 categories: Lake Tahoe Real Estate, short sales
The Hardship Letter is communication between two partners to get out of a bad deal.
This is the third of an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.
The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.
It should be noted to all potential South Lake Tahoe buyers that the short sale process varies somewhat from lender to lender, sometimes substantially; that a successful short sale purchase can be a tedious, uncertain, time consuming process. Not all offers on short sale properties meet with success, to be certain, and it is not uncommon here in South Lake Tahoe to find multiple offers on attractive, reasonably priced short sale homes.
(current South Lake Tahoe, CA short sale summary and statistics here)
Step One: The Property Evaluation (here)
Step Two: The Short Sale Application (here)
Step Four: The Short Sale Package (here)
Part Five: The Offer and Short Sale Agreement (here)
Step Six: The Lender's Short Sale Decision (here)
Step Seven: Negotiating with the Lender (here)
Step Eight: The Closing (here)
Part Three : The Hardship Letter
Central to the short sale process with the lender, and to the short sale package itself, is the hardship letter. Written by the homeowner, it is here first and foremost that the lender must understand that their best chance of getting the most money back on their loan is a short sale, and if they do not approve such, they are looking at either a foreclosure, a bankruptcy filing by the owner, or both.
Lenders are all about numbers (certainly not heart). The hardship letter is, therefore, a factual accounting of a buyers financial situation. It is not a sob story. From this letter the lender should have the ability to analyze the situation to see if a short sale is the most preferable of all other alternatives. Not sympathy; factual analysis is the only goal.
The cost of foreclosure is the important element in the lenders decision. There a lots of different sources, and much subjective opinion about the actual cost of foreclosure, but the average cost nationally of a bank taking over a property is about $50,000. In South Lake Tahoe, however, the difference between the median sold price of a short sale vs that of a bank owned property in the last 180 days is $93,788 (here).
A lender is also required to put up reserve funds to be held as back up for non-performing loans. This means in addition to the difference here in South Lake Tahoe between the average proceeds of a short sale and a foreclosure, the lender must also tie up additional cash resources to back up these bad loans that could be invested elsewhere .
In other words, a smart lender has every incentive in the world these days to approve a short sale, rather than proceed into foreclosure.
The hardship letter should be written in the owners own words. Kept factual, we also like the idea of this letter to be written by hand (we like that subliminal message). The owner needs to be focused that the letter is a clear picture of their financial condition, and back up their position with documentation of it. Such includes pay stubs, unemployment letters, medical bills, and anything else that will lead the lender into accepting that the owner is heading for foreclosure or bankruptcy.
It should also be noted that an owner's hardship letter contains confidential financial information, and as such it is not something that a buyer, or buyers agent is privy to review. What is important to the buyer is that the letter has been submitted and that the lender has approved the short sale.
Step One: The Property Evaluation (here)
Step Two: The Short Sale Application (here)
Step Four: The Short Sale Package (here)
Step Five: The Offer and Short Sale Agreement (here)
Step Six: The Lender's Short Sale Decision (here)
Step Seven: Negotiating with the Lender (here)
Step Eight: The Closing (here)
| Discussion: Please leave a comment.
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