Now that we all agree (or most of us) that the real estate market is cyclical, and prices will someday turn around, it is time to go bargain hunting!
South Lake Tahoe does not have the huge numbers of foreclosures and short sales that Sacramento or Stocton is having, but we are seeing our fair share.
I recently put a new 3400+ square foot home in escrow in which the banks asking price was $649,900! This home was previosly listed at $1,050,00 then reduced to $888,000, and then fell into foreclosure.
Most new construction houses in South Lake Tahoe are selling for between $280 to $300 per square foot. At $193.00 per square foot for nice new construction with radiant in floor heat and a driveway snow melt system, my buyers are extremely happy.
There is going to be some work involved with this foreclosure. The house has not been completely finished, and will cost around $30,000 to finish. This would bring the finished price per square food to just over $200 per square foot if my buyers paid full asking price ( I will let you know when it closes!).
The big question is: What do you think this property will be worth in 10 years? I would think that it will be worth a lot more than what my buyers paid for it!
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