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February Real Estate in South Lake Tahoe

Distress sales accounted for 50% of the houses in South Lake Tahoe that were sold in February 2011. There were 30 single family houses that were sold on the South Lake Tahoe MLS and 15 of the properties were distress sales. There were 10 bank owned foreclosures and 5 short sales that were sold. Although the South Lake Tahoe real estate market has seen a steady stream of home buyers each month, the prices have not shown any true signs of appreciation. The average sales price has shown recent signs of stabilization, but both the median sales price and the average price per square foot were down last month.

South Tahoe Real Estate Statistics

The average sales price of the homes in South Tahoe that were sold in February was $356,770, up from $350,913 in January, and down from $412,307 in February 2010.
The median sales price of the houses in South Lake Tahoe that were sold in February was $269,200, down from $305,500 in January, and down from $325,500 in February 2010.
The average price per square foot for the sold South Tahoe Homes was $188, down from $207 in January, and down from $211 in February of last year.
The average days on the market was 158 and the median days on the market was 108.
There were 10 bank owned foreclosures in South Lake Tahoe that were sold and 5 Short sales in South Lake Tahoe that were sold in February.

The bank owned foreclosures were the cause of the very low average price per square foot last month. The foreclosures that sold had an average price per square foot of only $154! The short sales that were sold also had a low price per square foot of $177. If I run the price per square foot without including the distress sales, the price per square foot jumps back up to $214.

The current inventory of single family homes on the South Tahoe MLS is a total of 364 listings. 83 of the listings are in escrow. There are 47 foreclosures for sale in South Lake Tahoe and 20 of them are in escrow. There are 75 Short Sale listings, and 36 of the short sales are currently in escrow.

There were 4 condos in South Lake Tahoe that were sold on the MLS last month. Two were condos in the Tahoe Keys and one was a foreclosure in the Tahoe Keys. The average sales price was $249,700 and the median sales price was $227,400. There are 55 condos that are listed on the South Lake Tahoe MLS, and 7 of the condos are currently in escrow.

There were 3 lots that were sold on the South Tahoe MLS. One of the lots was a bank owned lot in the Angora fire area that sold for $85,900. One of the lots was a bankruptcy sale in the Heavenly Valley area that sold for $91,500, and the last lot was an Elks Club lot that sold for $84,500. There are currently 114 lots listed on the South Lake Tahoe MLS and only 3 of the lots are in escrow.

Lake Tahoe Foreclosures

Foreclosures in Lake Tahoe have become a popular target for buyers investing in South Lake Tahoe real Estate. Foreclosure listings have become popular with buyers because they are usually priced below the current market value.

The term “Foreclosure” is actually the legal process by which the bank or lender uses to sell the property in order to satisfy the loan balance in the event of a default. In California, this process is most commonly a non-judicial foreclosure.

When a homeowner stops making mortgage payments, a Notice of Default is recorded with the County Recorder. The homeowner then has 90 days to cure the default. If the homeowner does not cure the default, a Notice of Trustees Sale is recorded. The Notice of Trustees sale states that the lender or trustee will sell the property at auction in 21 days.

The Trustee Sale Auction is held as a public auction conducted by the lenders representative. The winning bidder must pay with cash in the full amount of the bid. The lender usually bids in the amount of the balance due plus costs. If no one else bids higher than the lender, the property reverts back to the lender. Once the property reverts back to the lender it becomes an REO.

Why buy an REO?

An REO property is an investment gone bad to a lender, so REO’s represent a loss to the lender. Real Estate holding costs are expensive and will add to the lenders loss. In order to get money loosing assets off of the books, lenders will price REO’s ( foreclosure listings) to sell quickly. Most of the foreclosure listings in South Lake Tahoe are priced below the current market value. Many times the foreclosures are priced low enough to attract multiple offers.

Purchasing a foreclosure that is listed on the South Lake Tahoe MLS is similar to purchasing a property from an individual seller. Buyers can finance foreclosures just as they can finance re-sale and new homes. Buyers will also have an inspection period that ranges from 10 to 17 days to to any property inspections that may be necessary. Delinquent tax and utility liens will be cleared by the seller, and buyers are issued a clear title and title insurance.

Most foreclosures are sold in “As Is Condition” which makes a Home Inspection and a Termite Inspection very important. If problems are found in the inspections that are more costly than anticipated, the buyers can back out and the initial deposit will be refunded, less any inspection expenses. REO property owners are exempt from providing a Transfer Disclosure Statement or a Natural Hazard Disclosure. The seller is exempt from these disclosures because in most cases they have never seen the property and know little about it.

Because Bank Owned Listings in South Lake Tahoe are usually priced below the current market value, they can be a great investment opportunity. If you are interested in speaking more about foreclosures in South Lake Tahoe, please feel free to call me at (530) 416-2625!

South Lake Tahoe Foreclosures

I just had a little inspiration from one of my clients to check out the latest statistics for foreclosure listings in South Lake Tahoe. I had a client that emailed me four bank owned listings that he wanted to see today. While setting up appointments to view these listings I had learned that one of the properties had just gone into escrow, and the other three already had offers on them! Does my client have great taste or what? I thought that I would look into the latest market activity to see the latest foreclosure trends here in Tahoe.

There are 479 residential listings on the South Tahoe MLS (both single family homes and condos). Out of the 479 listings, 62 are bank owned foreclosures. That means that foreclosures account for only 13% of the total current inventory of single family homes listed on the MLS.

Currently 93 of the 479 single family listings are in escrow. Of the 93 properties that are in escrow, 28 are bank owned foreclosures. Although foreclosures only account for 13% of our inventory, they account for 30% of the properties that are in escrow.

In February 2010 there were 103 single family homes that were in escrow on the South Tahoe MLS. Of the 103 properties that were in escrow, 22 were bank owned foreclosures. Foreclosures accounted for only 21% of the properties that were in escrow. Since last year, the number percentage of foreclosure to non foreclosure escrows has increased by 8%.

The banks are pricing foreclosures lower than the other properties that are on the market which is why there is so much interest in foreclosure properties. The average price per square foot of the foreclosures that are listed is $175, the non-foreclosure inventory is at an average of $251 per square foot. The median price of the foreclosures is $214,950 and the median price of the non foreclosures is $315,000.

Although the banks are pricing the foreclosures to sell quickly, most of the properties need some work. Some of the foreclosures are missing appliances, light fixtures, and other hardware. Many of the properties also have damage to the walls, flooring, cabinets, and doors. Some of the banks are now painting, replacing flooring, and replacing missing appliances and light fixtures to make the properties more presentable.

The bottom line is that if you are looking for a good deal on a property in South Lake Tahoe and you are willing to do a bit of work, foreclosures are worth looking into. With all of the recent activity on the foreclosures, you will also need to act quickly when you find a property that you like. The chances are that there will be other buyers interested in the foreclosure as well!

Lake Tahoe Wood Stove Regulations

When purchasing a property in South Lake Tahoe there are some regulations that you are going to want to know about. One of these regulations is the Tahoe Regional Planning Agencies “Wood Heater Retrofit Program”. The TRPA requires that if there is a wood burning stove in a property, it must be certified by the EPA. An EPA certified wood stove has been independently tested by an accredited laboratory to meet a particulate emissions limit of 7.5* grams per hour for noncatalytic wood stoves and 4.1* grams per hour for catalytic wood stoves. Click on the following link for the List of EPA certified Wood Stoves.

If there is a wood stove in the property that is not approved by the EPA then it must be removed prior to the close of escrow. South Y Fireplace has a wide selection of both TRPA approved wood burning and gas stoves to replace a non-compliant stove. South Y Fireplace has TRPA approved wood stoves starting at $1200.

Existing open burning fireplaces are legal if they are not used as the primary heat source.

Below is the TRPA’s Chapter 91.3B regarding Wood Heaters and Air Quality Control.

Wood Heaters:

The sale of wood heaters which do not meet the emission standards of this subsection is prohibited in the Tahoe Region. Wood heaters to be installed, in the Region, either as new or replacement units, shall meet the requirements of this subsection. Coal shall not be used as a fuel source.

(1) Emission Standards: Wood heaters installed in the Region shall meet the following emission standards for total suspended particulates of smoke emissions:

(a) Catalytic wood heaters shall not cause emissions of greater than 5.5 grams per hour. Following July 1, 1990, catalytic wood heaters shall not cause emissions of more than 4.1 grams per hour.

(b) Non-catalytic wood heaters shall not cause emissions of greater than 9.0 grams per hour. Following July 1, 1990, non-catalytic wood heaters shall not cause emissions of more than 7.5 grams per hour.

TRPA Code of Ordinances

CHAPTER 91 – AIR QUALITY CONTROL 91-3

(c) Wood heaters certified to meet the above standards by the U.S. EPA under 40 CFR Part 60 or the Oregon Wood Stove Certification Program, shall be deemed in compliance with the above standards. Pellet fueled wood heaters labeled as exempt from 40 CFR Part 60 shall be deemed in compliance with the above standards.

(2) Limitations: Wood heaters shall be sized appropriately for the space they are designed to serve. Multi-residential projects of five or more units, tourist accommodations, commercial, recreation and public service projects shall be limited to one wood heater per project area.

(3) Wood Heater Retrofit Program: Effective January 1, 1993, prior to any sale, transfer or conveyance of any building, all existing wood heaters in the building, excluding legally existing open fireplaces which are not primary heat sources, shall be in conformance with the emission standards contained in subsection 91.3.B.

(a) Compliance with this section shall be evidenced by a statement of the seller made under penalty of perjury, on a form provided by TRPA, that all existing wood heaters in the building, excluding legally existing open fireplaces which are not primary heat sources, either conform to the emission standards in subsection 91.3.B or have been replaced with conforming units, or that the structure does not contain any existing wood heaters. The statement shall be submitted to TRPA prior to the sale, transfer or conveyance.

(b) A statement of wood heater conformance shall be required for any subsequent sales, transfers or conveyances. The TRPA requires that prior to the sale, transfer, or convayence of a building, the seller must fill out a Wood Heater Statement of Compliance form.

Wood Heater Statement of Compliance

Wood stoves and fireplaces are of particular concern in Lake Tahoe, due to wintertime inversion layers that prevent the smoke from leaving the Basin. These inversion layers trap smoke close to the ground resulting in elevated pollution levels, poor visibility and even contribute to the decline in lake clarity.

Although the smoke from one wood stove or fireplace may seem minor, added together these stoves and fireplaces discharge tons of dangerous particulate matter, carbon monoxide and a family of cancer-causing chemicals known as polycyclic organic matter to the air each year.

For this reason, the TRPA enacted a “Wood Heater Retrofit Program.” This program is similar to those adopted by agencies in such cities as Mammoth Lakes, Telluride, Aspen, Reno, as well as many others across the United States. The TRPA’s program has been in effect since January 1, 1993, and is designed to reduce the amount of smoke and other harmful emissions from older, less efficient wood stoves and fireplaces. The program requires that all existing wood heaters, excluding legally existing open fireplaces, comply with emission standards prior to any sale, transfer, or conveyance of any building. These standards can be found in subsection 91.3.B of the TRPA Code of Ordinances.

Compliance with the program must be evidenced by a statement from the seller made under penalty of perjury. This statement will be made on a form provided by the TRPA. No other forms will be accepted. This form will require the property owner to state either that: (1) the structure does not contain any existing wood heaters or: (2) that all existing wood heaters in the building, excluding legally existing open fireplaces that are not primary heat sources, conform to the applicable emission standards. The statement shall be submitted to TRPA prior to the sale, transfer, or conveyance of any building and a copy provided to the new owner no later than at close of escrow. This statement is required for all subsequent sales, transfers, or conveyance of the property.

The TRPA’s wood stove retrofit forms can be obtained at our office located on 128 Market Street, Stateline, Nevada. For more information on TRPA’s Wood Heater Retrofit Program, please contact TRPA at (775) 588-4547.

When you are looking at homes in South Tahoe, please make sure to ask if the existing wood stove is approved by the TRPA. You will want to know all of the expenses that will involved with purchasing a property in South Lake Tahoe!

South Tahoe Real Estate Statistics for January 2011

There were 38 single family homes (not including condos) that were reported as sold on the South Lake Tahoe MLS during the month of January. There were 36 homes sold in January 2010 and 40 homes that were sold last month (December 2010). The average price per square foot in January was $206, up from only $192 last month.

January Real Estate Statistics

The average price of the sold South Lake Tahoe homes was $350,913, down from $404,998 last month, and very close to the average of $352,676 in January 2010.

The median sales price of the sold South Tahoe homes was $305,500, down from $332,000 last month, and down from $317,250 in January 2010.

The average price per square foot was $207, up from $192 last month, and very close to the price per square foot of $208 in 2010.

There were 16 distress sales in January. 9 of the distress sales were short sales and 7 were bank owned foreclosures. Last month there were 24 distress sales, 17 were bank owned foreclosures, and 6 were short sales.

The average list price to sales price was 99.18% for the homes that were sold within the first 60 days of being listed. Once the listings made it to 61-90 days on the market the average list price to sales price was 95.68%. 91 to 120 days on the market had an average list price to sales price of 91.44%. There were 21 listings that were on the market over 120 days, these listings sold for an average of 93.55% of the listing price.

There were only 4 condos in South Lake Tahoe that were sold on the South Lake Tahoe MLS. The average sales price was $238,025 and the median sales price was $211,000.

There was only one vacant lot that was sold in January. The lot that sold was a very nice 12,853 square foot lot on Grizzly Mountain which sold for $140,000.

Huge Upper Kingsbury Price Reduction!

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Reduced $50,000 to $449,000!!!

Located in Upper Kingsbury on the Nevada side of Lake Tahoe, this recently remodeled home offers three+ bedrooms, three baths, a mother-in-law unit, and beautiful private sauna. This charming “Tahoe-style” cabin has three floors built into the mountain-side with plenty of windows, sunshine, and secluded forest and mountain views.

Though the feeling is very “mountain retreat”, this cabin offers all the comforts you’d want in a home. The great room featuresa stone fireplace (gas), Italian tile, a large bump-out window, front and back ipe decks, and coffered pine ceilings with covered beams. A pine kitchen carries on the theme. The renovated guest bath includes a claw-foot tub, vessel sink and antique-style vanity. The top floor features a recently renovated bathroom with custom shower and full sauna; three bedrooms including a master with gorgeous views, private deck, and gas fireplace. The optional fourth bedroom/extra room is located by catwalk over the garage and is very private. The walk-out basement is designed as a mother-in-law unit with café themed slate wet bar, sun room, and third bathroom. French doors and slate entry open out to the driveway.

This newly listed mountain retreat places you about three minutes from Heavenly’s Stagecoach and Boulder ski lifts, and five to ten minutes from major casinos, the Marriott resort and shops, and crystal clear Lake Tahoe beaches. Whether you are looking for casino shows and night life, outdoor sporting activities, or a quiet mountain retreat, Tahoe is the perfect vacation spot.

3+ bedrooms, 3 bathrooms, 2 car garage
2870 Square feet
Recently remodeled
2 fireplaces
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