Foreclosures in South Lake Tahoe

Al Tahoe

Al Tahoe is one of South Lake Tahoes Oldest and most historic neighborhoods. Al Tahoe is also one of South Lake Tahoes most diverse neighborhoods. Houses in Al Tahoe range from small original cabins built in the early 1900’s, to multi-million dollar lake front homes. There are also duplexes, triplexes, and small apartment buildings scattered throughout the area.

Al Tahoe is located in the center of South Lake Tahoe between Regan City Beach and Highway 50. Regan Beach is just a short walk from many of the Al Tahoe homes. Other Lake Tahoe Activities close to the Al Tahoe area include Heavenly Valley Ski Resort, the Casinos, and the El Dorado Beach Recreation Area/boat ramp. Due to Al Tahoe’s convenient location, it is a great area for either a vacation home or a primary home.

Most of the houses in the Al Tahoe area are built on 5,000 square foot lots, but there are some homes on larger double lots. Lakeview Ave. is on the north edge of Al Tahoe and paralells the Lake. Lakeview Ave is where the lakefront and lakeview homes are located. Bellevue Ave and El Dorado Ave boarder the south and west side of Al Tahoe, and overlook the Truckee Marsh Meadow and Trout Creek. Many of the houses overlooking the meadow have great mountain and meadow views. The majority of the houses in Al Tahoe are not on the lake or the meadow, and most likely back to another house or property.

January South Lake Tahoe Real Estate Review

The lack of new snow in January was not good for the ski resorts or the lake level, but the warm weather seemed to bring out the South Lake Tahoe home buyers. South Tahoe home buyers were out in force last month opening up 35 new single family home escrows. The savvy home buyers were not out just buying anything though, out of the 35 new single family escrows, 17 were foreclosures, 2 were short sales, and the rest were re-sale homes.

Here are the January statistics from the South Lake Tahoe MLS for the new escrows:

There were 35 houses for sale in South Lake Tahoe that went into escrow.
17 of the houses were bank owned foreclosures (51%)
2 of the houses were short sales
Average list price $393,414
Median list price $314,975
Average days on market 126
Median days on market 67
Average square feet 1678
Median square feet 1536

There is such a big statistical difference between the foreclosures in South Lake Tahoe and the non-foreclosure homes that I separated them into two different categories for comparison. The comparison between foreclosures and homes non-foreclosures for the new January escrows is as follows:

The average list price for the foreclosures was $295,434 (41% less than non-foreclosure homes which had an average list price of $499,832.)
The median list price for the foreclosures was $279,000 (35% less than non-foreclosure homes which had a median list price of $429,000.)
The average days on market for the foreclosures was 55 (72% less than non-foreclosure homes which had an average days on market of 196.)
The median days on market for the foreclosures was 40 (77% less than non-foreclosure homes which had a median days on market of 177.)
The average price per square foot for the foreclosures was $194 (31% less than non-foreclosure homes which had an average price per square foot of $281.)

As you can see, the foreclosure sales were much quicker, and the prices were much lower than the non-foreclosures. The average size of the foreclosures was less than the non-foreclosures and the price per square foot was 31% less than the non-foreclosures.

There were only 16 single family homes that closed escrow (sold) in January. That is down from 26 sold houses in December 2008, and 26 sold houses in January 2007.

The January sold single family home statistics from the South Lake Tahoe MLS are as follows:

16 closed escrows
7 of the houses were foreclosures (56%)
Average list price/selling price $353,768/$329,142 (93%)
Median list price/ selling price $310,500/ $296,500 (95%)
Average square feet was 1345 sf.
Median square feet was 1254 sf.
Average days on market was 108 days
Median days on market was 94 days

Current escrows and recent sales in the South Lake Tahoe Real Estate market are still being dominated by foreclosures. Foreclosures only account for about 8% (37 out of 439) of the houses for sale in South Lake Tahoe, but account for over 50% of the escrows and sales. South Tahoe home buyers are looking for good deals, and are finding them on foreclosures. Short sales are also getting more activity. With lenders beginning to negotiate more with short sale transactions, I expect to see more short sale listings and closings in the future.

The statistics for this blog were taken from the South Lake Tahoe mls. South Lake Tahoe Real Estate agent Brent Johnson wrote this post on Super Bowl Sunday! For more information regarding foreclosures for sale in South lake Tahoe, the South Lake Tahoe mls, or South Lake Tahoe Real Estate contact Brent and Jill Johnson for an appointment today!

Sierra Tract

The Sierra Tract area offers buyers some of the most affordable homes for sale in South Lake Tahoe. Houses in the Sierra Tract are now priced in the upper $100,000’s for a small cabin or a foreclosure, up to the $500,000’s for a new home.

The Sierra Tract is located in the center of South Lake Tahoe between the Truckee River and Trout Creek Meadows. The streets that boarder the meadows have great mountain views,

meadow views, and can back National Forest Land. Most of the houses in the Sierra Tract are situated on 5,000 square foot lots in a “block” style subdivision, and back up to another home.

Weather you are a first time home buyer, or you are looking for an entry level area to invest in South Lake Tahoe Real Estate, the Sierra Tract is the perfect area. The Sierra Tract has easy access from both Highway 50 and Pioneer Trail which means that you will have no trouble getting to Heavenly Valley, the casinos, or the sandy beaches of Lake Tahoe.

The Sierra Tract also has multi-family properties along with single family homes. There are a few apartment style buildings along Sierra Blvd., and there are also some duplexes scattered around the area.

Foreclosures in South Lake Tahoe are Keeping the Real Estate Market Alive

Currently there are 279 single family homes in the city and county areas of the South Lake Tahoe MLS. Out of the 279 houses on the market, 36 of them are in escrow (about 13%). 39 of the houses on the market are foreclosures which accounts for 14% of the market share.

Why do I think that foreclosures are keeping the South Lake Tahoe real estate market alive? Out of the 36 houses that are currently in escrow, 17 of them are foreclosures. That means that 47% of our current escrows are foreclosures, which is a lot considering that only 14% of our total single family inventory is foreclosures! That means that only 8% of the total non-foreclosure inventory is in escrow, and 44% of the total foreclosure inventory is in escrow!

Lets compare the foreclosures and non-foreclosures currently on the market.

The average list price for foreclosures is $325,084, 56% less than the average list price of non-foreclosures which is $751,935.
The median list price for foreclosures is $297,000, 46% less than the median list price of non-foreclosures which is $555,000.
The average square footage for foreclosures is 1560 sf., 23% less than the average square footage of non-foreclosures which is 2,028 sf.
The median square footage for foreclosures is 1464 sf., 23% less than the median square footage of non-foreclosures which is 1902 sf.

Here is a comparison between the foreclosures and non foreclosures that are currently in escrow.

Out of the 36 current escrows, 17 are foreclosures.
The average list price of the foreclosures in escrow is $339,624, 32% less than non-foreclosures which is $492,829.
The median list price of the foreclosures in escrow is $290,000, 25% less than non-foreclosures which is $389,900.
The average square footage of the foreclosures in escrow is 1708 sf., 6% less than non-foreclosures which have an average square footage of 1822 sf.
The median square footage of the foreclosures in escrow is 1536 sf., 5% less than non-foreclosures which have a median square footage of 1616 sf.
The average days on market for the foreclosures in escrow is 72, 46% less than non-foreclosures that have an average days on market of 133.
The median days on market for the foreclosures in escrow is 64, 54% less than non-foreclosures that have a median days on market of 140.

If you take away the foreclosures in South Lake Tahoe, we would have only 19 single family escrows, which is why I think that the foreclosures are keeping the South Lake Tahoe Real Estate market alive!

Click here to view a current list of foreclosures in South Lake Tahoe. For more information about real estate in South Lake Tahoe please contact Brent and Jill Johnson today!

South Lake Tahoe Homes Foreclosure Auctions

If you are thinking about purchasing a property at a lender foreclosure home auction, make sure that you read the fine print!

I recently received a phone call from a gentleman from the Bay Area who was very excited about a foreclosure in South Lake Tahoe that was going to auction on January 31. The bank owned house was located at 1031 Bowers Ave. I knew about this house because it is currently listed on the South Lake Tahoe MLS. He was planning on going to the auction in Sacramento and bidding on the home sight unseen! He had asked me if I knew anything about the house and, If I could go take a look at it for him. I had to explain to this person that he would need to hire a licensed home inspector to give him detailed information about the condition of the home. I don’t think that he was willing to spend the effort or the money to do the proper investigation that a home buyer really should do. He told me that the auction company had printed on the auction booklet that the house on Bowers was worth $507,000 and that the starting bid was going to be $159,000!

After hearing the starting bid price for the foreclosure, I figured that I had better take a closer look at the house. I started with the MLS information. 1031 Bowers is a 5 bedroom, 4 bathroom, 1 car garage home in the Bijou area currently priced at $399,000. The auction company said it was previously valued at $507,000? What they mean by “previously valued to” is HIGHER of one of the following:

a) The appraised value of the property in connection with the most recent mortgage on the property. How far back do they go?

b) The most recent asking price, OR

c) The most recent broker price opinion.

Ok, so you may be thinking that $159,000 is still a steal compared to $399,900. Maby it is? Lets look at some statistics. The average days on market for a foreclosure in South Lake Tahoe is 86 days. Bowers has been on the market already for 130 days! Why? Because of the property condition. To the average person the house may look OK. I am also a general contractor so I look a little deeper. The first thing that I noticed is that the house has an old shake roof that needs replacing. Replacing a roof on a 2416 square foot homecould cost over $20,000. The next problem is that the house does not have a foundation! Adding a foundation under a house that size could cost over $50,000! The other problem with a house without a foundation is financing. The auction company may finance the house, but if you want to sell it in the future, you would probably have to find an all cash buyer that is willing to buy a house with no foundation. Good luck! Maby there is a reason that this house did not sell on the MLS, and now must be sold at auction!

Still thinking it is a great deal? Here are some more disclosures about purchasing a home at a lender foreclosure auction that you need to take into consideration.

“Buyers Premium” -Most lender foreclosure home auctions add on a 5% buyers premium to the winning bid price. If the winning bid is $300,000, you really pay $315,000.
Closing costs- Winning bidders are responsible for paying all closing costs including closing/escrow fees, title fees, loan fees, doc fees, transfer tax, and HOA fees.
Financing- No financing contingencies shall be applicable to any properties in the auction.
“As Is And With All Faults”-All auction properties are sold in “As Is” condition.
Property Inspections- All property inspections are to be preformed prior to the auction. The auction company recommends that you have a licenced home inspector inspect the property. This could get expensive if you are planning to bid on multiple properties.
Contingencies- No sale will be contingent upon inspection of the property after the auction and no properties will be open for inspection or access after the auction until escrow has closed.

What about selection?

In this particular auction there are plenty of houses available in Las Vegas, Henderson, and Reno. but 1081 Bowers is the ONLY available house for sale in South Lake Tahoe!

By the time you add up all of the repair costs, closing costs, and hassles of buying a foreclosure at an auction, it may not be worth it!

For more information about houses for sale in South Lake Tahoe, foreclosures on the South Lake Tahoe MLS, or any Lake Tahoe Real Estate, contact Brent and Jill Johnson today!

Lake Tahoe Real Estate Buyers, How is Your Credit?

Now is the perfect time for all of the South Lake Tahoe home buyers that are still on the fence to make sure that their credit is ready for the big day. There is nothing more disappointing than finding a great deal on the perfect home, and finding out that you can’t qualify for a loan because of bad credit.

The first step is to get a copy of your credit reports. You can get a free copy once a year if you go to www.annualcreditreport.com . If you have already received your free credit report in the last 12 months, you can purchase a copy from www.myfico.com . The cost is about $16 for a report from one credit bureau or $48 for all three.

Once you have a copy of your credit reports, look at them very carefully for mistakes. Make sure that your name and address is correct (this will not affect your credit score, but is still important). Make sure that loans and accounts that have been paid off or closed show a zero balance. Make sure that there are no accounts on your reports that do NOT belong to you. If you do find something wrong with your report, you will need to file a dispute with each credit bureau that has the incorrect information. This may take a while, but it will be worth the time and effort when it comes time to apply for a loan.

Here are some tips for raising your credit scores:

Keep credit card balances below 30% of their limits
Make sure payments are on time, and pay at least the minimum payments on all accounts.
Avoid signing up for new credit cards, especially at stores just to receive the 10% off your first purchase. All credit inquires will lower your score.
Job stability- a long term job of a year or more will help your score
For more tips go to myfico.com

You would be surprised how ofter mistakes on credit reports happen. I was caught off guard when I checked my score. I had been sent to collection for a $28 medical bill that had been sent to my physical address. I recieve my mail at a P.O. box, so I had never received the bill. My credit score had gone down by about 80 points. I had to file a dispute, write letters, deal with the collection agency, hospital, and the credit bureaus. I finally had the issue resolved and it was well worth the hassle.

Once you have a good credit score you can be confident that you will be able to obtain a loan with a good interest rate. When you are ready to start looking at homes for sale in South Lake Tahoe, make sure that you sign up for new listing notification on my website. The new listing notification will allow you to choose your search criteria and have new listings e-mailed to you as they are entered onto the South Lake Tahoe MLS. Another great tool is my current list of foreclosures for sale in South Lake Tahoe blog post. I update this post daily and have all of the foreclosures on the South Lake Tahoe MLS, foreclosure price reductions, and foreclosures that are in escrow.

For more information about foreclosures in South Lake Tahoe, the South Lake Tahoe MLS, or South Lake Tahoe Real Estate contact Brent and Jill Johnson today!