 |
|
 |
| |
Dickson
Realty
188 Hwy 50
Zephyr Cove, NV 89448
| Direct: |
775.588.9022
530.544.9022 |
| Fax: |
775.588.6062 |
| Toll
Free: |
800.923.9022 |
|
 |
 |
| |
|
| |
|
|
|
|
FREQUENTLY
ASKED QUESTIONS BY BUYERS
The list below contains questions we sometimes hear
from Buyers. If you have a question that is not answered here,
please click on the question mark at the bottom of this page
and ask us. We’ll respond to you immediately and put your
question on this page to help others as well. |
|
 |
|
1.
When is the best time to buy?
Generally the best time to buy anything is when
there is a lot of supply and little demand. Buying
a house in Lake Tahoe, however, does not always
present such an optimal market condition. Our resort
market is characterized by a few different realities:
sometimes there is supply, sometimes there is not.
Usually supply, or the lack thereof, is specific
to a market segment or a particular price range.
On the Nevada side of the south Lake Tahoe shore
market, there is almost
always very little supply of market entry homes.
These are homes priced in the $500’s and $600’s.
If the home you are looking for falls into this
range and you find one that you really like, and
the house has just come on the market, make an offer
at or near full price on it immediately. The same
is a valid purchasing strategy if you find an entry
level home in the South Lake Tahoe, CA market, for
homes priced between the $200’s (very few)
and $400’s.
If this house has been on the market for some time,
it is likely dated and / or a bit overpriced. If
it is in decent condition and it works for you,
you may consider an offer of about 90%+ of the listing
price. Homes in the south shore market of Nevada
in 2005 sold for an average of 93% to 94.7% of listing
price.
The mid and upper market segments in both South
Lake Tahoe, CA and the south shore of Nevada generally
offer more supply. You may wish to check the absorption
rates and the inventory in our Real
Estate Market Ticker™ for more information
about the price range that’s right for you.
If there is little inventory, again you should consider
making an offer right away on a home that you really
want to own, especially if it is particularly nice,
unique and has just come on the market. We would
advise you to consider making an offer with a tighter
price strategy for a home that has been on the market
for a while.
We will carefully counsel you in the process and
make sure of two distinct things: you won’t
miss a thing and you will not pay too much. |
|
 |
|
2. When will prices come down?
We have rarely seen overall prices come down in
our resort market. This is not to say that listings
do not have price reductions, especially those that
are obviously overpriced. A seller who has to sell
for one reason or the other may also reduce a listing
price to gain an edge against competition (supply).
These are examples of a particular listing being
reduced to sell, not an overall, across the board
price reduction.
People we met in 2002 who really wanted to buy but
did not came back to us in 2003 to say they wish
they had. This has happened every year since. When
planning the best time to buy into the Lake Tahoe
resort area, please consider this: the market doesn’t
come down, sometimes it levels a bit, and sometimes
it rises faster than any of us can imagine. Right
now, in 2006, it’s the most level we have
seen in four years... but prices across the board
remain for the most part remarkably steady.
Please remember this as it relates to buying in
the south shore of Nevada: there are only about
2,700 single family homes and only about 1,000 town
homes and condominiums here. And, new construction
is severely restricted and is not a factor of supply.
South Lake Tahoe, CA has about 13,000 single family
homes which from time to time offers more choice
and a somewhat lower price point. |
|
 |
|
3.
Will vacation rental income pay for my mortgage?
Almost always the answer is “No.” An
effectively rented vacation home will produce some
income and will help with your mortgage, but it
is very rare for a vacation rental to balance a
mortgage payment. Please check Vacation
Rentals for more information about what to consider
in purchasing a vacation rental home. |
|
 |
|
4. All I want is a small cabin in the woods!
Naturally this is a request we hear often. From
time to time a small cabin in the woods does come
on the market... but it is very rare. Mostly when
a cabin comes on the market, it is located in certain
select, older neighborhoods. These cabins can be
the classic, Lake-Tahoe style cabins that some people
have in their mind. The classic Tahoe cabin has
been here for some time, some since the ‘20’s
and ‘30’s. Some are in original condition,
some have been updated, the best of which offer
modern amenities without loss of their classic Lake
Tahoe charm.
What many people really mean when they ask for a
small cabin in the woods, we have found out over
many times, is that they are really talking about
price. A small cabin in the woods does not mean
less money. Cabins are in high demand, and as such
are affected by our normal resort market conditions.
Most cabins that come on the market are not necessarily
secluded. Most have visible neighbors nearby. Some
are set on large lots under towering pines. Some
are quite close to the Lake, others are tucked into
desirable, wooded, mountainside neighborhoods. If
a cabin does come up on the South Lake Tahoe, CA
market, it will most often be found the Al Tahoe,
Sierra Tract, Gardner Mountain and Bijou neighborhoods.
If a cabin comes up on the south shore Nevada market,
which is much
more rare, it will most often appear in Zephyr Cove.
If you want a cabin and we find one that is right
for you and your family, we will almost always recommend
that you make an offer on it immediately. They do
not last long. |
|
 |
|
5. What if I buy a lot and build on it?
As you may know there are severe growth restrictions
all around the Lake
Tahoe basin. For the most part there is no growth
to speak of. Any lot that is available in the basin
is subject to the Tahoe Regional Planning Agency.
Please be aware any lot you may find will have some
restrictions. This could be “coverage”
issues and / or building permit (allocation) issues.
Not all lots will be buildable right away. There
can be a be waiting period of 2 to 7 years to acquire
an allocation to build.
To build quicker, sometimes one can purchase an
allocation that has already been granted to another
lot and transfer it to yours. A transferable allocation
can cost as much as 100,000 dollars, just for the permit to build.
It is possible to buy land and build on it, but
you need to know that it is a very detailed and
often tedious process. Anyone interested in buying
land needs to be completely aware and up to date
with TRPA policy. |
|
 |
|
6.
What is TRPA?
The Tahoe Regional Planning Agency (TRPA) is charged
with protecting Lake Tahoe as a national treasure
for the benefit of current and future generations.
Their vision is to have a lake and environment that
is clean, healthy and sustainable for the community
and future generations. |
|
| |
|
7.
What are my taxes & how are they assessed?
We address this topic in detail in our tax
information page located within the Area
Info section of our website. |
|
 |
|
8.
What is the average reduction off the listing price?
In 2005 the average reduction off list price in
California was between 5.3% & 7%, and 12.3%
in our highest end NV neighborhood, Glenbrook. |
|
| |
|
9.
What percentage of the listing price should I offer?
The best offering price is normally specific to
the property. If it’s anywhere near market
entry in either NV or CA, and it has just come on
the market, it’s a good idea to offer full
price, or as close to it as possible. If the home
has been on the market for some time, or is at the
high end of the market, we will counsel you with
a strategy to consider... that is supported by detailed
documentation. Please see “How
to Buy In Lake Tahoe” here in (under “Buyers”). |
|
|
|
|
|
|
