If you are wondering how buying homes for sale in South Lake Tahoe is different this year compared to years past, you will want to continue reading. Especially if you are looking for your own piece of South Lake Tahoe real estate this year! No matter the who, what, where and when-buying real estate in South Lake Tahoe, or anywhere for that matter, is no small task. Especially because the rules keep changing. And changing. And changing. This is why working with a qualified South Lake Tahoe realtor is crucial. Not only do they know the local market and can guide you accordingly, but they know about the changes before they even happen. These changes impact both buyers and sellers, which can change the process for both parties. So thinking that you can just waltz in to 2018 and snag a piece of South Lake Tahoe real estate for yourself? You can, but Toto-we are not in 2017 anymore!
1. Understand how the new tax codes impact you
Let’s tackle the pink elephant in the room first: the new tax code. This tax reform has stirred things up quite a bit. A lot of folks and industry professionals are concerned that this change could make homeownership unavailable for a lot of Americans. While this is a multi faceted issue, it should’t deter you from looking at homes for sale in South Lake Tahoe and becoming a homeowner. After all, owning is still financially better than renting. In a nutshell, home owners can deduct mortgage interest on loans up to $750,000 which is down from $1,000,000. This is expected to impact the pricey markets most. Unfortunately, California falls under that category. The median list price is $270,000 for the United States. South Lake Tahoe real estate on the other hand is almost double that for our average sold price! So while only 1.3% of new mortgages are expected to be affected, second home resort markets like Lake Tahoe *could* take a hit. Once again, a mortgage interest deduction should not be your main motivation for becoming a home owner. However, be sure to talk with your South Lake Tahoe realtor about this.
2. Prepare for stiff competition
We are bringing a piece of 2017 into 2018 and are starting off the year with record low inventory. And all cash buyers. A year ago, 23% of buyers were bringing cash to the table-and not just list price either. A lot of folks won in a multiple bid situation due to an over list offer with all cash. If you have been searching for homes for sale in South Lake Tahoe, those two combos may sound like a nightmare. It also isn’t expected to get better. This gives buyers an edge as they don’t have to deal with financing (and any issues that could occur with the loan) which sellers love. Don’t despair if you can’t fork over cash, let alone extra cash. There are some things you can do. First, get pre approved. This puts you on a fast track. Plus you know your budget, which helps you stay focused on South Lake Tahoe homes for sale that you can actually afford. Once you found real estate in South Lake Tahoe that you want, chat with your South Lake Tahoe realtor about any details pertaining to the seller that you can work into the offer. Do they have a strict timeline? Do they want to rent back? Is this a one owner home that wants their property going to a growing family that will make similar memories? Get as many details as possible and then be flexible. If you are willing to work with them and you have a loan secured, your offer could take the top of the list.
3. Don’t believe everything you see
Most buyers are searching for South Lake Tahoe homes for sale online. And nowadays it is so easy. From broker websites to Zillow to Redfin, it is pretty easy to peruse listings all over the world from the comfort of your phone. Just don’t believe everything is as it seems. In 2017, hackers were out in full force sending emails that looked like an email from a realtor or title company. How much money did these folks attempt to divert just last year? Almost 1 billion dollars! If something seems hanky, pick up the phone and call. A good realtor in South Lake Tahoe will be more than happy to discuss details with you. Beware of red flags like super urgent offers listing a home at a low price for one day only or anything that requests your social security or banking information. Also, while a South Lake Tahoe Realtor is backed by a specific code of ethics, not every South Lake Tahoe real estate professional operates the same. If the person you have been working with seems to be operating in a way that makes you feel uncomfortable, don’t ignore your gut. Buying real estate in South Lake Tahoe is a big investment. You should feel good about it!
4. Consider a home that needs some TLC
It is no surprise that there is more competition for move in ready, renovated South Lake Tahoe real estate with all the bells and whistles. However, spending less than your loan and making upgrades usually is less than the price of completely remodeled homes for sale in South Lake Tahoe. If you have the time and patience to make this happen, consider it if you are serious about purchasing real estate in South Lake Tahoe this year. Just keep an eye out for homes that need cosmetic renovations. Foundation or structural issues are not worth it if your budget is tight.
For more information, give me a call. I would be happy to help!
