Tahoe Keys Homes
With spring brings warm weather, green grass, curb appeal and the opportunity for Buyers to see homes at their best!
With spring in full swing and summer right around the corner, many South Lake Tahoe home owners recognize these warmer seasons as being the best time to sell their Tahoe homes and will be putting their properties on the market. From a marketing standpoint, summer is an especially great time for those home owners in the Tahoe Keys to list and sell their home because the summer season exemplifies the true “Wow” factors of the Tahoe Keys lifestyle and it’s not hard for Buyers to see why having a home in the Tahoe Keys is a one of a kind experience…
The Tahoe Keys neighborhood is in a class by itself being that it is the only area in South Lake Tahoe where you can own a family size waterfront home with exclusive amenities not offered in other areas. Amenities include:
- Tennis Courts
- Indoor Pool
- Outdoor Pool
- Hot Tubs
- Basketball Courts
- Beach Volleyball
- Private Beach
- Security
- Walking Trails
With sails raised high and open-bow ski-boats running about the lagoons, the Tahoe Keys is a one of a kind neighborhood where families live on their decks, patios, and docks overlooking green yards and blue lagoons….I can’t think of a more opportune time for a Tahoe Keys home owner to sell their property!
Short Sales vs. Foreclosure
According to market analysts, short sales and foreclosures are long from being out of the real estate market. Many claim that shadow inventory is still in the millions and this does not include those homeowners who are still trying to hang on to their homes or face the big decision of whether it’s best to try and short sale or foreclose.
There’s a great deal of conflicting information when it comes to which affects credit more. Some financial experts claim that the difference between a home owner short selling or foreclosing is essentially the difference between being hit by a train or a bus, while others argue that short sales affect credit less and recovery time is shorter.
In an article featured on About.com, Fair Isaac released a report that says credit scores are affected about the same, whether a seller does a short sale or foreclosure. Fair Issac says the average points lost on a FICO score are as follows:
- 30 days late: 40 to 110 points
- 90 days late: 70 to 135 points
- Foreclosure, short sale or deed-in-lieu: 85 to 160
- Bankruptcy: 130 to 240
David Steep of Vitek Mortgage maintains that the effect of a short sale (providing the sellers are more than 59 days late) on a seller’s credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale seller with a previous FICO of 720 could see it fall from 520 to 420.
It seems that not enough time has allowed for data to be analyzed long term to see any consistencies in which has the greater impact on credit scores. Perhaps in the next few years, analysts will be able to give us more concrete numbers in determining what route is better given the choice. In the meantime, lets hope that more programs are developed to help homeowners hang on to their homes so that less home owners are faced with this decision!
Whether you are planning to buy or sell a home in South Lake Tahoe, as part of the South Lake Tahoe Real Estate Group (SoTahoe.com) and Century 21 at Tahoe Paradise, Mackenzie has a great deal of experience and resources to help you with both short sales and foreclosures.
For additional information on short sales and foreclosures, please check back in the coming days ahead.
As always, please feel free to contact Mackenzie with your individual/specific questions regarding your Lake Tahoe home!
Search ALL Lake Tahoe Homes by visiting www.MakeTahoeMine.com or Google … “Make Tahoe Mine”
HAFA Short Sales
C.A.R.’s Member Legal Services has published a revised legal article entitled “HAFA Short Sales Fact Sheet” (April 11, 2011). It is available on www.car.org on “What’s New,” the Legal Articles pages, and the 2011 Q&As page.
http://www.car.org/legal/foreclosure-short-sale-folder/hafa-short-sales/
HAFA is a government-subsidized Home Affordable Foreclosure Alternatives program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. This chart has been revised to reflect the recent changes to the HAFA program. Citation links have been added to the chart.
In addition, the “HAFA Short Sale Time Periods” has been added as a new chart highlighting all of the relevant time periods for actions taken by the lender/servicer or borrower.
http://www.car.org/legal/foreclosure-short-sale-folder/hafa-short-sale-time-periods/
For more information : Click here and/or please contact Mackenzie Martin: 530-318-3099 / mackenzie@MakeTahoeMine.com
*Information Courtesy of The South Tahoe Association of REALTORS Staff
As always, please feel free to contact Mackenzie with your individual/specific questions regarding your South Lake Tahoe home!
Search ALL Lake Tahoe Homes by visiting www.MakeTahoeMine.com or Google … “Make Tahoe Mine”
Seller Financing
In recent months I have had a few of my clients, both Buyers and sellers propose the idea of “Seller Financing”. In those discussions it became clear to me that both Buyers and Sellers have not thought this idea through all the way. While it may seem like a win-win scenario, there are risks involved.
If you’ve been considering Seller financing, you may want to keep in mind the following as discussed in a recent article by Tara Nelson, Trulia.com contributor…
- Most sellers who have a mortgage they obtained in the last 10 years or so also have a due on sale clause which requires them to pay it off when they sell the property. Financing the sale themselves, vs. requiring the buyer to obtain mortgage or other financing to pay for the property, prevents them from having the cash to pay their mortgage off, as required. And the vast majority of those who don’t have a mortgage of recent vintage need the proceeds from the sale of their homes to buy their next home or invest in their next property.
- What’s more, even the few sellers who don’t need the cash often don’t want to take on the long-term risk and hassle involved with having to collect payments from a buyer for 10, 15, or 30 years. The sellers who can and will agree to seller financing usually want a premium price and interest rate for it – and the smart ones will require some type of credit check and a deeper down payment than a traditional lender.
- And finally, seller financing, as sweet as it sounds, poses risks for buyers, too. If the seller keeps a bank mortgage on the property and fails to make the payment, the seller-financed buyer could end up losing the home they’ve paid for to foreclosure. Best targets for seller-financing are investor sellers who are looking to avoid capital gains, and best practice is to get a local real estate attorney involved in drafting and recording the transfer and financing documentation.
As always, please feel free to contact Mackenzie with your individual/specific questions regarding your South Lake Tahoe home!
Search ALL Lake Tahoe Homes by visiting www.MakeTahoeMine.com or Google … “Make Tahoe Mine”
Mistakes to Avoid When Trying to Sell Your Home
If you are thinking of putting your home on the market, here are six valuable tips from Tara-Nicholle Nelson, Consumer Educator for Trulia.com and Reader’s Digest
1. Stalker-ish sellers. You might think you’re being helpful by following the buyer through your home and pointing out your favorite features. However, the buyers might be trying really hard to ignore, minimize, or figure out how to undo the very features of your home you hold dear. They also may want or need to have personal space and conversations with their mate or their agent while they’re viewing your home.
What’s a seller to do? Back off. Let your home be shown vacant, or leave the house when people come to see it. If the buyers have questions, their people will contact your people.
2. Shabby, dirty, crowded and/or smelly houses. You already know this one. Yet, buyers constantly marvel at the state of disrepair and disorder some homes are in when they are shown.
What’s a seller to do? Other than listing your home at a competitive price, the only tool within your control for differentiating your home from all the foreclosures and short sales is to show it in tip-top shape. Pre-pack your place up, getting rid of as many of your personal effects as possible. Do not show it without it being completely spic-and-span.
3. Irrational seller expectations. Buying a house on today’s market is hard work! With so many homes on the market, the last thing buyers want or need to add to their task lists is trying to argue a seller out of unreasonable expectations or pricing. When they see a home whose seller is clearly clueless about their home’s value and has priced it sky-high, most often they won’t bother even looking at it.
What’s a seller to do? Get real. Get out there and look at the other properties that are for sale in your area and price range. Get multiple agents’ take on what your home should be listed at, and don’t take it personally if their recommendation is low. Don’t be tempted into testing your market with an obviously too-high price, unless you’re prepared to have your home lag on the market and get lowball offers.
4. Feeling misled. You will never trick someone into buying your home. If the listing pictures are photo-edited, or your neighborhood is described as funky and vibrant, as code for the fact that your house is under the train tracks, buyers will figure this out.
What’s a seller to do? Buyers rely on sellers to be upfront and honest – so be both. If your home has features or aspects that are often perceived negatively, your home’s listing probably shouldn’t lead with them. But don’t go out of your way to slant, skew, or spin the facts which will be obvious to anyone who visits your home.
5. New, ugly home improvements. New home improvements that run totally counter to a buyer’s aesthetics are a big turn-off, because in today’s era of “conspicuous frugality,” buyers just can’t cotton to ripping out expensive, brand new, perfectly functioning things just on the basis of style – especially since they’ll feel like they paid for these things in the price of the home.
What’s a seller to do?Check in with a local broker or agent before you make a big investment in a pre-sale remodel. They can give you a reality check about the likely return on your investment, and help you prioritize about which projects to do (or not).
6. Crazy listing photos (or no photos at all). I’ve seen listing photos featuring dumpsters, piles of laundry, and once, even the family dog doing his or her business in the lovely front yard. Listing pictures that put your home in anything but its best, accurate light are a very quick way to ensure that you turn off a huge number of buyers from even coming to see your house! The only bigger buyer turn-off than these bizarre listing pictures are listings that have no photos at all.
What’s a seller to do? Check your home’s listing online and make sure that the photos represent your home well. If not, ask your agent to grab some new shots and get them online, stat!
As always, please feel free to contact Mackenzie with your individual/specific questions regarding your South Lake Tahoe home!
Search ALL Lake Tahoe Homes by visiting www.MakeTahoeMine.com or Google … “Make Tahoe Mine”
