The weather is heating up and so is the Lake Tahoe real estate market!
First quarter numbers are almost in and with them may come the conclusion that prices have only a little further down to go before we see stabilization.
While we certainly can’t predict the future, we can look at the data and see that prices are not moving much lately. With incredibly low interest rates and creative FHA loans that offer Buyers the opportunity to come in with as low as 3.5% down, properties are moving off the market almost as quickly as they are coming on the market, especially under $300,000 and when priced at market value.
Multiple offer situations are becoming increasingly popular among those homes that are more aggressively priced. Buyers wanting to get in on the very best deals should be prepared to compete. If you find yourself in a competing offer situation, here are some tips you may want to consider in order to give yourself the best shot at getting your offer accepted…
- Get pre-approved by a lender so that you know what you qualify for, be sure to ask your lender to provide you with an estimate of what your closing costs will be so that there are fewer surprises when it comes time to close escrow. Knowing how much money you will need to bring to the table is critical in knowing what you can realistically afford.
- Copy of your pre-approval letter on hand and have your agent submit it with your offer so that the Seller can see you are already qualified to buy their property.
- Copy of your proof of funds – be able to show where your down-payment money and closing costs are coming from, i.e. a bank statement, letter from your bank verifying available funds, etc. and provide this along with your pre-approval letter.
- Copy of your deposit/earnest money check – typically one percet of the offer price, i.e. an offer of $300,000, your deposit amount should be around $3,000.
- In the offer, be willing to offer to increase your deposit once you remove all of your contingency as extra good faith to the seller.
- Have a reasonable escrow time, if you are paying cash, offer to do a 30 day escrow. If you are getting a loan to purchase, realistically the shortest escrow time would be 45 days.
- Offer a shorter investigation period. Standard purchase agreements (Offers) usually suggest 17 days, be willing to complete investigations/inspections in 10-12 days.
As always, please feel free to contact Mackenzie with your individual/specific questions regarding your South Lake Tahoe home!