Challenges of Selling an Older Home in this Marketplace
May 5, 2009
This is definitely a challenge and one very close to my heart today having two listing in an area of a large inventory of new or newer homes, “How can I sell my two listings that are both 20+ years old against all this competition? “ Yes, they are in Tahoe Donner, which is one of the most popular areas in the North Lake Tahoe region. It is the first exit off of I-80 to Truckee, has all the amenities that anyone could desire including a downhill and cross country skiing for the winter and a private beach with boat launch and picnic area at Donner Lake in the summer. This plus equestrian facilities, fine food dining, a sports center, eleven tennis courts, golf, trails for hiking, biking and many a fun party, Tahoe Donner offers it all.
In Tahoe Donner there are over 140 homes on the market each month with 7%-10% selling. So how do you promote your older home listing that is on 1.5 lots, 4000+ sq. feet or has a special view when it is 20+ years old? Most buyers feel it would take $200,000 to upgrade to today’s standards against the new comparable homes where a buyer can move right in and have beautiful wood floors, granite and flagstone for their kitchen counter tops and floors and no additional work needed. They may have less square footage but have all the necessary rooms which are new. Most people don’t mind smaller bedrooms when they are active outside people.
The answer is simple but difficult for sellers to accept. The house has to be priced right for the situation. In today’s market when only 7% - 10% of the properties are being sold, you need to be in that 10%. In other words, you need to price your house to sell. How? - By being the very best bargain in your price range at that time.
Someone will buy the 1 ½ lots or a special private view of an older home if the price makes up for the improvements needed. Otherwise, the buyers will move on to a smaller house that doesn’t need all the extra TLC. This is a time when it is even more important to have the right real estate agent. Talk to your professional real estate agent. Let them do the work for you to get the best price, but to get it “sold”.
Tahoe Truckee Real Estate Sales Stats
April 6, 2009
The following chart shows the sales stats for the Lake Tahoe and Truckee area for March 2009. The chart breaks down the sold properties by area and by price range.
The most activity was in the $300K - $499K range (13 single family homes sold). 11 homes sold in the $500K - $699K range. There were 9 homes over $1 million that sold in March 2009. A total of 41 single family homes and 10 condos sold during the month of March.
This information was taken from our local multiple listing service and is for the dates of March 1-31, 2009. Click on the image below for an enlarged version of the chart.
Tahoe Truckee Monthly Sales Stats
March 11, 2009
The following chart shows the sales stats for the Lake Tahoe and Truckee area for February 2009. The chart breaks down the sold properties by area and by price range.
The most activity was in the $300K - $900K price range, especially in the $500K - $700K range. 7 homes over $1 million sold during the month of February. A total of 7 homes sold in the $299k & under price range which has been unusual for the area in the past. There were a total of 38 single family homes and 8 condos that sold in the month of February.
This information was taken from our local multiple listing service and is for the dates of February 1-28, 2009. Click on the image below for an enlarged version of the chart.
Mortgage Rates Hits New Low
February 23, 2009
Low mortgage rates may be encouraging buyers to step up to purchase. Two high end areas in Truckee, Lahontan and Old Greenwood have recently had new activity. Lahontan had two sales last week with average price of $1.7M and Old Greenwood had one sale at $2.0M. There are currently three properties in escrow in Old Greenwood. This is good news as the properties over a million dollars are showing activity.
Realtor.com news shows mortage rate at new low. This was posted on realtor.com on February 20, 2009.
30-Year Rates Drop to Near 5%
Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.
The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week’s 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.
Freddie Mac reported the following for other rates for the week:
- 15-year mortgage rates: averaged 4.68 percent, down from last week’s 4.81 percent. Last year at this time: 5.64 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week’s 5.23 percent. Last year at this time: 5.37 percent
- 1-year ARMs: averaged 4.8 percent, down from last week’s 4.94 percent. Last year at this time: 4.98 percent
“Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation,” says Frank Nothaft, Freddie Mac’s chief economist.
Black Tie and Tails Event a Huge Success
February 23, 2009
The first annual gala event for the Humane Society was a huge success. With all hearts on the wonderful work the humane society does, the Valentine’s Day event fun for the 200 guests and the 50 dog guests. All the dogs were impressed with themselves and the event brought in $20,000 for the humane society. You can view the photos at the picture gallery.
