South Lake Tahoe Real Estate Tip: Buying A Vacation Rental

Summer has ended and you may feel like you don’t want the fun to end. Enter in the idea of buying real estate in South Lake Tahoe for the purpose of a vacation rental. It is perfect! You can stay in it and then rent it out when you are gone. Sounds dreamy, right? Well, not so fast. Buying South Lake Tahoe real estate for the purpose of a vacation rental isn’t the same as buying a primary residence. Here are some “know before you go” tips. 

1.) A Vacation rental in South Lake Tahoe usually requires a bigger down payment compared to real estate in South Lake Tahoe, unless you are paying cash. Depending on the property, your credit and your financial status, the typical non owner occupied property requires 20% to 30% of the sales price. Of course, every situation is different, so consulting your South Lake Tahoe realtor is important who knows the ins and outs of both the South Lake Tahoe real estate industry AND the South Lake Tahoe vacation rental market is huge. As the president of the board AND the owner and broker of Pinnacle Real Estate, which also happens to manage vacation rentals and long term rentals, this is an area I take a lot of pride in. 

2.) Your real estate in South Lake Tahoe will need to go through the new VHR rules and regulations set forth by the city. Meaning, you will need to apply for the permit, get an inspection, make any changes the city requests and then wait to see if any of your neighbors within a 300 ft radius protest you using your real estate in South Lake Tahoe as a vacation rental in South Lake Tahoe. Once again, using a qualified South Lake Tahoe realtor is important as there are changes that take place in regards to the VHR. 

3.) You need to account for the additional costs that come with buying a Lake Tahoe vacation rental, like furnishings, textiles, houseware, etc. The whole reason people book a vacation rental in Lake Tahoe over booking a hotel is because it is a “home away from home”. They can basically walk into a South Lake Tahoe vacation rental and have everything they need at their fingertips and it doesn’t cost extra like at a hotel. If you don’t adequately furnish the property, it can have a negative impact on your future bookings. 

4.) You will need to have someone on speed dial for emergencies if you don’t live near your South Lake Tahoe vacation rental. Life happens, and it seems like it is always at the most inopportune times. Let’s say it is the middle of winter and there is a ton of snow and the roof on your vacation rental in Lake Tahoe starts leaking, or worse. The guests need someone to call in the event of an emergency. Which means, this is someone you will be paying. Speaking of people you will be paying, you will need to have someone who can go to the property and clean between bookings as well as perform routine maintenance, snow removal, trash, etc.  

If you are looking to buy a vacation rental in Lake Tahoe, you will need to consider these aspects. However, as a full service company that not only manages vacation rentals in Lake Tahoe, long term rentals and real estate, I’d love to help and answer more questions. 

Why You Shouldn’t FSBO in Today’s Market

It is a tempting thought, isn’t it? With inventory so low and prices on the rise, you may have visions of extra cash from not paying commission dancing in your head. But will that actually be the end result if you try playing the role of South Lake Tahoe realtor? Likely not and here is why. 

1. You don’t have the exposure a South Lake Tahoe Realtor has.

Unfortunately, you can’t just put a sign up in the yard of South Lake Tahoe real estate and expect it to move like the good old days. Technology has advanced so much that a multi faceted marketing plan is necessary for selling a home for sale in South Lake Tahoe. This is something that an un-licensed non realtor just doesn’t have access to or even know where to start. Nowadays, results comes from the internet thanks to 94% of buyers using online as a search tool. In fact, 51% of buyers that actually made a purchase (as in, did more than just search) found the home on the internet. 34% found their home from their South Lake Tahoe realtor and only 8% found their home from a yard sign. The remaining 1%? The newspaper. In order to get a home for sale in South Lake Tahoe the exposure it needs, it starts with the local Multiple Listing Service. This is a tool for local licensed Realtors to list their seller’s South Lake Tahoe real estate. It includes all the necessary info that a buyer would use for their search criteria AND it is fed to websites all around the globe. When you “For Sale By Owner”, you simply do not get the exposure that a South Lake Tahoe realtor will get you. 

2. There are a LOT of negotiations. 

When you get an offer on South Lake Tahoe real estate, you aren’t simply negotiating with the buyer. Not at all actually. In addition to the buyer, you have their realtor (who’s best interest is not you), the home inspector (also working in the best interest of the buyer), the appraiser (who is working in the best interest of the bank) and possibly an attorney. These are factors that are present regardless, but in our current market things can get a little more tricky. Why? Two words: Multiple Offers. If your real estate in South Lake Tahoe is priced appropriately, you could get multiple offers. Which means you would be reading through multiple contracts trying to figure out which one is best for you. When you have a Realtor in South Lake Tahoe representing you, they see the offers first, which means they can review it and break down which one is the best offer for your current circumstances. 

3. FSBOing is WAY more difficult compared to year’s past

Speaking of paperwork, if you thought selling a home for sale in South Lake Tahoe was a simple contract, you would be wrong. Mandatory industry disclosures and regulations have dramatically increased the amount of paperwork that is involved in the process. So much so that For Sale By Owner’s has dropped down to just 8% over the course of the past couple decades. 

4. You get more money when you use a Realtor 

What you think you will save in commissions can usually be covered by how much extra you get when you use a qualified Realtor in South Lake Tahoe. This is the main reason that most people decide to FSBO. They want that extra money in their pocket. However, studies have shown that those that decide to list their home for sale in South Lake Tahoe on their own usually make about $60,000 less compared to what a Realtor in South Lake Tahoe will get them. Of course every property is different and that is on a national average, but with how hot the local real estate market is, you do not want to leave any extra money on the table. 

If you are thinking of listing, give me a call. I can give you the current market value for your home based on comparable sales in your neighborhood. 

North Lake Tahoe Real Estate: 1st Quarter Market Report 2017

When looking at the stats for North Lake Tahoe real estate, it is important to note that these numbers do not include the West Shore, Squaw Valley, Truckee and Northstar and Tahoe Donner.

The first quarter showed there were about the same amount of homes sold while the dollar amount of the total solds did decrease. While the amount of homes sold stayed roughly the same, the average sold AND median sold price  went up. Which is great news for sellers. This means they likely get more money at the time of resale compared to last year. On the other side, this means buyers will also have to spend more compare to last year. The days on the market also saw a little bit of an increase, but minimally. While this particular side of the lake is known for a higher price point, this month’s highest sale was between $3,000,000 – $4,999,999 while this time last year saw the highest sale between $5,000,000 – $7,999,999. When looking at some of the other stats for the communities we didn’t include (mentioned above) on this side of the lake, all of them saw a dip in active listings, solds, etc. I am going to chalk it up to this crazy winter we have had. Snow and road closures make it hard to get to listings so I am keeping an eye on the numbers as it starts to warm up. For more information on North Lake Tahoe real estate, give me a call. 

North Lake Tahoe Real Estate Market Report 2017 2016
North Lake Tahoe Real Estate Market Report 2017 2016
# of Listings Sold 31 33
Average Price $745,168 $715,340
Median Price $625,000 $520,000
Days On Market 113 93

Lake Tahoe, NV Real Estate: 1st Quarter Market Report 2017

If you are looking to purchase Lake Tahoe, NV real estate, the numbers for the first quarter are in and the results are looking pretty good.

The number of sales is higher this year compared to last year. Also good news is that both the average and median price for Lake Tahoe, NV real estate have gone up by a pretty impressive amount. If you are buying real estate in Lake Tahoe, NV this means you are looking at higher prices compared to the past few years. If you are selling real estate in Lake Tahoe, NV, this simply means you likely will get more at the time of resale. 

The dollar per square foot has also gone up. The list to sale price (the percentage of the list price the home is receiving) has dipped a little bit, but nothing significant. Speaking of decreases, the median days on the market has also dropped compared to last year. On the day this blog was published, there were 72 active Lake Tahoe, NV real estate listings with a median price of $1,987,500 and 13 homes were in escrow with a average price of $1,539,030. For more info on buying real estate in Lake Tahoe, NV, give us a call as I would be happy to help! 

LAKE TAHOE, NV MARKET COMPARISON 1ST QUARTER 2017 1ST QUARTER 2016  
# of Sales 117 101  
Median Price $850,000 $670,000  
Average Price $1,345,546 $958,004  
Sale to List % 94.3% 94.6%  
Median Days on Market 158 170

South Lake Tahoe Real Estate: 1st Quarter Market Report 2017

The South Lake Tahoe real estate market had several positive notes when comparing March 2017 to March 2016. In fact, almost everything was up. The closed sales were up by 6.4%. The median sold price was up by 13.3% and the average sold price was up 14.4%. If you have been thinking of putting your South Lake Tahoe real estate on the market, the chances are high that the amount you can sell for will be more than last year. The percentage of list price went up slightly, by 1% along with the days on the market.

Now month supply, which determines what type of market we are in, went down 33.3%. Anything under 4 is considered a sellers market while anything over is considered a buyers market. This is good news for sellers. It means they have control of the market because supply is low and demand is high. The result is higher listing prices which generally means sellers stand to make more at the time of resale. Now buyers, on the other hand, have to be a little more aggressive with their approach. While Real estate in South Lake Tahoe isn’t so low that bidding wars and over asking offers are a common thing, buyers do need to get serious about taking swift action. Chances are if you wait to view a home or make an offer, it will gone by the time you decide to make a move. 

Of course it is important to note that these stats are for 96150 as a whole. Every neighborhood has it’s own statistics as well. For example, Tahoe Keys has the highest median and average sales price, but with a month supply high enough that they are in a buyers market. If you would like information on a specific area or general South Lake Tahoe real estate information, give me a call. I would be happy to help! 

South Lake Tahoe Market Comparison 2017 2016
Number of Sales 765 719
Median Home Price $408,000 $360,000
Average Home Price $496,405 $434,055
Average List to Sale Ratio 96.7% 95.7%
Average Dollar Per Square Foot $285 $254
Days on the Market 89 90
Month Supply 3.4 5.1