Truckee California Real Estate News for YOU

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BOATING AT LAKE TAHOE AND DONNER LAKE

ON THE WATER AT LAKE TAHOE AND
DONNER LAKE
Bonnie Jessee, Realtor 530 412 3984

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What’s Happening With Real Estate in Truckee?

WHAT’S HAPPENING WITH REAL ESTATE IN TRUCKEE?

BONNIE JESSEE, Realtor®
530 412 3984
UPDATED JUNE 5, 2008

New Properties for Sale

Over the past few weeks, I have had several new friends from out of the immediate area calling to view and potentially purchase properties in Truckee, North Tahoe and the Soda Springs area. It has been quite a surprise to our out of town friends (or our part timers as I like to think of everyone) to see that low-ball offers are not typical and if placed are being rejected – on occasion even verbally.

While the number of listings has not significantly changed, we are seeing a rise in the median pricing of asking and sold. For instance, today 15 new listings were on the MLS – of those 15 new listings, 10 were single family residences, 6 were in Truckee and pricing ranged from $459,000 to $1,350,000. The remaining were shared ownerships, out of the immediate area properties and even 2 boat slips in Tahoe City listed for $375,000 and $385,000 (yes, $385,000 for a boat slip in Tahoe City)!

Bank Owned Properties

Despite the fact there are bank owned properties on the ‘market’ and there truly are some fabulous deals to be had, for the most part, these bank owned or pre-foreclosure properties sell almost immediately when displayed in the MLS. The down fall can be that the ‘bank’ or lender will typically provide no assistance with repairs and what you see (or don’t) is what you buy! In relation to what is for sale and what is selling, the number of these types of properties available is quite insignificant.

What is Truly Happening

On a very personal note, I have a buyer I am working with who owns a property (vacant land) that we are attempting to use as a trade/down payment. We made an above full price offer on a new property which I felt as a professional was a terrific offer. In any case, the following day, the seller received an additional three, yes three offer, on the same property and the result was a sale well above listing price. Not uncommon for this much localized area of Serene Lakes.

What Does Localized Indicate?

Although Truckee has a full time base population of around 17,000 individuals and approximately 12,000 properties (including Northstar and Squaw) it appears that each ‘neighborhood’ is currently rather independent of another when it comes to the sales price point being reached in negotiations. In other words, a property in Tahoe Donner may command a price of $750,000 (updated new pricing in TD is showing an increase of around $15,000), which in Serene Lakes that property would be close or higher in price, in Glenshire it may command $675,000, regardless of the fact they may be almost identical properties. And, of course, the North Shore of Lake Tahoe is another localized area.

What Now?

While most of you know I work almost exclusively with buyers, my goal has been to get the best deal for my buyers. I do see economic healing on the horizon; I also see with that an increase in the cost of owning in our beautiful Sierras! I truly believe, from what we see daily in this real estate industry/market (localized) now is the time to buy.
Give me a call today for professional services that you deserve.

Bonnie Jessee 530 412 3984

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Real Estate in Truckee, California

WHAT’S HAPPENING WITH REAL ESTATE IN TRUCKEE?

BONNIE JESSEE, Realtor®
530 412 3984

New Properties for Sale

Over the past few weeks, I have had several new friends from out of the immediate area calling to view and potentially purchase properties in Truckee, North Tahoe and the Soda Springs area. It has been quite a surprise to our out of town friends (or our part timers as I like to think of everyone) to see that low-ball offers are not typical and if placed are being rejected – on occasion even verbally.

For instance, today (Friday the 25th of April) 25 new listings were on the MLS – of those 25 new listings, 8 were single family residences, 6 were in Truckee and pricing ranged from $459,000 to $1,350,000. The remaining were shared ownerships, out of the immediate area properties and even 2 boat slips in Tahoe City listed for $375,000 and $385,000 (yes, a boat slip in Tahoe City)!

Bank Owned Properties

Despite the fact there are bank owned properties on the ‘market’ and there truly are some fabulous deals to be had, for the most part, these bank owned or pre-foreclosure properties sell almost immediately when displayed in the MLS. The down fall can be that the ‘bank’ or lender will typically provide no assistance with repairs and what you see (or don’t) is what you buy! In relation to what is for sale and what is selling, the number of these types of properties available is quite insignificant.

What is Truly Happening

On a very personal note, I have a buyer I am working with who owns a property (vacant land) that we are attempting to use as a trade/down payment. We made an above full price offer on a new property which I felt as a professional was a terrific offer. In any case, the following day, the seller received an additional three, yes three offer, on the same property and the result was a sale well above listing price. Not uncommon for this much localized area.

What Does Localized Indicate?

Although Truckee has a full time base population of around 17,000 individuals and approximately 12,000 properties (including Northstar and Squaw) it appears that each ‘neighborhood’ is currently rather independent of another when it comes to the sales price point being reached in negotiations. In other words, a property in Tahoe Donner may command a price of $750,000 which in Serene Lakes that property would be close or higher in price, in Glenshire it may command $675,000, regardless of the fact they may be almost identical properties. And, of course, the North Shore of Lake Tahoe is another localized area.

What Now?

While most of you know I work almost exclusively with buyers, my goal has been to get the best deal for my buyers. I do see economic healing on the horizon; I also see with that an increase in the cost of owning in our beautiful Sierras! I truly believe, from what we see daily in this real estate industry/market (localized) now is the time to buy. Give me a call today for professional services that you deserve.

Bonnie Jessee 530 412 3984

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What Is Title Insurance? Why Have It?

Title Insurance ~ A Very Brief History ~ Truckee, California
Bonnie Jessee, Realtor 530 412 3984

Kings in the Middle Ages proclaimed ownership to all the lands they conquered. Unlike personal possessions that can become obsolete, wear out, and lose their value, land is immobile and, by comparison, indestructible. It is for these reasons that land and the control of land became a symbol of power. Conquests of certain lands resulted in the establishment of harbors from which even the seas could be ruled. The feudal lords operated only by permission of the king. The king’s chosen subjects would occupy land by a right of license from the king. However, these lands were always subject to the king’s first rights as well as the king’s taxes on the land and what the land produced.

It is what the land could produce in an agrarian society that established land as a symbol of wealth. Land truly was wealth because it took land to be able to produce items of value for barter and exchange. Over time, the people who were first granted only the right to use the land decided they wanted to maintain ownership, so they developed methods for obtaining conveyances from the monarch that eventually allowed the property to be inherited rather than revert back to the monarchy.
Ownership of Land & Changing Hands or a ‘bundle of sticks’
Through the centuries, the traditions of real property developed. Most of the traditions we follow in the United States descended from the English system of court decisions generally referred to as the “Common Law.” The “Common Law” principals concerning property basically viewed ownership as an assortment of interests or rights that applied to different aspects of the land. One way to view the “Common Law” principals of ownership under which we operate today is like a “bundle of sticks.” A land owner typically owns all of the rights-the whole “bundle of sticks”-and may choose to give away or share one or more rights with others. For example, a property owner may give a leasehold interest to another, and then that person “owns” the right to occupy the property for a period of time, even though the owner keeps the remaining rights (or “sticks”) of ownership. Other “sticks” might include the right to mine precious metals, an easement right to use a portion of the property, or perhaps a life estate. Together, this “bundle of sticks” makes up what we today call “ownership.”

The United States originally fell under several different sovereign rules, including England, France, Spain, and Mexico. The American Revolution established the United States of America as the sovereign and owner of all lands not already granted to someone else. Most of these lands have since been granted to individuals under government patents and subsequent conveyances by deeds.
Prior to Title Insurance
Prior to the advent of title insurance, the conveyance of property did not include any form of guarantee or insurance. A purchaser had virtually no guarantees that the property he was buying was even owned by the person who was selling it! Even though attorneys would render their opinion of title based upon a title “abstract,” there were no assurances protecting the buyer from fraudulent conveyances or undisclosed encumbrances on a property. An “abstract” merely reports the recorded history of a property; it does not judge the correctness of any item listed.

In 1868, Watson, an innocent purchaser, suffered financial damage because of certain encumbrances on the title to his property. He sued Muirhead, the grantor, alleging negligence for failing to disclose those encumbrances when he sold the property. This landmark case (Watson v. Muirhead, 57 Penn. 161) demonstrated the need for better protections of real estate purchasers when the court ruled that Muirhead had acted reasonably and within legal “standards of care” and held that Watson had no recourse.

As a result of this case, the Pennsylvania legislature enacted a law allowing and providing for the incorporation of title insurance companies. The first title insurance company was organized and opened in 1876 in Philadelphia. There was large consumer demand for greater security, as well as expedience in real estate transactions, and so the title insurance industry grew rapidly and spread to other major cities.
Title Insurance~The New Concept
Unlike casualty insurance (auto or fire or health insurance, for example) which protects against future events, title insurance protects against losses arising from unknown or undisclosed defects in the past chain of title. Unlike casualty insurance premiums, which are paid in continual installments (hence a lapse in payment may mean a lapse or cancellation in coverage), a title insurance premium is a one-time flat fee regulated by the Division of Insurance and paid at the time of closing. For this one-time premium, an owner’s title insurance policy remains in effect as long as the insured or the insured’s heirs retain an interest in the property or have any obligations to warrant the property when they sell it.

A policy of title insurance is like a pre-paid legal agreement. The title insurance company will provide legal defense against any challenges to an insured’s title (depending, of course, upon the type of policy coverage) and will reimburse the insured financially for any losses as a result of hidden defects in ownership rights.
Ways To Lose Your Real Property
A forgery 50 years ago….a deed executed under duress….bigamy that went unknown….an error by a clerk in the county recorder’s office….an undisclosed heir that resurfaces ten years later and demands his right to a property….a misapplied tax payment: These are but a few of the hidden title defects that could cause you to lose your property. And even if you don’t lose your property altogether, certain title problems can make it impossible for you to sell or even give it away.

You don’t want a problem that occurred long before you bought your property to deprive you of the right to use or dispose of it. And you don’t want to pay the potentially ruinous cost of defending your property rights in court. A title insurance policy from Land Title is your best protection against potential defects that could remain hidden despite the most thorough search of public records.

Here are some of the more common possible title defects that title insurance covers:
• Forged deeds, releases, or wills;
• False impersonation of the true owner of the property;
• Undisclosed or missing heirs;
• Instruments executed under invalid or expired powers of attorney;
• Misinterpretations of wills, or discovery of a later will after probate of first will;
• Deeds by minors, by persons of unsound mind, or by persons supposedly single but in fact married;
• Liens for unpaid estate, inheritance, income, or gift taxes;
• Mistakes in recording of legal documents, or deeds recorded but improperly indexed and therefore not found through a title search;
• Disputed release of prior mortgage or lien, as given under mistake or misunderstanding; or ineffective release of prior mortgage, as fraudulently obtained by predecessor in title;
• Undisclosed divorce of one who conveys as a sole heir of a deceased former spouse;
• Deed to or from a “corporation” before incorporation or after loss of corporate charter; and
• Claims resulting from the use of “alias” or fictitious names by a predecessor in title.
Thank You!

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Home Buying Advice - Timing a Home Purchase

The Business Cycle and Buying a Home ~ Home Buying Advice
How to Time Your Home Purchase to the Market Cycle?

Bonnie Jessee, Realtor
530 412 3984

Ah, if only we had that special real estate crystal ball! Then timing your purchase to the cycle would be an easy task!
Attempting to time your purchase to the “business” cycle is sometimes getting lucky and sometimes paying attention to the small signs. Even economic advisors and consultants have inconsistencies accurately predicting the future economy. Even when these experts are relatively successful, the real estate market does not necessarily move in tandem with the economy as a whole.
Part of the reason is the timing and inconsistency of interest rates.
During periods of economic growth, interest rates are generally higher. Therefore fewer people can afford to purchase a home or second home unless they are cash purchases. When the economic situation is slower, interest rates fall, and more people can afford to purchase a home by obtaining a mortgage.
As you can see, this cycle does not move in conjunction with the remainder of the economy. It is also influenced by levels of employment, pay scales of various jobs, and consumer outlook for the future. Such facts make it difficult to know ~ ahead of the time ~ whether the housing market is going to be a wise investment.
The best advice is to preview the market where you intend to purchase, deal with a professional Realtor®, and plan on holding for as many years as possible.
Unless, of course, you have a crystal ball!

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TRUCKEE REAL ESTATE~INTEREST RATES ARE DOWN

welcomehometruckee
HOME SALES ARE UP
Bonnie Jessee, Realtor
530 412 3984
Mortgage interest rates are down, while sales of existing homes are up - a welcome eventuality for consumers and real estate professionals. The awaited increase in sales is an important event, carried by all major news media. At this writing, the average rate for a 30-year, fixed-rate mortgage is 5.85 percent, down from 6.13 percent just a week ago. Last year at this time, the average interest rate was 6.16 percent. Borrowers pay an average of 0.4 points (percentage of loan).

“Mortgage rates fell as various actions were taken to improve market liquidity,” said Frank Nothaft, chief economist for Freddie Mac, a major government-sponsored buyer of existing mortgages. “Also, the inflation report from the Consumer Price Index reflected weaker price increases than expected. It reported no change in February, including food and energy costs. That’s the first time the CPI did not report a monthly increase since November, 2006.”

The lowering of rates sparked a sharp increase in the number of mortgage applications for home purchase transactions and refinances, according to a report from the Mortgage Bankers Association. “The Federal Reserve acted to bring stability to the mortgage-backed securities market and we saw an immediate impact with a drop in mortgage rates,” said Jay Brinkmann, MBA’s VP of research.

Existing home sales, including single-family homes, townhomes and condominiums, rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February. That’s up from 4.89 million units in January. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” said Lawrence Yun, chief economist for the National Association of Realtors. “Buyers are taking advantage of higher loan limits for both FHA and conventional mortgage, thus unleashing some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”

About half of the nation’s metro areas are now showing home price increases, with healthy gains in some markets, he added. “In some areas, a recent rapid price decline has induced buyers to come into the market, and sales are now rising. The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.” Sales of existing single-family homes increased 2.8 percent in February, while sales of existing condominiums rose by 3.7 percent.
COURTESY OF SIERRA MOUNTAIN MORTGAGE, TRUCKEE, CALIFORNIA

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The Differences Between REALTORS® & ‘Real Estate Agents’

welcomehometruckee

Bonnie Jessee, Realtor® 530 412 3984
People use the terms REALTOR® and real estate agent interchangeably, however, this is not appropriate or correct. There are many differences between REALTORS® and real estate agents. The names alone are similar. Although both are licensed to sell and or list real estate, the basic difference between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Therefore, the main difference that we hear a lot about and might be confused by is that a REALTOR® must subscribe to the Realtors Code of Ethics. But what does this mean to you as the consumer or client of either?
The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice.
These are not ‘suggestions’ but rather rules that REALTORS® are sworn to uphold and adhere to at all times under all circumstances. The Standards are much more restrictive and confining as to conduct than those governing ‘real estate agents’ who simply hold a real estate license. Of course, there is no guarantee that all REALTORS® are morally and ethically better than unaffiliated real estate agents, it is a goal set by the industry to regulate and of course deserves recognition.
Here are 17 things that a REALTOR® promises, that a ‘real estate agent’ is not sworn to.
1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.
2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.
3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.
4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.
6) Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.
7) Shall refuse fees from more than one party without all parties’ informed consent.
Shall not co-mingle client funds with their own.
9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.
11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
12) Must engage in truth in advertising.
13) Shall not practice law unless they are a lawyer.
14) Shall cooperate if charges are brought against them and present all evidence requested.
15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.
16) Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.
17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.
The National Association of REALTORS® was founded in 1908 and has more than one million members

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Truckee Real Estate-Down Payment Assistance Planning

Down Payment Assistance Planning~Truckee Real Estate
Bonnie Jessee, Realtor
530 412 3984
We have all been taught to follow the rules that it is best to put down 20(%) percent on the home you are buying (or the loan you are obtaining). With a 20 (%) percent down payment, you will secure a loan on the best terms, without paying private mortgage insurance (PMI) or the FHA equivalent of PMI, also known as MI, and typically obtain a lower monthly or annual interest rate.
And as housing prices stabilize in most states, coming up with that kind of cash can be difficult for first time buyers. Most first-time buyers don’t have 20(%) percent to put down on a home. Many buyers are attempting to get in to a property with as little as 3(%) percent to 10(%) percent.
While getting a 100 percent loan (no down payment necessary) is still possible, it can be difficult to find a good lender who will do it at a reasonable cost. And we know that getting that 20(%) percent down payment is important.
In conjunction with saving as much as possible for that 20(%) percent down payment there are other options to consider:
401K MONIES. If you work for a company that offers a 401(k) plan, it’s in your best interest to fund it to the maximum allowed for your income. Not only will you be able to tap into the power of compounding (and have your money work harder for you), but you’ll be able to more quickly build a sizeable nest egg for your retirement. When it comes to borrowing from a 401(k) plan, not every company allows it. Check with your plan administrator to see if your company will allow you to borrow, if there are limitations on what you can do with the cash, and what the interest rate will be on the money you borrow. You should also be aware that you’ll typically need to repay this cash within 5 years. But if you should leave the company, or be fired, you’ll need to repay the cash within 60 days, or it will be considered a withdrawal (and you’ll owe federal income taxes on that money along with a 10 percent penalty, if you’re under the age of 59 1/2).
IRA MONIES (UP TO $10k). If you have an individual retirement account (IRA), the IRS allows you to withdraw up to $10,000 for the purchase of a first home. (For those of you who have purchased a home before but haven’t owned a home in the last 3 years, you’re considered to be a “first-time buyer” for this specific purpose and can make a withdrawal). When you withdraw cash at any time from a tax-deductible, tax-deferred IRA, you’ll owe federal income taxes on the amount you’re withdrawing at your current marginal tax rate. However, if you’re withdrawing for the purchase of a first house, you will not owe the 10 percent under-age penalty if you’re less than 59 1/2 years old.
Gifts. If you’re buying a house, your parents, siblings, other relatives or friends can give you a gift of funds to be used toward your down payment. However, for a lender to accept that this is a gift, and not a loan, you’ll need your friends and family to sign a gift letter that states that this cash is a gift and does not need to be repaid. That letter will become part of the documents that you provide to the lender who will be approving your loan.
Rent-to-own or lease/options. If you don’t have enough cash in your IRA or 401(k), and you can’t get your lender to give you a 100 percent loan, you might put your plans to purchase on hold for a year or two and find a seller who is willing to do a rent-to-own or lease/purchase arrangement for his or her property. Often, the seller will provide down payment assistance by giving you a credit for a portion of your monthly rent payments. In a year or two, you can easily build up a 5 to 10 percent down payment, depending on how much of a rent credit you’re given. For example, if you pay $1,000 per month, and the seller gives you a 20 percent credit, $200 per month will accrue toward a down payment on the property. After a year, you’ll have $2,400 for your down payment. If you’re going to go down this path, be sure to work with a real estate attorney who can help you negotiate the fine print. You may want to negotiate the purchase price of the property upfront, and you will definitely want to include the down payment credit terms as part of the lease.

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City Lifestyles

What are the lifestyle opportunities in and around Truckee, California. Are there hiking clubs, biking trails, civic clubs, golf clubs, local arts and theater, lakes, streams, fishing, boating, camping or other types of lifestyle opportunities?

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