Bigger Isn't Necessarily Better

From young, qualified first-time home buyers to 50-and-olders, moving, up, over or down, a new breed of buyer is descending upon the Silicon Valley Housing market.

They've worked hard to save, they have solid jobs and they are qualified to buy big.

But offer them what they can really afford and they'll give you the thumbs down.

They are the new financial conservatives.

They'd rather not be house poor.

They can afford much more, but they want less -- less square footage, a smaller energy bill, fewer cleaning and maintenance headaches, but most importantly, less to pay out on the monthly mortgage.

They want a simpler, smaller American Dream.

It's all about the "more" that comes with the "less."

A smaller, less expensive home means more financial freedom in terms of more cash to save, more discretionary income to spend on nights out or travels away. A smaller home also means a smaller maintenance noose around your neck.

"Since new home prices peaked in 2007, new single-family sales of homes costing more than $500,000 have been more than cut in half, dropping from 13 percent to just 6 percent of all new home transactions," said Rick Palacios Jr., senior research analysis of John Burns Real Estate Consulting.

"During this time, sales of home for under $200,000 have risen from 33 percent to 42 percent of transactions (nationwide). In fact, sales of homes priced under $300,000 now account for roughly 75 percent of all new single-family transactions. Of course, price declines and a shift to smaller homes played a role in this change, but consumer attitudes have shifted too. Our surveys and our consulting work show that today's buyer is frequently very focused on affordability, and this broad macro theme will continue to play itself out in the new home space during 2012," Palacios added.

A young couple in Silicon Valley with a combined income of $150,000 and top-notch credit can qualify for a mortgage with an debt-to-income ratio of up to 50 percent and their friends may be impressed, but the deal comes with a massive forever-property-tax-bill, uber cleaning and maintenance costs and yard upkeep from hell, not to mention massive energy bills. Home buyers are wisely saying "no thanks" to that. "We don't want house poor. We'd rather have extra money to enjoy life, travel, eat out and save a few bucks." That's a decided change from boom times when buyers wanted the biggest, baddest, most expensive home money could buy.

It's a lot like the change from the old fitness regimen of bulk and brawn to one of a more svelte approach for endurance.

Today's economy demands a meaner, leaner bucks and brains for long-termhomeownership.


Written by Julie Wyss
March 27, 2012

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What's happening in our community

INCLINE VILLAGE, Nev. — Hope everyone was able to get out and enjoy our weekend of snow. It might not last long so go enjoy. I know it is spring but it would be so nice to have a white Easter too. Please Mother Nature, no rain — only snow for Tahoe. We need snow for the Dummy Downhill at Diamond Peak on Sunday, April 1. This is always a great event and requires snow.

The annual Incline Elementary School PTA Bids for Kids Denim and Diamonds dinner and auction will at The Chateau on Sunday, March 24. If you do not have tickets pick them up at the Potlatch or call robynhugar@me.comor jareber@yahoo .com.

Don't forget to mark your calendar for the Underwater Egg Hunt at 11 a.m. on Saturday, March 31 in the pool at the Recreation Center. And of course the Spring Eggstravaganza is scheduled for Saturday, April 7 at Incline Beach. This is the fastest event in the village so do not be one minute late or it is over!

Plan to attend The Empty Bowls event from 5:30-7:30 p.m. Thursday, April 19, at the Incline Middle School in the Forum. Art students at Incline Middle School, Incline High School and Lake Tahoe School create one of a kind ceramic bowls for this event and make great keepsakes or gifts. For $10 pick out a bowl and then fill it with soup. Part of the proceeds from this event will go to Project MANA.

Star Follies tickets will go on sale in April and the shows will be on April 27-28. Tickets will be sold at the Potlatch in April. This is one event you must attend this spring and it supports our local schools.

Tahoe Family Solutions annual campaign dinner will be on Thursday, May 3 at Big Water Grille. Watch for invitations to be mailed this month.

A fond farewell to Caroline Cutler as she moves on to Greensboro, Ala. She will be missed and if you have been fortunate enough to acquire one of her paintings, it could be famous some day so hang on to it. Good Luck Caroline.

The best deal/steal for the week is to purchase a ticket to Diamond Peak's Last Tracks wine tasting. Tickets are $29 and includes a lift ticket. Reserve your spot online at www.diamondpeak.com and go enjoy!

By Jean Eick
Special to the Bonanza

Published by North Lake Tahoe Bonanza

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First-Time Buyer Tips

Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.

The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.

But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.

First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.

Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.

Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.

Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.

Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.

When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.

Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.

You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.

The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have.

Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you've finally found the right one. Happy house hunting!

Published By Realty Times

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Mortgage Rates Follow Bond Yields Higher

In Freddie Mac's results of its Primary Mortgage Market Survey®, mortgage rates moved higher amid positive jobs data and increasing bond yields. Despite the increase, the average 30-year fixed rate mortgage has been below 4.00 percent for 15 consecutive weeks helping to keep homebuyer affordability high.

30-year fixed-rate mortgage (FRM) averaged 3.92 percent with an average 0.8 point for the week ending March 15, 2012, up from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.76 percent.

15-year FRM this week averaged 3.16 percent with an average 0.8 point, up from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.97 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.8 point, up from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 3.57 percent.

1-year Treasury-indexed ARM averaged 2.79 percent this week with an average 0.6 point, up from last week when it averaged 2.73 percent. At this time last year, the 1-year ARM averaged 3.17 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"An upbeat employment report for February caused U.S. Treasury bond yields to increase over the week and mortgage rates followed. The economy gained 227,000 jobs, above the market consensus forecast, and revisions added another 61,000 to January and December. Job growth over the last six months was the strongest since 2006. In addition, the Federal Reserve's March 13th policy committee announcement noted that it anticipates the unemployment rate will decline gradually toward levels that it judges to be consistent with its mandate to achieve maximum employment with stable prices and moderate long-term interest rates."


March 16, 2012, Published by Realty Times

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Moving Made Simple: Tips to Help You Relocate

It's the least favorite thing for many sellers, packing up their homes and relocating to a new home or even a new state.

Most people associate moving with stress but it doesn't have to take the thrill of moving into a new home away. Preparation and careful planning can not only ward off the stress but also save you money.

Here are some quick tips to help you move out of your old home and into your new one with ease and comfort.

Get organized. Moves are often a chaotic mess. Very often the sale goes through and sellers scramble to get their belongings packed up and loaded into the trucks. Then when they get to their new home, there isn't a trace of organization.

Boxes that were hurriedly jammed with stuff are in disarray and unpacking them seems like more work than it's worth. This is often how people end up with duplicate irons, toasters, coffeemakers. In their frustration of being unable to locate a necessary item from the boxes, some opt to just purchase another.

Instead, color-code the boxes and mark in bold pen their contents. Start with one room and fill the box with only items from that room, for instance, the kitchen. Then, even if the box isn't stuffed, move to another room and use a new color-coded box to fill with its belongings.

If you're using movers, give them instructions to place the color-coded and marked boxes in the appropriate rooms. This saves so much time, energy, and hassle when unpacking or searching for items for that particular room.

It may seem like a lot of work to do this in the beginning, but unpacking and moving boxes that you have no idea what's inside, is far worse and a much longer process.

Sell what you don't need.

A common mistake sellers make in moving is to bring with them the stuff that they plan to get rid of in the future. If you're using professional movers, this will cost you more. If you're doing it yourself, it's just plain silly to haul that which you intend to get rid of into a new home.

Again, this requires some planning. But you know that you're selling your home, so start going through the rooms and setting up piles of the items that you plan to get rid of. Garage sales can help you unload some unwanted materials quickly. Also, sites like eBay or even shops that place your items on consignment can be worth it. Then, of course, you can simply make a deduction to a non-profit charity and just take the tax deduction.

The main point here is to use the move to unload the clutter. Do this before you list your home and your real estate agent will thank you. Clearing out the stuff helps buyers see the real beauty and value of your home. And, when it comes time to move, you'll be glad you're not simply taking unwanted stuff over to clutter your new home.

Appliance handling tips. If you're moving big appliances like refrigerators and dishwashers, be sure to wipe them down and clean them out carefully. These items can get very smelly in the move. If you use a damp cloth and vinegar, it can help keep the refrigerator smelling fresh. Make sure you dry the inside completely before moving the refrigerator.

Moving mirrors? Be sure to tape them in a criss-cross pattern. So, if the mirror should break, it will be easier to clean up. Do not place anything breakable in your drawers. Even if you think, it's in the sweater drawer, so it should be okay. Don't risk it. Instead, pack breakables with delicate items in the appropriate packaging material and mark the box fragile.

Have what you absolutely need handy. Create a basket or bin and folder to hold important papers. The bin will house the items that you need with you at all times. It is super easy to lose sight of the things that matter most during a move. This is when you frantically are looking for your daily medicine, your necessary paperwork or the health records for boarding your pets.

Meticulous planning will make your move smooth so that you can enjoy your new home and not spending hours or even days searching for misplaced items.


Written by Phoebe Chongchua
March 16, 2012

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Or visit our website: www.LivingLakeTahoe.com

Fixed-rate Mortgages Remain at or Near All-time Lows

In Freddie Mac's results of its Primary Mortgage Market Survey® (PMMS®), fixed-rate mortgages are at or near their 60-year lows helping to drive record high homebuyer affordability. The 15-year fixed, a popular choice among refinance borrowers, averaged a new all-time record low of 3.13 percent.

30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.8 point for the week ending March 8, 2012, down from last week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.88 percent.

15-year FRM this week averaged 3.13 percent with an average 0.8 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week, with an average 0.7 point, down from last week when it averaged 2.83 percent. A year ago, the 5-year ARM averaged 3.73 percent.

1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, up from last week when it averaged 2.72 percent. At this time last year, the 1-year ARM averaged 3.21 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January, according to the National Association of Realtors® Housing Affordability Index which registered the highest reading since records began in 1970. In fact, the Corelogic® National Home Price Index fell for the sixth consecutive month in January to the lowest level since January 2003. This high level of affordability likely contributed to the recent two-week rise ending March 2nd in mortgage applications for home purchases."


March 9, 2012, Published by Realty Times

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What Can I Do To Sell My Home?

It's a question that all sellers ask, yet, many are still searching for answers. At one time, houses flew off the market but today's market conditions have changed.

With the flood of foreclosures, short sales, and excess inventory, some houses sit for a long time on the market. It could take years to move some of those properties and see the excess supply diminish.

However, if you take action and you have a plan, there's a good chance that your home will sell faster.

The first important action step is to bring in the most qualified expert to help. Finding the best agent to guide you through the real estate transaction can be the difference between a real estate dream or nightmare.

Make your home stand out. In a sea of homes for sale, you have to highlight and advertise what makes your home stand out. The upgrades, the location, the amenities, the curb appeal, the well-maintained landscape, the outdoor living space you've created, the "aging-in-place" remodeling you've done... you get the picture.

Take a pad of paper or your iPad and do a walk-through of your home. Look for all the things that a buyer would see as a benefit and list them. When you meet with your agent share these details. Your agent will be able to tell you which features are most important to highlight.

Get real on your pricing. It's hard to deal with this next action step but it's among the most important. Let your agent guide you to the right pricing. I've written columns in the past about how pricing a home too high and how it is a painful, humbling lesson. Your home will sit on the market and, in many cases, not even get walk-throughs, if it's not properly priced.

A qualified, experienced agent, studies the market and understands realistic pricing. The agent isn't emotionally vested in the price and therefore can help you compare your home to others that have sold or are currently on the market so that you can see how your home should be properly priced.

Then when an offer comes in be sure to give careful consideration to it. If it's reasonable take it. If the home is priced right, you will see offers come in and you must be ready to take action.

Depersonalize and declutter. You must realize when you're selling your home, that buyers want to see the home as their own. That's really hard to do when you have your personal mark all over it. Sellers often say, "But I live here." Yes, that's true, but you're now trying to sell the home.

So, pack up your personal belongings and declutter the areas so that the true value of your home can be seen. The rooms will look larger. Buyers will appreciate being able to see each room without getting lost in your pictures, memorabilia, and other stuff.

Also, some items that sellers have in their home might actually offend the buyer, such as game hanging on the walls. Professional stagers or agents, who also have a staging background, can help you easily decide which things should stay and which must go.

In the end, a little inconvenience for a faster sale is really worth it. Take the action steps needed, make your home stand out, and sell your home faster, even in a market that's saturated with homes for sale.


Written by Phoebe Chongchua
March 9, 2012, Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The Pre-Inspection Inspection

Every good buyer knows that once you are truly interested in a home you need to a have a thorough inspection done. This important step can keep you from making a big mistake or on the opposite hand give you some peace of mind about your purchase.

Did you know there are things you can look for, even as a novice, before an inspection, though, that can clue you into the health of a house? It's true. Here are five things that all home buyers should be on the lookout for when viewing a home.

First, be on the lookout for water damage, leaks, or mold. This isn't a time to be shy. You are looking to buy what could be one of the most expensive purchases of your life. So, look beneath counters, behind shower curtains, and around sinks. Do you see evidence of leaks or of moisture build-up? Are there tiles rotting off walls or dampness under sinks? Don't forget to use your nose. You can smell moisture as soon as you enter some homes.

This goes double for basements. These spaces are notorious for harboring mold, leaks, and moisture. Be sure to brave the spiders and check out even the most unfinished of basements. This is also a great way to inspect joists for rot or termite damage as well as basement walls for damage, which could indicate foundation issues.

Next, make your way to the opposite end of the house and be sure to always view the attic. You can tell a lot about a house by looking at the attic. Is the house properly insulated? If not, what are the average heating and cooling bills? Does wiring look safely installed?

The third item that novices can look at is the age and state of some of the more costly repairs and replacements. Ask about the functionality and age of appliances, water heaters, siding, and paint. Knowing when you'll need to replace these items next can help you at the negotiating table.

Fourth, walk around the outside of a house. This is why it's a good idea to look at housing when it's not too icy or snowy. You want to be able to see the foundation and look for any visible cracks. Another pointer is to look at landscaping and be sure it's not too close to the house, which can cause moisture issues. Large trees can also cause root issue for both plumbing and foundations. You can also diagnose foundation issues by looking at the inside walls and ceilings of the home. Are there large cracks? Is the house shifting and settling?

Finally, take a good hard look at the neighborhood as you stand outside. What state are these houses in? Many will have been built in the same time-frame as your home. How do they look? Are people taking care of their yards? Is the neighborhood noisy? Does it smell good?

These tips are no substitute for a professional inspection of the property, but they can give you some real clues as to whether this home is what you're looking for or willing to get into.


Written by Carla Hill
March 6, 2012, Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com