Stating that the Lake Tahoe real estate market is hot is an understatement... The idea of using rental income to offset the purchase price is quite compelling, but of course, this is already factored in the prices. To navigate the market, we highly recommend that you use a local realtor.
Tips and hints for buying a home or condo around Lake Tahoe
- Do use real estate agents. They will have up-to-date market information. Besides, if you are buying, the sellers pay the commission.
- Buying to enjoy and invest? Use an agent that also owns an investment property in Lake Tahoe.
- Do use an agent that has lived in Lake Tahoe for at least 2 years
- Interview 2 or 3 agents. Communicate with them via phone and email. Are they accessible, how fast do they return calls? Which one do you feel most comfortable working with? A good test we like to use is to ask for comparables. See how fast you get the info.
- Is the property that you are studying already in a rental program? Ask for its rental history. The longer the history the better.
- Get a rental income projection. Make sure it's realistic. Cross-reference with actual rental history from similar properties.
- How old is the property? What maintenance needs to be done? Make sure to factor projected maintenance in your cash flow analysis.
- Ask your real estate agent to recommend 2 or 3 lenders. Local lenders know the market. Use their expertise to ensure a smooth transaction from the financing point of view.
- Location, location, location. How close is the property to the lake, ski resorts, restaurants, shopping and other activities? What kind of views does it have?
- If buying a condo, be sure to ask about HOA fees. These can be substantial. Ask what they cover.
- Do visit the property you are buying! Yes this may sound obvious but do it. Best would be to stay in that property and make sure you enjoy it.
- Do use the web to gain as much information as possible before talking to an agent! And remember, once you've picked an agent, be loyal to them. Despite myths to the contrary, they work hard for their commissions.