Buyer Tips | Carson Valley Real Estate, Gardnerville Homes, Carson City real estate

Northern Nevada Step by Step “Just For Buyers Guide” to Buying a Home – A Series – Part 1 of 7

August 25, 2009

Whether you’ve owned a Northern NevadaÂ home before, or you are a first time Northern Nevada home buyer, having a Buyer’s Guide can be a very helpful tool before, during, and even after the homebuying process.

Home Ownership

Since most people don’t buy and sell homes every month, let alone every year, we have put together a fantastic 36-page “Just For Buyers” Guide.

This post is the first in a series of 7 posts covering some of the more important components of buying a home in Northern Nevada.

Step One – Why Should I Own a Home?

Here are four simple reasons why it’s a smart idea to own your own Northern Nevada home.

1. Tax Advantages - The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.

2. Predictability – Unlike rent, your mortgage payments donâ€™t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property t axes and insurance costs will rise (and this also depends on the type of mortgage loan you obtain).

3. Freedom - The home is yours. You can make design changes to update it or decorate it any way you want and be able to benefit from your investment for as long as you own the home.

4. Stability – Remaining in one Northern Nevada neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the opportunity to create long-term friendships that often can last well into adulthood.

Step 2 – Why Should I Use a REALTORÂ®?

1. A Northern Nevada real estate transaction is complicated. Buying or selling a Northern Nevada home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

2. Northern Nevada Real estate has its own language. If you donâ€™t know a CMA from a PUD, you can understand why itâ€™s so important to work with someone who speaks that language. When you find just the right Northern Nevada house, you want to be able to get the contract written and move forward right away – If you have to spend your time getting educated, you may miss out on that house of your dreams.

3. Northern Nevada REALTORSÂ® have done this before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if youâ€™ve done it before, laws and regulations change. Thatâ€™s why having an expert on your side is critical.

In the second post in this series, we’ll discuss “Real Estate Commissions Explained” and “7 Steps to Prepare for Home Ownership”. If you’d like a FREE copy of our complete 36 page Northern Nevada “Just for Buyers Guide” just let us know. We’re happy to provide you with one to assist you on your road to home ownership.

Minden Nevada Homes for Sale in the Carson Valley – Spotlight on Johnson Lane

August 16, 2009

Minden Nevada Homes for Sale in the Carson Valley – Spotlight on Johnson Lane

Eastern Sierra Nevada Mountain Range from Johnson Lane The Johnson Lane area is located in the northeastern corner of the Carson Valley. You can access the neighborhood by one of two roads that intersect Highway 395 – the two roads are Johnson Lane and, more recently added, Stephanie Way. The Johnson Lane area is laid out much like a grid and is, for the most part, all residential. Along the southern side of Johnson Lane there are some smaller light industrial buildings. The largest business located in the Johnson Lane area is the Starbuckâ€™s Roasting Plant of Minden.

The Johnson Lane area is bordered by BLM land to the North and the East, providing excellent access to miles upon miles of hiking, biking and exploring trails. The other breath-taking feature of this area is the views of the Sierra Nevada Mountain range. In most of the Johnson Lane area you can see all the way from Mt. Rose to Kirkwood, and everywhere in between. The views of the valley and mountains are incredible, every season of the year.

Homes for Sale in Johnson Lane Area

78 homes available for sale ranging in price from $195,000 to $995,000
36 homes have sold in 2009 ranging in price from $185,000 to $500,000

Johnson Lane Area Sales Price Information

Average Sales Price: $325,238
Sale Price to List Price Ratio: 94.4%

Days on Market

Average Days on Market: 162

(Data courtesy of the Northern Nevada Regional Multiple Listing Service for Area 302 known as Johnson Lane Area of Minden, Nevada.)

Popular Searches for Johnson Lane Area Homes:

Homes Available with a Homeowner’s Association

Homes on 2 or more acres

Bank Owned Homes in the Johnson Lane Area

Short Sale Homes in the Johnson Lane Area

Johnson Lane Area Homes with Water Rights

Dayton Valley Nevada Real Estate Market Update – July 2009

August 10, 2009

July 2009 Dayton Valley Nevada Real Estate Market Report

We had 29 home sales in the Dayton Valley in July 2009, a 21% volume increase year over year when 24 homes sold in July 2008.

Here is a snapshot of our market indicators for July:

29 homes sold
Average asking price is $177,596
Average selling price is $174,472
Average days on market is 114

So what is the absorption rate for the Dayton Valley?

There are 119 homes on the market as of 8/4/09
29 homes sold in July
119/29 = 4.10 months of inventory

The absorption rate for the Dayton Valley continues to be strong and under the 5-7 months considered a normal supply. This is a huge turnaround from the 30+ months of inventory we had at the beginning of the year. Dayton’s affordability continue to be a big attraction over the higher priced areas of Reno, Carson City and the Carson Valley.

Of the 119 homes on the market, 14 are bank owned and 33 are short sales. That means that 39% of the Dayton Valley Nevada market is distressed. That’s a really high percentage. Our suspicion from seeing these properties in person when showing properties to clients tells us that these properties will need to drop their prices even further to get them sold due to overall condition. For every short sale or bank owned property, there is another property priced just a bit higher in much better condition that is selling faster.With a historically low amount of inventory in Dayton, we are anticipating the remaining properties in decent condition will see even more fierce competition, This will include multiple offers and sales prices above asking prices as we get closer to the December 1st deadline for the $8,000 first time homebuyer tax credit.

With the first time homebuyer credit expiring on December 1, 2008, there’s a big incentive for homebuyers to get out there and buy a home. Will it be extended? Who knows??? If you’re a buyer debating buying a home right now in Northern Nevada, don’t wait for these statistics to continue to trend upward. It may just cost you the house of your dreams.

(Data provided courtesy of the Northern Nevada Regional Multiple Listing Service and excludes manufactured and shared ownership housing for Areas 420, 416, 414, 412, 410, 402, known as the Dayton Valley and the outlying areas. Dayton Valley photograph courtesy of JeffMoser – Flickr.com)

Are Northern Nevadans Really Eligible for the $8,000 Homebuyer Tax Credit?

August 4, 2009

Most Northern Nevada first time homebuyers think they are automatically eligible for the $8,000 tax credit due to expire on December 1, 2009. $8,000 tax credit for Northern Nevada Homebuyers Most media outlets, loan officers, and real estate related professionals will ask one question:

Are you a first time homebuyer?

Answer Yes, and you will probably be told – Hey, you get $8,000 from the government once you close escrow! But does that really cover it? No, it doesn’t. In fact, there is a very specific series of questions that need to be answered to ensure you are actually eligible for the tax credit.

Here’s the entire decision tree that we use to help homebuyers determine whether they are likely eligible for the credit:

1. Are you a first time Northern Nevada homebuyer? (Or have you not owned a home for the past 3 years?)

If Yes, continue to Question #2. If No, sorry – you are not eligible.

2. Are you a Non-Resident Alien?

If No, continue to Question #3. If Yes, sorry – you are not eligible.

3. Is the price of the home you are purchasing in Northern Nevada $80,000 or higher?

If Yes, continue to Question #4. If No, your tax credit is limited to 10% of the purchase price.

4. Is the home your purchasing in Northern Nevada going to be your Principal Residence?

If Yes, continue to Question #5. If No, sorry – you are not eligible. Only owner-occupied homes are eligible.

5. Did you acquire the home from a family member, gift, or inheritance?

If No, continue to Question #6. If No, sorry – you are not eligible. You cannot buy a home from a relative orÂ any related person and qualify for this tax credit. It must be an “arms-length” transaction.

6. Are you going to close escrow and transfer title to the Northern Nevada home before to December 1, 2009?

If Yes, continue to Question #7. If No, sorry – you are not eligible. For new construction, you must take occupancy of the home before December 1, 2009 to be eligible.

7. Is your Adjusted Gross Income (AGI) under $75,000 for a single person or under $150,000 for a married couple filing a joint return?

If Yes, YOU ARE ELIGIBLE! BUT! (Yes, there’s always a ‘but’, isn’t there?) If you sell this home within 3 years of buying it, you have to repay the tax credit. There are certain exceptions to this rule such as divorce, death, natural disaster, etc.)

This list is not meant to be an exhaustive list of conditions. There may be other specific factors that are unique to your situation that could change your eligibility. We are not tax professionals and recommend you speak with one if you have additional questions.

If you are looking to buy a home in Northern Nevada and you meet the criteria listed above, call us. Don’t let this fantastic opportunity of an $8,000 tax credit pass you by.

Carson Valley Real Estate Market Update: 07-15-09

July 19, 2009

As of July 15th, 22 homes have sold for the month of July in the Carson Valley Nevada area. 130 homes are pending close of escrow. Since most closings are scheduled toward the end of the month, having 22 homes already closed this month is very promising.

There are 465 homes available for sale and this number does not include the 130 that are pending close of escrow. That’s up slightly from the beginning of the month but still a very healthy number indeed. Activity on homes priced under $200,000 has been insane, with multiple contracts, dozens of showings, and prices escalating above asking price. The market is completely different when you get below $200,000. Is that because the first time homebuyer tax credit equals the 3.5% down needed to buy a home under FHA guidelines? We’re not sure but it very well could be.

With only 138 days until the First Time Homebuyer Credit expires on December 1, 2008, we are seeing a marked increase in the number of buyers looking and writing offers in the Northern Nevada area. Since we have no clue whether the $8,000 first time homebuyer credit will be extended, it has created a definite and noticeable sense of urgency for buyers who have decided to try to buy a home.

Are you eligible for the first time homebuyer tax credit? If so, what is your reason for not buying a home right now? If you’re not sure you can qualify, or you have some other concern, contact us. We have trusted lenders we work with every day that may surprise you. If you are looking in Douglas County or unincorporated Carson City, you can also use the USDA Rural Housing Development Loan and be eligible for many government incentives to make home ownership more affordable. Ask us for details.

Dayton Valley Nevada Real Estate Market Update: June 2009

July 15, 2009

Today there are 107 homes for sale in the Dayton Valley area. This is down from 136 homes available for sale from a month ago and 146 from two months ago. Of the 107 homes available for sale, 16 are bank owned and 23 are short sale. That means 39 – or 36% – of the market is distressed. This is the same as last month when the numbers were different, but 35% of the market was distressed. It appears as though the Dayton market is no longer suffering from excess inventory – not to mention excess distressed inventory – dragging prices down.

How is the absorption rate looking for Dayton? Let’s take a look…

Dayton currently has 107 homes on the market.
In June, 39 homes sold
107 / 39 = 2.74 months

In May, the absorption rate was 4.85 months. We now have 6 months of trend where the absorption rate is dropping in Dayton! This is great news!

With only 2.74 months of inventory on the market, it sounds ridiculous to even say this, but this is the second consecutive month of inventory shortage in the Dayton, Nevada area. Look to builders in the Dayton area to begin new construction again to feed the demand for product in this small, centrally located valley.

Today, there are 179 properties under contract / pending in Dayton. That’s more than double the number of homes that were under contract at this same time last month (83).

If you’re a buyer debating buying a home right now in Northern Nevada, don’t wait for these statistics to continue to trend upward. It may just cost you the house of your dreams. And if you’re a first time homebuyer, you only have until December 1, 2009, to take advantage of the $8,000 tax credit. It’s a great time to be a homebuyer but the market winds are shifting. Don’t miss the boat!

(Our data is from the NNRMLS, Dayton Valley area (Area=420, 416, 414, 412, 410, 402.)

Carson City Nevada Real Estate Market Update: June 2009

July 9, 2009

Carson City saw a bit of a derease in the number of homes sold in June compared to May. In June, 33 homes sold compared to 40 in May. However, when you compare June 2008 to June 2009, year over year volume is up. In June 2008 only 27 homes sold. Some pundits think that year over year is a better comparison that month over month because it compares a similar time of year.

A whopping 88% of the homes (or 26 homes) that sold in June went for less than $200,000, demonstrating that home affordability is back in our state’s Capitol. To further demonstrate the changing dynamic of prices in Carson City, there was not a single sale over $500,000, only one over $400,000, and three between $300,000 and $400,000. There were also three sales between $200,000 and $300,000. It’s clear that buyers simply are not interested in buying in Carson City when the price goes above $200,000.

2009 Carson City Homes Sales Data

Today there are 283 homes for sale in the Carson City area. Of the 283 homes available for sale, 21 are bank owned and 35 are short sale. That means 56 – or 19.8% – of the market is distressed.

How is the absorption rate looking for Carson City? Let’s take a look…

Carson City currently has 283 homes on the market.
In June, 33 homes sold
283 / 33 = 8.57 months

June marked a slip just outside the ‘normal’ range when considering the absorption rate. A normal market is defined as 5-7 months of inventory available for sale, determined by the absorption rate. The Carson City real estate market continues to struggle to determine it’s price floor and a steady sales volume.

(Our data is from the NNRMLS, excluding all shared ownership or manufactured housing in Area 200.)

Carson Valley Real Estate Market Update: May 2009

June 4, 2009

The numbers for May are in! 43 homes sold in May in the Carson Valley. We had 37 sales in April and 39 in March, so we’re holding steady in terms of volume.

The average per square foot price also held steady at $145.06, and the sales price as a percentage of asking was 96.51%. This is one of the primary indicators I feel will show market traction and also will be one of the first to tell us when market appreciation will begin at some point in the future. If homes start selling at what they are asking, then future sellers will opt to start testing the market ever so higher. That’s a ways away but we’re heading in the right direction.

How is the absorption rate looking for the Carson Valley? Let’s take a look…

The Carson Valley area (Minden, Gardnerville & Genoa) currently has 452 homes on the market.
In May, 43 homes sold
452 / 43 = 10.5 months

The absorption rate for the Carson Valley has held steady for the last three months. The good news is that we are not far off from a normal market, which is defined as 5-7 months of inventory on the market. When you compare this to an absorption rate of 27 months in January, it is clear our market has made great strides towards normalcy. I continue to assert my opinion that the market is normalizing and by the end of the third quarter; I predict we will see single digit absorption rates in the Carson Valley.

Today, there are 137 properties under contract / pending in the Carson Valley. That’s a lot of homes to close escrow in the coming months further demonstrating the Carson Valley real estate market’s recovery.

If you’re a buyer debating buying a home right now in Northern Nevada, don’t wait for these statistics to continue to trend upward. It may just cost you the house of your dreams.