Inside Incline - Incline Village Real Estate Monthly Newsletter and MLS Listings and Sales Update

HOW BUYERS AND SELLERS CAN BOTH TAKE ADVANTAGE OF 2007 MARKET CONDITIONS

The Incline Village real estate market offers unique opportunities for both buyers and sellers as we enter the final part of the summer selling season. With strength in some areas of the market and weakness in others it is possible for both buyers and sellers to exploit the best opportunities that our market has to offer.

Although the national media would have one believe that real estate is soft all over the country, the fact is that Incline Village presents a micromarket that is immune to many of the ills affecting much of the US. The only place we are really seeing any weakness in our market is in the lower end properties (condos under 500K and houses under $1 million) and high elevation homes, especially above 7000 feet.

There are approximately 470 properties for sale in Incline Village as of September 1st and the reality is that approximately 50 to 60 more deals will take place in '07.

Unless you are very motivated to sell your property this year, the best strategy might be to rent to a tenant until June 2008. You might as well generate some rental income to offset your monthly expenses if the odds against selling your place are in the neighborhood of 8:1.

Anyone who is trying to get top dollar for their property this year will need to have some of the following attributes: Lakeview, low or moderate elevation, updated interior, attached garage, easy access, oversized lot. I cannot stress enough that the vast majority of buyers in our market are not looking for fixer uppers and will not willingly do any updating beyond new paint and carpets.

Very often sellers will do some updating not because they expect to increase the sales price but rather to make a quicker sale. This tactic worked perfectly with my listing this summer at #118 McCloud. The seller updated the bathrooms and installed new kitchen appliances along with doing a very thorough job of cleaning and detailing the condo. Even though there were 11 other two bedrooms for sale in McCloud at the same time this unit sold in less than three weeks and for 98% of the asking price. By differentiating the property from the other condos for sale & pricing ourselves $500 under the nearest competitor we were able to generate a substantial amount of interest and a very strong offer.

Property owners who are looking to downsize from a house to a condo are potentially in a very strong position in 2007. If you're selling a home with some of the attributes listed above and are looking to purchase a condo in one of the complexes with an excess of inventory it's a perfect example of being able to sell high and buy low. For example, if you own a Lakeview house that would sell for under $2.5 million there is a tremendous amount of demand for these types of properties. If you are looking to downsize into a condo there are some great values in the McCloud, Third Creek, Bitterbrush and Mountain Shadows complexes. You don't have to sacrifice having a garage or a view since there is so much variety on the market at the present time in each of these locations.

Buyer's can take advantage of our current market situation by researching the properties they are interested in thoroughly. Sometimes you'll find a seller who is extremely motivated and they might even be willing to let go of a property for less than they paid for it a few years ago. There are many properties for sale that have been owned for a very long time by the same family. Some of these sellers can be convinced to accept a price that leaves them with a reasonable profit instead of a big killing. Patience is on the side of buyers in our current market. While you do not want to miss out on a particularly good value, as properties continue to sit deeper into the autumn season some sellers will become more motivated and willing to negotiate more liberally.

As a big believer in "simple solutions to complex problems", the current brouhaha over access to Incline Village beaches is right up my alley. I frankly don't understand why any property owner in Crystal Bay thinks they have any right to use our beaches, but we do have to address the issue since it's reared it's ugly head.

I don't really have the time or space to do a complete analysis of the issue, so here are some ideas to consider:

A. Crystal Bay residents can float a bond in the amount of $4 million and purchase an old lakefront property or some land in Crystal Bay for their own private beach. At only $10,000 per parcel, it's a cheap solution for the Crystal Bay property owners who want a beach.

B. Incline Village property owners who don't use all of their IVGID ID cards could put them into a pool for purchase by Crystal Bay homeowners. This pool would be voluntary and reauthorized annually. I own a house and as a single person, I would gladly relinquish 1 or 2 passes per year if a C.B. resident reimburses me an amount equal to the cost of a punch card for each ID.

C. Have the Incline Village beaches assessed for tax purposes and divide the tax bill equally among Incline Village property owners. This eliminates the argument by the Crystal Bay folks that somehow our beaches can't be private if there is no property tax being paid. I'd rather pay $100 a year in additional taxes than open up our beaches to 2000+ people from Crystal Bay everyday in the summer. Not to mention the invasion after they build all those condos planned for the casino corridor!

Inside Incline is entirely written and published each month by Don Kanare of Lakeshore Realty for property owners and others who have an interest in Incline Village and Crystal Bay. If you have any questions or comments, please contact me at 775-831-7000 or send an e-mail to: Don@InsideIncline.com

Copyright 2007 Don Kanare - All rights reserved

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Copyright 2007 Don Kanare - All rights reserved.