South Lake Tahoe Real Estate Blog (530-318-5665)

Year to date in South Lake Tahoe there have been 42 single family homes that have closed escrow.  I continue to see the number of bank owned and short sale properties making up over 50% of the market.  Especially surprising numbers since that type of listing is just 19% of the properties that are for sale.

Sold Stats for 2010

• 42 Sold Listings in 2010                    
• 15 REOs
•   9 Short Sales
•   Comprising 57% of total homes sold

Active Listings Stats

• 307 Single Family Properties Currently Listed (Not in Escrow)
•   24   REOs
•   34  Short Sales
• Comprising 19% of Market Total

Pending Listing Stats (Homes in Escrow)

• 87 Listings Currently in Escrow
• 20 REOs
• 45 Short Sales
• Comprising nearly 75% of the Total Homes in Escrow

These numbers are amazing to me because they show that the distressed properties are selling and other listings are not.  I would caution any seller who attempts to navigate these turbulent times of home selling to price their home boldly, perhaps even a bit under the current market value to play the same game as the banks.  This strategy can create a “feeding frenzy” and savvy sellers could end up with multiple offers which can go over the listed price.  Otherwise you may be looking at a listing that can languish on the market without activity for months while the value continues to decline.  If you need to sell a property now,  price courageously and get the listing on as many websites as possible with an agent who has access to an extensive National Distribution Network on the Internet.

Radon is an odorless, colorless, radioactive case that arises from the decay of naturally occurring minerals in the soil. The gas is linked to 21,000 lung cancer deaths a year, second only to cigarette smoking, according to the EPA.  A report from the California Geological Survey in June 2009 estimated that 23,400 people in the Lake Tahoe area live in buildings where radon is likely to equal or exceed the U.S. Environmental Protection Agency’s recommended action level of 4 picocuries per liter.  The report was based on geological data, as well as results from a survey of 443 homes in South Lake Tahoe between 2006 and 2007.

According to the survey, about 40 percent of homes in the Lake Tahoe area are at or above the EPA’s recommended action level, while approximately 55 percent of homes in the El Dorado County portion of the basin who participated in the survey are at or above the recommended action level.

Winter is a good time to test a home for radon, Huber said.

“It’s the best time to test because your house is closed up,” she said.

I had a recent conversation with Ginger Huber who is in charge of Environmental Health in El Dorado County, and she wanted me to make sure and let you know that she is almost out of the “free” testing kits, but you can get them from the State of California for a nominal fee.  I found this article in a past issue of the Tahoe Daily Tribune and thought you might find the information on radon gas helpful.

Hot news for people 55 or over who are selling a house in another county of California and want to keep their low property taxes.  This is  a big deal.   Until recently this strategy was not available to residents outside of El Dorado County.  With this change you can transfer from any county within California to El Dorado County. 

My husband and I just were successful in utilizing Prop 90 within El Dorado County.  We sold a home and were able to keep the old property tax base on our new home.  It was a bit tricky because we sold our house and were in the process of building the replacement home and would not know the value until later.  The new house needed to be valued by the assessor at an equal or lower value in order to qualify.   We just heard from the County that we were successful.  It is generally not that much of a gamble.  If you sell a house and buy a new one, it is much easier to know that you qualify.  I am including the link to the El Dorado  County’s website http://www.co.el-dorado.ca.us/assessor/prop90info.htm.

On December 10th, 2009, the Board of Supervisors approved the introduction and 1st reading of the Proposed Prop 90 ordinance. On December 15th, 2009 the Board adopted the ordinance after its second reading. The proposed ordinance will have an estimated effective date of February 12th 2010, which is 60 days after the adoption.

As the ordinance is currently written and based on Revenue and Taxation Code Section 69.5 (Prop 90), in order to qualify for a base year transfer:

• The replacement residence must be acquired after the effective date of the ordinance allowing base year value transfers from other counties.
• As of the date of transfer of the original property, the claimant or the claimant’s spouse is at least 55 years of age or severely and permanently disabled. There is no age requirement for persons who are severely and permanently disabled.
• The claimant and/or the claimant’s spouse has not previously been granted the property tax relief provided by section 69.5. The sole exception to this requirement is if relief was first granted for age, relief can be granted a second time if the claimant or claimant’s spouse subsequently becomes severely and permanently disabled, and has to move because of the disability.
• The original propertywas eligible for the homeowner’s exemption or the disabled veterans’ exemption either at the time it was sold or within two years of the purchase or new construction of the replacement dwelling.
• As a result of its transfer, the original property must (1) be subject to reappraisal at its current full cash value in accordance with sections 110.1 or 5803; or (2) receive a base year value determined in accordance with section 69 (intracounty disaster relief), section 69.3 (intercounty disaster relief), or section 69.5 because the original property qualified as a replacement property under one of those sections.
• The replacement dwelling is purchased or newly constructed within two years of (before or after) the sale of the original property.
• The replacement dwelling must be eligible for the homeowner’s exemption at the time the claim is filed.
• The replacement dwelling must be of equal or lesser value as compared to the original property. This means that the full cash value of the replacement dwelling on the date of purchase or completion of new construction must not exceed:

1. 100 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed prior to the date of sale of the original property,
2. 105 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property, or
3. 110 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.The “full cash value of the original property” includes any inflationary factoring that occurs between the sale of the original property and the purchase of the replacement dwelling. The “full cash value of the replacement dwelling” does not include any inflationary factoring.
   

• If the original property was substantially damaged or destroyed by misfortune or calamity and sold in its damaged state, the full cash value is determined immediately prior to the misfortune or calamity.
• The claimant must file a claim for property tax relief under this section within three years of the date the replacement dwelling was purchased or the new construction of the replacement dwelling was completed.