Everybody makes mistakes, but a South Lake Tahoe real estate mistake can be costly. After all, buying real estate in South Lake Tahoe is one of the biggest financial decisions you will make. An error can be hard to get out of, or it can cost you a lot down the line. So how can someone looking to buy South Lake Tahoe real estate avoid a botched purchase? Check out these tips!
Mistake No. 1: Not Realizing What House You Bought
This sounds crazy, after all, most people know the home they are buying….but how much do you really know about it? With today’s competitive seller’s market, things move quickly which means so do you. If you live locally, you should be able to scope out the real estate in South Lake Tahoe in depth with ease. If you live far away, which a lot of our buyers do, you may be cramming in a lot of showings in just a couple days. This is great, but how much of the home for sale in South Lake Tahoe are you really seeing? Don’t breeze through homes and then make a purchase without knowing what you are really getting into. The home could be impractical in the long run, the neighborhood may lack the amenities you provide, or you may want more yard. Take a video of the top contenders or write down a list of pros and cons of each home you tour. This takes a little more effort but it prevents you from purchasing a home for sale in South Lake Tahoe that you will regret later on.
Mistake No. 2: Buying For The “Now” & Not The Future
In today’s technologically driven society, we seem to be buying more for the instant gratification and not the long term goal. You would think South Lake Tahoe real estate would be exempt from that list and people would save the impulse shopping for shoes, however, a poor real estate purchase does happen. With low inventory and increasing mortgage rates, people may feel the pressure and go for a home that doesn’t fit them just to lock in a good rate or avoid paying high rents. If you are buying your first home for sale in South Lake Tahoe and you know it is going to be a while before you need to worry about extra beds, a fenced yard or school districts, then buying an affordable home that fits your current needs is fine. Likely you plan to either hold on to it as a rental or sell it when it is time to move up. However, if you know you are going to start a family (or grow your current one), make a big move or need certain amenities within the next year, don’t buy something that doesn’t fit your needs. You must think about the future in order to avoid any kind of regrets.
Mistake No. 3: The price is right…..or is it?
Buying a home for sale in South Lake Tahoe is exciting! However, try not to get carried away. Remember that at the end of the day, this is a business transaction. You are buying goods from a seller. Don’t waive inspection and offer well over the market price unless your South Lake Tahoe realtor advises is. The last thing you want is to overpay and then find out there are also a bunch of fixes you didn’t know about because you decided not to get an inspection. As we are in a sellers’ market, you likely may have some competition, but find out before offering everything you have. If you are the only offer, you have the power so negotiate accordingly and try not to get too emotionally invested until the deal is done and it benefits both of you.
Mistake No. 4: Not up to code
Speaking of waiving inspection…..take the inspection seriously! There are a lot of old cabins and homes in South Lake Tahoe. Make sure everything is up to code from the wiring to the roof to the remodel. There are remodels out there that were done on the cheap. You will eventually have to fix these things when you could have saved yourself the headache, and some money, had you taken the inspection process seriously before close. You can accompany the inspector and find out what repairs are needed now, what needs to be repaired later on and how costly it is. Knowing this information serves as a great negotiating tool when buying a home for sale in South Lake Tahoe.
Mistake No. 5: Underestimating Being A Landlord
It sounds dreamy doesn’t it? Owning lots of real estate, earning equity and essentially having your mortgage paid by someone else does have a nice ring to it. However, don’t under estimate the task at hand. Sure the monthly bill is being paid, however if a repair comes up, that is all you. Not to mention, if someone breaks their lease agreement or you rent to a friend who takes advantage, you could find yourself dealing with a mess you didn’t think you were signing up for. If these things don’t bother you, proceed ahead. If you aren’t sure you want to sign up for all that at this time in your life but still want to make the investment, consider hiring a long term management company to handle the landlord part for you. Sure you will have to pay a fee, but it’s stress free for you and you still get the equity.
If you are looking to buy real estate in South Lake Tahoe, give us a call. We would be happy to guide you through the process!