It can be hard to place a dollar sign on something that carries sentimental value. Coming up with a fair market list price for homes for sale in South Lake Tahoe is a tough task for sellers. Which is one of the top reasons why working with an experienced South Lake Tahoe realtor is so crucial. Not only do we help you pick that magic number, but we also guide you through the entire process and help you figure out if there is anything that has taken away from the value of your property. One thing is for sure, a majority of sellers usually have a specific number in mind and a lot of times it is much higher and based on something that isn’t really applicable to their home. Truthfully, homes for sale in South Lake Tahoe are worth as much as someone is willing to pay for it. Which is a hard truth to swallow, but it is accurate. A recent article asked appraisers what the main items were that caused homes for sale in South Lake Tahoe to come back lower than homeowners had hoped. Let’s look at the main culprits below.
Your South Lake Tahoe real estate doesn’t compare to the other homes in your neighborhood. This is big and something that commonly upsets sellers when coming up with a list price. South Lake Tahoe realtors, and appraisers, look at comparable solds in the last few months in your neighborhood to come up with an appropriate list price. It is the only way to truly compare. They use size, the amount of bedrooms, similar features and layout as a guide. Too many times we hear sellers say something along the lines of “Well, the neighbors across the street sold their house for XYZ”. It turns out the home in question is 20 years newer, has all the bells and whistles, a desirable floor plan, bigger lot size, massive master suite and well, you get the picture. It just doesn’t compare to the outdated rambler on a smaller lot with less bedrooms that was build 40 years ago and hasn’t been updated since. You have to compare apples to apples.
You spent a lot of money upgrading your South Lake Tahoe real estate. Ask any South Lake Tahoe realtor and they will tell you, adding amenities and making updates is a great way to add value. However, what you spent on those upgrades does not equal that same amount being added to your list price. In fact, in most scenarios, upgrades don’t get back to the full ROI. They can get close, and there are certain renovations that get back more than others, but rarely do they get 100%. Which means if you spent $30,000 on a new kitchen, you don’t get to add that to the value of your home. Especially in an area or neighborhood where the average sold price is lower than the local market’s average as a whole. Additionally, the improvement choices should be based on the desired amenities for the area or the similar homes in the neighborhood.
Your real estate in South Lake Tahoe is located next to something undesirable. Just like being on the lake or within walking distance or gorgeous views are desirable features, there are some things that make a home, well…..not so desirable. For example, you home fronts a busy street with poor traffic signaling, your backyard is shared with a railroad track, the bar across the street gets loud and noisy around 2 am or there are loud planes constantly flying over head. While this may not be an issue for some people, home is where you want life to be safe and quiet. If someone has young children, an unfenced yard with a busy road or a railroad track is a huge safety hazard. They will likely need to spend money to build a fence in order to make it work. Or it could be a deal breaker altogether with loud noises impacting a full night’s sleep. While it may not have been a bother to you, it is something that can cause a buyer to pause which can impact the desirability of a home, and therefor the ask price.
If you’re told your real estate in South Lake Tahoe is worth less than what you thought it was, you are not out of luck. The value is never set in stone and varies based on the market and demand. You can do a few things. You can chat with your South Lake Tahoe realtor on what you can do to bring the value up. You can also talk with the appraiser and ask what details helped him come up with the price in question. You can make sure they haven’t missed any details about your home and ensure they have a list of the most recent comparable solds as some may not be public record. If you have more questions, feel free to reach out. We would be happy to help!