Remodels seem to be more popular lately. If homeowners are unable to sell their home, they decide to make some updates instead. Remodels are popular this time of year too with people trying to get their projects done before the holidays.

I recently found this article entitled Remodeling? Don’t Forget the Permit. This is a good reminder of why it’s important to get your remodel permitted. The article states “Home owners who fail to get a building permit for a remodeling project can jeopardize a sale.” In this market, sellers do not need to do anything to jeopardize the sale of their home! Click on the link to read entire article.

When home owners take on a remodeling project, they’re often far more focused on choosing glistening fixtures for a new bathroom or debating the type of granite to use on a kitchen countertop than, say, navigating the intricacies of the building permit process. That could be a huge mistake, however, and it may not even come to light until the house is put up for sale. Ignoring local approval requirements not only poses safety and legal problems but also can potentially derail an otherwise smooth sale.

Home owners using licensed contractors for remodeling work typically don’t have to get involved with permitting. Most licensed contractors will handle the cumbersome process for them—filling out the paperwork with the municipality, collecting fees, and being present for the required inspections, says Michael Hydeck, president of the National Association of the Remodeling Industry. But when home owners tackle do-it-yourself projects or use unlicensed contractors, they risk problems later.

The permit process varies widely from city to city and state to state). But the purpose of the document is the same everywhere: It offers ­assurance by a municipal building department that the work being done meets all safety codes.

Ask Home Sellers Before You List

Home owners may be asked about permits in the process of selling a home. At closing, they may have to disclose any remodeling work they did and verify permits. A home inspector evaluating a property for a buyer may want to know whether a permit was obtained. Furthermore, the buyer’s appraiser may want to see permit records to check the legality of any home renovations.

“If no permits are found and it’s obvious the home has been renovated, the bank will likely refuse to make the loan,” according to the American Bar Association’s book Legal Guide to Home Renovation (Random House Reference, 2006). If the permitless work isn’t discovered until after closing, the home’s value could even be subject to a lawsuit, such as in cases when an addition added extra square footage to the home’s value but the construction wasn’t done legally with a permit.

That’s why contractors and legal experts say real estate practitioners are well advised to ask sellers before they take on a listing for a renovated home: “Did you get a permit for that?”

Remodeling contractor John Price in Merced, Calif., has been called in to help home owners after permit problems have been uncovered. He once worked with a home owner who installed siding by himself, but added it too far down along the wall of the house, so it rubbed up against dirt and picked up moisture. Eventually the poor installation led to mold growing in the drywall throughout the inside of the house.

Some home owners, however, are tempted to sidestep the permit process not wanting to pay the fees (municipalities generally charge a minimum issuing fee—such as $25—as well as an additional fee—sometimes 1 percent—of total construction costs), or they might not want to risk delaying a project or a sale by waiting for city inspections (obtaining permits can take anywhere from a day to six weeks or more).

“People have strong incentives to cheat, and some of that lays squarely on the feet of policymakers who have sometimes created a system that is time-consuming and frustrating,” Price says.

But caught without a permit during resale, home owners may face big consequences. They may have to pay fines (possibly up to quadruple the original permit cost) or may have to tear the project down and redo it.

Virtually No Job Is Too Small

Home owners making any changes to the structures of a home will likely need a permit—and you may need more than one, Price says.

While kitchen and bathroom remodels and housing additions are obvious permit candidates, people may not realize they might also need one for such projects as installing a window, adding a new light switch, or replacing a shower. “There are not too many jobs you don’t need a permit for,” Hydeck adds. “It’s better to be safe than sorry.”

 

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Ski Lease in Alpine Meadows Available for the 2011/2012 Snow Season!

Alpine Meadows Property Location: 1559 Mineral Springs Trail

Details: 3 bedroom/2 bathrooms/1260 square feet

Property Description: This 3 bedroom, 2 bathroom getaway has a wonderful feel with great views of the surrounding mountains. Kitchen, bathrooms, flooring, walls, windows and roof insulation have all been updated. Relax on the deck in the summer and enjoy the spa during the snowy nights. Less than a mile to Alpine Meadows Ski Resort and within minutes to both Squaw Valley and Tahoe City; this home is in a perfect location to enjoy the 2011/2012 ski season!

Property Available: Anytime; available as a ski lease right away

Contact: For more information about this great property contact Dave Geis at (530) 412-2215 or snomardave@mac.com.

For Sale: This home is also listed for sale. Click on the link for more details.

The Lake Tahoe Real Estate 3rd Quarter 2011 Stats are in! Click on the link to view graphs for Lake Tahoe & Truckee real estate 3rd quarter graphs 2011.

Here is the press release from our broker:

Tahoe Home Prices Stay in Step With Rest of U.S.

Zephyr Cove, Nev. (Oct. 11, 2011) – Home sales around Lake Tahoe took a small dip in the third quarter, while prices fluctuated in sync with the rest of the nation. The figures, part of a quarterly report released by Lake Tahoe-based real estate company Chase International, noted a four-percent decrease in units sold around the lake.

The median price of a home in Lake Tahoe is $370,500, down ten percent from the third quarter of 2010. The average home price fell 11 percent to $630,984. The National Association of Realtors recently reported that the median price of a home in the West ($189,400) is down 13 percent from a year ago.

While sales and prices were down around the lake overall, East Shore saw a seven-percent increase in median home price ($575,000) and 51-percent jump in average price ($1,408,018). Volume sold was up 32 percent, while units sold were down nine percent.

“We are starting to see the return of the high-end buyer with especially the East Shore experiencing some substantial high-end sales,” said Sue Lowe, corporate vice president for Chase International. “With the increase of high-end sales, we are anticipating a boost in end-of-year numbers.”

Truckee experienced some stabilization from this time last year, seeing a 16-percent increase in units sold and a 21-percent bump in units sold for less than a million. The median price of a home in Truckee is $435,000 (down 12 percent) and the average price is $554,744 (also down 12 percent).

The condominium market fared somewhat better around Lake Tahoe with a four-percent rise in units sold and 43-percent increase in units sold for more than $500,000. Tahoe City experienced the biggest jump in sales, with a 35-percent rise in units sold and up 52-percent in units sold for less than $500,000.  South Lake Tahoe saw a 32-percent increase in overall volume sold, with median and average prices rising 36 and 32 percent, respectively. The median price of a condo in Lake Tahoe is $274,400 (down five percent) and the average price is $353,136 (down four percent).

One of my favorite referral partners, Julie Gardner sent me her most recent blog post and I could not get over how right-on it was! Before I share it with you (and yes, I have made a few changes so that all of you Tahoe buyers and sellers can relate), I wanted to let you know that if you haven’t already connected with Julie, a top producer and true professional with Grubb, Co. in Piedmont, I highly recommend that you do. If for no other reason, to sign up to receive her newsletter which is one of the best, most well written in the industry. She is a fantastic writer, which is no surprise, as it seems that everything she does is exceptional! Click on the link to read the original entire article.

“I want four bedrooms upstairs, three bathrooms, a beautiful lake view, chef’s kitchen with a great room, great central location that’s ‘walk-to’ everything and close to the best ski areas, and ‘turn-key’ condition,” my client emphatically stated. “Oh, and I need it for only . . .”  (Hmmm . . . )

As a friend of mine jokes, “Find me that house and I’ll purchase it myself!

The reality is that I can probably find you the bedroom/bathroom count you seek, OR the coveted location, OR the immaculate condition, but it’s next to impossible to find everything you want, given a limited budget.  And while we’re being frank (why not; in for a penny, in for a pound) it’s nearly impossible to hit ALL of the bullet points on any buyer’s “wish list” - even when price isn’t an issue!

Really?

Really.  In my experience, there is always a bit of compromise, regardless of how much a buyer can – or is willing – to spend.  BTW, this isn’t just true of buyers; it’s true for sellers as well, who expect a result that is literally, “unattainable.”

I liken it to hunting for the “endangered species,” but a much better term for the impossible outcome is probably “looking

Unicorn

for the unicorn!”  (That’s brilliant.)

I don’t mean to dampen your dreams. In fact, I want to encourage them; nothing gives a REALTOR more pleasure than matching buyers with the right homes and given the unprecedented low interest rates now available, within a softer housing market - making purchasing truly more affordable than it has been in fifty years - now is an exceptional time to buy (if you qualify – but that’s another column)!

But I have also spent untold hours too numerous to count with clients seeking the “mythical home” that truly doesn’t exist.  No matter how many properties I show them, they are unwilling – or incapable – of writing.  For them, it’s all about the shortcomings – never the opportunities. In short, they’re looking for the unicorn.

Here’s the skinny, “real” Buyers write and what’s more, they often write on several properties before successfully obtaining “the one.” However, these near misses are never wasted.  With each new purchase offer, Buyers sharpen their skills, adapt to the demands of the marketplace, and develop a finely honed sense of “value” that makes it possible to ultimately craft a winning offer.  (Oh, I get it!”)

With respect to “real” Sellers, they absorb the results of  the marketplace, take into account the comparable sales, adjust their asking price quickly when the market speaks, listen to their Realtor’s advice, and understand the BIG picture. In other words, they don’t test the market; they come ready to sell.

In both cases, it’s about being focused, teachable, goal-oriented and open to the possibilities. Otherwise, you may as well spend your time looking for a unicorn.