If you are looking to into buying a second home in Lake Tahoe, there may be somethings that are different than buying a primary home. The process of buying more than one home is different and there are things you should always keep in mind before you proceed with you purchase.
While all the fundamentals can be the same, when choosing a new property there are some things to keep in mind. In this blog we will talk about what you need to keep in mind when buying a second home in Lake Tahoe.
Figure Out Your Budget
The first thing you should do when you are buying a second home in Tahoe is to know how much your can afford to buy. The best way to do so is to find out your budget. Figure out your current expenses and what you estimated overhead will be for your second house. After figuring out what your estimated overhead will be, ask yourself if the extra payments each month interfere with your lifestyle. Will owning more than one property change the way you live? Is it worth a life style change if it does? There is a lot more to think about. Even if you buy it in cash you will still have expenses that you will have to take into account. For example, HOA/ Common Community Properties, landscaping, maintenance, taxes, insurance, etc.
If you own money on your primary residence do not just consider your income and expenses to determine how much house you can afford. Also factor in what the total cost of owning both properties and carrying two separate mortgages. So decide you would be comfortable paying two mortgages every month along with other monthly expenses as listed above.
Another thing to remember is that most lenders will require you to pay 20 percent of the purchase price as a down payment, meaning you’ve got to have significant savings before you start looking.
Location Location Location
In real estate you will often hear, “location, location, location.” That’s because location is key to choosing real estate. There are many nice areas in Lake Tahoe to consider. For example Zephyr Cove, South Lake Tahoe, Incline Village and Crystal Bay, Nevada Make sure you are choosing the right location for you and know if it’s in your price range.
In Lake Tahoe, the place you can afford will be largely determined by the amount you are willing to spend on buying a second home. For example, if you want to buy in a more expensive neighborhood, but don’t feel comfortable paying for property at the current market rate, you might need to consider a different location.
If it turns out that the neighborhood you initially wanted to purchase a home in is out of your price range, start thinking about what you need and want in a neighborhood.
Do you want it to be close to amenities such as a gym or the beach? Should it be on public transportation routes or be walkable distances other attractions? Are you dead-set on a gated community or another type of neighborhood?
Rank these wants and needs in order of importance and use them to help you choose a location that suits your needs and is within your price range.
Hire a Real Estate Agent
Even if you feel that you are well acquainted with the city, nothing beats having someone whose job is to know the ins and outs of the real estate market of an area to help you buy a second home.
It is also important if you live far from the Lake Tahoe area. Your Real Estate Agent can see what is on the market and look at homes for you if you are not currently in the area. They can send you additional pictures and information.
It is a real estate agent’s job to completely understand the market and the area they work in. Your Realtor will help you select an area, find available properties (especially of market properties), and more. You will also get a good amount of insights on what is is like to live in the Lake Tahoe Area.
We also give our clients virtual and video tours of any house the in Lake Tahoe area. Some that a very few amount or agents can offer their clients. As on of the small handful of Realtors with a Resort and Second-Home Property Specialist Certification, we are able to go above and beyond for our clients.
Having a letter in hand that says how much money you’re approved to borrow can make buying a second home much easier.
Once you’ve got a budget in mind, work with your lender to receive pre-approval for a mortgage. They can give you a pre-approval letter that you can show to your real estate agent and any sellers.
This document is a good-faith sign that you can afford the mortgage on a property you’ve chosen, giving the sellers more peace of mind in accepting your offer over someone else’s.
If you’re ready to take a leap and begin the process of buying a second home in Lake Tahoe , contact us at 775-525-0980 today!
We serve all part of Lake Tahoe and all parts of Northern Nevada. Here is a list areas in the Lake Tahoe area that you might be interested in. If you would like anything and would like to tour or if you want more information on a particular house, contact us. We would be glad to help you.