Our industry has certainly changed in recent years, and one of the most dramatic of all the changes is the manner in which we market properties.  Most real estate agents have websites where they post the properties they have listed for sale.  Most have many photos of those properties, and many have virtual tours of their listings.  A virtual tour is a series of pictures stitched together so they look like a video.  You can actually see the best features of a home sitting at your keyboard. 

With so much visual information available it would seem like one could look at a property online and not have to take the time to physically look at it before making a buying decision.  The reality is that one must beware when relying on photos.  There are many things that can be done with photos that could disappoint a Buyer that didn't visit the property before finalizing their contract.  An ultra-wide angle lens can make a room seem huge, but if you really need the size you think you are looking at you might be disappointed with the real room when you get in it.  Hint: look for converging vertical lines in the picture - cheap ultra-wides don't stop such distortion in the picture. 

Photos also don't always have the detail necessary to make an informed decision.  When we asked our assistant about a showing the other day her comment, "they did a really good job with those pictures", said it all.  The home looked superb in the MLS photos, but was actually creepy to walk through because of its deteriorated condition.  The opposite can also be true - an agent can take marginal photos of a wonderful property.  Don't eliminate a property that suits your wants/needs based on poor visual marketing efforts - make sure it really, really won't work for you.  You might be delightfully surprised by taking the time to view the property. 

What makes good and bad pictures?  Lighting, subject matter (don't you just love looking at a picture of the commode instead of the back yard?), and quantity (some only have one outside picture - no detail photos). Things you can't see in a picture are odors, true room size, true colors, neighborhood sounds, i.e.- road noise, condition of neighboring properties and their impact on the subject property's value, flow of the floor plan, mold, water damage, etc.  

Our advice: Don't be the victim of a Photo Shop artist.  We have been told of photo doctoring that makes a property appear differently than it really is.  You can get an idea of what a property consists of from a good website presentation, and you can even make an offer based on that information, but we highly recommend that you have a clause that provides for an onsite inspection before you reach the point of no return in the transaction.  There is nothing like approaching a home, looking up and down the street, walking up the front walk, and entering what may be your new home.  How does it feel?  What are you seeing?  Does the floor plan flow with your preferred lifestyle?  Agents present the highlights of a home in their best light.  It is your duty to find the converse aspects, if any, and how they will affect your buying decision.  You will know if the home is "It" when you see it.

Shop at your desk and then go enjoy the home you found.  Some things will only be discovered with a Pest and/or Physical Inspection, but you will get a good idea of what a home offers you by visiting it.  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Yes, you can, but be advised that the rules are changing on January 1, 2009. Though the Housing Assistance Act of 2008 was primarily designed to provide relief for homeowner's facing foreclosure, a provision was included to help the government generate more taxes that will have an effect on you when you sell your second homes after that date.

Under the old rules you could sell your primary residence and your vacation home and keep up to $500,000 (married) in profit from both if you owned and lived in each appropriately. The new rule allows profit exclusion only up to the actual percentage of the time of total ownership that it was used as a primary residence. For example, you buy a home next year and use it as a vacation home for ten years. Then you sell your primary residence and move to the vacation home full time. After fifteen years you sell it. You will have owned the property for 25 years, 10 as a vacation home and 15 as your primary residence. Your primary residence period, 15 years, is 60% of the total ownership period. Under the new law, if you made $250,000 profit you can exclude $150,000 from taxation and will have to pay capital gains on the remainder profit of $100,000.

The new rule does not include ownership time prior to the enactment date, January 1, 2009. Using the above example, if you owned it for 5 years prior to that date, held it for the same 25 years, and moved in for the same 15 years, and were fortunate enough to realize the same $250,000 profit, you can now exclude $200,000 of profit, a tax savings of $37,500.

Loophole: Primary residences are granted a special tax status regardless of their subsequent use. This creates a potential loophole, i.e.- on January 1, 2009 you move out of your primary residence and into your vacation home. On January 2, 2011 you sell your then-primary residence and take the maximum exclusion on the profit. You then move back to the original primary residence and take the exclusion as long as you meet the basic criteria, i.e.- live in it two of the last five years, etc.

Our advice: Many people adjust their holding plans/strategy according to the tax consequence of their actions, and this new tax provision will undoubtedly result in owners holding their property longer. If held until their demise their heirs would have a stepped up basis in the property and little tax consequence to a subsequent sale. Beware of adjusting your holding plans too much, however, since this tax change will likely have an effect on vacation home markets and your property's market value may change over time nullifying any tax savings you are protecting by holding. If your second property was a rental unit before you moved into it, remember that you may have to recapture depreciation.

Planning your real estate moves based on taxes should be done in concert with the advice of your tax advisor. Real estate agents have working knowledge of real estate related taxes, but don't know your entire portfolio or financial circumstance, or enough about the tax code, to provide tax advice. Consult your accountant to assess the tax consequences of a sale or transfer. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Buying a home in today's Market is challenging and rewarding yet many Buyer's remain confused as to what they should do or be doing.  Their doubt is often externally created by national media reports, or the challenge of family and friends to "not make a mistake".  It is difficult to make a positive move when one has doubts about the outcome so let's make the process fun and rewarding. 

Most Buyers engage the services of a real estate agent for their Market and professional knowledge.  Typically the Seller pays the commission to the selling agents at the close of escrow with no cost to the Buyer for their professional services.  Such a deal!  One of the most important steps to a successful home acquisition is the interaction with the real estate agent.  Amazingly, many Buyers play games with their agent when they meet.  

It is silly to withhold information from your agent if you are relying on him to properly work for you.  Have you ever gone to the doctor and told him, "I hurt doc, but I'm not going to tell you where it hurts.  Find it."?  Not telling your agent how much you want to pay, how much you have to spend, and what you really want in a home is about as silly as that.  It is okay to be reserved with an agent you've just met as you get to know her, but it is in your best interest to get a feeling of trust and confidence with your agent as quickly as possible so you can work together towards your successful purchase. 

With trusted confidence established, it is important that you and your agent identify your wants and needs so you can work together to achieve it.  The first thing to determine is your ideal home scenario.  Everything else will stem from this awareness.  When you have a vision and set the intention for your ideal home you initiate momentum that will undoubtedly result in a positive outcome.  Take action by creating a list of your ideal home features and amenities. 

Start with the home itself - lifestyle is important when selecting a house.  How many bedrooms do you need?  Are you going to use one for an office ... or do you need formal office space?  Do you cook a lot and entertain, or are your culinary efforts limited to microwaving popcorn and eating at the breakfast bar?  Are you looking to buy something that reminds you of the home you grew up in, or are you moving to the acreage you've always dreamed about?  

Do you want a split floorplan - master and guest bedrooms on opposite ends of the house?  Do you like vaulted or traditional ceilings?  Is it important for you to have a formal dining and/or room ... or is your lifestyle more casual?  Do you want room for a pool table?  Need a separate family room?  Two story okay ...  preferred... or a definite no?  Do you need a defined living area for your mother in law, live-in care giver, adult child, etc.?  Are work benches on the side of the garage sufficient, or do you need a shop area?  Do you want a detached shop building, or is the third car bay in the garage an acceptable work space?  

The more detailed you are in your wants and needs identification the more likely it is that you will have an enjoyable buying experience because you will be confident when you find your ideal home that it is, indeed, what you want.  Are granite countertops a must, or do you like tile?  Is a fireplace a must, or will a wood burning stove do?  Willing to do repairs or remodeling or do you want the proverbial "cream puff"?  

Though you spend most of your time inside your home, it is important to consider the outside attributes.  How much time do you want to spend working in the yard?  Do you want a vegetable garden?  A private flower garden?  Are you happy mowing, or do you want more of a xeroscape landscape with rocks and minimal lawn?  What kind of animals do you have or want to have?  Some areas don't allow certain animals, i.e.- horses, goats, etc. so be sure to tell your agent what you have or hope to have in the future.  Are your kids fast, or do you want to avoid a busy street? 

Once you understand the type of home you want to have and its general features, consider where you want it to be.  The old axiom that property value is determined by "location, location, location" remains as accurate as ever.  It is important to realize that the location value isn't just what is generally appealing in the market place, but what you consider important is also a major factor in your selection process.   Are you going to be working?  Where?  How about your spouse?  What activities will your children be involved with and how long does it take to transport them to and fro?  Where is your church?  Where do you recreate - do you want to ride a horse or ATV out your back gate? 

Other factors will come in to play that will affect your bliss in your new home.  Many subdivisions have Covenants, Conditions and Restrictions, C.C.&R.'s that can impact your intended use of your new home.  It is important that your agent know what you want to do on your property so that you don't buy in a neighborhood that prohibits your preferred activity.  Do you plan on working on your project car in the driveway?  Will you have occasional customers coming to a home office?  Are you a ham radio operator needing towers?  

Remember, elimination is as much of the process as is selection.  If you don't want to be around horses or radio towers you can eliminate certain neighborhoods.  Other easy neighborhood elimination consideration items include distance to work, schools, etc. - the reverse of your preferred selection items.  As you eliminate neighborhoods and homes from the list it is easier to select from the remainder.  It is part of the qualifying process that gives you the confidence in your ultimate choice that you have, indeed selected the right home for you from what is available in today's Market. 

Your agent will help you work through this awareness process in an easy and thoughtful manner through the course of conversation and the experience of looking at homes together.  As you identify things you want, make sure that you prioritize what is truly important to you ... what you can't live without.  If you have a want that you are flexible on make sure your agent knows where you can bend.  Ultimately, you will both know what you are looking for.  

When you find the right home on the right property in the right neighborhood ... love it but don't fall in love with it.  If you get too emotionally involved you limit your agent's ability to negotiate on your behalf.  Because of your collective efforts of establishing your ideal home and your candid conversations, your agent will know how well the home fits you.  Given the nod to proceed, your agent understands the responsibility of working to the best of her ability to get that home for you.  

When you've found the right property and can buy it at the right price, you are aware of what you have accomplished ... and that is fun.  Enjoy the process.  As you identify your ideal features and amenities, eliminate non-qualifying properties and neighborhoods, and select homes that meet your criteria you will have a calm, confident home buying experience.  

The emotion will be one of fun, not the chaotic, nervous, doubting experience that too many Buyers endure when they aren't focused or properly guided.  Enjoy ... and welcome to the neighborhood!  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

"I can't believe you're here!" exclaimed the man.  "You must be Jim", he continued.  Of course, Jim was Jim, and so they talked.  The man lives in Roseville, California and was purposely driving by that property after spending time in Reno looking at Hot August Nights cars that day.  He has been watching the property online, not just from the property information viewpoint, but he actually went on Google Earth and saw the entire street, as well as the front and sides of the property.  He knew things about the vacant property next door that we unbeknownst to us, and a lot about the neighborhood.  He was ready for an onsite visit. We are continuing dialogue with the man, providing utility bills, etc., and there is a good likelihood that he will buy the property. 

There is a plethora of websites where Buyers can get real estate information including: Oodle, Hotpads, OLX, Frontdoor, Backpage, Googlebase, Trulia, Dothomes, Vast, Zillow, Cyberhomes, Yahoo, Geebo in addition to the well known sites like Realtor.com, remax.com, coldwellbanker.com, c21.com, etc..  Additionally, most agents have their own websites, like ours listed below, that allows people to search the local Multiple Listing Service. 

Not only can Buyers search for homes for sale, and pull up comparable sold properties to assist them in establishing value for your property, they can find out what you paid for the property, if you have a loan on the property, if you have tax liens, if there is a Notice of Default, etc.  Want to know if there is a permit for the addition?  That information is now available on line in Douglas County.  Floodplain maps are now readily available online.  Well logs and water right information is easily tracked down via the Internet these days. There is plenty more information available to the Buyer willing to search for it.

Not all Buyers have the knowledge, ability or desire to do such extensive search efforts on their own without the help of their agent, but it is important to know that there are Buyers that are doing it, and the extent to which they are working to get information. We have had numerous instances of Buyers calling us with their own list of homes that they want to see.  Most of the time they have done such a thorough job of searching that the home they ultimately buy is included in their original "shopping" list.  

Our Advice:  In addition to a local presence in print media, it is important to Sellers and Buyers that their agent has good technology knowledge and a thorough Internet presence.  The latter takes time, knowledge, and experience.  Your property must "come up" for Buyers searching our area for property like yours.  It isn't easy, but then ... if real estate were easy you wouldn't need your agent.  Remember, not all Buyers use the Internet.  We still encounter Buyers that don't even have an email address.  One never knows where the Buyer for your home will come from ... it is important that your agent be flexible and ready.

These are fun times being virtuosos in a virtual world, but there is no satellite or website will replace the agent on the ground to help a Buyer find the right house.   

Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

If you "don't need to sell", and are unwilling to price it right, then it is best if you take your home off the market and wait for the recovery ... whenever that may be.  If you "have to get $X.XX" remember, Market is what Market does.  If you can't or won't price to sell in this Market, take your property off the market to reduce the inventory glut.  It will serve you better in the long run as it will help us recover quicker so you can meet your needs later.  

Finally, remember that "giving it away" is relative to the Market.  If you are selling at Market value ... regardless of the price ... you aren't giving it away.  If you are 30% below the Market value you are giving it away and you don't need us to do it. 

Market is set by a willing Buyer and willing Seller.  In a "tipped" market like we have today, a "Buyer's Market", the advantage goes to the Buyer.  A Seller may be willing to sell for $300,000, and the Buyers are only willing to pay $250,000.  With no meeting of the minds the property remains unsold.  Agents don't set value.  They can price a property with a Seller, rightly or wrongly, but Agents do not set market value, Buyers and Sellers do.  

Competition is fierce for Buyers these days and Buyers are smart.  The National Association of Realtors tells us that the average Buyer spends eight hours on the Internet ... Northern Nevada MLS ... before contacting an agent.  Buyers often know the numbers better than the agents showing them property since Buyers are focused on their market segment and agents usually work the full market spectrum.  With an abundance of information available on the Internet Buyers are able to do extensive research on available and sold properties.  

Don't try to kid your agent about your value ... you are only kidding yourself.  If your agent takes your listing too high they are not doing you a good service.  Are they taking it because they have no other listings?  Are they taking it because they don't know any better ... a newbie or unfocused (has a day job) agent?  Or worse, are they taking it to employ one of the oldest tricks in the book ... get the contract and start beating you up week after week after week for a price reduction.  Regardless, when pricing your home, "to thine own self be true."

Our Advice:  Quit playing games.  There are Buyers all over our market ... cautious, tentative, knowledgeable, thorough, ready, willing and able Buyers.  If you want to sell, your only alternative is to price it right.  

Consider  the amenities you have, assess the market you are moving to, and price accordingly.  Good maintenance and upgraded features may get an edge in the market so your home sells instead of another, but it doesn't yield the additional tens of thousands of dollars it has in the past.  Buyers should figure out what they want in a home, find the properties that qualify, and make an offer.  With interest rates creeping up, almost one percent in the past three months, they are losing buying power as you wait.  Prices are good, values are better ... take action.    

The last dumb out-of-state Buyer has gone home.  They aren't coming to town and paying too much because they have fallen in love with the area and panicked about not being able to buy a home.   The good news is that they are buying homes and cash is flowing.  Get in the flow.  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Until March of this year vacation homes had a weird non-status ... they weren't investment property and they weren't personal use property in the eyes of the IRS.  To achieve a 1031 Exchange the property must be held for investment or used in a trade or business.  After a U.S. Tax Court disallowed a taxpayer's exchange from one vacation home to another the IRS recognized that some guidelines were needed to establish what could be done to qualify a vacation home for a 1031 Exchange.

The result is a Revenue Procedure ruling that was effective March 10, 2008, the first IRS guidance on the matter since a 1981 letter.  The Procedure ruling provides guidelines that the IRS says, if followed, they promise not to challenge the investment nature of your vacation home.  

The ruling requires that you hold the relinquished property at least 24 months if it is your vacation home or the acquisition property for 24 months if you intend to buy a vacation home, or for both if you are moving from one vacation home to another.  Note that this is more stringent than the one year holding period required for a safe long term capital gain status.

Additionally, for each twelve month block of the holding period you must rent the vacation home at least 14 days at a fair market rent.  During that same period, you the owner, can only use the property for the greater of 14 days or 10 percent of the days rented.  For instance, if you rented it for 30 days in a year your use is limited to 14 days, but if you rented it for 200 you could use it for 20 days.  Days that relatives use the unit for free count against you.  Not discussed, but generally understood, is your allowance for maintenance days.  You are allowed a reasonable number of "maintenance days" to care for your unit, but don't try to take a week shampooing the carpets.

Our Advice:  You now have specific qualifying criteria to meet that will allow you to rest easy knowing that your vacation home exchange will not be challenged.  Understand that this is what is known as a "safe harbor", guidelines that you and your accountant can use with confidence.  If you don't quite qualify it doesn't mean the end of the world, but you might get looked at closer by the IRS.  The best thing you can do is maintain excellent records, be serious in your rental attempts, charge family members market rate for their use, keep detailed records of the dates you use it and what you did, i.e. - maintenance days.  Your records are very important for the ultimate success of your exchange.

Tax ramifications are an important component of the buy/sell decision in real estate.  The 1031 tax-deferred exchange is designed to encourage the investor to keep his money invested.  The ability to defer the tax obligation rather than paying for the taxes on the profit of each transaction along the way can have a significant beneficial impact on your portfolio as you create wealth via real estate.  Work with your accountant and real estate agent to maximize your return and minimize your liability as you buy and sell real property. 

Experience is Priceless  Lisa Wetzel & Jim Valentine; RE/MAX Realty Affiliates, 775-781-5472 or toll free at 800-814-8799 ext. 254, email us at carsonvalleyland@hotmail.com, or visit our website at www.carsonvalleyland.com

Yes, lenders are still having an impact on real estate values and sales.  The numerous bank-owned properties throughout Carson Valley are continually driving down the neighborhood values because of the banks' lack of maintenance on their properties.  The dry lawns, weed forests, and other value-sapping deficiencies resulting from lack of care and a vacant property are driving down the values of entire neighborhoods.  

There are other, less obvious lender impacts in our market that are also having a major impact in sales as they affect a borrower's ability to qualify.  These involve major changes that are new policies or procedures.  They can range from allowable debt/income ratios being lowered, to a higher FICO score requirement.  Those are usually known to a borrower at the beginning, but we have seen changes in the middle of a loan process.  The more subtle, less publicized ones are the ones that will trip you up. 

Consider the new Fannie Mae and Freddie Mac rules that apply when buying another home before selling your old one.  Historically, the Buyer generated a lease agreement for the existing home and was allowed to use 75% of the lease income to offset payments on that home.  Two months of cash reserves were typically required.  The New Rules require a borrower with a home in escrow, but not sold, to qualify on their ability to carry the payments on both homes, no lease income or rental survey income is allowed. 

If the new home is a second home, the borrower has to show the ability to carry both payments and have six months PITI on both properties in documented reserves.  If you are buying a rental property you can use 75% of the rental amount, but now you must provide documented evidence that you have at least 30% equity in the property.  Additionally, there are detail requirements that must be complied with, i.e.- you have to provide the receipts of the security deposit from the tenant, and the deposit into your account.  If you have less than 30% equity the rental income won't count to offset your payment, you must now have six months reserves for both properties.

Our Advice:  Don't let the details stop you if you want to buy a new home.  We recommend, however, that you don't experiment with lenders.  We have many good, seasoned, honest lenders in our Carson Valley that will work with you, protect you, and perform for you allowing you to achieve your objective.  A new lender doesn't know where the roadblocks in the process are.  Your process will be one continual surprise resulting in an exceptionally frustrating experience if your lender isn't seasoned.  The seasoned lender will take you through the process addressing each hurdle like a hurdler.  Lenders today are working to minimize the risk to the investor.  That has resulted in a new industry which is much like the old industry ... you have to truly qualify to borrow.  If you qualify ... proceed with confidence and don't let the hurdles bother you along the way. 

Professionals in our industry have rarely been as important as they are now.  The major wealth in the world has been largely accumulated via real estate.  These are good investment times, don't let the hurdles keep you from your goal.  Get with a good hurdler and have confidence in achieving your goals.  Your lender, escrow officer and real estate agent are more important to you than ever before in these exhilarating times.  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, visit our websites at carsonvalleyland.com  or  carsonvalleyland.net

There is no set rule in the industry.  In the Carson Valley where we live and work, some agents are so adamant that a Seller must leave the house that they will turn down showings if the Sellers can't leave.  We believe that any showing is better than no showing, but there are ways to maximize the results of your showing and your presence, or absence, can be an integral part of that. 

Most of the time we recommend that Sellers open the blinds, turn on the lights, put on some soft music and take off.  The home will show itself with the showing agent illuminating the highlights.  Buyers know what they are looking for and will seek it out as they look.  Without the Seller to interact with they can be fully immersed in the experience of your home ... a good showing.  

If a home has complex features that are key selling points, i.e.- supplemental solar hot water heating system, surface water irrigation, etc., the Seller will likely need to be consulted for an explanation so they can finalize a buying decision.  It can then be to their advantage to be available at a showing.  A seller can show them how easy it is to operate the special feature and how it benefits the property ... ostensibly how it will benefit them.  In this scenario the seller should be sure to be scarce - hang out in the garden or garage, out of the way, waiting to be of help if you are asked.  

Let the agents do their work.  Different agents have different styles, and the really good ones will adapt their style according to how the Buyer processes information.  If they have an analytical personality, i.e.- an engineer, they might point out the detail of the new hinges in the doggy door.  With a kinesthetic personality they will let them flow through the house and get a "feel" for it ... without intrusion.  People will absorb information and buy according to their own personality ... don't intrude on the process with your buying style.  We recently had a Seller that would follow the Buyers and agents around the house showing and talking and negotiating on the spot.  They weren't wanted or welcome and lost sales because of it.  In fact, one agent that was previewing it for a Buyer had such a negative experience with the Seller that she didn't even show the home to her client ... exactly the opposite affect the Seller was seeking.

Our Advice:  As a seller, when you have the opportunity to have a showing take it ... whether you are home, or not.  Buyers want to explore your home to see if it will work for them.  When they start opening doors and drawers they are showing interest in how your home fits them and their lifestyle.  Some Buyers are hesitant to look closely when the Seller is in the home.  Take a walk, or a spin around the block.  If they have specific questions about your property the agent will ask you or your agent, often via cell phone during the actual showing.  If you want to make sure they see or learn something make a sign and put it where they can see it.  If you place signs around your house pointing out key things that aren't readily apparent it can really help a showing agent.  Pictures on the dining table can help show how pretty your flowers or other seasonal features are.  You are helping to show/sell your home in a subtle manner. 

Nobody knows your home better than you ... be judicious on how much information you give and when you give it.  Don't exasperate a Buyer by overwhelming them.  Let them enjoy the experience of "trying on" your home to see if it fits... then enhance that experience and close the sale with your additional details when asked.  Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

It may be a bit late to do anything about the new development, but our concern is what you could have done when you bought your property.  Most of the Valley's developable land is a matter of public knowledge, or readily apparent for its potentiality by a bit of investigation.  If an open field behind your property that served as an inducement for your purchase can be subdivided, your agent should have made you aware of that fact when you were buying. 

The Carson Valley certainly has world class views and, contrary to conventional real estate theory, people often do buy for the view when they buy a home here.  Some subdivisions have view protection restrictions in their C.C.&R.'s, but most don't.  In fact, many of the older homes were designed and aligned without consideration for the view - almost like it was taken for granted in those days.  As the Valley population increases, and the resulting new homes are constructed, views are being compromised.  You have the right to do as you please on your property as long as it complies with County Code and the C.C.&R's.  If you are building a new home the neighborly thing to do is to consider the view of your neighbor ... if you can build accordingly.  Sometimes an owner just can't help building in a view corridor and it is within their private property rights to do so. 

It isn't always a new subdivision that interrupts a view.  Your neighbor can plant a tree that will grow and wipe out a view.  A shop building, or two story residence can be constructed in your view corridor.  Some of the best protected view corridors are available by simply looking down the street - it won't be built on so you have a view you can count on.  

Even BLM land can change ownership status.  If Federal land abuts a populated area, i.e.- your subdivision, it is possible that you can see a change from public to private ownership.  Though it hasn't happened in our area recently, it is possible - especially with sustained demand for developable property located out of the flood plane.  If your agent says such public land will be open forever, remember, "forever" is a very long time.  Things change - that is the only constant. 

Our advice: When you are considering a purchase, evaluate the potential for a change in land use of the adjacent property and how it could affect you.  We've seen several instances over the years where individuals thought the neighboring private property was BLM, public land, until it was developed.  Whether those folks were improperly informed by their agent, or simply made a wrong assumption, one of the critical factors in their buying decision was clearly erroneous.  Nothing is forever - if you are buying property next to vacant land explore the ownership, zoning, master plan, and flood plane status of the property to determine potential future use changes that could occur on that property. 

Buying a view? Tranquility? Easy access to the public domain? Privacy?  Investigate thoroughly since all is not always what it appears to be ... or could change with time.  Your seasoned agent can help you.  Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704, carsonvalleyland@hotmail.com  , www.carsonvalleyland.com

As markets change so does the nature of real estate transactions.  One type of transaction that comes and goes with market changes is the lease/option, a lease tied to an option to purchase.  The lease/option tool can be a good one for Buyers and Sellers if their circumstances warrant it.   

Optionor (Seller) and Optionee (Buyer) can both benefit if the agreement is structured correctly for their respective objectives.  A Seller with a vacant property that wants to generate cash or a cash flow with the rent monies and option consideration might consider a lease/option.  A Buyer that hasn't sold his property but wants to move once and in to a home he is buying so he can establish it as his own until his property closes escrow might consider a lease/option.  These, and many other scenarios, are bona fide lease/option situations that could result in a mutually beneficial lease/option arrangement. 

Beware, however, that we are seeing more lease/option agreements being written for speculation these days.  We caution you to have your agent clearly help you with perspective in evaluating such a proposed contract and its effect on you.  If someone proposes to give you $5,000 and tie your property up for three years, the warning bells should go off as their respective flags raise.  No matter how frustrated you might be in today's market facing your continuing payments, in this situation you must project forward three years and consider what the market might be.  Also be advised, these offers are coming in way below today's market value. 

The option agreement gives the Buyer the option of buying tomorrow at a price agreed on today.  Let's say your property is worth $300,000 today.  It has probably gone down 30% in the past year.  If it comes back 20% in three years, the appreciation would be $60,000.  In this case, the Buyer/Optionee would make $60,000 on an investment of $5,000 over three years.  That is the speculator's motivation.  The speculator's motivation is further enhanced if he can contract to buy your home for $250,000 in 3 years. 

To minimize your risk exposure to such a speculative investor's offer, in addition to adjusting the price, consider shortening the time, i.e.- one year instead of three.  Try increasing the option consideration.  If you go beyond a one year time frame consider annual option consideration payments for extending the option incrementally.  Higher monthly payments can give you a cash flow and bind the Optionee tighter.  If the person has a bona fide reason to stay in the transaction you will likely put it together with some massaging of the transaction components as discussed above.  If not, you will flush out the unscrupulous predator investor that is trying to capitalize on your situation and thereby save yourself extreme future frustration. 

Our Advice: Be sure to understand the objectives of the other party if you are considering a lease/option agreement.  If you are a Seller and you sense a lease/option offer is speculation driven, make sure you have sufficient cash induced into the transaction to make it worth your while.  If a speculating Buyer, make sure you find the right Seller or you are wasting your time.  The right agreement between reasonable Optionors and Optionees can be a win/win transaction for both parties, and it will be readily apparent that it is a logical way to put them together.   

The keys to a healthy lease/option agreement are the right circumstances of the principals, Optionee and Optionor, and savvy real estate agents that can properly construct the transaction and successfully negotiate it for the benefit of all.  This is a powerful tool - use it right and righteously and you will be rewarded and happy.  

Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com , 775-781-5472.