Thankfully the housing market has mostly recovered since the 2007 crash. Some markets are experiencing bidding wars with offers coming in at well over asking while other markets are filled with homes that still haven’t recouped their losses. Some people simply bought at the wrong time or suffered a financial set back and have found themselves underwater. Regardless of the situation, you have options.

First thing is first, call a qualified Lake Tahoe Realtor. If you have no idea where to start, getting in touch with a realtor that knows the local market will get you on the right path. Especially if you aren’t sure how much your home is worth or what your direct competition is doing. A real estate agent can give you this info which can help get the process started sooner rather than later.

If you aren’t sure about selling, consider renting your property out. It not only gives you tax breaks that can help you regain property equity, it is also an extra source of income. While dealing with renters can be a head ache, this could have a financial advantage for you. Especially if you are REALLY underwater.

If renting is something you don’t want to deal with and you think selling is the only way to go, consider a limited service broker. With caution of course and ONLY if you think you cannot afford the financial side of the sale (closing costs, etc.). You will not get the full listing experience, but you will get your home in the MLS. Much better when compared to the For Sale By Owner option. Do note that a full service listing is going to get your home way more exposure and attention and likely a high priced offer.

If possible, perhaps you can finance the buyer. You could even get a smidge more money for the house. Of course, this option comes with several risks and should be considered a worst case scenario option. After all, when you finance the buyer, you are forgoing the protection that comes with a bank loan. If the buyers default, the home is still your responsibility, which is exactly what you were looking to get away from. These situations also typically appeal to buyers that can’t qualify for traditional financing and therefor have a higher risk of defaulting.

Ask for mercy from the bank. Or at least call and find out what your options are when it comes to handing over the keys. Also known as a Deed in lieu of foreclosure, this helps you avoid foreclosure and you get to wash your hands of the property. You will also likely lose a large chunk of moola in equity, but none of these scenarios are perfect. If they were, more people would do them instead of listing their Lake Tahoe home for sale.

Finally, if you can, hang tight. Home prices are going up so if you are underwater by less than 10%  you may get out of this unscathed.

If you have questions about buying or selling in the Tahoe Keys, call Peter Delilli at 530-308-4331.