Some of the most expensive things in a home are surprisingly easy to change. Some of the most valuable things are impossible to change at any price.
That distinction is one of the most important things we try to help buyers understand when evaluating luxury real estate in Incline Village and Crystal Bay.
A beautifully remodeled home can make an extraordinary first impression. New stone, custom cabinetry, designer lighting, beautiful flooring and expensive furnishings are easy to appreciate because they’re right in front of you.
But when we’re evaluating a property, we’re also looking beyond what photographs well.
We’re looking at the land. The setting. The sun. The view. The neighboring properties. The topography. The privacy. How the house sits on the parcel. And, particularly with an older home, what the property may realistically be capable of becoming.
Because finishes can be changed. A great piece of real estate cannot be recreated.
Start With What You Can’t Change
Before falling in love with a kitchen or dismissing a dated interior, step outside.
Where is the property?
How does it sit within the neighborhood? What surrounds it? How much sun does it receive? What do you see from the primary living spaces? How private does it feel? Is the terrain relatively level or steep? How does the setting feel in person?
These characteristics aren’t as easy to photograph as a dramatic great room, but they often have a profound effect on how a property lives and how buyers value it over time.
A dated home on an exceptional parcel can potentially become an exceptional home.
A beautifully finished home on a compromised parcel will always have the same parcel.
When choosing between the two, don’t confuse the quality of the improvements with the quality of the underlying real estate.
Location Goes Much Deeper Than the ZIP Code
Two homes can both have an Incline Village address and offer completely different real estate.
One may sit at low elevation on a relatively level lot close to the lake. Another may trade convenience for panoramic views. One may offer extraordinary privacy. Another may have a spectacular setting but more challenging winter access. Even properties on the same street can differ substantially in orientation, sunlight, views, topography and neighboring improvements.
This is why broad descriptions such as “lakeview,” “low elevation” or “Eastern Slope” only begin the conversation.
In Incline Village, micro-location matters.
The right location depends on the buyer, but the important characteristics of that location should be understood before assigning value to everything sitting on top of it.
Views Aren’t All Equal
“Lake view” can describe an enormous range of experiences at Lake Tahoe.
There is a meaningful difference between seeing a slice of blue through the trees and experiencing an expansive lake panorama from the primary living spaces.
Orientation matters. So does where the view is enjoyed from, whether it is likely to be preserved, how trees and neighboring properties affect it, and whether the home’s architecture actually takes advantage of the setting.
A buyer can remodel a kitchen.
Creating a view that the property never had is considerably harder.
Sunlight Is an Underrated Luxury at Lake Tahoe
Buyers naturally notice views, but sunlight can have an enormous impact on how a Tahoe home feels and functions.
Orientation, surrounding trees, topography and neighboring properties can all affect natural light. In a mountain environment with long winters, the difference between a bright, sun-filled property and one that feels shaded much of the day can be significant.
Sun exposure can also affect snow and ice conditions around a property and the way outdoor spaces are used throughout the year.
We pay attention not only to what a property looks like, but to how it is likely to live in every season.
The House May Be the Most Changeable Part of the Property
This is particularly important when looking at older Incline Village homes.
Many properties were built decades ago, and some haven’t been substantially updated since. Low ceilings, compartmentalized floor plans, dated finishes and older kitchens can make it easy for a buyer to dismiss the entire property.
Sometimes that’s the right conclusion.
But sometimes the dated house is sitting on exactly the piece of real estate the buyer has been trying to find.
That’s when the conversation changes from:
“Do I like this house?”
to:
“What could this property become?”
Those are very different questions.
Not Every Dated House Should Be Remodeled
Potential is valuable, but only when it is realistic.
Some homes have good bones, favorable layouts and opportunities for thoughtful renovation. Others may require so much compromise that a major reconstruction or new home becomes the more logical conversation.
And sometimes the economics simply don’t make sense.
The answer depends on the existing structure, the site, the buyer’s objectives, the likely cost of the work and what may actually be permitted.
“We can fix it” and “we should fix it” are not the same thing.
At Tahoe, Development Potential Is Part of the Real Estate
This is where evaluating an older property in the Tahoe Basin becomes more complicated than simply calling an architect and drawing a larger house.
Coverage, existing improvements, setbacks, topography, site characteristics and Tahoe Regional Planning Agency requirements can all affect what may ultimately be possible.
A large lot does not automatically mean a buyer can build a large home. Conversely, an unremarkable older house may sit on a parcel with attributes that make its future potential particularly compelling.
What exists today and what can legally and practically exist tomorrow are two different components of value.
We don’t make assumptions about that potential, and we don’t replace architects, land planners, engineers, builders or TRPA professionals. We do know when the development potential is important enough that those professionals should become part of the evaluation.
For buyers considering substantial renovation or redevelopment, understanding that potential before assigning value to the property can be critical.
Coverage Can Be More Valuable Than Buyers Realize
One of the concepts that buyers from outside the Tahoe Basin may not initially appreciate is land coverage.
In simplified terms, coverage relates to the portion of a parcel occupied by certain improvements and can play an important role in future development or redevelopment.
That means two lots that appear similar in size can have very different development possibilities.
Existing coverage, verified coverage and other site-specific conditions may affect whether a buyer’s vision is realistic. These are not details we assume from a listing sheet or from what appears to exist physically on the property.
Sometimes the hidden value of a Tahoe property isn’t additional square footage. It’s the ability to create it.
Good Architecture Can Unlock a Property
There is another reason we don’t automatically dismiss an awkward or dated home.
A talented architect can sometimes see possibilities that aren’t obvious when walking through the existing structure.
Perhaps the floor plan can be opened toward the lake. Maybe circulation can be dramatically improved. An addition may solve a fundamental problem. A roofline or window configuration might be reconsidered to better capture light and views.
Other times, an architect or builder may confirm that the compromises are too significant and that the buyer’s vision isn’t practical.
Both answers are valuable.
The objective isn’t to convince yourself a property has potential. It’s to determine what potential actually exists.
Then Look at What You Can Change
Once we’re comfortable with the things that can’t be changed, we can look more critically at the things that can.
Kitchens can be redesigned. Flooring can be replaced. Lighting can be transformed. Cabinetry, fireplaces, bathrooms, furnishings and landscaping can all dramatically change the experience of a home.
Even substantial architectural changes may be possible with the right property and the right professional guidance.
That doesn’t mean renovation is inexpensive or easy. It means buyers should be careful not to assign permanent importance to temporary characteristics.
Don’t let an ugly countertop talk you out of extraordinary real estate.
And don’t let an extraordinary countertop convince you to overlook something you can never change.
Turnkey Can Absolutely Be Worth the Premium
None of this means the best purchase is always a project.
For many buyers, particularly those purchasing a second home, a beautifully executed turnkey property may be exactly the right choice.
Renovating or building at Lake Tahoe requires time, decision-making and a tolerance for complexity. There is real value in buying a home where the architecture, construction quality, setting and finishes are already aligned with what you want.
The key is understanding what you’re paying the premium for.
If you’re paying for exceptional land, architecture, construction and finishes, that may represent tremendous value.
If most of the premium is attached to cosmetic improvements on fundamentally ordinary real estate, it’s worth recognizing the difference.
The Best Property Isn’t Always the Prettiest One
Luxury buyers are surrounded by beautiful marketing. That’s part of selling extraordinary homes well.
But buying well requires looking beyond the marketing.
Sometimes the most compelling opportunity is obvious the moment you walk through the door.
Sometimes it’s hidden beneath dated finishes, old carpet and architecture from another era.
And sometimes the gorgeous turnkey home really is every bit as special as it appears.
The skill is knowing which characteristics create lasting value and which ones can simply be purchased later.
How We Evaluate an Incline Village Property
When we’re touring with a buyer, we’re rarely evaluating only the house in front of us.
We’re thinking about the neighborhood, the parcel, the view, sunlight, privacy, neighboring properties, topography, existing improvements, development potential and how the property compares with alternatives the buyer may not have seen yet.
We’re also thinking about the buyer.
A property that is extraordinary for one person may be completely wrong for another. Some buyers prioritize low elevation and convenience. Others will happily drive higher for panoramic views. Some want turnkey perfection. Others would rather secure an exceptional parcel and create exactly what they want.
There is no universal definition of the perfect Incline Village property.
But there is a better way to evaluate one:
Understand what you’re buying that can never be changed. Then decide what you’re willing to change around it.
Buying Luxury Real Estate in Incline Village & Crystal Bay
Mary Kleingartner & Ryan Mitchell of Compass represent buyers and sellers throughout Incline Village, Crystal Bay and Lake Tahoe’s Nevada shoreline, combining decades of local market experience with extensive knowledge of luxury properties, redevelopment opportunities and the considerations that make Tahoe real estate unique.
For a deeper look at development potential, read our TRPA Guide for Incline Village & Crystal Bay Property Owners.
You can also explore our Incline Village & Crystal Bay Neighborhood Guide or read The 10 Things We Notice in the First 60 Seconds of Touring a Luxury Home.
Mary Kleingartner & Ryan Mitchell | Compass
Incline Village & Crystal Bay Luxury Real Estate
Lake Tahoe’s Nevada Shoreline