It was just a matter of time before the supply and demand of the condominiums in the Las Vegas Valley caused the prices to rise. We are very familiar with the current condo market and are used to seeing multiple offers on these properties. One of the main reasons that this market is seeing so much action is because the buyers can actually see a positive cash flow if they wish to rent them out. We are seeing condos that sold for over 200k just a few years ago now going for under 100k. Be sure and do your homework if you are planning to buy these as an investment. Many of the complexes do not allow you to rent your unit out and may have other rules that restrict investors. In other communities, renting is allowed with very little restrictions. Another very common problem with Condos is the Home Owners Association. A large percentage of these associations have class action law suits for construction defects against the builder. If you are trying to get an FHA loan or have been pre-approved for an FHA loan, you can’t get this type of loan if there is litigation. These are just a few reasons why you will want help from an experienced professional. This market is like a moving target that changes on a daily basis. Here are other things to consider when shopping for condos.

• Are the units purpose built condominiums or are they converted apartments?
• What is the ratio of owner occupied units verses rentals?
• What increases has the property had recently in the HOA dues and is there a cap?
• Do the HOA dues include water and garbage?
• If you are planning on renting it out, is it in an area of town that will be easy to find tenants.
• Property Management companies are a good resource for information.
• Ground floor units are more desirable to senior citizens.
• Units with garages are in high demand
• Bidding wars are common in this market. If you don’t like them, this market is not for you.

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Buyers have a lot of choices in today’s market and probably the most important decision is picking the right company to represent your best interests. Many of our clients give us feedback and the number one answer is experience in the Las Vegas market. Most clients want a Realtor that is full time and knows the foreclosure market well. Las Vegas is still at the top in foreclosures around the nation. The reason is because we were the fastest growing city in the nation for many years and the investors saw Las Vegas as the place to buy. A large percentage of the investors bought homes with little or no money down and when the bottom fell out, and they could not sell, they walked away. The banks had to foreclose and much to their dismay were forced into the real estate business. We will see more foreclosures over the next several years but we do feel that the prices will steadily increase. Supply and demand will dictate the prices as well as the interest rates. We are seeing current increases in activity that has been sparked by the news that interest rates are expected to increase shortly. Here are a few reasons why you need professional help in your quest for one of these great bargains.

• We are one of the few Real Estate companies in Las Vegas that are considered experts in foreclosure pricing.
• We have a working relationship with many of the banks. They pay us for our Broker price opinions, (BPO’s).
• Since we help set prices, we know what offers are more likely to get accepted.
• The object of writing an offer is to get the property at the best price that gets accepted.
• The offers that actually get accepted are the ones that work for the seller.
• Remember, the banks are taking a loss, don’t rub salt in their wounds.
• Remember the golden rule; “take some and leave some”.
• You will need an expert to write the offer. If your offer does not look professional, it will not be taken seriously.
• An experienced agent will not get you into a bidding war.
• Stay in your price range and have fun.

As the Las Vegas Real Estate market continues to perk up, inquires about how our tours work is a common question. There is a lot of interest in our market and investors from all over the country are focusing on Las Vegas. Desert Homes Realty primarily represents buyers that are buying homes as their primary residence but we do tour investors. We have seen a resurgence in investors because the prices are so low and many of them can now see a positive cash flow. The vast majority of investors from out of state does not know the Las Vegas Valley and need a seasoned professional to help them find the best values. The first advice I would give anyone in this market is to start your search on our website. We do thousands of searches on a daily basis and can really save you time and money. Several years ago, we didn’t have all these fantastic tools like the Internet. If you wanted to buy property, you had to physically walk through everything to really know what you are buying. Today, with digital cameras and real time information, you can really narrow it down. Here are some helpful hints that I hope with make life easier.

• Location in Real Estate is everything. Get help if you don’t know the area.
• Pick your price range and do not go over this amount.
• Get familiar with current real estate terms. Example: Short Sale, Bank Owned.
• Our website is automated. If you want more detailed searches, email us and we will be happy to help you.
• Narrow your search and when you start seeing things that meet your needs, set a tour time one week in advance.
• Bring your camera and a note pad. It is hot in the summer here so be prepared.
• If you toured Las Vegas 3 years ago and waited for the prices to hit bottom, now is your moment.
• Get a pre-approval letter from a local Nevada lender.
• The majority of the planned communities like Summerlin have special taxes. Ask about them.
• Timing is everything and if you are buying now, it’s like winning the Lotto.

Now, more than ever, buyers and potential buyers need to get educated on the home buying process. The rules have changed over the past several months and things like appraisals and home owner ass. can make or break your home purchase. Because Las Vegas has had so many foreclosures, appraisals are coming in lower than expected. As an example, if you make an offer on a home for 300,000 and the appraisal comes in at 290,000, your loan will not go through unless the seller reduces the price or you pay the difference out of pocket. One of the reasons we are seeing lower than expected appraisals is because the criteria has changed for the Appraisers. They used to go back 6 months to compare sales prices and use that information to arrive at the current market value. This time frame is now reduced to 3 months and if the community has not had any sales in that period of time, the Appraiser has to go outside the area to get the data. The rules state that Appraiser can only go out one mile from the subject property. In many cases, the homes outside the subjects community are not similar and do not reflect the true value of the property. A good example would be if your home was in a new upscale gated community with upgrades.

There are no resent sales over the past 3 months so the Appraiser has to use sales up to a mile away to compare value. Most of the homes outside your gated area are older and don’t even come close. The Appraiser has no choice and will compare your home to these and there is a good chance that the appraisal will be lower than expected. You know that the value at your purchase price of 300,000 is there and the home sold for 675,000 in 2005. Your Realtor did the comparables in the community and 4 months ago a similar home with less square footage sold for 325,000. Never the less, the appraisal comes in at 290,000. If you can’t get the seller to drop the sales price or you are not willing to pay the difference out of pocket, the sale will not go through. This can be a very frustrating situation and also very common in this current market. Make sure that you are working with a Realtor that is very familiar with the current market conditions and can look out for your best interests. Here are a few tips that will help.

• Make sure your Realtor has negotiated a “due diligence period”.
• Meet with your loan officer right after the offer is accepted and find out if the comps are in line with the sales price.
• Appraisals are expensive, ( 300 to 900 ) and the buyer pays.
• Be prepared to walk away if the seller is not willing to lower the price to the appraised value.
• Check the HOA rules and updated information to make sure there is no litigation. Most lenders will not do a loan on a property in litigation.

The Las Vegas Real Estate market is starting to heat up in a big way. Yes, we are one of the top cities in the nation for foreclosures. It only stands to reason that one of the fastest growing cities would also have a high rate of foreclosures. The bank owned foreclosures continue to dominate the resale market and for good reason. They are bargains that we may never see again. If you are shopping for a home now, I’m sure you have noticed that there is a lot of activity. People that have been sitting on the fence for the past year can see that the time to buy is now. The market in Las Vegas bottomed out several months ago and is now in the rebound mode. The majority of the buyers that we represent are looking for a home to live in and not just an investment. Their timing could not be better and the interest rates are an added plus. Our clients are telling us that they are now able to find homes in their price range with so much more value. Opportunity knocks but you have to have the foresight to open the door. This is a very exciting time for the buyers that have the ability to take advantage of this market. I’ll add a few tips that I hope will help in your journey. Good luck to you all.

• Use your time wisely. You are catching a train that is ready to leave the station.
• Loans are harder to get now. Do your homework and get pre-approved for your price range.
• If you are afraid of bidding wars, you need expert help. It’s a jungle out here.
• Be careful of “short sales”. They can be a real nightmare.
• Do a home inspection on any property that you are buying. It is worth its weight in gold.
• If you can make your own minor repairs, it will pay off in spades.
• Not all foreclosures are good deals. Get all the information you can before you make your decision.
• Make sure the home can qualify for an FHA loan. Many homes in need of repairs can not qualify.
• Make your offers as seller friendly as possible. This process has to be good for all parties concerned.
• A good agent that has negotiating skills will be worth their weight in gold.

One of the questions that we here quite often is; why should we buy right now? In Real Estate, Timing is everything. If you have been paying attention to the news in Nevada, resale home prices have gone up over the past two months. As we mentioned in our blog several months ago, supply and demand will drive this market. The supply is starting to level off and demand is rising. You don’t have to take my word for it, ask anyone that has been touring homes or making offers. They will tell you that the homes in good shape and priced right are getting multiple offers. We are seeing buyers from all over the country trying to take advantage of this bargain market. Interest rates are at 50 year lows so for many people, this is a no brainer. The news media is still professing a lot of doom and gloom but in the mean time, buyers are quietly closing escrow. This does not mean that the country is out of the recession. This recession will probably go on for several years. Homes will continue to go into foreclosure but the inventory will slowly decrease as the prices rise. The Las Vegas market will continue to be a buyers market for years to come but if I were to pick a time to buy, it would be now. The majority of homes that are being sold are bank owned foreclosures. This really is a Chance of a lifetime to invest in a property in Las Vegas. Here are things to consider when looking for that bargain.

• The more you research, the better value you will get.
• Loans are harder to get. Do your homework and make sure you can put your money where your mouth is.
• Stay away from bidding wars. Pick several properties and move on when there are too many offers.
• The highest bidder with the best credit or cash wins.
• Cash is in the driver’s seat.
• Location, location, location. Choose wisely.
• Short sales are long sales. Do your research and understand what a “short sale” is.
• Closing costs can be around 3 to 4% of the purchase price. Ask the seller to pay these costs or add the costs to your offer.
• Check to see if you are eligible for an FHA loan. 3.5% down payment.

Las Vegas is still one of the fastest growing cities in the United States. There are many reasons for this but the fact that Nevada has no state income tax ranks high on the list. The “Baby Boomers” are starting to retire and Las Vegas is one of their picks. Las Vegas also has one of the highest foreclosure rates in the nation and it’s a Buyer’s Market to say the least. If you are new to the area, you really need to do your homework. The Las Vegas Valley is very spread out and location is key. It can be close to a thirty mile drive from one end of the town to another. It can take you a good hour each way so choose wisely if you don’t like a long commute. Home prices are starting to rise here and have been for the last few months. This is a good sign for the market and we still have plenty of inventory. Your best bet is to find an experienced buyer’s agent that knows the town well and will look out for your best interests. Here is a list of things that should help you find that special home at a fantastic price.

• The first step is to get pre-approved with a local lender. Find the price range that you feel comfortable with and stick to it.
• Bank owned foreclosures are dominating the market. Take advantage of these once in a lifetime values.
• Interest rates are at the lowest levels in 50 years. If you don’t buy now, you probably never will.
• Air-conditioning is getting more and more expensive. Look for a home that has energy efficient building materials.
• Look for A/C units that are rated high in efficiency. The newer, the better.
• If the home has low E windows, it’s a big plus.
• The direction the home faces is important. Windows facing direct sunlight will increase the temperature dramatically.
• Many of the newer homes are on smaller lots. If you need RV parking, you may need to look in more established areas.
• Many of the bank owned foreclosures are in need of repair. If you are handy, your time has come.
• Do not ask the banks to make repairs. These homes are being sold “As is”.
• Remember, the goal is to make an offer that gets accepted. If the home has multiple offers, you may need to offer more than the asking price.

Getting your offer accepted is goal of this whole process. What good is it to spend countless days, weeks and months to find that perfect property only to get out bid or rejected. This situation can be frustrating but is very common in the Las Vegas market today. I have talked about this before but it really bears repeating. Unless you are an expert negotiator, you need all the help you can get. Your Realtor has a responsibility to look out for your best interests. A good buyer’s agent will be experienced in the negotiating process and will do the correct homework to put the buyer in a good position to get their offer accepted. All buyers want to get the best deal possible and that is the ultimate goal of an effective buyer’s agent. Right now, the best values for the money continue to be the bank owned foreclosures. We are still seeing homes sell for less than half of what people paid for them just a few years ago. The big difference we are seeing now is that the activity is dramatically increasing. Multiple offers are common place and the “good ones” are sold in a few weeks. This is all good news because if you are a buyer, this probably means that the bottom is behind us and the market is on an upturn. As a buyer, you still have a nice window of opportunity but it will get smaller as the inventory decreases. Timing is everything in Real Estate and if you’re a buyer, your time is now! You really couldn’t have picked a better time to be property hunting. Enjoy!
Here are a few more tips to help.

• Find out what areas of town had the least amount of depreciation.
• Ask the neighbors if they like living in the area.
• If crime is a concern, call the police department or go to their website.
• Sales price or asking price should not be your main concern.
• Value received for dollar paid is the main concern.
• Bidding wars are the enemy. Try to avoid them at all costs.
• Do not ask bank owned properties to make any repairs. “As is” is the key.
• Always send a pre-approval letter with your offer. If you are paying cash, show proof of funds.

If you are in the market for a home right now, you probably have heard of these listings. Before we start, I should explain the difference between the two. A Short Sale means that the home has not gone into foreclosure but the bank that holds the note on the property is willing to take less than what is owed. The owner of the property has a limited amount of time to sell the home or Short Sale it before the bank would actually foreclose and take the property back. The main advantage to the seller or owner is that a foreclosure would not be on their credit report. The seller is not allowed to make any money on the short sale transaction. In order to compete against the bank owned homes, short sales are selling for similar low prices and can be great bargains. Have your Realtor do a comparative market analyses to give you a good feel for what the property is worth. If the bank will agree to the short sale offer and your offer is below the comps, you just got a bargain. Short sales usually take much longer to get approved so if you need a home in the next 30 to 45 days, bank owned foreclosures may be your best bet. A bank owned foreclosure means that the home is now owned by a bank and you will be making your offer directly to them. The banks normally will respond to your offer in 3 to 5 days and of course, the best offer wins. My best advice to buyers is to not get greedy. Your offer needs to be appealing to the bank or they will reject it and wait for a better one. Here are some other tips that may help.

• Look at the total picture and not just the asking price. If the asking price seems very low, it may sell for more.
• Do not ask the banks to make any repairs. “As is” is the way they sell these.
• Use the banks title co. to do the transaction. Cooperation is key.
• If the bank is not willing to include a home warranty, buy one yourself.
• Do a home inspection to verify the condition of the property.
• Make sure you have a due- diligence period in the contract.
• Don’t fall in love with a property. Be prepared to walk away if the price is too high.
• You will not believe the bargains that are available in this market.
• You may need to make several offers to get one accepted. Be patient.
• Enjoy the experience. You are looking at the best deals in the last 50 years.

If you have been watching the news, you know that the Real Estate Market in the Las Vegas Valley hit bottom a few months ago. The market has really picked up and many of the buyers are taking advantage of the historic low prices. Interest rates are at their lowest since the 1950’s. All of the experts are predicting that prices will start to increase shortly.
The window of opportunity is getting smaller but it is still visible. We have been talking about this for several months and if you are ready to find that dream home, the timing is perfect. My advice would be to buy a bank owned foreclosure and do your homework. If you are paying cash, you will have more flexibility and can purchase some of the exceptional bargains that are not available to someone who needs a loan. Many of the bank owned homes are missing fixtures that are considered permanent. These homes are not being repaired by the banks and will not qualify for a loan. The longer these homes sit on the market, the lower the banks drop the price. If you are looking for one of these super deals, we can help. Here are a few tips that may help your search.

• Consider the location to be your primary concern, not square footage.
• Multiple offers are common place in this current market. Don’t get discouraged.
• Missing appliances can be an easy fix. Look on Craigslist.
• Have a licensed home inspector check the property within your due-diligence.
• If the home has a pool, repair can be expensive. Get a certified inspector to check it.
• If the structure of the home is damaged, make sure you get a pro to give you an estimate.
• Not all bank owned homes are good deals. Get professional help if you are in doubt.
• If the home is in an association, make sure there is no litigation. Read the HOA documents.
• There is a reason why some homes sit on the market for long periods and don’t sell. Be cautious and find out why it hasn’t sold.
• Check out standing inventory of new home builders. They are forced to compete with bank owned.
• Find a Real Estate agent that specializes in representing buyers only.
• Understand that to get your offer accepted, the offer should be a good deal for both the buyer and the seller.