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.