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.