Foreclosures are by far the most requested properties that our buyers want to see in this current market. These bank owned properties can be real steals as long as you educate yourself and realize that a low price is good but should not be your only concern. I’m sure you have all heard that “you get what you pay for”. If there are several bank owned homes in an area that you are looking in, go through all of them. Many of these will need major repairs and many won’t. You may actually get a better deal on a home that is priced a little higher but has all the major appliances and is in “move in” condition. Not everyone wants to spend the time and money to fix up a home. Take your time and look at all your options before you decide on the best value for your money. As I have said many times in the past, your timing could not be any better. If you are planning to take advantage of the first time home buyer incentive (8,000.00), your home should be in escrow before the end of October. You may need up to 60 days to close your escrow and this program ends December 30. Here are the things to consider when buying a foreclosure.

1. Do the comparable sales in the area justify the price you are willing to pay? If the home is priced much lower than the comparables and there are several other offers, this home probably will sell for more than asking price.
2. Are you willing to buy the property “ As is” ? You will have to sign a disclosure that you give up all your rights and accept the home in its current condition. You will have a due-diligence period and we highly recommend that you have a home inspector check the condition of the property.
3. Are you willing to keep the property 3 to 5 years? Most experts agree that the market will take at least this long to recover.
4. If the property is damaged or in need of repair, can you do the work yourself? If you can, you will save money and have control of the project. If you need to hire a contractor, your costs will go up dramatically.
5. Will the property appraise for the type of loan you can afford? If you want an FHA loan, the flooring will need to be completed as well as all appliances installed. Conventional loans will be an option but will require 20% down compared to 3.5% for FHA.

The main purpose of our Real Estate Blog is to share relevant information with the reader that hopefully will help them in their search for a great bargain. Why else would you be spending your valuable time reading this unless you felt you could learn something that would help you down the road. I will do my best to share some of the more important things that I feel will put you in the right position to get the right property. In my opinion, it is not enough to research all the best buys, have your agent do all the comparable sales, and arrive at the price you want to offer, only to find out a week later that your offer was rejected. Not only was your offer rejected, the property was sold to a buyer that made an offer two days after you did and for less money than what you offered. How can that happen? It happens daily in this market mainly because the offers that look the best to the seller are the ones that get accepted. The best offers are usually the highest sales price but not always. If the property is bank owned and you are asking the bank to do any type of repairs, this is can be a deal killer. If you ask for an escrow period longer than 30 days or ask the seller to pay for appraisals or home warranties, the seller most likely will not take you serious. The key words in purchasing bank owned properties are “as is”. These sellers are already losing a lot of money on these homes and want the least amount of liability possible. Here is a list of 8 things that I have found to be important that will help you get the property you want.

1. Find out if there are other offers on this property before you have your agent write your offer. If there are multiple offers, the seller is required to disclose this information.
2. If there are multiple offers, and you feel this property is a great buy, then make your highest and best offer first. This does not mean you should get into a bidding war. Set a limit that you are willing to spend on a property and stick to it.
3. Many of the best bargains sell for more than the asking price. Don’t think that if you pay more than asking price, you are paying too much. Find out the true value which in many cases has nothing to do with the asking price.
4. If the property you want is in need of major repair, get a professional to give you an estimate before you make an offer. Your real estate agent should be able to arrange this or point you in the right direction.
5. If the property has mold or water damage, get an expert to evaluate the actual condition. In many cases, mold or mildew can be cleaned up easily.
6. Be patient; don’t fall in love with a particular property and wind up overpaying. There are a lot of “fish in the sea”.
7. Don’t get greedy; put yourself in the seller’s shoes and make your offer a win-win for all concerned. Remember, the best overall offer will be the one that gets accepted.

Current market conditions are really what everyone is interested in. Statistics say that 50% of the buyers that are ready to buy a home now are waiting to see if the market will drop more. We have seen a lot of positive signs that this market is turning around quickly. Sales in Clark County have increased by 70 % since this time last year. As we have mentioned in our blog over the last few months, if you are serious about buying a home, now more than ever, is the time to buy. Prices are remaining stable but the inventory is selling faster and we are seeing multiple offers.
The really good deals seem to be selling for more than the asking price. The best advice we can give our buyers is to look at the total picture, not just the price. Many of the banks that own these foreclosures are listing their properties extra low to create a type of bidding war. As buyers, you need to be aware of this practice and act accordingly. Pick your price range and area of town you prefer and ask your agent to show you all the homes that meet your criteria. As you start to go through these homes, you will find some that stand out and look like better buys. Narrow you search down to several of the “better buys”. Give yourself more than one option in case you get out bid when you make an offer. Keep a positive attitude and understand that you are not the only one looking for a bargain. Here are a few tips that we hope will make this process less painful.

• A low sales price is not your only concern. Area of town, condition, and age are key.
• If the appliances are missing, do research on cost to replace. We will help you.
• Paint and carpet are an easy fix. Take measurements and check prices.
• If you are a “do it yourselfer”, you can save a lot of money.
• Schools are important to most buyers with children. Research the areas noted for good schools.
• If you are buying this home as an investment and are going to rent it out, make sure the area is noted to rent well.
• An FHA loan may be your best bet. Find out if this home will qualify.
• Remember, the seller will take the highest offer. Offer your highest and best if you really like the property.

Sales are up again for June with 4,762 properties sold. This is a good sign that our market is in the first stages of the recovery. The buyers that have been sitting on the fence for the past year are starting to come out of the woodwork. If you are in the market for a home, your timing could not get much better. The prices continue to set record lows but I will tell you that the better properties are getting multiple offers. Multiple offers on properties will start the process of price increases. Supply and demand have always been a major factor that increases prices. Multiple offers mean that demand for the better properties is high and many of our buyers are offering more than the asking price. Don’t let this discourage you or make you think that if you pay more than the asking price, you are paying too much. The prices are ridiculously low and a lot of the homes on the market are selling for less than half of what people paid for them. Let your agent do the homework before you decide what to offer. Many of the bank owned foreclosures are listed at a lower than usual price to generate interest. The banks know full well that the home is worth more and are counting on buyers bidding up the price. This strategy seems to be working well and will be something that you need to be aware of if you are going to buy in this market. Here are a few other things to consider in your search for the perfect bargain.

• Bank foreclosures are “As Is” so be cautious.
• Get a good home inspector to completely check the structure. This is done during the due-diligence period.
• Just because the home has a low price doesn’t mean that it is a good deal.
• Get a pre-approval letter before you even start looking. You can’t make an offer without one.
• Get an agent that is willing to show you all the homes in your price range and criteria.
• Stay in the price range that your loan officer recommends. Don’t get “ house poor”.
• Have fun and don’t get greedy. Things could be worse, you could have bought 3 years ago.