As I’m sure most of you know right now, the market is turning around in Las Vegas. The phone is starting to ring again and our clients that have been just looking are writing offers. Bank owned foreclosures are continuing to dominate the market and are about 90% of our sales. We are seeing a great deal of activity in the market below 300k. Homes that sold for 450k to 475k are now under 300 and buyers are snapping them up. We reported to you last month that we saw an increase in activity in this market but this month is even stronger. Buyers know that supply and demand will drive the prices up and multiple offers are common place on the better properties. There was an article in the Review Journal news paper last week that said if you want to buy a bank owned foreclosure, plan on offering 10 to 20k above asking price. Although they are correct in many cases, we advise our clients to take each property on an individual basis. I showed a property today in Summerlin that you can use as an example. My clients met me at 5pm at the home and there were 4 other agents with clients touring it. This home is listed at 215,900, bank owned and in great shape. All the appliances are in place, 2,000 sq.ft, single story with a pool and spa. This home has been on the market 4 days and it has multiple offers already. My guess is that this home will sell in the 235,000 range and will be a great buy for someone. We advise our clients to look at the total picture and not just the asking price. Our clients did not want to go over 220,000 so they decided to keep looking. I think it’s a good idea to set a limit and not go over it. Here are some other things to consider in your search.

• If the property has been on the market for several months and there are no offers, offer less than the asking price.
• Bank owned foreclosures set their asking price low to compete in a 30 days to sell it scenario.
• The majority of the foreclosures will need repairs and appliances. Do your homework on costs.
• Area is everything. Homes in popular upscale areas will sell for more and have more offers.
• BPO’s are done to set the asking price. Find out what they are and how they arrive at the price.
• You make the final decision. If you get out bid, don’t get discouraged, find another property.