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.

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.

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.