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.

If you are a buyer and looking for that steal of a lifetime, you’re in luck. I know I’m bringing this up a lot but this window of opportunity will not be around for as long as you think. If you are still wondering if the market in Las Vegas has hit the bottom, you are out of touch. Buyer activity is on the rise and properties are seeing multiple offers. We are out touring clients on a daily basis and can really see the increase in offers being made. This kind of activity reminds me of the market in 2004 and 2005. People were out in large numbers and sales were setting records. The biggest difference now is that the prices are about half of what they were then. The interest rates are also creating an increase in sales. They are at historic lows and combined with the prices, it’s a win-win for all. I realize that not everyone will be able to take advantage of this opportunity. If you own a home now that you purchased in 2004 to 2006, you may be upside down and owe more than you can sell it for. If this is the case, I would advise you not to sell until the market comes back. It is very hard for a seller to compete with all the bank owned foreclosures on the market. Most experts will agree that we will continue to see foreclosures for the next 2 years or longer. We feel that prices will increase on bank owned homes mostly because of supply and demand. As the supply gets sold, the prices will increase. The writing is on the wall. If you are in the market for a home in the Las Vegas market, it’s “show time”. As always, I’ll include things that are important when you are looking for your home.

• Many of the new foreclosures on the market do not have signs. Get a Realtor to help.
• If you find a home that has been stripped of appliances, you still can get it to appraise if you know how.
• Try to qualify for an FHA loan. They are a real bargain and down payment is 3.5%.
• If you can see past the clutter, you will have some great opportunities.
• Check with the neighbors and see if they like the area you may move to.
• Don’t be foolish, unless you are an expert, get a home inspection.
• Have your Realtor include a home warranty in your offer and make the seller pay.

This really is a “no brainer”. The Las Vegas Real Estate market had to turn around. You are hearing this direct from the “horses mouth”. The Market is Back! We are noticing a sharp increase in activity and the buyers that have been waiting are now making offers. Desert Homes Realty specializes in representing Buyers so we really are a thermometer for the market. Timing is everything and it could not get any better. The buys are unreal. Never have I seen such low interest rates combined with record low prices. If you don’t let greed get the best of you, this could be the best opportunity of your life. One of the main problems for investors in the past has been positive cash flow. With prices at almost half of what they used to be, positive cash flow with rentals is now a reality. The majority of our clients are purchasing properties as their primary residence but we are seeing more and more investors coming in to the market. The main reason we are seeing this increase is being repeated over and over by our clients. “ We don’t want to look back a year or two from now and say: Man! I wish we would have bought when the prices were really Cheep”. Here is another list of things that we feel will help in your property search.

• Check out Craig road and Losee area for some of the best values in Las Vegas.
• Bank Owned homes are king but check out some of the Corporate Owned homes.
• Inflation will drive up prices as well as interest rates. Time is running out.
• Think of a successful offer as a win-win for all concerned.
• You can’t make a smart investment if you don’t get your offer accepted.
• Don’t be another woulda – coulda – shoulda story.
• Bidding wars are a nightmare. Stay away from them and move on.
• Keep a good positive attitude when you negotiate for a property. Kindness works.
• Always take your spouse with you when you shop or tour. They need to be part of the process.

When most people ask about the Las Vegas Real Estate Market, they want to know if we have hit bottom yet. My response over the past few months has been to check it out for yourself. Our company specializes in representing buyers and we really have noticed a dramatic increase in activity in this market. A lot of our clients are telling us that the handwriting is on the wall. They feel that the market has no where to go but up and as soon as all the new stimulus items get plugged in, supply and demand will increase prices. The historically low interest rates will also have to go up soon and now, more than ever is the time to step up. If you have read a few of my blogs, you have heard me talk about this before. What we hear most from our buyers is this statement. “ I don’t want to look back a year from now and say Wow, I wish we would have bought when things were really cheep a year ago”. I’m sure that some buyers in this market will get better deals than others. I’m sure some will get lower interest rates and lower payments but I’m sure most of us will agree that now is a great time to buy. Your timing could not be better. I will include some things that I think are important in your search.

• Bank Owned listings are different than traditional listings in a normal market.
• Find out why banks list their properties at almost to good to be true prices.
• The price or “asking price” is not your main focus. Look at the total picture.
• Many of the buyers that get offers accepted, belive in the “take some and leave some” theory”.
• Realize that the banks are losing a lot of money on these foreclosures. Don’t get greedy.
• Yes, their loss is your gain and isn’t it about time.
• Negotiation is a two way street. Both parties need to agree before the offer is accepted.
• Stay in a price range that does not make you “house poor”.
• Get ready, you just hit the Lotto.

The time has come for all the buyers that have been waiting for the bottom of the market. Sales are up again this month so if you have been waiting, your time is here. The window of opportunity is getting smaller but don’t take my word for it. Have your Realtor take you out and tour some of the bank owned homes currently on the market. If you find one that you really like, make an offer. If the home is priced low and is in good condition, my guess is that it will have multiple offers. What does this tell you? Do you think that prices will continue to drop if the homes on the market now are getting multiple offers? Isn’t one of the main things in Real Estate that drives the prices is supply and demand? The demand is increasing and the supply is still good but not for long. We specialize in working with buyers so we hope the supply of bank foreclosures stays high for as long as possible. The clients that are buying now are telling us that they don’t want to get left in the dust. As the new stimulus package gets plugged in, many of the home owners will be able to keep their homes and not go into foreclosure. This will be good for the economy and will help stabilize the housing market. There really is a tremendous opportunity for buyers to purchase a home at prices that you may never see again. As the banks start to loan money again, interest rates will probably go up. All things considered, it’s time to step up because the train is leaving the station. Here are a few tips that may help.

• The writing is on the wall. Sales prices will start to climb shortly.
• Las Vegas will be one of the first markets to recover. It already is.
• If you have cash, you will have more bargaining power with the banks.
• If you can qualify for an FHA loan, get this loan.
• If you are a veteran, a VA loan is also an excellent value.
• Greed kills offers getting accepted. Be realistic, it has to be a good deal for all.
• If your cash on hand is low, have all closing costs included in your offer.
• Make sure your offer is contingent on appraisal.

The Las Vegas Real Estate Market continues to show signs of recovery in this Challenging economy. Many of our buyers feel that this market is an opportunity of a life time. I have talked about this several times but I do feel it should be repeated. The banks are starting to respond in a timelier manner. This is a good sign that signals the start of more to come. The bank owned foreclosures continue to lead the market at over 74% of total sales. Most of our buyers are not used to dealing with the banks as the seller.
Many of these foreclosures are listed at fire sale prices that almost seem to good to be true. These listings do generate a lot of attention and if the property is nice, they usually sell for substantially more than the asking price. We should not be shocked that the banks main objective is to sell the property for the most amount possible. Sometimes they just arrive at the sale price in a different manner. We do have to realize that the banks are taking a great loss on these properties so we as buyers need to look at more than just the asking price. Of coarse we want a smoking deal but we may need to step back and take a look at the total picture. You will notice when you start touring the bank owned homes that there is a lot of interest and a lot of offers being made. Here are some points to consider when you are trying to get an offer accepted.

• The asking price has nothing to do with the true value of the home.
• Just because the home is priced low, does not mean it’s a great deal.
• Your agent should be experienced in bank owned properties and know how to find out their bottom line.
• Location is everything.
• Ask for a short amount of response time to the offer.
• If there are multiple offers, you may need to restructure your offer.
• Remember, it’s your money and you make the final decision.
• Have fun.