This morning only about 6% of the active listings in the Las Vegas valley are foreclosures. Want to buy one? Here, click the link to take a look at what is still available!
At the height of the Las Vegas Real Estate market in 2006, high rises were sought after from people from all walks of life who wanted to own a piece of that luxury lifestyle, and when the market began to fall, our high rises may have suffered the most. The plans for a second Trump Tower were scrapped and the 3rd Panorama Tower fell into bankruptcy. That 3rd tower was later purchased and renamed “The Martin”.
Well I just attended a closeout event at “The Martin” and they only have 5 original brand new residences left to sell. That’s quite a turnaround, considering where we were. There are several brand new units available in buildings with at least 5 stories, and of course there are hundreds available in the resale market . . . ranging from under $70,000 up to $38,000,000 currently.
Take a look;
First – What is a short sale? Many people know, but not everyone.
When a person owes more on a property than it is worth, and they ask the bank to accept less than is owed on the property so that they can sell it, this is known as a short sale. Like when you owed your friend $50, but you only had $30 of it and you said, “sorry Mike, I’m a little short” and Mike said, “don’t worry about it”.
Why not buy short sales?
There are a variety of reasons why short sales do not go through. Here are 4;
1. The process of dealing with the banks on a short sale requires skill, effort and knowledge on the part of the listing agent (the person the seller hired to sell the house). Many do not possess this trifecta of assets.
2. There must be a hardship. Many sellers just want to sell short because their neighbor did, but their neighbor lost their job, or was never earning enough money to afford the home in the first place. Just because you want to, doesn’t mean you can.
3. If they buyer does have a legitimate hardship, then, that buyer, who is already (typically) despondent over their current financial situation, is required by the bank to go through their finances with a fine tooth comb to prove that hardship. Many people just don’t have the stomach for it.
4. Patience (or lack thereof). Short sales often take a very long time to get accepted. I’ve seen them take more than 4 months just to get approved. Many buyers just aren’t that patient.
In the month of April, 2009 in Las Vegas, 36% of the properties listed for sale were short sales. Only 6% of the closings were. This shows that short sales can work, but often (1 in 6 times that month) they don’t.
The prices on Las Vegas bank owned homes are mind-boggling. Don’t wait for the bottom. You can’t predict it. You won’t know where the bottom was until it’s gone. Really. What are you waiting for? If you would like information about buying a home to live in or an investment property in Las Vegas, with no cost or obligation, please contact me.
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I have heard that opposites attract, but how do you have multiple offers being presented on multiple properties in a buyer’s market? Does that make it a seller’s market? Or is it a seller’s-buyer’s market (like the color violet-blue, it’s kind of violet, but definitely blue)? Or is it just that the prices have gotten so low, that none of the conventional reasoning applies?
I saw a house yesterday, in move-in condition listed for $26 per square foot! Granted it was an older home that needed updating, and it was in a so-so neighborhood, but $26 per square foot? By the way, it was listed for $26 per square foot, and the offers were multiple. It sold for more.
I showed a home to a woman yesterday that was built in 2000 and was listed for $84 per square foot. It was overall in good shape, but needed paint, carpet and some other minor cosmetics. She really liked it. This morning I learned that it already had 9 offers on it. When I did a price comparison, I saw why. It was priced too low, even for this market. The banks are starting to intentionally under price properties so that they sell more quickly.
I had another client look at a home on Saturday that the bank had made real nice. New carpet, fresh paint, a new sealed-burner gas stove and a matching dishwasher. They had pulled it off the market while cleaning it up and then RAISED the price. We joked that they should have put a refrigerator in if they really wanted to sell it. Pricing is down to 1997 levels, and interest is high, especially in the under $300,000 range.
I’m not suggesting that the problems are solved. I was also on a street Saturday with about 15 houses and 5 were vacant, but the market is shifting again here. The question is, where is it going next? We still have a lot of inventory, so it’s not necessarily going up, but the dynamic is definitely changing. Some banks are holding their ground a little more. Sometimes they are squeezing the buyer, and that is not how a buyer’s market usually works. The big key, is that while interest rates are low, you can buy a nice property for significantly less that you could buy the materials to build it and some of the banks are getting more and more competitive, creating all kinds of mixed market signals. You could buy a lot of Las Vegas homes right now for about $500 per month. Most renting Las Vegans are paying more than that.
The prices on Las Vegas real estate are just outstanding. Don’t wait for the bottom. You can’t predict it. You won’t know where the bottom was until it’s gone. Really. What are you waiting for? If you would like information about buying a home to live in or an investment property in Las Vegas, with no cost or obligation, please contact me.
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“Give me a lever long enough and a fulcrum strong enough I can move the earth.” Archimedes said this hundreds of years ago, yet some people are afraid of using ANY leverage in this real estate market. I have investors contacting me with $100,000 in cash and they want to buy $100,000 worth of real estate in Las Vegas because they don’t want to end up over leveraged. I understand. A large part of the reason we are in this mess is that we got overleveraged. But some leverage is always good.
Let’s first look at values. There are plenty of homes in great neighborhoods listed for $70 per square foot. There are certainly a few listed lower like the one that came on the market today built in 2005 and in move in condition for $50/ sf (call me if you want to buy it). So you buy a 3 bedroom / 2 bathroom rental for $100,000. You have the money to pay cash and you don’t want to over leverage yourself. You collect about $900 per month in rent. OK, great!
BUT what if you decided to put down 50%, and buy 2 of them? First of all, you should have no trouble getting the loans. Second off, your monthly mortgage payment on EACH property is only about $315 per month (with moderate credit)!
Now are you SURE you don’t want to use at least a little leverage? C’mon! I’m not suggesting that you abandon your beliefs altogether or become irresponsible with your money, but that is reasonably safe, wouldn’t you say?
The prices on Las Vegas real estate are ridiculously low. Don’t wait for the bottom to start investing here. You won’t know where the bottom was until it’s gone. Really. What are you waiting for? If you would like information, with no cost or obligation, please contact me.
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OK, I haven’t been here lately. I’ve been very busy. Lousy excuse, I know.
Here is how crazy pricing has gotten on Las Vegas Real Estate. Just a few hours ago, I was in a gated community in the south part of Las Vegas, in a mansion that was more than 6500 square feet of luxury and decadence. The master bedroom closet was bigger than many bedrooms and even had a refrigerator in it like in the new Heineken commercial. 5 bedrooms, 4 1/2 bathrooms, 3 living rooms, 4 car garage, 2 laundry rooms, expensive tile and stone everywhere, circular staircases – you get the picture. I can’t believe you could build this house for less than $200-$250 per square foot (and I’m sure that’s low). Now it did have some maintenance issues, but basically it was in good shape. Probably less than $20K in repairs needed.
Are you ready?
Are you sure?
You’re not going to believe it.
I didn’t believe it when I saw it on the MLS.
I had to go see it with my own eyes.
$71 per square foot. The bank is selling this house for less than $500,000. It JUST hit the market.
Are you ready to begin investing in Las Vegas real estate? Now is the time. Really. What are you waiting for? If you would like help buying real estate in Las Vegas, whether for your personal use, or for investment, please contact me.
A good friend of mine currently works for Countrywide Mortgage, but will be working for Bank of America soon. Is he changing jobs? No. B of A is preparing to finalize the deal which has so far kept them profitable. That’s right, B of A credits their liquidity to the acquisition of CW. Neither B of A, nor CW seem to be in very bad shape! When was the last time we heard any bad news about CW?
CW is writing a lot of loans for investors with excellent credit and at least 20% down, as well as First Time Home Buyers. Las Vegas has been a hotbed for this activity, but the loans are being written nationwide. You hear so much negativity everywhere about banks not lending and the so called ‘credit crunch’. Well if you want to call responsible lending a bad idea, then be my guest, but the truth is, money is flowing into the housing market and though there are fewer loans being written these days, the loans that are being written have a much smaller chance of default than what was being written just 2 years ago. I think that is more helpful to us than just making loans for the sake of moving some money around.
Here in Las Vegas, you see more investors showing up to take advantage of the real estate prices. Check out the percentage of owner occupied homes in Las Vegas over the past 6 months in the chart at the bottom of this post.
Notice anything? Don’t be last! Are you ready to begin investing in Las Vegas real estate? Now is the time. Really. What are you waiting for? If you would like help buying real estate in Las Vegas, whether for your personal use, or for investment, please contact me.