The local Las Vegas Market has had some positive air time from GLVAR and local news channels about the number of homes being sold and the rise in prices of nearly 2%! Prices rising for the first time in many months. The buyers seem to be primarily new/first time buyers and investment groups and the moving of inventory from Builders for New Homes. There are many “traditional” listings on the market without the dreaded Short Sale and or REO label..All good signs, and yet…

Many homeowners are waiting for the next Libor release soon to come before the end of the year. Should the interest rates rise the reset of their Interest Only and ARM loans may eclipse what they can afford to pay for the first six months of 2010. Even a $300.00 bump could send many of them packing and looking for rentals before their families are uprooted. If an upward trend of the interest rate should happen..then the 2nd increase house payments.. due July 2010..we might see the local housing market shudder and stumble again.

There is no doom and gloom here or running screaming..”the sky is falling”, but there needs to be a reality check and a reminder to agents and lenders alike..about being ethical in how they present opotions for the homeowner and buyers.. when taking Listings and making offers..

On a continued observation of the banking system and their requirements for borrowers, they have not lessended and in many cases have become obstructive. Also, appraisers are fearful of making less than very conservative appraisals as they have become a target for investigation as the cause and effect of the last “bubble” is reviewed by those seeking deficiency. Which is a whole other topic.. as the Deficiency laws that have been engaged do not cover the loans that were made prior to October 1st 2009. Also the Lenders will utilize the deficiency and promissory notes to recoup the difference between the loan amount and the sale amount..So..with all the new positive spin on the local market we are not out of the woods and that light at the end of the tunnel might just be the next train coming with more Foreclosures aboard!

The Las Vegas Real Estate Market has seen a jump in the amount of buyer’s actively looking to purchase!!!  Great news…..or is it?????  The public seems to be under the impression that Las Vegas is still a buyer’s market; well people, I’m here to tell you don’t believe everything you hear!!  There are alot of people who want to come in, find a property and then put in a “low-ball” offer, and I can understand wanting to pay as little as possible for a home, but this will not work in Las Vegas anymore!!!  The listing agents for the banks foreclosed homes have found out that if they price the property really low, they get multiple offers!  Their next move is to issue a multiple offer addendum and tell everyone to bring their “highest and best” offer, which brings out the beast in almost every buyer!!!  The agent finds the best price with the fastest close and the bank accepts that offer, which is usually quite a bit higher than the listed price.   All those other buyer’s have to move on to the next “great deal”, usually to find themselves in the same situation.

I have made offers for clients where there have been 30 (yes, THIRTY) other offers!!!  This is becoming normal…something is very wrong with that!   I’ve had to start educating my buyer’s on the market situation, most of them don’t believe me until after a few offers have been made.  Once they “get it”, we start looking in a price range alot lower than what they want to spend so we can out-bid other buyers, start looking at the benefits of purchasing a short sale, or go directly to the new home models where we find better footing and some really interesting deals! 

So if you are looking to purchase property in Las Vegas, don’t think that you can just come in with any price and grab up a foreclosed home for almost nothing!  Seller’s, even if they are suits at the bank are still in charge and the “Buyer’s Market” has left the building!!

Seems like every buyer in Las Vegas today has CASH!!  As a Realtor who specalizies in listing short sales here in Las Vegas, I can’t believe the amount of people who are buying properties with CASH!!  I could sell 50k condo’s all day long!!  Where are these people getting all this money????  I have no idea, and don’t really care….just happy for this new trend!!  If you are out there, making cash offers on properties, don’t be surprised if the Realtor doesn’t act overly happy and excited when you say “I HAVE CASH!” because right now, SO DOES EVERYONE ELSE!!!

Of course, as with all good things, there is a down side….all those other people who need to get a property financed!  What about all those hard working, blue collar, regular Joes, who want to LIVE in a house???  They are having a tough time getting a property, usually due to a cash offer!!  For them, foreclosures have just become a complete waste of time…causing them nothing but stress and heartache!  Doing an FHA or VA loan?  Even harder…..usually takes longer to close and includes alot more  red tape!!!  If you are trying to purchase your American Dream, take some time to learn the market….what kind of offers are being considered?  Is the listing price realistic for the market, or are they pricing below market to entice a bidding war?  Listen to your Real Estate Professional!!!  They are trying to educate you to make your Dream come true!

Recently a client called from a sale nearly 13 months ago. He had waited thru the process of a Short Sale and purchased a great property for about half the price..deep corner lot with a Casita located in the back corner..backed up to a school/park. On the day of signing he and his wife anxiously went thru the paperwork, gave their check to the closing officer at the Title company and proudly took possession of their property in this lovely gated community of only 25 houses. HOA certs were provided as were all the rules etc..he laughed and said he would “read them in the bathroom”..Well..now he is upset because he can’t use the Casita for a permanent residence for his not to friendly mother-in-law. The HOA is enforcing the law and the rules and are threatening legal action as the mother in-law has been voicing her residence to all the neighbors as well as all of her son-in-laws foibles..so, he cannot deny she lives there! In his frustration he called the HOA president and me..both reminded him of the law, rules and regulations that he initialed and signed. Needless to say..he is NOT HAPPY! I read to him from his file..where his signature was emblazoned..”The CC&R’s become a part of the title to your property. They bind you and every future owner of the property whether or not you have read them or had them explained to you. By purchasing a property encumbered by CC&Rs, you are agreeing to limitations that could affect your lifestyle and freedom of choice.You should review the CC&Rs and other governing documents before purchasing to make sure that these limitations and controls are acceptable to you..” Unfortunately, the Short Sale process became very painful as in his case..it included a mother-in-law who will have to move INTO his house!

The Las Vegas housing market has seen a lot of short sales lately!  Why would a buyer think a short sale is worth waiting for months on end for the seller’s lender to approve the deal?  Well, several reasons…..at least in Las Vegas!!  With inventory down on foreclosures, the competition to get these homes has become overwhelming for some buyers!  After writing 10 or so offers on different foreclosed properties, only to be “beat out” by one of 20 or so other offers, buyer’s finally turn to short sales in a funny kind of desperation!!  The most appealing part of a short sale?  The property has usually been taken care of….seller’s may still live there…and they love that house!!  They aren’t going to rip out the kitchen or steal all the appliances because they are mad at the bank!  They are trying to do the “right thing”…work it out with the bank…let someone who can afford the home buy it!  This gives them the opportunity to get out of a home that is causing them stress, and to move on into a future that includes being able to rebuild credit and a few years down the road, purchase another home that they CAN afford!  Other great benefits include, competitive prices, less competition with other buyer’s and an extensive inventory to choose from!!

Short sales can take a long time to get approved, it’s true, but they are proving to be worth their wait in gold to many Las Vegas buyer’s!

There is a short period of time between a Short Sale and the loss of patience of Buyers and Sellers and not to mention Realtors. Having walked thru several of them and fought my way thru the back doors and rooms of the darkened Bank Vaults..looking for Asset Managers that really have the authority to move the property from the darkness into the light of COE..The level of frustration gets pretty intense and often the Buyer and the Seller will turn to their Agent/Realtor and they want to “know today what is happening!” It would be so easy to give them what they want..a DATE..and then hope the property really was released for closing by then..Unfortunately, there just isn’t a Contract until both parties have signed! Not just the Seller but until a “person with authority to bind the seller actually signs the purchase agreement, counteroffers and or addenda, there is NO DEAL! Buyers should not “get their hopes up” until they have received a fully executed agreement. So..throw the clock away and take a patience pill and with alot of pushing and shoving it will get done, if at all possible. Short cuts on Short Sales usually don’t stop the clock..they make it run longer!

Home Resale Decline in August

If not only of the 2.7 percent drop of the home sales in August from that of July, the real estate market could have been in a much better condition. Last year’s sales were recorded to have been 2 percent much more advanced than that of this year, having this years’ average value of $177,700.

Considering the increasing numbers of individuals losing their job, many of them could not anymore manage to invest even if prices have gone short. Others, on the other hand are still waiting for the lowest possible prices an agent can offer before purchasing. Therefore, more short sales likely await us for the coming year.

Government project such as the $8000 tax credit for new homeowners had served as a stimulus for buyers in helping our economy achieve a state of self – recovery or sustainability in the real estate industry. But given the figures, we haven’t reached that yet as what Lawrence Yun, the National Association Realtors chief economist settled; even so, realtors mark this drop temporary.

Consequently, many had been wondering of what could possibly occur next in the real estate market as the $8000 tax cred