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!!
I think it is getting like that in many markets. I see it here in Denver also. Buyers are typically the last to realize that they no longer operate in a buyers market. They somehow will listen to our counsel on the topic and then ignore it until they have a few failed offers under their belts.
There is definately a learning curve with the buyers. They hear one thing on the news but it’s a completely different story hear in the real world. I sometimes feel uncomfortable explaining that the 180k property will need a 210k offer if they want it. They eventually learn, the hard way mostly!
Okay, so, it looks like we will be buying our first home in early 2010. I know the 8k credit wont be available to us at that point but it will take us that long to save up the down payment that is necessary so moving any sooner isn’t really an option. We have a good credit score (684) so qualifying for an fha fixed shouldn’t be a problem. what you say?
Buyers never had the need to lean about the buyers market unless and until they into the market. The buyers are at the receiving end – first, they have limited option; second, limited resources and the third, limited knowledge of the market. At this pont of time, they must take the advise of the experts in the filed. There is nothing more to loose than loosing a house.
i wonder how this dovetails with your ‘i have cash’ post….
are you seeing people with a tax credit and bank credit cobbling together offers chasing ‘deals’ or are you actually seeing savvy investors trying to put together deals with cash for the cap rate?
it’s really quite extraordinary to hear that people are bidding over the tops of themselves with how overbuilt the entire LV area appears to be….but maybe this is just for the ‘premium’ properties (?)
Are the banks making effort for a conclusion on home foreclosure?
The way banks handle short sales and foreclosures really are ridiculous. It leaves so much uncertainty for the buyer, that all it does is frustrate everyone. 30 offers for a single property! That’s unreal.
That’s very interesting, I had no idea that there were so many hands looking to make a good deal on a foreclosed property.
One of the issue I have with foreclosures, ok one of many is the bank lets the agent list the property at an unrealistic price. The my client think they can come in at that price or lower, when I know the bank will not let the property go for the listed price.
I think that if the banks decide to release some of that bailout cash, the real estate foreclosure market will see an even bigger boost.
The buyers are at the receiving end, first, they have limited option; second, limited resources and the third, limited knowledge of the market.
Buyers really had a limited in all aspects but they could consider all possibility to acquire things that they had, to get a better opportunity in what the market could deliver them.
Although I would’ve preferred if you went into a little bit more detail, I still got the gist of what you meant. I agree with it. It might not be a popular idea, but it makes sense. Will definitely come back for more of this. Great work
Your blog is really very interesting because through it i have some awareness about foreclosed property.
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