Get a Loan One Day Out of Foreclosure!

A local Las Vegas lender is thinking outside the box with three brand new loan programs for Nevada home buyers! These mortgages are truly unique and no other lender is offering them.

1. Fresh Start Program - One day out of foreclosure or short sale with 20% down payment! If you've been told before that you had to wait one to seven years to purchase a home, wait no more. This program is designed for owner occupants only, and the interest rates are outstanding.
2. 5% Down Jumbo Loan Program - This program is designed for owner occupants, but vacation home buyers can also get in on it with 10% down.
3. 5% Down High Rise Loans - No other lender in Nevada has 5% down mortgages for high rise condos. The 5% down program is for owner occupants, but second home buyers can also purchase a high rise with 10% down.
4. 5% Down "Unwarrantable Condo Loans - most residential condos in Las Vegas cannot be financed because of owner occupant to renter ratios. This has put a real damper on condo sales over the past 7 years. Now owner occupants can buy a condo with as little as 5% down in any project that does not have structural litigation, opening up a whole world of possibilities instead of just a handful. And second home owners can have the same opportunity with 10% down.

For more details on each of these exciting new loans, go to New Nevada Mortgage Loan Programs. Or call 702-985-7654.

These programs are only for properties purchased inside the state of Nevada by US citizens.

Still can't qualify quite yet but want to buy a home? Try private money mortgages. The interest rate is high, but over the long term it may be much cheaper than the price increases the Las Vegas Valley has been experiencing.

Bank Foreclosures Start Again in Las Vegas, but…

First, a little background:

Most large banks (Bank of America, Wells Fargo, etc.) are members of MERS, the Mortgage Electronic Registration System. This system allows a third party entity, like Recon Trust, to transfer notes between members of the system without recording the deed of trust into the new note holder’s name. So the name on the deed of trust and the name of the new note holder do not match since MERS was not required to record these documents. This made it difficult, if not impossible, for a homeowner facing foreclosure to actually find out who was foreclosing on them and try to work out an agreement. Many homeowners were foreclosed upon without ever being able to contact the existing note holder.

So in light of these national “robo signing” scandals, Nevada was among 11 states that enacted legislation to protect homeowners and regulate illegal foreclosure activity. In Nevada, Assembly Bill 284 was passed which required a bank employee to sign an affidavit stating that to the employee’s personal knowledge all previous transfers of the note were correct before the bank could start the foreclosure process.

Since there is no bank employee that could possibly attest to previous transfers of a note, AB284 effectively stopped the Las Vegas bank foreclosure process in Nevada, and foreclosure filings dropped from around 6,000 per month to less than 1,000. (Not all banks were affected by AB284 since they were not members of the MERS system.)

In October of 2012, however, the Nevada Supreme Court ruled that banks using the MERS system would be able to foreclose on properties as long as the note holder and the name on the deed of trust matched prior to the foreclosure sale.  This ruling will allow the third party entities used by MERS to record a deed of trust in the name of the current note holder and consummate the foreclosure process. Recording the deed of trust gives homeowners the opportunity to contact the note holder and work out a settlement, but doesn't allow them a "free ride" to stay in their homes indefinitely with no payment.

What this means for the Las Vegas real estate market:

The housing inventory has been at an extreme low for the past eight months, with bank owned foreclosures of Las Vegas single family homes accounting for only 10% of the active listings at any given time. Active short sales account for about 20% of the active single family listings and the rest are “real” sellers. It’s a “seller’s” market, prices have risen steadily since January, there are multiple offers on most listings within days of coming on the market, and buyers are finding it difficult to make a purchase unless they bid above appraised value.   

Banks have started the foreclosure process again, and we do expect new inventory to begin hitting the market after the first of the year, probably in or March or April. However, the banks do still have very stringent hoops to jump through, and there is no huge wave expected all at one time. Still, there should be more listings on the market, allowing frustrated homebuyers the opportunity to finally get an offer accepted. Hopefully we will get back to a more balanced market that remains steady for the next few years. A balanced market is better for both buyers and sellers and the local economy.

Search our site for foreclosures by zip code.

Short Sale Process Actually Becomes Shorter!

RealtyTraq, which measures real estate activity across the country, just released a very interesting article with the latest statistics on the time it takes banks to process a short sale, and which banks have the fastest response time. Not surprisingly, Freddie Mac, Fannie Mae and FHA had the shortest timelines from the beginning of the process to the final closing, posting an average of 193 days in January 2012, down from 248 days on average a year ago. View the complete article here

But the most interesting part of the article was the fact that Bank of America has announced that it's new policy is to provide a decision within 20 days of a short sale offer with a completed seller package. In Las Vegas, almost 60% of short sales are serviced by Bank of America, so this is GREAT news for Las Vegas homebuyers that can't wait five or six months to find out if they can actually buy the home of their dreams.

In fact, as a matter of course, many prospective owner occupants have been instructing their real estate agents to exclude short sales from their home search because they can't wait and/or don't want the typical hassles associated with a short sale even if they could get a better price on a short sale home. This means they are not even looking at half the market inventory they could possibly buy. And especially now, with Las Vegas real estate inventory levels so low and Las Vegas back to being a seller's market, this will give buyers more choices and potentially a better bang for their buck.

For sellers too, this means less hassle and stress waiting to see if their short sale will be approved and if they will be able to take advantage of the tax benefits on deficiencies currently in place until the end of 2012. Hopefully other banks will soon follow B of A's example and set a strict policy on response time.

View Related Articles:
Las Vegas Lawyers Lick Their Chops
Top Ten Las Vegas Hotel Pools

Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?

"Where have all the homes gone?!" In the Las Vegas real estate market it's like the clock has suddenly been turned back to the year 2004. Within hours there are multiple offers on everything listed under $250k, often sight unseen, and most accepted contracts are going above list price. New home builders are warning real estate agents about imminent price increases.

At the beginning of November there were approximately 11,500 single family homes actively on the market that were not yet under contract. Today, less than 6 months later, there are only 5,074 active single family listings in the Las Vegas MLS. That's about a six week supply at the current rate of absorption.

This is a direct result of Assembly Bill 284, which effectively stopped the non judicial foreclosure process in Nevada. Before AB 284 became law, lenders were filing around 5,000 Notices of Default per month. Now that figure is down to about 300 a month. Actual foreclosures are down to about 800 per month, and even that figure is dwindling rapidly. REO teams are downsizing staff and services, as there doesn't seem to be an end to the drought any time in the near future.

So where is the "shadow inventory" we keep seeing in the news? Since Nevada lien holders can no longer foreclose on properties non-judically, they have gotten much more aggressive about encouraging and approving short sales. Many owner occupants with true hardships that don't qualify for loan modifications are receiving cash incentives from $3k up to a whopping $30k for cooperating in a short sale.

Lienholders are also modifying many borderline loans, often unsolicited. I had a call from one of my clients last week. He had been trying to refinance his home through a new lender. (He was just barely upside down and had excellent credit.) Out of nowhere, he got a call from his existing mortgage lender, Bank of America, offering an interest rate reduction that saved him more than the refinance would have, at no cost, and without extending the life of the loan!

So in the foreseeable future, the "shadow inventory" in Nevada is a myth. And with the Las Vegas economy recovering, by the time AB 284 expires, many Nevada homeowners will be able to achieve a work out solution with their lien holders.

For more news on Nevada's improving economic situation and rapidly shrinking inventory, check out this week's recent news articles:
Single Family Homes Down to Six Week Supply
Las Vegas is a Seller's Market Again

And don't forget, legalized medical marijuana is also coming to Las Vegas. That will mean quite a few people moving to the state (especially the ones that don't like the cold in Colorado!) to take advantage of the new laws shrinking inventory even further. For the latest on the marijuana situation, go to our new site at Las Vegas Marijuana Real Estate today.

New Las Vegas Real Estate Search Engine Launched

We are truly excited to announce the launch of our newly redesigned web site at www.GreatLasVegasHomes.com. The new site has much more information on specific housing communities and condo developments, with on-page statistics for high, low and median prices within each community and direct links to listings by price range.

The new real estate search engine also gives you many more choices to refine your search results – you can even eliminate short sales or look specifically for bank foreclosures. Each detailed property listing has maps showing nearby amenities like schools, restaurants and shops. And, unlike the national sites, contingent properties have been eliminated, so you don’t waste hours looking at properties that are already under contract.

If you would like to buy a brand new home, we also have a featured "new home" section where you can browse all the builder inventory, including floor plans.

For previous clients, all you need to do is sign in with the same email address you used before – no passwords needed. Make sure to “save” your search criteria and the next time you sign in, you can load it all with one click of a button instead of starting over again. And don’t forget to save your favorite listings too – you can track them for future reference. If you are a new client, just register once with your email address and you can come back and visit as many times as you want.

Once you have visited our new site we would like to ask for your help - please send us your feedback and any suggestions to make it even better. We want our site to be THE best site for Las Vegas properties it can be. Happy browsing!

Buy a Property for $50k - Rent it for $1k per Month?!

'Where in Canada can you buy a $50,000 property and rent it for $1,000 a month?' was the lead-in for an article on the Las Vegas real estate market in the Montreal Gazette this past Friday. The article implied that paying $50k for a property and being able to lease it out at $1k per month was easy in Las Vegas and other distressed US markets.

If so, I would sure like to know where these properties are. I can’t seem to find any listed in our local Las Vegas MLS system. I would be happy to buy at least 10 of them this week myself! Already our phones are ringing off the hook from Canadian buyers who saw the article and don’t believe us when we tell them it was all hype. They think we are “hiding” the listings from them! (I have yet to see a real estate agent that can afford to “hide” listings and stay in business.)

Where does the press come up with these statistics?? They seem to have little or no basis in fact. Another news article posted recently said that the Las Vegas real estate market was going to go down another 10% to 12%. Again, this was reported with no supporting documentation, just a gobbled gook of random statistics that had no bearing on what was reported. But because of articles like these, we have to spend a lot of time re-educating buyers on fact vs. fiction and what is actually possible.

Sure, we absolutely have low cost homes for sale in Vegas. But they are in neighborhoods where the purchase price reflects the potential rental income as well. (And Buyers, please check those Metro crime statistics before making a purchase.) True, many of the Las Vegas short sale properties are listed way below market just to get someone to put in an offer. But the banks always do their own appraisal before approving a short sale, and will usually counter with a price that is within 5% of the actual market value.

That is not to say that you can’t get a terrific return on Las Vegas investment properties. It is absolutely possible to buy a cute newer home for around $100k and get $1k or more per month rental income. This is actually a great time to buy, as the latest statistics are finally showing a small upward trend in Las Vegas sales prices (see Las Vegas real estate weekly trends) and inventory has come down to a five year low. Just between October 1st and November 1st single family home inventory went from 11,500 active listings down to 10,500 active listings. (For homes under $200k we are once again experiencing multiple offer situations because investors and second home buyers from all over the world are trying to take advantage of the low cost to own.)

Not to mention, prices have dropped substantially, 50% to 60%, from just a few years ago. With the strength of the Canadian dollar vs. the US dollar, it makes all the sense in the world for Canadians to finally buy that snowbird property in the States. And the Australian buyers are also taking advantage of the favorable foreign exchange rates to purchase second homes and investment property in Las Vegas.

But someone somewhere has got to finally hold the press accountable for what they print. They aren’t doing anyone any favors by not checking the facts first. The client that buys that $50k property and expects to get $1k per month in rent is going to be sadly disappointed. The client that didn’t buy because he/she read that property prices were going to decline further is going to be really upset when they come back six months later and find that the home he/she wanted is even more expensive.

Lake Las Vegas Rises from the Ashes

Like the mythical Phoenix, Lake Las Vegas is rising from the ashes of the real estate melt down. Still the most unique and beautiful of any of the Las Vegas master planned communities, Lake Las Vegas stands like a Tuscan mirage in the middle of the desert, and once again new home builders are taking the plunge to put it back on the map as one of the most desirable projects in the country.

Set on 320 lush acres with its own private lake, three hotels, a casino, the Lake Las Vegas Marina and home to the prestigious South Shore Golf Club, Lake Las Vegas is an elegant European themed resort destination with 1400 luxury homes and condos surrounding the Montelago Village, a boutique collection of shops and restaurants. Each year over 20 events are featured in the community with wine walks, Shakespeare in the Park, beer fests, dragon boat festivals and more.

Like the rest of the city, Lake Las Vegas was hit hard by the real estate crash. Several of the surrounding golf courses closed, the Ritz Carlton shut its doors and even the casino went dark. But over the past few months, a renaissance has arrived along with international buyers looking for second homes. The “buzz” is back. The Ritz Carlton became the Ravella, the Montelago Casino opened, and The Golf Club at South Shore is offering incredible membership options to homeowners.

Harmony Homes and Woodside Homes are on the band wagon and offering some amazing incentives for Las Vegas home buyers. Harmony Homes has two lovely developments in Lake Las Vegas, and through the end of December is offering to pay two full years of homeowner’s association dues for all buyers that go into contract before December 31st in addition to some upgrade incentives. Homes sizes run from 2300 sf to over 4600 sf starting in the low $300s. Woodside Homes, starting in the low $200s, has standing inventory from 1779 sf to 2361 sf with golf course lot premiums included in the base price. In addition, Toll Brothers is closing out the last few units in their exclusive townhome development with lake and golf course frontage from 1600 sf to 2181 sf.

So if you’d like to be neighbors with Celine Dion, now is the time to take a look at fabulous Lake Las Vegas and take advantage of the great home prices and discounted golf and marina memberships. There are even some great foreclosures in Lake Las Vegas too. You only live once - and what a way to live!

Las Vegas HUD Auction – Only $100 Total Down Payment for Owner Occupants!

Christmas is coming early to residents of Las Vegas, Henderson, and North Las Vegas this year. Get in on a special Las Vegas HUD auction - only $100 total down payment for owner occupants! This is a spectacular opportunity to buy a Las Vegas real estate with a very nominal investment.

Hudson and Marshall will be conducting two auctions of over 100 HUD properties around the Las Vegas Valley on Saturday November 5th, 2011 at the JW Marriott. Registration for Auction 1 will open at 9 am. Auction 1, starting at 11 am, is open to owner/occupants ONLY. Successful owner occupant bidders will be eligible for special FHA financing with only $100 total down payment (instead of the typical 3.5% down payment). Plus they can ask the seller to pay 3% in closing costs.

Registration for Auction 2 will open at 2pm. Auction 2, starting at 3 pm, will be open to both investors and owner occupants, but investors will not be eligible for special financing.

Open houses of all auction properties will be held prior to the auction sale date. Open house dates are October 22, 23, 29 and 30th from 11 am to 3 pm. They may also be viewed on other days by special appointment with your Las Vegas real estate agent.

Members of the Tonnesen Team are registered buyer’s representatives with Hudson and Marshall. We will walk you through the auction process, provide sales history and comparable sales for any properties you are interested in bidding on, get you totally pre-approved with a lender, and accompany you to the auction. To receive a complete list of the properties being offered for sale, please email us at: sold@greatlasvegashomes.com and put “Hudson and Marshall Auction” in the subject line.

In order to register of Auction 1 or Auction 2, each bidder will be required to submit a prequalification letter or a certification of cash funds which must include:

1. Bidder’s name(s)
2. Amount of prequalification and type of financing (FHA, conventional, etc.) or total amount of cash funds available - you MUST be preapproved for a loan if financing
3. Verification of income (for financed purchases only)
4. Verification of credit check (for financed purchases only)
5. Bank or lender’s letterhead and contact information

Bidders registering as owner occupants will also be required to certify that they have not purchased a HUD-owned property within the past 24 months, and that they will occupy the property as their primary residence for at least 12 months after the closing. Other registration requirements must include presentation of a valid photo ID as well as a $500 cashier’s check or money order payable to HUD. (For buyers taking advantage of the $100 down payment FHA financing, the balance would be refunded at close of escrow.) The check is not collected unless you are the highest bidder on the property.

Please note that Las Vegas auction properties are sold “as is where is.” You must view the property prior to the auction date to determine its condition, as the sellers will not make any repairs and sales are NOT contingent on inspections or obtaining financing. You are agreeing to close on the property when you successfully bid on it. If you are not certain you want the property or that you can obtain financing, do not bid! The $500 earnest deposit is non-refundable should you not close as agreed in the sales contract.

**All Las Vegas foreclosures offered in the auction will have a reserve. This means the seller must approve the high bid, and the seller has the right to accept, reject or counter the highest bid on a property.

Celebrity Lawsuit Over Las Vegas Real Estate

Las Vegas is in the news again, but this time the scoop involves a celebrity lawsuit over Las Vegas real estate. It seems Baywatch star Pamela Anderson is suing developer Laurence Hallier for $1M, and Hallier is counter suing Anderson for $22M for loss of sales in the Panorama Towers high rise project.

Panorama was originally slated to be a four building high rise development directly behind the MGM City Center project. Hallier completed two of the buildings, and in April of 2006 Pamela Anderson hosted the ground breaking for the third tower, previously known as Panorama North. But a collapse of the U.S. economy and the local Las Vegas housing market left Hallier and his business partners short of funds. The building was sold to pay off debt and Panorama North became “The Martin” which recently launched its new brand.

Anderson’s claim: She had agreed to give public appearances to promote the Panorama high rise development in exchange for a penthouse suite of her own. Part of the deal was that if the condo was not finished on time, she would receive $1M in cash for her efforts. She filed suit against Hallier claiming that she never received the condo or the agreed upon fee of $1 million. (Leonardo di Caprio did receive a condo in exchange for his sales efforts.)

Hallier’s counter claim: Anderson reneged on promotional appearances which led to him losing $22M in condo sales.

As one who has never been more than a 5 on her best day, just on general principal I have to hate a perfect 10 like Pamela Anderson who sets the bar way too high for most mortal women. (Please don’t take this personally, Pamela. I also hate Sophia Loren, Raquel Welch, Farah Fawcett, Claudia Schiffer, Heidi Klum and Jennifer Lopez among others, not to mention Virginia Saunders from 8th grade who stole my childhood sweetheart with her blond cover girl looks.) But to hold Anderson responsible for losing $22M in condo sales?

I have no idea whether or not Anderson’s claim for $1M in lieu of a condo is valid, as I am not privy to the contracts she signed with Hallier. Obviously Anderson did perform at least some of her promotional duties. But my personal experience in the local Las Vegas housing market does lead me to believe that Anderson should not be held accountable for a loss in sales. Celebrities may be able to attract star struck fans to promotional functions and generate initial interest in a new development, but a real estate project stands on its own merits as to whether or not those fans will buy.

Over the past 28 years we have had countless buyer requests for homes “near Celine Dion” or “close to Wayne Newton’s ranch,” or “within walking distance of Andre Agassy.” (And yes, I hate Celine too.) None of these buyers actually purchased Las Vegas homes. Most just wanted the chance to get close to the star of their dreams for a brief instant. (We have learned the hard way to ask for financials before putting these marginal prospectives in the car.)

So in my opinion Hallier’s countersuit for $22M in lost revenue is frivolous and should be dismissed. As for Pamela’s suit, who knows? And maybe she really needs the money to pay for the renovations to her Malibu home. After all, she and her kids are currently living in a trailer park waiting for the work to be done.

But if anyone really does want to purchase a condo near Leonardo DiCaprio, we have some lovely Las Vegas foreclosures for sale in Panorama Towers for half the original cost!

When Las Vegas Real Estate Was Hotter Than Hot

Remember the good old days, when Las Vegas real estate was hotter than hot? The bad news back then was that if you were looking for a good deal in Vegas, you were better off in the casinos than in the home market. The good news for home buyers today is that the housing market in Vegas has cooled off considerably and now is an excellent time to buy.

According to a recent study done by Deutsche Bank cited by CNN Money, Las Vegas is 6th on the list of top 10 most affordable housing markets! That's a real turnaround from just a few years ago when many people were priced out of the Las Vegas real estate market and forced to put their dreams of living here on hold.

The study looked at the percentage of their income that average Vegas homeowners pay into their homes after tax. It found that the current percentage is 9.8%, down from 17.2% at the height of the housing bubble in 2007. The study also looked at the cost of home ownership in Las Vegas versus renting. Here are the statistics for the Las Vegas housing market:

Rent as a % of after-tax mortgage payment: 125.1%
Median home price change, 2006-2010: -56.5%

Due to the number of foreclosures in Las Vegas, the rental market here is booming. Many of these renters have lost their homes to foreclosure and are unable to buy an affordable home due to bad credit. This opens the door for cash buyers and those with good credit and/or no home sale contingency to get fantastic deals on available homes.

According to Dotan Melech of UnitedAMS, more than half of the sales in Las Vegas are cash, and if you are buying a Las Vegas condo, cash may be your only option. Companies such as UnitedAMS are buying up foreclosures to rent them out. With high occupancy rates comprised of reliable renters who lost their homes, the Las Vegas real estate market for rentals is a good investment.

It’s something to think about for both those looking to buy and those looking to invest in Las Vegas real estate. Prices are competitive, rental income is steady and prices will only rise in the coming years. Is now the time to buy Las Vegas real estate? All indicators say yes, and experts are advising that prospective homeowners jump in before the market heats back up.

This article was written by Beth Hrusch, an expert
in the Las Vegas category at http://www.yoexpert.com/

Las Vegas Real Estate IS a Depressed Market, But...

Yes, Las Vegas real estate IS a depressed market, but is it truly a buyer’s market? That’s the $64 Million Dollar Question.

The answer is yes and no. Las Vegas is not necessarily a buyer's market, even though it is a very depressed market. At certain price points the market definitely favors the buyers, but in the lower ranges, under $250k, you are in the seller’s ballpark. In other words, lower end properties are already so undervalued that there is stiff competition to purchase. You can’t reasonably expect to low ball something that is already so low that there are multiple offers on it. And yet many buyers make below list price offers (against the advice of their agents) and are angry when they don't get a bid.

Inventory levels have remained steady for the past six months and all cash sales account for over 50% of purchases. Investors are buying Las Vegas because the prices are so low they receive a great return on rental income. So under $250k the competition is fierce. Most Las Vegas foreclosures and short sales are actually selling for MORE than list price as there are multiple offers from these cash investors. Yet even above list price these are great deals FAR below replacement cost and with great rent yields.

But if you are truly looking for more bang for the buck, think about the Las Vegas homes for sale in the higher price ranges. The higher the price point, the more open sellers are to negotiation. There are fewer offers to choose from (unless the property is grossly underpriced which happens often on the short sale listings). Bank foreclosures are much more willing to deal and “real sellers” tend to have more equity. If they have been sitting on their homes for a few years and finally get to the point where they have to move, a real seller can be just as good of a deal as a foreclosure. Plus they come with warranties and are in generally better shape, which makes them less costly in the long run.

HomePath Real Estate Listings in Las Vegas

If you are looking for a GREAT deal on Las Vegas real estate, you definitely need to check out the HomePath real estate listings in Las Vegas! HomePath listings are properties that were foreclosed upon and are now owned by Fannie Mae. Fannie Mae (a federally chartered corporation that purchases mortgages) has thousands of properties in it database, and is known for pricing those listings VERY competitively to sell quickly.

Fannie Mae may also offer special HomePath financing with less strict guidelines than traditional Las Vegas mortgages. Whether or not a property is eligible for HomePath financing is determined on a case by case basis and will be listed on their web site. There are a limited number of Las Vegas mortgage lenders who are authorized HomePath brokers, and the benefits can be no required appraisal and no required condo certification. This really helps in many of the condo communities where traditional financing is not available at all.

Fannie Mae listings are not quite like other Las Vegas foreclosures. They have certain guidelines that must be followed in order to purchase. When Fannie Mae foreclosures first come on the market, there is a 30 day mandatory "First Look" period. During this time frame Fannie Mae will ONLY accept offers from buyers who are purchasing the property as their primary residence. Offers from investors will only be considered after the 30 day "First Look" time period has expired with no acceptable offers from owner occupants. Fannie Mae will also require a lender pre-approval or proof of funds to pay cash to be submitted with any offer. They will not consider any contingencies on the sale of another property.

And while Fannie Mae may make some repairs to properties to increase their marketability, the buyer should be aware that other repairs may be needed. Fannie Mae sells each property "as is," which means that the buyer accepts the property "as is." Though the buyer will have a due diligence period to inspect the property for major defects, Fannie Mae is not responsible for fixing any problems after settlement.

But back to the part about the great deals! Fannie Mae properties typically sell for 10% to 15% less than comparable properties. It can be frustrating for investors to wait out the 30 day mandatory "First Look" period, but there are many terrific Las Vegas homes and condos that slip through the cracks or fall out of escrow. Primary homebuyers (owner occupants) should definitely be targeting Fannie Mae foreclosures as some of the best deals on the market. There are currently over 1200 Fannie Mae properties on the market in Clark County, Nevada, and they even release new listings in advance of actually putting them on the market. If you would like to receive new Fannie Mae listings monthly, weekly or even daily, just contact us!

Las Vegas Real Estate Market Inventory

As real estate agents, we often are asked the question: How does the current Las Vegas real estate market inventory stack up with past years? What about this “shadow inventory” we keep hearing about in the news? Will prices go down further? Have we hit the bottom of the market yet?

Unfortunately we cannot give predictions for the future. (If we could, we would be playing the international money markets!) But we can share statistics on current listing inventory vs. previous years to give buyers an idea of how balanced the market may or may not be.

Today’s inventory - As of March 4th, 2011 there were 12,238 single family homes and 2,658 residential condos listed as active (with no contracts pending or contingent) in the Las Vegas MLS system. As of January 2011 (the most recently published report supplied by the Greater Las Vegas Association of Realtors) the average sales price of a single family home was $157,081, and the average sales price of a condo was $83,828.

Inventory in 2008 – In February of 2008, there were 22,497 active single family home listings and 5,388 active condo listings. The average sales price of single family homes was $297,597 and the average condo sales price was $276,222.

Inventory in 2005 – In February of 2005, there were 14,041 active single family home listings and 2,593 active condo listings. The average sales price of single family homes was $334,732 and the average condo sales price was $189,462.

What do these statistics tell us? They show that currently there are fewer active Las Vegas homes for sale now than there were in the height of the “boom” years, but that the sales prices are less than half of what they were at that time. We are seeing cash investors buying up the “bottom of the market” because rental yields are so good at today’s low prices. (Over 51% of the housing sales in January 2011 were cash.) Sales prices are less than the cost to build new. Most Las Vegas foreclosure listings are actually selling for over the initial list price. And some zip codes in Las Vegas even experienced appreciation during the past year.

Again, no one can predict with any accuracy what prices will be in the future – there are too many global factors that could impact sales. But indications seem to be good for those that are willing to buy and hold for the long term.

Las Vegas Real Estate Agents Fire Buyers!

It doesn’t happen every day, but every once in a while Las Vegas real estate agents fire buyers! Real estate agents as a whole work harder than the average person in a 9 to 5 job. They are on call 24/7, and, especially in today’s market, often work for minimum wage when you count up all the hours and expenses that go into a transaction. That is why it is especially important for real estate agents to realize the value they bring to the table and when they should fire buyers that are just not worth their time.

Sometimes the agent doesn’t know the buyer’s mindset going into a transaction, but sometimes the buyer tips their hand in advance, like this actual letter we received on Valentine’s Day. Tim writes:

“I am seriously considering buying Las Vegas homes, BUT ONLY on a KILLER DEAL. I am not interested in a good, great or market price deal. I can pay cash, so there won't be any financing. So, probably a Las Vegas foreclosure, but open to all. I know that there are killer deals out there because I know of them all around me here. So, please, only a straightshooter reply to me.
My criteria: $50-100K. House, new or newer preferably, but not mandatory, 2> beds, 1>bath, a real fireplace is a must, garage, yard or acreage, good area/part of town. I have more likes/dislikes, but these are the standard facts.

I am retired. I want to be near or in relatively close driving distance to golf courses, casinos that have concerts, places to walk and hike, and take my dog. You get the picture?

I don't have a timeframe. As I said, if it is the killer deal for me then I am ready to buy today, or willing to wait until tomorrow, in a week, month or year or more until that deal transpires.
I want an agent that knows Vegas extremely well, is not pushy, is not in desperate need of a sale, will work with me on what I want and not what they want, and obviously knows real estate. Don't laugh. There are way too many people that received their licenses during the big boom years ago that don't know a thing about real estate, and many of them are still out there with their license. Please don't reply because I will know.

If you have someone qualified and interested, let me know, and we can talk.
Tim”

Since we received this letter on Valentine’s Day, we decided to have a little fun with it and instituted our First Inaugural “Kiss Off the Client” Contest. Agents contributed entries to let Tim know (politely) why they were firing him in advance. Below are a few of the entries submitted:

“Dear Tim, You’ll be excited to know that every home for sale in Las Vegas is by definition “a killer deal”. Knowing that should take a lot of the pressure off of both of us.

The remainder of your criteria you’ll find out in Pahrump, Nevada. Are you interested in looking at a few properties there? If so, I’ll be happy to recommend an agent. Make sure to pack your snake and scorpion repellant. Judy”

“Dear Tim, I would love to help you, but sadly my dog ate your listings. As he is on an all starch diet and will probably continue to eat your Las Vegas MLS listings for the foreseeable future, you will need to find another agent to assist you. As a dog owner yourself, I am sure you understand. Good luck! Dave”

“Dear Tim, Since killer deals seem to be falling off the trees right where you are now, why would you want to come to Las Vegas? Please let me know where you are so I can get my real estate license there! Gina”

“Dear Tim, The Good News: Our Las Vegas real estate agents are all HIGHLY experienced, with pit bull negotiating skills, impeccable integrity and incredible work ethics. The Bad News: They are all so successful and already have so many wonderful, motivated clients, none of them are “available” to help you. Management”

Please feel free to use these excuses the next time you are approached by a buyer that needs to be fired!

Las Vegas New Homes - $0 Down and $0 Closing!

One Las Vegas new homes builder is pulling out the stops to attract new buyers! R/S Development, a highly respected local Las Vegas developer, has announced a special $0 down payment and $0 closing cost promotion for their new Liberty Hill project in the 1200 acre master planned community of Providence.

In an effort to compete with the foreclosures for sale in Las Vegas, R/S if offering terrific in-house financing with NO money down and NO closing costs to qualified buyers. Credit just has to be good (though not perfect), and of course the buyer must have enough income to make the payments comfortably. There are three floor spacious plans to choose from, ranging from 1513 square feet to 1876 square feet.

Providence itself features two community parks, Huckleberry Park and Knickerbocker Park, which capture the essence of small town Americana, and the whole community is interwoven with 10 miles of tree-lined walking trails and paseos. The Liberty Hill neighborhood also has its own private community swim park complete with pool house, restroom facilities, playground equipment & green belt.

R/S, a boutique builder in the Las Vegas Valley for almost 30 years, has long been known for the exceptional quality of their homes vs. other tract home competitors. Family owned and operated, they have won numerous Homer Awards for design.

Standard features included in the Liberty Hill Homes are:

1. 13 Seer air conditioning system
2. Dual Glazed Low “E” Glass Windows
3. Climate enhanced balanced power heating & air conditioning system
4. 40 gallon high efficiency gas water heater
5. 10-year limited structural warranty from Professional Warranty Corp.
6. Monier® concrete tile roof in designer coordinated colors
7. Drought tolerant front yard landscaping w/ automatic irrigation system
8. Fully enclosed rear yard with masonry fencing and wrought iron gate
9. Fully drywalled and textured garage
10. 9’ high ceilings on main floor
11. Formal ceramic tile entryway
12. Custom hand finished textured ceilings and walls
13. Architecturally rounded corners
14. Ceiling light in all bedrooms
15. Attractive beech wood cabinetry with finished interiors, adjustable shelves and hidden hinges
16. Energy Star rated Kenmore® appliances

To find out more details on Liberty Hill and other great deals on real estate in Las Vegas, give us a call today at 702-985-7654! But hurry before this special promotion ends.

Selling Your Home - Las Vegas Short Sale Tips

The collapse of the general economy has left the Las Vegas real estate market in a shambles. If, like many, your home is upside down and you need/want to sell it, you are going to need the approval of your existing mortgage lender(s) to take less than what is owed. This is what we call a short sale, or pre-foreclosure property. Short sales are complicated transactions, so you can’t just hire your sister’s best friend who works part time in real estate to handle it for you. (Well, you can, but you may not be happy with the outcome.)

Who actually makes the decision to approve a short sale? As the seller, you will not be allowed to take any money from a short sale transaction. So you, the seller, really don’t care what you sell your home for. Surprisingly enough, your lender, who is probably only servicing your loan, doesn’t care either. The servicing bank merely collects the appropriate documents and presents the entire file to the investor who is actually holding the note and is owed the money. Literally, you could have two identical homes with two identical cash offers being serviced by the same bank and yet one will get approved and the other will not. It is entirely up to the investor holding your note how much of a loss they are willing to take.

Why would you short sale your home? The main advantage to doing a short sale is that you will ask your existing lender(s) to release you from any deficiency judgments. In other words, they agree not to go after you for the difference between what you owe and what the home sells for. (After a Las Vegas foreclosure they automatically have that right. On a short sale, this is negotiable.) In addition, if you can keep your payments current during the short sale process, it may not ding your credit too badly. While you won’t be able to finance another Las Vegas home for 3 years under FHA guidelines or 4 years under conventional guidelines, you should be able to buy a car or obtain credit cards. A foreclosure could prevent securing any type of credit for a number of years.

What will you need to provide to your lender to get a short sale approved? Most lenders will require the following documentation in addition to a multitude of standard forms:

· hardship letter – you are telling the lender in detail why you can no longer make your payments. Loss of employment, reduction of income, job transfer, divorce, illness, etc. In some cases the investor holding the note may still be willing to do a short sale even if you can afford the payments, but that is on a case by case basis
· last two paycheck stubs
· last two bank statements from all accounts
· last two years of tax returns
· financial worksheet showing expenses

What is the best way to go about a short sale? First of all, you would want to contact your lender to see if you qualify under the HAMP program or Home Affordable Modification Program. If you qualify under program guidelines, your lender may agree to reduce your interest rate so that you can afford to stay in your home. If you still can’t stay in your home for one reason or another, you may then qualify for the HAFA program or Home Affordable Foreclosures Alternative. Under this program you may get pre-approved for a short sale based and you may also receive relocation assistance up to $3k upon the sale of your home. Definitely something worth checking out.

The next step, whether or not you are HAFA eligible, is to hire a Las Vegas real estate agent EXPERIENCED in listing short sales. Your home must be listed on the local MLS so that the investor has a chance to receive the highest possible price on the open market. You cannot sell your property to a family member or friend either with the idea of buying it back later. Part of the bank paperwork you will be required to sign at closing is an “arm’s length” disclosure stating that you have no relationship with the buyer who purchases your property. (Breach of that disclosure is federal fraud and subject to severe penalties.)

Should you hire an attorney to help negotiate a short sale? If you have been unable to obtain a preapproved short sale under the HAFA guidelines, this is an excellent idea as long as the attorney you hire does not charge you anything at all, and only collects a fee from the bank’s proceeds upon the successful completion of the short sale. Your real estate agent should be able to help you locate a firm that has been successful in negotiating short sales, and the attorney should be brought in at the beginning of the listing process. Often if the investor proves stubborn about approving a sales price or terms of the short sale, just an attorney’s letter can alter the outcome favorably. Again, the attorney takes their fee from the bank’s proceeds at no cost to the seller or buyer.

How much should you list your home for? You are trying to establish a reasonable value for your home in the marketplace, keeping in mind that it is a short sale transaction which is not popular with either buyers or buyer agents as it may take months for them to find out if they even have a deal. Your agent should look at recently sold comparable properties and price your home at the bottom end of that spectrum but taking into account comparable condition and amenities. Once your home has been listed for several weeks without an offer, you want to do regular price reductions (your agent can advise you on how much is reasonable) until you are able to generate an offer with a solid buyer.

What happens after I get an offer on my home? Your lender, the servicing bank, puts together a file containing the contract, your updated financial documents and all documentation that you have tried to obtain the best price possible. They order a BPO or Broker’s Price Opinion (basically an appraisal) to establish market value of the home. They present this file to the investor for approval, rejection or, in many cases, counter offer if the BPO comes in higher than the sales price. If there is a counter offer on the price, the buyer may decide to accept the counter subject to a second appraisal of the property by the buyer’s lender. If both the buyer and seller accept the initial terms of the short sale approval, the buyer’s due diligence period commences. The buyer’s Las Vegas mortgage lender will order their appraisal and the buyer will complete all inspections and review any HOA documents.

Quite often the buyer’s appraisal is lower than the bank’s appraisal, and then the buyer will ask for a reduction of the sales price to meet that appraisal. The investor can either agree or disagree. Once a final price is agreed upon by all parties, the transaction proceeds pretty much as normal.

Why do most short sales fail? Most Las Vegas short sales fail simply because of the time it takes to find out if they are approved. Even the most serious buyer can become fidgety after a month or two of waiting to hear something, anything. That is why it is crucial for your agent to give weekly updates to the buyer’s agent, even if there is nothing new to report. Just a steady stream of communication can keep a deal alive. The second most common reason short sales fail is the difference in appraisal values between the short sale bank and the buyer’s lender. Again, a strong listing agent can go a long way toward documenting reasons for a lower sales price, though again this is ultimately the decision of the investor and sometimes those decisions seem to make no sense at all! But it is quite common to see the same Las Vegas homes for sale go into escrow several times before a successful closing. There is nothing wrong with the property itself, just the process.

That is why it is vital that the seller, the buyer and the agents all remain calm and be willing to jump through many hoops to a successful close. Guaranteed, there will be many hoops! But the patient buyer can get a great deal and the seller can walk away with a clean slate, and that is what makes it all worthwhile.

How will the Foreclosure Moratorium affect Las Vegas?

Bank of America, Chase and GMAC, among others, have announced that they will be temporarily suspending new foreclosures in 23 states that use the judicial foreclosure process pending internal review of their paperwork. (Nevada uses non judicial foreclosure procedures.) In addition, Bank of America announced that they will extend their temporary moratorium to all 50 states. How will that affect Las Vegas foreclosures? The Las Vegas real estate market has been one of the hardest hit by foreclosures in the past few years, though things have seemed to stabilize over the past six months.

At first the rumors were flying that any bank owned foreclosures currently in escrow would be canceled and that many of the title companies would refuse to insure such transactions. Las Vegas real estate agents and their buyers were in a panic. Many buyers had already spent hundreds of dollars on inspections, appraisals and HOA documents that they feared would be lost, not to mention the trauma of not being able to move into their new homes.

I am delighted to report that these rumors are unfounded! While some deals may be canceled after review in the 23 states that use the judicial foreclosure process, it does not appear that transactions currently in escrow in Las Vegas will be affected. And though there are some title companies that have announced they will not be issuing title insurance on bank owned properties in the 23 states, it is not anticipated that this will occur in Las Vegas.

It does look like Bank of America will not be taking back any more Las Vegas homes through foreclosure during the next few months, however, at least until after the first of the year. Yet typically most banks suspend foreclosure proceedings during the holiday months anyway, so this is not expected to have much impact on the normal market. “Take your kids, your Christmas tree and get out,” is not considered good PR in the best of times. So even though a foreclosure moratorium SOUNDS like an earth shattering economic event, the current moratorium really shouldn’t affect the market all that much.

So if you are a homeowner that has been fearfully awaiting that final foreclosure notice - put up the decorations, bake your holiday pies and invite the family over. The chances are pretty good that you will able to stay in your home a few more months, at least until after January 1st of 2011.

When is the Best Time to Close on a Las Vegas Home?

By guest blogger Jamie Cailor

We all have probably heard that it is better to close Las Vegas real estate transactions at the end of the month as opposed to mid-month or early on in the month. In fact, many borrowers are under the mistaken impression that they can save money on interest if they close later in the month.

Closings are more often scheduled for the end of the month than any other time for two reasons:

1. An offer to close by month end is more attractive to the seller as it “saves him” having to pay another mortgage payment out of pocket.
2. From the buyer’s perspective, it reduces the amount of cash needed to close in prepaid interest.

In realty, no one is actually saving any money. Las Vegas mortgage interest is paid in arrears – in other words, after you have used the money. The seller will still owe the interest from the previous month, but instead of writing a check, the amount will be deducted from his proceeds. The buyer will still be paying the interest for every day he has the loan, he just doesn’t need as much money up front. So total cost is not so much the issue as having the out of pocket cash to meet the requirements to close.

What is prepaid interest anyway? Well, prepaid interest is essentially the amount of interest due at closing to cover the period of time in the month between the date the mortgage lender closes your loan and the date your first payment is due. Say you close your loan on October 1st, paying 30 days of prepaid interest at closing. While you’ll have to pay that interest upfront, your first mortgage payment won’t be due until December 1st.

However, if you close on October 30th, and pay only one day of prepaid interest, your first mortgage payment will be due December 1st, so that first full mortgage payment will come due sooner. Either way the same amount of interest will be paid - it’s just a matter of when you pay it. But the difference in closing costs can be significant for first time home buyers strapped for cash to get into their new Las Vegas homes. So many homeowners opt to close at the end of the month to reduce their upfront closing costs.

Smart mortgage brokers will typically disclose enough prepaid interest for 15 days or more on the Good Faith Estimate to ensure borrowers have enough money to cover the costs no matter what day the loan actually closes. It’s not always easy to time a closing as “life happens,” so it’s better to overestimate, especially if you’re cutting it close with limited funds. The last thing a borrower needs is to be short on funds at the tail-end of the funding process.

And there are definite disadvantages to closing at the end of the month too. This is always a frantic time for title, escrow companies and lenders, as more than 60% of all contracts are written to close between the 25th and the 31st of each month. But there is NO guarantee that the loan will actually close at that time, and you may be out the prepaid interest anyway. Too many things can happen that delay an escrow. The homeowner’s association doesn’t submit the payoffs for the previous owner in a timely manner, the underwriter asks for more conditions at the last minute, there are mistakes on the final loan documents that need to be corrected, a Las Vegas foreclosure property might not receive final HUD signoff, the title company finds a lien or judgment has just been filed… The list can go on and on. In addition to that, other service providers, like moving companies, rental trucks and even utility companies are also jammed at the end of each month, and you may find it difficult to get the services you need.

On the other hand, if you plan your funds in advance and can close early in the month or mid-month, you’ll have a lot more time devoted to your loan documents and closing packages and it may be cheaper to rent that moving van. Plus even if something happens at the last minute that could cause a delay, the escrow officers and lenders will have more time to expedite your transaction as much as humanly possible.

All that said, perhaps you shouldn’t be looking at Las Vegas homes for sale if the amount of prepaid interest can make or break you. So be sure you have sufficient funds regardless of whenever you close your loan.

The Ultimate Las Vegas Party Home!

As a Las Vegas real estate agent, I have seen some really cool houses over the years. (I have thousands of great ideas I would love to try out if only my pocketbook matched my dreams.)

But Friday was extra special. I got to see a home that was 25,000 square feet of pure unadulterated Man Cave. No, that is not a typo. The home is really 25,000 square feet and is listed for $12M, which is actually an incrediblly LOW price per foot for the neighborhood and the amenities.

Anyway, one of my agents was previewing for a client that is coming to town, and she happened to ask if I would like to go with her. Usually I have to say no because I am always so slammed at work, but for once I decided to play "hooky" and tag along.

Like I said, I have seen many exclusive Las Vegas homes over the years, but this one was something else. It is located in McDonald Highlands, an exclusive gated country club community in the Green Valley Ranch area of Henderson. The property is still under construction on one acre (though the acre next door is also for sale - it is a Las Vegas bank foreclosure - and could be purchased at the same time), and it is just across the street from Rich McDonald's home - developer of McDonald Highlands.

Even unfinished, this home has loads of personality. The owner/contractor met us and gave us a personal tour and we were blown away, especially by the "play" areas of the home. Just a few of the indoor amenities in the family room included:

• ten car garage with glass viewing window from the family room so your guests can see your Bentley and Rolls without getting up off the couch
• 30 person professional theatre room with stage and dressing room for private plays
• wall length aquarium with built in TV screens that rise up within the tank so your exotic fish can enjoy HBO or Showtime along with you
• raised dias for band or DJ for your parties
• full size kitchen (that is bigger than the one in my home)
• game station area with two screens for competitive Wi matches
• full size state of the art gym
• spa room with two pedicure chairs, perfect for a girl party
• two lane regulation Brunswick bowling alley
• extra room for either your shooting range or golf practice range

The gigantic pool area was also spectacular, with swim up bar, outdoor kitchen, cascading waterfalls, bridges and multiple outdoor seating patios. Above it sits the "Poker Room," encircled by a true "lazy river" for drifting along in your innertube on a hot summer's day.

And of course the rest of the home is packed with fabulous and one of a kind ceilings, countertops, floor coverings, etc., all in very contemporary design with floor to ceiling windows and hundreds of planters scattered throughout. For the money, this may just be the best value in Vegas, and for sure it will be the most fun!! So if you are looking for the ultimate party house, give me a call and we'll go take a look.

Las Vegas Real Estate Foreclosure Auction in October!

Hudson and Marshall is back with a new auction of 153 properties in the Las Vegas Valley! This will be by far the largest auction they have held in more than a year. Auction properties will include every type of Las Vegas real estate, from small condos to single family homes to luxury high rise residences. The auction will be held at the JW Marriott hotel at 1 pm on October 9th, and auction properties will be held open for viewing the previous weekend on October 2nd and 3rd from 1 pm until 3pm.

In addition, early viewings and pre auction bidding are available through your Las Vegas real estate agent, and you should choose an agent that is thoroughly familiar with the auction process. Auction properties do NOT list prices, and your agent will need to do a lot of research to come up with an appropriate bid amount. Your agent’s commission will be paid by the seller and there is NO cost to the buyer. Since the auction house only looks at the highest bid, whether or not the buyer is representing himself or has an agent, it pays to have an experienced auction agent at your side!

One thing to keep in mind on auction properties is that there is a 5% buyer’s premium that will be added to the winning bid amount, so a Las Vegas home that goes for $150K will actually cost the buyer $150,000 plus the $7500 buyer’s premium in addition to normal buyer closing costs. Offers cannot be made with any kind of contingencies, including inspections, appraisal or financing. Escrows must close within 30 to 45 days, and on the day of the auction, successful bidders will be required to present a $2,500 non-refundable cashier's check as earnest deposit. (Many auction properties CAN be financed, as long as your lender can close within the stated time period.)

To receive a complete list of auction properties being offered, please contact us at sold@greatlasvegashomes.com and we will be delighted to send you the auction brochure.