Short Sales Don’t Have to Ruin Your Credit!

Like markets across the country, Las Vegas real estate has been hit hard by declining values and many homeowners are unable to sell their properties without coming out of pocket. Good news has arrived for those who have so far kept their payments current, but have been seriously considering filing for bankruptcy or letting their homes go into foreclosure. Some lenders are now allowing homeowners to go ahead and do a short sale without first falling behind on their payments.

A short sale or pre foreclosure occurs when a homeowner owes more on his property than it is currently worth and the creditor agrees to take less than the amount owed. First the homeowner has to show proof of true hardship which can be due to a variety of reasons: loss of employment or drastic cut in pay, loss of income from investments (stock market declines), illness, divorce, or death in the family. The homeowner has to write a hardship letter explaining in detail why they can no longer afford the payments on the property. They also have to provide tax returns, pay check stubs and current financials to support the hardship letter.

After the seller completes the short sale documentation, the property is put on the market. Once a bona fide buyer makes an offer that is accepted by the seller, the listing agent then submits the offer and the short sale package to the lender for approval. The bank will do their own estimate of value and decide whether to approve or possibly counter the original offer with what they are willing to accept.

Until recently the banks were not willing to look at a short sale package unless the property owner was already behind in their payments. The late payments and the short sale settlement meant the that property owner took a huge hit on their credit scores and were ineligible to buy another home for at least four years.

But with the glut of Las Vegas foreclosures on the market and the increasing costs of maintenance on foreclosure properties, the banks are becoming a bit more lenient toward Las Vegas short sales. Some are now willing to approve a short sale even if the homeowners have kept their payments current. Most of the time the homeowner remains living in the residence and taking care of it until the sale, meaning the properties are in better shape and sell for more than they would later after foreclosure. The credit report reads “negotiated settlement,” and the homeowner may only take a minor hit on their credit score. If their scores were high enough to begin with, they may even be able to buy other lesser priced Las Vegas homes almost immediately, or as soon as they can save up the down payment money.

So if you have been feeling that you need to get out from under a huge mortgage balance, but you hate the idea of damaging your credit, there may be hope! The inventory on Las Vegas homes for sale is down dramatically from what it was a year ago, so it may not be as hard as you think. Contact one of our short sale specialists today and let us help.

Multiple Offers On Las Vegas Properties Again

Dear Readers,

Below is a letter that I sent last night to an Australian agent who has clients that want to buy Las Vegas real estate. I had sent her some "best buy" Las Vegas MLS listings two weeks prior and her clients were supposed to respond immediately. But they procrastinated and lost out on the home they wanted. I realized as I was writing my response, that it was a great lesson in timeliness and patience for any buyer that is looking to purchase in this crazy market.

Hey Jo,

Where you been, girl?! The property your clients chose already has a contract on it – actually they had multiple offers. It sold for cash above the most recent list price, and is due to close this Friday.

We are experiencing a HUGE surge in buying. You know the frustrating experiences you already had trying to put in offers? Well just in the past couple of weeks our market has gone officially insane. Everything decent under $150k is now getting multiple offers within a couple of days and averaging 3% above list price. By the end of March we had 80% more sales than last year at this time!

The listing agents won’t even present an offer now unless it is accompanied by either proof of funds for cash buyers (in the form of a current bank statement) or full loan approval for buyers getting Las Vegas mortgages. The banks don’t even care if the buyers are cash or getting loans – they are only looking at the bottom line since the mortgage buyers are fully approved anyway.

And just to make it even tougher, some of the REO listing agents are playing games with the offers and trying to sell them “in house.” Not what you wanted to hear, I know.

But we have so much pent up demand from first time home buyers: prices are affordable for the first time in years and our federal government passed a tremendous first time homebuyer tax credit. Plus the news is starting to report Las Vegas as one of the most undervalued markets again, so here come the investors once more!

I am right on the spot, and in order to get two properties in escrow for myself this week I had my offers out to the listing agents within hours of the properties going on the market, sight unseen. We actually bid on five Las Vegas homes to get two. They are both short sales, so I still have to wait for the banks to approve the shorts on the loans. (Oh, yes, I am definitely in buying mode myself. I really think we have hit bottom and will start to see a rise again by year’s end. Personal opinion, of course, but it feels right to me based on what I am seeing in the market.) One of the properties I bid on got THIRTY offers!

Anyway, long story short (too late!), first of all your buyers would have to send us their proof of funds in advance, and second they have to be ready to pounce immediately. Literally: we send you the homes, they pick at least two or three to put offers on within just a few hours and then email us back right away so we can prepare contracts. (ALL the banks have counter offer addendums, so the clients won’t ever have to worry about being on the hook for more than one property. If we got lucky enough to get a positive response from more than one, we would just pick the one we liked the best and reject the counter on the other.)

We email back the contracts along with the comparable sales info on the properties they have chosen so that your clients can feel totally confident that they are paying a reasonable price. They sign the contracts and send them back, and then we “present and pray.” We will already be working with a time zone challenge, and really only have perhaps 72 hours between the property going on the market (or having a significant price reduction to below market value) to offer presentation to be effective. And that’s because we truly are sending you the BEST listings.

The buyers should also be prepared to wire funds within one business day to the escrow company to cover the earnest deposit if they get an accepted offer. Very few properties will be completely turn-key – some handy work will probably be required, though there are enough that just require basic cosmetics. (Touch up paint, landscape maintenance, carpet cleaning, etc.) Remember, the lowest priced properties are all Las Vegas foreclosures (bank owned) or Las Vegas short sales - the banks are not making any repairs and are selling “as is, where is.” And most of the original owners were not all that happy about moving out.

If your buyers are truly serious about proceeding, we should get their current proof of funds first off. Then they need to commit to responding with a couple of properties they are willing to purchase within a short (few hours) time frame so that we can prepare contracts. And they need to know that they are probably going to have to bid over list price unless the comparable sales data indicates otherwise. Low balling worked when prices were higher and no one was buying. Now everyone is back in the game again.

Deep breath!! Did I put you to sleep with this novella? I don’t want to discourage your buyers, but unless they are prepared to be really aggressive it’s going to be hard to get them something good.

Cheers and looking forward to hearing back from you - quickly!
Diann

PS When I speak of Las Vegas real estate, that also includes Henderson real estate. It is a small valley and they run right into each other. Also, if your clients do want to go higher in pricing, there are some dynamite deals in some of our gorgeous Las Vegas golf course homes too!

Las Vegas Top Ten Luxury Homes and Condos Deals for March 2009!

Las Vegas real estate prices have not been this low since the year 2000! Now is the time to take advantage of the tremendous bargains you can find on these fabulous Las Vegas homes and condos in the most beautiful neighborhoods in our Valley.

1. Seven Hills sensation reduced over $340,000 below original sales price! Luxurious almost 4500sf home with pool in prestigious guard gated community! Owner’s loss is buyer’s gain on this amazing pre-foreclosure home upgraded to the max in a gorgeous Seven Hills guard gated neighborhood! Bright and spacious 4497 sf 6 bedroom 4.5 bath beauty with 3 car garage and resort style pool/spa on an oversized beautifully landscaped lot. Crown moldings, plantation shutters,16" tile throughout, 2 fireplaces and more priced WAY below market for a fast sale at $460,000!
   
2. Stunning custom with unobstructed Strip Views for HALF the original price!! How low will the bank go on this truly incredible estate home in guard gated Anthem Country Club?!!! Exquisite 10,000 sf 5 bedroom 6 bath luxury home with stunning Strip and golf course views! Beautiful marble flooring, superb gourmet kitchen with top of the line stainless steel appliances, phenomenal master suite with balcony, crown moldings, basement game room with 16 seat home theater, six fireplaces, elevator, spectacular pool, spa, waterfall and koi pond and just too much more to list! Las Vegas foreclosures have never been better deals - originally sold for $3.2M and now fire sale priced at only $1.6M.


3. Amazing deal in the District at Green Valley Ranch for 70% off last sales price! If you have been looking for a deal at 30 cents on the dollar in a luxury setting, look no more! Gorgeous bank owned unit on the 3rd floor of the fabulous District at Green Valley Ranch. 1256 sf 2 bedroom 2 bath luxury condominium upgraded to the max with detached two car garage, just steps from boutique shopping, casino and gourmet restaurants. Granite counters, custom cabinetry, stainless steel appliances, travertine flooring and much more with spectacular city and mountain views plus on site fitness center, theater room, concierge service and security. Sold in 2007 for $1,015,000 and now sale priced at only $299,999. First come, first served!


4. MacDonald Highlands bank owned home for 39 cents on the dollar!! Buy the least expensive home in this exclusive custom neighborhood!Beautiful 4,235 sf 4 bedroom 3.5 bath home with three car garage in spectacular MacDonald Highlands guard gated golf community! Huge open floor plan, designer tile flooring, custom cabinetry, gourmet island kitchen with granite countertops and stainless steel appliances, sinful master suite with balcony, and so much more on 10,000+ sf lot. Originally sold for $1,350,000 and now priced WAY below everything in the neighborhood at only $540,900 by the bank for a fast sale!!!


5. Steal this Lake Las Vegas luxury home with gorgeous golf and lake views for only $250k! Live the Las Vegas luxury lifestyle and be Celine Dion’s neighbor too!Absolute perfection in V at Lake Las Vegas! Mint condition 1600 sf 3br 3ba town home with separate office and two car garage upgraded to the max. Bright airy great room floor plan, custom tile floors, granite countertops, stainless steel appliances, sensational master bath with spa tub, huge balcony with spectacular views and much more. Privately gated community within Lake Las Vegas with clubhouse, fitness center and pool too. Originally sold for $870k and now priced at only $250k. Plus furniture may be sold separately to make this unit totally turn key!


6. MGM Signature fully furnished high rise condo hotel unit 60% off last sales price! Come stay and play at the MGM in this luxury high rise tower for only $175k!Fully furnished 520 sf luxury condo suite on the 6th floor overlooking the MGM Grand Lazy River and Brazilian pools with panoramic mountain views! Suite is totally turn key with plasma TVs, kitchenette, granite countertops, marble flooring, Jacuzzi tub, linens and more. Plus there is a private owner’s pool and spa, lounge, valet service, concierge and special privileges to MGM events. And you can place this unit with MGM’s rental program when you are not in residence. Last sold for $449k and price now slashed to $175k.


7. Almost half price in Trump Tower on the fabulous Las Vegas Strip! Live like the Donald in this spectacular Las Vegas high rise condominium on the 34th floor! Fabulous, elegant and fully designer furnished 34th floor NW corner 974sf 1 bedroom 2 bath luxury condo in Trump Las Vegas, just one block west of the Strip. Walk to Venetian, Encore, Wynn! Beautiful Mountain & City Views! Spectacular marble bath with View Window over Jetted Tub! On site rental program, resort style pool and spa, valet, dining and more! Originally sold for $850k and now incredibly priced at only $465k, even lower than the studio units!


8. Red Rock Country Club estate with golf and lake views – price slashed! Owner’s loss is buyers gain in this exclusive guard gated golf course community!No expense was spared on this lavish 4000+ sf 6 bedroom 6.5 bath home with all the goodies overlooking the tenth fairway on Red Rock golf course! Gorgeous pebble tech pool and spa, travertine floors, huge gourmet kitchen with granite counters and maple cabinetry, stacked stone walls and fireplaces, lavish master suite with sitting room and balcony, theater room, and more. Owner purchased for $1.375M and now giving away at only $739k!


9. Enjoy the fabulous views from the 30th floor of this spectacular condo just behind the new MGM City Center! Save over $350k on this sumptuous beauty located in the heart of Las Vegas!Sit back and enjoy the incredible views from all the rooms in this 2291 sf 2 bedroom 2.5 bath contemporary high rise unit in Panorama Towers just across from the MGM City Center. Dual master suites, large living and formal dining areas, marble entry, great kitchen with black granite counters, custom cabinetry and stainless steel appliances, and much more. Plus enjoy the convenient luxury of Panorama’s on site pool and spa, valet service, fitness facility and concierge. Originally purchased for $890k and now just reduced to $525K!


10. Do the math - last sold for $4.1M and now listed at only $1.4M! Exclusive luxury estate in prestigious Eagle Hills in Summerlin! Relax in over 8400 sf of elegance in this 5 bedroom 5.5 bath custom estate home on almost half an acre backing on to the private park. Spectacular pool with cabana and swim up bar, rounded glass windows, 25’ ceilings, wrap around balcony on the second floor, sumptuous master with two walk ins and steam shower, travertine floors, basement for home theater and more. This pre-foreclosure needs some TLC but the seller has priced it to go fast!!!

To view any of these sensational properties in person, please call our office at 702-985-7654. You can also view more photos at: Las Vegas Top Ten Real Estate Deals.

But hurry. These are true steals, and it won't be long before they are GONE!