Real Estate Prices, Going Up?

I would like to thank the Las Vegas Review Journal for their annual report on real estate values here in the Las Vegas valley.  This map is probably what interests home owners most when they are thinking of selling their home. All but 3 zip codes had price increases for 2012. Click this link Las Vegas home values report from LVRJ.  Also email me at mike@lasvegashomesbymike.com and I will email you a copy of the detailed PDF file that shows each zip code and value on a Las Vegas valley map.

Perfect Investor or Handyman Home

View Home Here
This new listing close to downtown Las Vegas is perfect for an investor that is willing to complete the interior remodel that has already been started at this great property.  This home features 3 large bedrooms and is 2,025 square feet and is a deal at $99,900.  Plus additional square footage with a storage shed and a separate building that is set up as a game or party room.  Both outbuildings are in perfect shape and the main home needs flooring in the living areas and 1 bedroom plus a little TLC.  Both of the bathrooms and kitchen are in working order.  Just bring your appliances.  The home is located not far from the up and coming Fremont East District of downtown Las Vegas in the historic Huntridge neighborhood.

Prices Rising, Here is Proof

Back on February 27th, I blogged here about new homes in Las Vegas from $135,000, well fast forward one month and 2 days and the prices on the same homes now start at $152,000.  That is $18,000 in 31 days or $580 everyday.  Obviously the market will not sustain these types of increases because if they did, these homes will be over $300K by years end.  But if anyone is out there on the fence, thinking about buying now is the time before you get priced out.

Springing for a Move

It is spring time here in the desert.  As I am typing this, my office windows are open and I hear the birds singing.  Spring is also the time of year when most people decide to move.  Deciding the city or neighborhood to move to is usually the easy part.  Finding the perfect home and selling your current home and having everything coordinated time wise is where it gets tricky.

Having a great real estate agent isn't just nice, it is necessary.  If possible use the same agent to sell your current home and purchase the new home because they know your selling situation and can guide you best in the purchase of your new home.  When moving out of state or to a different city using the same agent is not always possible but the agent selling your home may be able to refer you to an agent they know in the area you are moving to.  That way the communication is open and there are no surprises.

Having a real estate agent that not just shows you property but actually works on your behalf to negotiate a great deal plus communicate the process along the way is vital to your move going as planned.

If you need to sell or purchase a home in the Las Vegas, NV or Henderson, NV area, please check out my website I will be glad to provide you the service you want and need.

Selling the Investment Home

A lot of people dabble in real estate investing by having one or two properties.  What happens to many investors is they have an issue with problem tenants.  Tenants that destroy the carpet and put holes in walls and of course don't pay the rent.  These property owners end up asking themselves, "Why am I doing this?" 

Investment property owners sometimes just don't realize how much work it is to be a landlord.  From the calls about the A/C not working to the letters from the HOA that the yard has weeds and chasing down the renter for the rent every month. 

Property management companies will take off much of the burden of being a landlord for a price.  Many companies charge 8-11% of the monthly rent.  But they also take care of any issues with disturbing the home owner minimally. 

Many of the homes coming onto the market are these investment homes where the property owner is just tired of being a landlord.  Now that prices have come up some they are able to turn a bit of a profit and cash out.
www.lvhomesbymike.com

Purchasing New Construction

With the recent inventory shortage of homes in the Las Vegas and Henderson areas, many people are turning to new construction, where they won't sell to investors, so they can get a new home. New construction is a great option but it comes with pluses and minuses. 

 The biggest hurdle is your time frame that you need to move.  If you need to move in 30-60 days and you purchase new construction, it may not work.  Unless the home builder has what is called, "standing inventory" or "quick move-in" which is a home ready or almost ready to be moved into.  The other down side is typically the price you see is the price you get, new construction is usually not negotiable.  The home builder may also "dangle a carrot" such as pay some of your closing costs if you use their mortgage lender of choice.  Occasionally, they will offer other incentives such as including a refrigerator or washer and dryer.

On the plus side of getting a brand new house is it is brand new.  New carpet, new paint and the peace of mind of new plumbing, electrical and roof.  Plus, most new home builders offer a home warranty for 1-10 years depending on the builder and the component of the home. Getting to choose what you want in the home is also a plus but remember that is also adds to the cost of the home.  That beautiful model you tour with the Italian marble floor and granite counter looks different than what is included at the price on the sheet given to you.
lvhomesbymike.com

Know Where You Buy Your New Home

Knowing where you buy your new home is not as easy as it sounds.  You know you want a particular area but do you really know the neighborhood?  It is up to the buyer to perform what is called "Due Diligence".  Due Diligence is learning about where you are buying.  Was the home the scene of a horrific or high profile crime? You need to know what is going on in the area too.  Anytime you purchase a home in Las Vegas, at some point in the process you will need to sign what is called a "Gaming Map".  The Gaming Map shows all areas zoned for gaming, because there are casinos here in Las Vegas.  I know you did not know that.  Where are the nearest train tracks and airport flight patterns?  This is all stuff you are responsible for knowing when you purchase a home.  Also be sure and scope out neighborhood businesses, are they family friendly or adult oriented? If you are interested in schools it is up to you to get that information as well. 

My website will help with your Due Diligence, this link has information on School & Crime Information in the Las Vegas, Henderson and North Las Vegas areas.

Retiring in Las Vegas

Where have you thought living when you retire?  Las Vegas has been and will continue to be a hot spot for retirees.  The great climate is just one of the reasons people are choosing to live in Las Vegas.  Even though June thru August are extremely hot, the beauty of the other 9 months make it all worth while.  Besides, isn't that what air conditioning is for? 

Don't want to be bored when you retire, Las Vegas offers year round entertainment inside and outdoors.  From the multiple award winning gold courses like TPC at Summerlin to the Rio Secco Golf Course in Seven Hills. 

 How about nightly entertainment?  Uh this is Las Vegas, there are 100's of shows at the Las Vegas Strip Resorts as well as lounges and local smaller venues as well.  There are even companies like Fill A Seat that offer yearly membership for unlimited shows for the cost of a ticket to one show.

With Lake Mead National Recreation Area nearby there is boating and fishing along with hiking trails close to the Lake.  Plus hiking and biking at Red Rock Canyon features some of the most beautiful scenery in the United States.  Still concerned about the summer heat?  Mount Charleston is a great place to cool off.  Typically 30 degrees cooler than on the Las Vegas strip and less than an hour away.  With winter sports like skiing and snow boarding and summer on the mountain is perfect for a picnic or a hike.

Las Vegas is certainly a city where there is always something going on but you can also lay back and enjoy the serenity of the desert southwest.

Update on the Las Vegas Real Estate Market

The past few months here in the Las Vegas valley have been crazy to say the least in terms of real estate.  Currently there are 3,396 single family homes on the market in the Las Vegas valley.  That is the lowest it has been in a while.  Home sellers are continuing to receive multiple offers in a short amount of time.  Home Builders have caught on and have continued to raise prices, so people purchasing new homes are paying a premium.  The exception to this is in niche segments of the market such as 55+ communities, prices have been fairly stable and high end homes over $600,000 prices are going up but by smaller percentages.  Buyers need to be prepared for a battle to get their offer excepted.  Offers must be clean and free of any seller concessions and probably over list price in order to get an offer accepted.  As spring begins, more people tend to list there homes on the market but also more sellers are looking.  The real estate analysts predict only a 5% increase in home values for this year.  In order for that to remain the supply needs to double what it currently is. 

For further info on a particular neighborhood, visit my website and click on Market Insider at the top and enter the zip code you are interested in.
    www.lvhomesbymike.com

What is the Real Estate Market Doing?

Ever wonder what the real estate market is doing in your neighborhood? The link I have pasted below and will place on the side of this blog shows trends in prices, crime and even local school testing stats sorted by zip code.  http://www.lvhomesbymike.com/mimarket/zip/89123/

Home Buyers Take Notice

Are your looking to purchase a home and have been fighting to get your offer accepted, there may be good news.  The number of homes on the market has increased by 600 over the past week.  Working as a buyers agent over this past weekend, I discovered there are not quite as many offers being placed on homes.  If you are looking in the price range of under $160,000 it is still fierce but appears to me moderating even in this range where a couple weeks ago you would be fighting with 20+ other offers on one home.  For a higher price range of $200,000 + it appears multiple offers are not even normal at this point which is fantastic news for buyers. 

Condo Vs. Townhouse

VS.

I have had several clients recently have questions regarding the differences between a condo and a townhouse.  There are a few main differences and sometimes it is hard to tell the differences apart.  I recently sold a brand new townhouse and I will call it that because it seems to have more townhouse qualities than condo but the builder actually refers to them as condos.

The main differences are the number of adjoining walls with another home.  Typically a townhouse will only have an adjoining wall with one or two other units versus a condo will usually share walls with 3 or more units. It is not uncommon for townhouses to only share one adjoining wall on the garage only.

A second difference is a yard.  Condos typically do not have front or back yards at all and require little if any exterior care by the owner.  A townhouse usually will have a small front or rear yard if not both. 

Lastly, condos usually do not have attached garages and townhouses do. 

A lot of newer townhouses have separate adjoining walls so they are essentially built like a single family home but simply have walls that touch each other.  Roof and exterior walls are blended to look like one building.

Avoid Foreclosure

The media the past couple days has been blasting about the foreclosure rate here in Nevada being the second highest only to Florida.  While this may be the case, it is due to the law makers in Carson City delaying foreclosures last year.  Unfortunately for people that have not been paying their mortgage payments the past year of so, your time may be up.

Banks have now, once again, begun processing foreclosures.  If you are afraid of this happening to you, short selling your home may be a viable option.  If your mortgage is backed by Fannie Mae and you qualify to complete a short sale, you can receive $3,000.00 for relocation.  A short sale on your credit is only a scratch compared to foreclosure.  Additionally, if you have a second mortgage or any other liens, you can be cleared of those debts too. 

My experience and expertise in selling real estate is an asset to you.  If you want to find out if Fannie Mae backs your mortgage, simply email me at mike@lvhomesbymike.com.

7/1 ARM's Coming Due!

Did you get an adjustable rate mortgage in 2006 or 2007?  This was a very popular mortgage during the housing boom because it made homes "affordable", and I use that term loosely.  What the 7/1 ARM meant was your purchased a home and the rate did not increase for 7 years.  Is your alarm going off yet? If not it will be soon because these mortgages are about to reset.

 If you are under water on your home you may be in trouble.  If you are not under water on the value of your home, I strongly suggest refinancing as soon as possible and taking advantage of the low rates. 

For those of you under water, which here in the Las Vegas area, it is a lot of us.  Now may be the time to consider a short sale.  The reason I say now is because the mortgage relief act has been extended through the end of this year only.  It takes time to do a short sale and if you close after December 31, 2013 you will have tax implications if you sell your home and have a deficiency.

Prices are up so banks are more willing to do short sales for a variety of reasons. Please contact me for a personal consultation if you are on the fence about selling your home.

Las Vegas Real Estate Market Haywire!

The housing market in Las Vegas can be described as one way... Ridiculous.  Depending on if you are a buyer or sell that ridiculous can be good or bad.  The inventory as of this morning is 3,490 single family homes plus about 1,000 condos or townhouses.  The problem lies that there are bout 4,200 homes purchases and closed every month in Las Vegas.  So bottom line is there are simply not enough homes to go around. 

Who is buying these homes?  There are two main groups purchasing, first are the investors, trying to grab everything they can before prices go too high.  The second group are first time home buyers that simply want to purchase a home.  The second group are the one getting effected the most because the investors come in, pay cash and get their offer accepted.  The first time home buyer is typically relying on a low down payment and financing the bulk of the purchase and needs to rely on the home appraising for the purchase price in order to get the mortgage.  If you are looking to purchase right now, the best thing to do when writing an offer is as follows:

1)Do not make a low ball offer on a property you really like.
2)Make the offer clean - meaning don't ask for too much if anything.
3)Find out from your real estate agent what the seller is asking for from the buyer.
4)Don't get excited.  It may take making multiple offers before you finally get one accepted. 

I was speaking with a co-worker that had a listing for a single family home and she received 110 offers within 3 days.  No doubt it is a battle out there right now if you are trying to buy a home. 

Don't give up, if you are in need of a good Realtor that will be persistent and work for you, contact me at 702.286.3434 or email me at lvhomesbymike@gmail.com

Is My Home Still Underwater?

Here in the Las Vegas real estate market homes underwater have become the norm since 2008.  Underwater, meaning that the mortgage on the home is more than the value of the home.  The market has shifted once again, thankfully, placing many home owners back in positive equity.  If you plan on living in your home and are able to make your payments, then it really doesn't matter if you are underwater or not.  Although it certainly doesn't feel good that you are paying on a home that is not worth what you owe.  If you are in a position that you need to sell your home is where if you are underwater or not is crucial.  Basically, if you need to sell and you do owe more than your home is worth is where you need to consider doing a short sale.  Short sale is when your mortgage holder, typically a bank, agrees to let you sell your home for less than is owed.  When this happens, the goal for the homeowner is to forgive the remaining balance on the home after it is sold.  Therefore releasing the former owner of any liability for the mortgage deficiency. 

Depending when and how much you paid for your home and any down payment will determine if you are underwater still.  Home prices have gone up about 25% over the past 6 months and continue to rise in recent weeks. So many people that have been underwater no longer are. 

The best way to find out where you stand is to have a Comparative Market Analysis done on your home to determine the value.  I offer this analysis free with no strings attached simply by emailing me at lvhomesbymike@gmail.com