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 

How to search for a home in 2013

Here we are in 2013 and you are ready to buy a home.  Last time you went house hunting there were all those magazines at the grocery store to pick up and browse through.  While those magazines may still be there, the houses in them are long gone. 

We now live in a world of instant gratification and it could not be more prevalent than in the world of real estate here in the Las Vegas area.  Listings come onto the market and within hours have multiple offers.  How does anyone get a chance at these homes?  The secret way must be on the Internet. Right?  Well the Internet does have great access to homes on the market and certainly better than magazines but sites like Zillow and Trulia will showcase homes for weeks if they are short sales and waiting banks to approve the sale to an offer already accepted.  How about Realtor.com, while Realtor.com is essentially direct access to the MLS this must be the perfect website? Realtor.com also will show properties contingent upon bank approval that have accepted offers. 

The best source for finding properties currently available is your Realtor.  Your Realtor can set up a personalized search specifically for you with the criteria you are looking for in a home and set it to automatically notify you as soon as the home comes on the market.  In the real estate business there is a phrase, "time is of the essence" meaning having the 1st offer in gives you a leg up on the competition.

When you do find that perfect home, don't get too excited until you have an accepted offer signed by the seller. 

$138,000 Brand New Las Vegas Home!

Don't let that title fool you.  This is true.  Here in the Las Vegas area prices have risen consistently over the past 6 months and within the past 30 days, most accepted offers for resale homes have averaged 12% over list price.  This make purchasing a brand new home all that much more enticing. Don't have to wait for your offer to be "Accepted" or be in a fight with 12 offer offers, yes that is happening. 

With brand new construction, you get piece of mind in knowing that everything works and even has a warranty.  Additionally, in most cases you get to choose what goes into your new home and it is completed when you get the keys. 

Here in  Las Vegas, purchasing a brand new home has become the easy way to buy. Contact me for information of new home communities throughout Las Vegas, North Las Vegas and Henderson.  Also get the latest market conditions by following me on twitter @lvhomesbymike.

Update: As of 4/24/13 Townhomes are available at $137,990.  $138,000 for a brand new Las Vegas home is a great deal.  Bidding wars are still happening so take advantage of this smoking deal because prices continue to increase.

Las Vegas is a Seller's Market

The real estate market here in the Las Vegas area has truly become a seller's market.  What is a sellers market?  A sellers market is a period in which the home seller is in the drivers seat in the selling process. That means the seller does not have to make many concessions to a buyer in order to sell his or her property.  What does this mean for the buyer:

1) Multiple Offers - more offers on a single home means you are less likely to get that house.

2) Higher Prices - Over the past 30 Days, homes in  Las Vegas have sold for an average of 12% over the listed price.

3) Less from Sellers - In most cases the buyers have to pay their own closing costs and the sellers are less likely to do any repairs you request. The seller's though is you, the buyer, are just lucky to get the home.

The good news is that with prices going up, many home owners are no longer under water and we are seeing fewer short sales and more "traditional" sales.  Traditional meaning the seller actually makes money on the sale of the home.  One thing is always constant and that is the real estate market is always changing, it never stays the same even day to day. 

For more information if you are planning on buying or selling, contact me directly at 702.286.3434 or for the latest local real estate market conditions, follow me on Twitter @lvhomesbymike.

2006 All Over Again!

The current real estate market in the Las Vegas valley is like 2006 all over again.  The investors are flooding the market and there are simply not enough homes for everyone that wants to purchase one.  This has driven prices up 25%+ over the past six months. 

There is good news though if you are looking to buy there is new construction popping up all over the Las Vegas valley.  There are new townhomes as low as $120,000 and new houses as low as $135,000.  Typically the homebuilders will only sell to people that intend to occupy the home. 

For the latest information on the Las Vegas real estate market follow me here or on Twitter at lvhomesbymike.  Contact me at mike@lasvegashomesbymike.com and mention you saw this blog and I will pay for a home warranty when you use my services to buy or sell a home in the Las Vegas or Henderson, NV area.