Whether you’re looking for a income producing investment rental property or a home to live in, even if you have bad credit, I invite you to learn the truth about buying real estate in Las Vegas. I'm about to cover it all for those looking to buy real estate in Las Vegas today.
Too many buyers are not based in reality and this causes them a lot of frustration. I hope to dispel some of the myths about today’s Las Vegas real estate market.
Inventory and Paying Over List Price
Our supply of homes in Las Vegas is very low. When a new home comes on the market, within days there are multiple offers and requests for “highest and best” offers. The first time you’re told this, you’re not going to believe it and will likely submit a list price or lower than list price offer.
Sellers are looking for the highest “net”offer. This means the buyer who does not ask the seller to pay for closing costs, a home warranty or repairs and offers over list price is in a better position to have their offer accepted.
What else helps you get a winning offer? CASH! If you have to finance, sellers are now asking that you waive your appraisal contingency. This means if you offer $400,000 and the home appraises for $395,000 – you’ll pay the extra $5,000 out of pocket instead of asking the seller to lower price. That’s a big pill to swallow, yet we have buyers agree to this every day. Why? Because they keep losing out on homes and they need to move right now!
When you lose an offer on the home you really want, you’ll think the process is rigged and that the listing agent made some special deal with the buyer’s agent. It’s just not true.
Once the sale records, we find out that nine times out of ten, the winning offer was really better than yours. Sometimes buyers lose a deal over $1000, sometimes $5,000. I always hear the same thing – I would have paid that! Learn from other buyer’s mistakes – if you really want the house, go all in and offer what you can truly afford with no regrets afterwards if your offer wasn’t accepted.
There is no foreseeable change in upcoming inventory over the next few months. It’s only going to get harder to find a home.
When you’re out shopping and see a home you love, be prepared to write your offer immediately and put all your cards on the table.
Buy A New Home From A Builder
Drive down any street and new home communities are popping up everywhere. After years of intense competition from foreclosed homes, new construction is basking in the sun again. With amenities focused on energy savings and optimized floor plans, don’t overlook some great opportunities. Remember, you want to take me with you on your first visit to any model home community, otherwise I can’t represent you. Remember everyone working on-site at the new housing track is working for the developer!
As discussed earlier, the on-site agents (no matter how sweet they are) always represent the builder – they DO NOT and CANNOT represent you or your best interests. It costs you nothing to have me represent you and negotiate on your behalf with a new home builder.
Expect A Realistic Return On Investment
If you’re an investor and you want to buy a rental property in today’s market, there are opportunities to achieve a return on investment (ROI) of 8-10% or more. Every week I identify the best choices throughout the valley – contact me to see this week’s report.
The majority of rental properties have an ROI of 6-7% – which is terrific compared to putting your money in a savings account, money market or the stock market.
To get the highest returns, you’ll usually have to compromise in your choice of location and age of the home. We can help you find properties that offer a balanced approach to best fulfill your objectives and comfort level.
Properties owned by Fannie Mae Homesteps and Homepath Freddie Mac and HUD won’t accept offers from investors for the first 30 days they’re listed. If you're an investor, don’t waste time looking at these properties when they come on the market, most will be gone before you can put in an offer. If you're searching for government owned properties, you don't need to pay for lists to these properties. Contact us and sign up to receive government owned listings for FREE.
Get Creative As The Inventory Disappears
For investors, consider 2 bedroom homes. Once the 3 bedrooms are gone, two bedrooms are a great option. They’re better than a condo because you’ve got an attached garage and usually a front yard, back yard and lower HOA fees than condos. Many two bedroom homes also have a den, which can be used as a bedroom or computer room. A two bedroom home in a prime location equals a three bedroom home in a remote part of town.
I'm busy working on my blog posts. Watch this space!