Feb. 9, 2008 - Short Sale Refi's

Short Refi's

On January 19Th 2008 I read an article written by Jeff Lazerson founder and president of an on line brokerage Mortgage Grader on BankRate.com .  I have put off writing anything about it in hopes that more people would be talking about it.  I have been talking to other Realtors® about this for at least 6 months.  As prices keep going down in the Las Vegas area, my heart aches for the people who are going to lose their homes and because they are behind in their payments, their credit is in the toilet and they can not get refinanced because of that.
In Mr. Lazerson's scenario lenders would refi what the house is worth now forgiving the difference.  The only question I have is what price drops would they use?

I have some clients that paid $790K for a beautiful home.  I ran comparatives for them yesterday and that Max comparison is $649K which is down $141K.  But the median is $550K which is a whopping $240K difference.  WOW.  So what price would the lenders use to refi? If my clients could refi at say 6% for $550,000 they could make the payments and not lose their homes.  If something like this does not happen for them they will lose their home. 

Wait though, are you thinking about the counseling and offers to freeze rates at an introductory rate for 5 years?  Why would anyone do that when their homes are not worth what they paid for them.  Sure real estate has always had their ups and down but $240,000 drop in a year?

Who is to blame for all this?  Greedy lenders?  Builders creating scarcity?  Investors driving up prices?  I really hated that period when a home would only be on the market 5 minutes.  I had to beg a seller once to let us come and look at his house at 7am in the morning and stand in his kitchen to write the offer. 

Even after the foreclosures stop appraised values are going to take many years to go back to where the value is back in these homes.

Read the BankRate.com article and give me your thoughts.  

                       
     

Feb. 9, 2008 - Personality Home Shopping

One of the home builders here in the Las Vegas Valley came up with a personality profile people could ask themselves before they start shopping for a new home.  What is important to you?  What kind of lifestyle are you looking for?  What is important to your family? 

Every person in world has different tastes.  That is what makes the world go around.  If you have some things you have to have in a home all thought out before you start shopping for a home it will make it easier. 

Some things to think about.  What would you Dream Kitchen include?  A walk in pantry? Pull out bins for recycling? A large area for family to gather?  What would your Dream Master Bedroom include?  Separate his and hers dressing areas?  Shoe cubicles in your closet that are big enough to hold hiking boots?  A sitting area with a fireplace for some alone or intimate time?  What about a Dream Mater Bath?  Do you have to have dual sinks?  Do you have to have plenty of storage?  Large tub?  Separate shower?  Dream Laundry Room? Would you have to have storage to hold your supplies?  How about enough space for energy efficient front loading washer and dryer with hanging rods for air drying?  A sink to be able to pre-treat stains?   What about a home office?   Do you want to landscape outside or have no responsibilities in that corridor?

If you answer all of these questions and anymore you can think of, your home shopping should become easier.

Happy Hunting 

Feb. 8, 2008 - Median Prices in Las Vegas Drop

Medium Price of a New Home Drops

Now is the time to buy in Las Vegas.  The prices are dropping.  Along with short sales and foreclosures builders are wheeling and dealing also.  The Median Home Prices in the Las Vegas Valley have dropped below $250K. 

If you are thinking at all about buying a home here in Las Vegas, NOW is the time.

Feb. 8, 2008 - Pricing Your Home To Sell

Use A Real Estate Professional

A Realtor® with any amount a knowledge can give you the going price of what homes are going for in your neighborhood.  What do you want to know?  A buyer coming to your neighborhood to look at homes will already have this knowledge.  They will know what like houses (as Yours) went for in the last six months.  (this is what an appraiser is going to look for when doing an appraisal for the lending institution.)   You will also want to know what is currently on the market and at what prices.  You will want to know what listings in your neighborhood have expired listings and never sold and at what prices.  Armed with this knowledge you can make a educated decision on what to price your home at.

If you chose to try and sell it your self the Realtor® that brought you the information and went over these statistics with you will respect your wishes.  But if you decide during that process to hire a professional I hope you will consider that person as they have already done some of the work.

Feb. 8, 2008 - What are the Different Terms for Dwellings?

What does that mean?

In my years as a real estate agent I have been asked what the difference is between different sorts of structures.  These are the best definitions that I think answer those questions.

Condominium:  People often think of "Condo's as glorified apartments and while that may be true you have a difference here where you OWN that glorified "apartment " thus having tax breaks.  You own from the plaster in and certain elements of the community. IE: common area's, sidewalks, driveways, gates, swimming pools etc.  While most people thing of Condo's as where you live, they can also be used for office buildings and strip malls.  Some even come with one car garages .                 This site plan is usually how a condo community is laid out.  

Townhouses:  are usually two story but can be one story and are attached on one side or both, but do not have anyone either above or below.  They also usually have your own back yard and garage.  I live in a townhouse as it is attached on one side.  They have become very popular in the Las Vegas area.                                  This is some pictures of my townhouse

         My Back Yard, again with privacy.                           Front of the house we are attached by a common wall way to the left but you can see we have lots of privacy.

Other terms you might hear about a single story town home would be, patio home, carriage house, or duplex.

I suspect everyone knows what a Single Family Home is, you own your house and land and there are specific boundaries or lot lines that define your property.

In Las Vegas we have seen big growth is the High-rise, Mid-rise, Loft concepts.  Here in Las Vegas these type of units are being built around cities unto themselves.  With retail, doctors, hair dressers, dentist and a whole lot more are being incorporated with in the development.

These are a few current developments.

Curve High-rise                                                 Pinnacle Lofts                                                    

Trump Towers    

I am sure in different parts of the country different types of properties have different names but these definitions are common in the Las Vegas market.