Mar. 19, 2009 - Las Vegas Real Estate Foreclosure Crisis

The Foreclosure Crisis in Las Vegas
And Around The Nation

One day I hear and read and watch on TV that we have only just begun to see the full effects of the foreclosure crisis.  The next day that all seems to be swept under the rug and things are looking up.  It just seems you don't know who to believe and what to think about in regards to our futures.  Should we try and buy a new home, new car, new TV, etc.  Or do we sit on our money, stay put and make do with what we have.  No one has a crystal ball of course, but I do not want to live my life in fear from day to day.

I have been trying to figure out what happened?  I went to a foreclosure class recently and got a few facts.  Our teacher threw out these numbers.  9,000 letters of default are issued daily in the US. 400-500 are issued daily in Nevada.  The number that scared me some is 2.3 TRILLION ARMS (adjustable rate mortgages) have not yet reset! Now that is a scary number. Course it use to be you could not get a loan and credit was so tight.  In the Carter era in 1977 something called the Community Reinvestment Act it was to help communities get loans.  It has been deregulated almost every administration since.  Too read all about this act click here   Did this act have anything to do with the mess we are in now?  Seems to me it may have at least been easier for lenders to do very creative loans.

This is what is happening in Las Vegas right now.  If you go to a Trustee Sale you have to be a cash buyer or have a certified check.  The trustee sale is the event that concludes the foreclosure process. In states that have deeds of trusts as opposed to mortgages, the trustee is named in the deed of trust, which is the document that the borrower sign in addition to the loan documents. When a borrower falls behind with payments the lender can initiate foreclosure procedures by recording a notice of default. If the borrower does not cure the default after the notice of default, then a date for a trustee sale is set. The trustee will set a minimum bid for the trustee sale and if nobody bids, the property goes back to the lender. Keep in mind also if you bid on a property at a Trustee Sale you take on everything about that property, liens, back property taxes, and the IRS can come and take it away.

 When the properties go to AUCTION only 12% are going through.  Now the banks are trying to draw multi-offers by lowering the property to VERY low prices and then you have a bidding war.  I have a buyer right now and so far this has happened twice.  So if you are looking to buy a bank owned property, ask a lot of questions.  Ask how many times the price has been lowered, have your agent to check to see if there are any other offers and be sure you are willing to go up on price if there are.

Some lenders are now not even putting the properties on the market, but doing 5 year leases until the economy improves.  

Will the new stimulus package help? Time will tell.  In the mean time if you go to buy a bank owned property ask a lot of questions. 

Jan. 24, 2009 - Why Not Just Work with The Agent At The Model Homes?

The agents at the builders site are just that the agent for the builders.  While these agents are required to have a real estate license they are not Realtors®.  The are not part of the The National Association of Realtors® nor are they held to the standards a Realtor® is held to.

   I am not saying that these agents are not ethical, I am sure they are.  But they have the builders interest first and foremost in their mind.  It is the builder that signs their paychecks. 

  Now a Realtor® representing you can usually do nothing about the price at least not in Las Vegas.  They can however negotiate options and know what incentives are available at this particular site.  ( We get email from the builders daily letting us know of their incentives.)

  They can also help the process go smooth for you the buyer, watching your back all the way.

   My advice to buyers when going to new home sites always take your Realtor® with you.

Dec. 26, 2008 - More Information on Auctions

In October of 2007 I wrote about Home Auctions and how to go about it and what to watch out for.  If you missed that post you can read it here.  This morning I read another article that concerned me and so wanted to give a heads up.  I will do the link for the whole article but in a nut shell.  A suit has been filed in California on behalf of three people who claim deceptive advertising practices, and at the closing table a whole bunch of fees and other types of service fee's.  This was in California but that does not mean it is not happening in Nevada.  Read the whole article here  .  Just another reminder of read everything, ask many questions.  Ask to see the paperwork you will be signing should you have the winning bid.  Auctions can be a good deal for buyers but it is BuyersBeware.

Dec. 19, 2008 - Who Goes There?

Who Has The Keys To Your House?

You have just come from the closing of your home, it is finally your home.  You have signed all of the proper documents and it has been recorded!  It is YOUR home.  The keys to your home are handed to you and you are so excited to get to your home and put the key the lock for the first time.  Oh the joy!

Wait, you have to ask yourself who else has the keys to your home?  Do the former owners still have a set?  What about the owners before them.  Do those owners kids have keys?  What about the neighbors?  You might become friends with them and have them bring your mail in just like they did with the previous owner. What about the cleaning ladies? 

Oneof the first things I would suggest you do after moving into your home is call a locksmith to come and change all the locks in your home.  Better to be sure of who has the keys to your house.

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 - 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. 

Jan. 27, 2008 - Tale of Two Houses Continued

Tale of Two Houses Continued

      When we last left Ms. Realtor® she was in a quandary as to what to do for her clients, Peter and Wendy.  On the one hand she had a contract all prepared that they wanted to sign.  On the other hand a brand new listing came to her attention.  Not only a new listing but a brand new townhouse in an area that is new and in the parameters that Peter and Wendy wanted to live in.  Plus it was with in the budget that Peter and Wendy had set.

      On the day that Ms. Realtor® was to meet with Peter and Wendy to get the contract signed, she left early and drove to the new listing.  Having worked with Peter and Wendy for two years she knew exactly what they were looking for.  This place was gorgeous it had everything and more that Peter and Wendy could want.

      With this knowledge she knew what she had to do.  As she headed for Peter and Wendy's place she knew she just had to convince them they needed to go and look at this place. 

      Arriving at their set time, Peter said "we are ready to sign the contract."  Ms. Realtor® advised she had the contract right here in her briefcase, but there was something she needed to talk over with them.  She handed them the new sheet and told them before they signed anything they needed to see this place.  Peter started to protest.  He reminded Ms. Realtor®that they had made their choice.

     Ms. Realtor® told Peter and Wendy that she would do what they wanted her to do, but that this was really worth their time and if they did not go to look at it they would wonder about it later.  Ms. Realtor® pointed out it would only take a few minutes.  So off they went to see this new place.

     As soon as they walked in the door both said "WOW"  as they explored the townhouse she felt the excitement rising.  Ms. Realtor® reminded them how many improvements had been made in the last ten years in the energy savings.  She also reminded them that they had a clean slate here no one else had lived in it.  They could paint their life here just as they pleased.

    So, Peter and Wendy decided they loved the new place.  They did not have time to stop and talk to the agent at the model home so Ms. Realtor®  talked with the agent to find out all this entailed.  At this time she found out that the new home builder would contribute 6% towards anything they wanted.  (Typically 3% is what a buyer needs to bring to closing for closing costs.)  So 3% is free to go towards a down payment.  Another bit of good news is he could go down to $203,895.  Peter and Wendy were ecstatic.

    Peter and Wendy were scheduled for Wednesday morning to fill out the contract.  The builders agent called Ms. Realtor® and advised her that if possible it would be to Peter and Wendy's advantage to wait until Saturday.  If they did he would be able to throw in a refrigerator as the builder was having a one day football themed kick off for all of their properties.  So even though Peter and Wendy worked late on Friday night, Ms. Realtor ® picked them up at 8:45am and they went to the property to fill out the paperwork.  The builder had another surprise for Peter and Wendy.  The special promotion took the house down another $3,000 dollars, making the townhouse to $2000,895 plus the refrigerator.

   The football themed one day sale was having a big party and the agent asked if they could all drive to another property and turn in the paperwork and the president of the company would be there acting as a referee for all contracts.  Even though Peter and Wendy were tired off they went.  As the contract was presented to the president, he looked it over, threw up his hands and said the point after is good.  He took another $1,000 dollars off their price.  It was all very exciting and Ms. Realtor® was so glad she had gone with her intuition that they would love this place.

   Peter confided yesterday that he had been angry with Ms. Realtor® because they had made up their mind, but he is now so glad that she insisted that they at least take a look.  They are full of plans and dreams to make this town house a HOME.  Ms. Realtor® is reminded again why she is a Realtor®.

"Peter and Wendy" signing their contract.

Jan. 19, 2008 - Tale of Two Houses

                                   The Tale of Two  Houses   

     This is the tale of Peter and Wendy and their Realtor®. Now Ms. Realtor® has worked with Peter and Wendy for two years.  They had a credit problem and were unable to buy two years ago.  For two years they have worked very hard and have their credit scores up and as only first time home can be, Peter and Wendy are so excited to buy NOW!!!!  The highest they wanted to go on a home is $215,000.

     Ms. Realtor® emailed them lots of properties to look at and they picked 5 they wanted to go and see.  Off they went spending the day looking at properties and finally Peter and Wendy said this is it!!!!!  This is the one we love.  Tomorrow we want to put an offer in on this house.  Meet us at 1:15PM and lets do it. 

     Now keep in mind Ms. Realtor® has not had a buyer sale since September.  She has some listings but no offers on these properties and poor showings.  Ms. Realtor® was very excited that tomorrow she was going to write a contract and start the process towards Peter and Wendy getting their hearts desire.  Also Ms. Realtor® would be getting a paycheck after two years of working with Peter and Wendy.

     Ms Realtor® did her homework, ran comparatives to check that this offer was going to be good.  This house is a short sale so she knew it would be a lot of back and forth, as the lender makes up their mind and doing their own investigation of the market. 

     Now this house they loved is ten years old in an older area and we can only hope the home inspector will find anything major that might be wrong.  This place is being sold "as is"  and the lender is not going to pay for any repairs.  The list price was $189,990 and it looks as if there was the same model sold in Nov of 07 for $225,000.  Hmm this might not be too good as the lender will have the same comparatives and this is with in the 6 months. 

   While doing the comparatives Ms. Realtor® noticed a new listing.  Just put in the MLS.  Looking at it she felt her heart get excited.  This place would be perfect for Peter and Wendy and it was $211,000 under budget still.  It was BRAND NEW.  New been lived in.  But wait, Peter and Wendy had already made their choice.  She had the contract all ready for their signature.  

   WHATEVER SHOULD SHE DO????    They had made their choice out of several of places.  They had told her they loved this place and wanted her to write a contract.  Should she just let them sign the contract and forget about this other place?

    What would you do?  Tell me and I will tell you the rest of the story.

Dec. 15, 2007 - Harmonious House Hunting

Zen House Hunting

There are many stress related events in your life marriage, divorce, death, but right at the top of the list has to be preparing to buy a home.  This is especially true if you are a first time home buyer.  Still it holds true no matter how many times you have gone through the process.  If a couple fights over the TV remote, where they want to go to dinner or what movie to see, the house buying process is going to be real nerve racking.  There are some ways you might put into play that can ease the pressure of this process. 

• The first thing is to go and visit a lender.  Let him be the guy that tells you how much you can afford in a home purchase.  He or she can be the one you are mad at not each other.  This will also take some pressure off of the main breadwinner of the house, he or she will know what financial obligation is going to fall on their shoulders.
• Sit down and really talk about what you want in this house.  Each of you write down three must have things for a home to be acceptable. 
• Discuss what geographic locations are acceptable to both of you.
• Discuss what days will be set aside for house hunting.  Or will one person go and preview all of the properties first with your lists in mind?  Then when you have a short list you both go and look to make the decision.
• NO FIGHTING while this may seem it should go without saying you don't fight in front of your agent or any involved third party, it becomes embarrassing for everyone but the comfort zone may be so shattered you can no long work with the agent or the seller.  Respect is key here.
• It is also to be as neutral as possible, you want to present a united front when it comes to negotiations.  When it comes to price you want no extra information that the sellers or sellers agent can play on.
• Pick a place where you can sit quietly and not be rushed and talk about the homes you have seen.  Make this someplace relaxing not home or at an office.  As you discuss each home you have seen, review your lists of what was acceptable to both of you.  You might find you can not have everything on your list but compromise is a beautiful thing if done kindly and with respect.
• Pick your agent carefully, Pick an agent you feel comfortable with and who you feel can represent both of your wishes.  You are going to find your agent is going to become part of the family.  You are going to be discussing very personal things with them.  If you come to an impasse you should be able to work through it if you trust your agent and any advice that can be offered.
•  Keep your eyes on the end result.  This is a very intense process but with dignity and respect you at the end will have a home you both love and a relationship still intact.

                                Happy  House Hunting  

Oct. 12, 2007 - Pros and Cons of Home Sale Auctions

There is a lot of talk about auctions to sell the plethora of homes on the market. Auctions can be a good source of homes for buyers but there are a few things to take into account before forging ahead.

First of all banked owned properties are usually sold as is, so a buyer needs to do extra due diligence. Once you identify a property you might like to purchase. Contact the agent that has it listed. The Realtor will be able to show you the property and give you comparables for you to make a wise decision about what price you offer. If you are really serious about the property after seeing it hire a home inspector to do an inspection of the property. You will get a written report. There will be a provision in the sale of the property that it is not contingent on a home inspection.

Make sure you have your financing in order. If you are going to pay cash, you will still have to put down 5% down at the time your bid is accepted. If you will be financing make sure your loan is in place and ready to go. Most of the auctioned properties do not have a financing contingency. If your loan should fail you could lose the 5% you will be required to put down.

Something else to be aware of, if you are the winning bidder, you may also be required to pay up to 5% to the company running the auction.

One last thing to you should know. There are two kinds of sales at most auctions. the absolute price acceptance which means that the price is acceptable to the seller. Then there is the reserved price acceptable, which means the seller still has the final say so on in order for the purchase price to be accepted.

Auctions can give a buyer a good deal. Just be sure to ask questions and have all of the knowledge you need going into bidding.