Las Vegas Real Estate Market Update for April 2008

What are the major factors affecting our market?
1.  Adjustable mortgage payments increasing 
2.  Foreclosures, Short Sales, Other Great Deals
3.  Low Interest Rates
4.  Las Vegas' strong economy
5.  There are multiple offers on the better deals:  More buyers! 
 

Questions and Answers:

1.  What happens when the adjustable mortgages go up?    
     Adjustable mortgages from 3 - 5 years ago are coming due. 
     Mortgages can increase hundreds of dollars. 
     Some owners cannot afford the payments.  The house is mortgaged for more than market value.
     The owner attempts to pay the lender less (Short) than the mortgage amount. 

2.  I want to buy a short sale!  How do I do it?
     The short sale process:
      1)  Seller writes hardship letter to the bank and fills out the short sale paperwork
      2)  An offer is made on the property, the agent sends in the seller's paperwork along with the offer.
      3)  Everyone waits 30-45 days for the bank to respond, or it could take longer.
      4)  Much of the time the buyer usually backs out during this phase, they find another house to purchase.
      5)  At this point the seller's agent knows what the bank will take for the property.   This is the time to
            make an offer.   Everyone may still wait 30-45 days for the bank to respond.
      6)  Only about 4% of short sales actually close, usurping everyone's time and resources.

3.  How about purchasing a foreclosure?
     This is where the great deals can be found consistently.  The bank owns the property now, they will not
     be negotiating with a seller.   Dealing with a bank requires long "addendums" that protect the bank, and
     acknowledging that you as the buyer would have to make any repairs, and not the bank.  (You adjust your
     purchase price to reflect repairs)

4.  What if the inspector finds too many problems with the house?
     You normally have 10 days "due diligence" to inspect the property and to back out of the agreement
     for any reason, including too many repairs. 

5.  What other great deals are out there now? 
     Sellers who have equity and wish to sell their homes are pricing them competitively. 

6.  Why are home buyers starting to take interest in Las Vegas?
      More buyers are entering the market due to low interest rates and Federal loan programs.
      The Federal loan programs are offering zero down, zero closing cost and low/no credit programs.

Email Nannette and Ron for more information:   realty@nanpro.net
   Or call for answers:  702-498-2445