Las Vegas Luxury Properties Link

MARKET REPORT AND ANALYSIS (April 2010)

SFR Sales Volumes:

April's SFR sold volume of 2,951 'Sold' is 224 units fewer than March 2010 and 247 fewer than April 2009. (Roughly a 7% drop against both periods.) YTD SFR total Sold Volume thru April 2010 is 11,124 units. This is a 4% increase over the same period of 2009 and more than a 100% increase over 2007 and 2008. At this point, 2010 is shaping up to be the highest volume year since 2005 when I first started tracking this information.  

SFR Sales Prices:

April's Average Sales Price for SFR settled at $173,170. This was a 3.1% gain over March 2010 and a 4.2 % increase over April 2009. As you can see on the attached monthly price tracking chart, the average sales price has 'bounced' along a very narrow range since March of 2009, but, on the positive side, it is the first year to year month that shows an increase. (As noted in my previous reports, one month does not create "a trend", but it is a step forward.)

Total Home Sales Dollar Value
The total dollar value for units sold this period was $511,024,686. This was a -4.2% change from last month and a -3.9% change from April 2009.

 Inventory Status

As of May 10th, 'Active' inventory For SFR, Condo and Townhomes stood at 10,309 units. This is 35.9% fewer available properties than April of 2009 and relatively flat compared to April 12th's Available units of 10,303.

The active properties reflect: 16.7% as Bank Owned, 41.1% as Short Sale and 42.2% as 'non-distressed' properties.

3,116 properties are 'Pending' and an astounding 13,406 are in 'Contingent' Status. (81.1% of the Contingent properties (10,872 units) show as 'short sales' awaiting bank approval.) This is the highest number of 'contingent' properties ever shown in Clark County and reflects over a 70% increase from the same period last year.

Looking Forward:

Historically over the past six years, the month of May has always had higher closings than the month of April. This should hold true for 2010 as the last 10 days of April did see an increase in the number of properties that changed from Active to Pending status. This is partly seasonal and, combined with several Auctions and the expiration of the first time buyer tax credit on April 30th, history should repeat and have an increase in volume once more. Additionally, several banks have streamlined their short sale processes, and short sales, as a percentage of total closings each month, have steadily risen from under 10% of the total closings in May 2009 to approximately 25% of the total closings for May 2010.

Looking for properties in Las Vegas?  Look no further! Start your home search below!

 Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

Mcneil manor is a fantastic neighborhood in the center of Las Vegas.  This neighborhood was built in the 1960's and 1970's and who those of you who are looking for a unique home with more land, this is the place for you.  The wide streets and tons of large trees give this area a charming feel and so far from the "cookie cutter" properties around the valley.  Below you will find the last 60 days of sold properties, pending and contingent properties, and all of the available homes for sale in Mcneil.  I live in Mcneil and can vouch for its quality.  If you would like to see any of these properties, please give me a call 1-866-589-1646

 Mcneil Manor Homes sales for May 2010

Pending and Contingent properties in Mcneil Manor:

Of the 12 properties that are under contract, 6 are short sales, 2 are foreclosures, 4 are regular sales. If you would like more information regarding short sales, visit my website at Las Vegas Short Sale Connection.

Available McNeil Manor Homes for sale:

If you would like to see any of these homes, please give me a call toll free at 1-866-589-1646.

Felipe Crook

Prudential Americana Group

I just moved into McNeil Manor when my neighbor approached me about listing his home.  After looking at all of the other listed homes in the neighborhood, I told him to list the property at $250,000.  There was a larger home that just recently sold in October for $250,000,  and since we are in a declining market, I was a little concerned about the price, but I said "Let's try it.  We don't have to accept any offers that you aren't comfortable with."

I took 15 different pictures of the property, posted in on my blog, Facebook, Twitter, Flickr, and many more sites, and generated a lot of buyer interest. Within 1 day of listing the property on the market, we got a full price offer.  I was very excited about getting such a strong offer.  After a few days of minor negotiations, we accepted the contract and my seller was in escrow.  Now, just because you get a full price offer doesn't mean that the property was going to appraise.  We see that a lot right now.  I met the appraiser at the house and provided her with all of the comparable sales I could find and discussed the market with her.  After a few anxious days, the appraisal came back at full value! 

As of March 19th, 2010 we successfully closed on 2707 Colanthe Ave with a sales price of $250,000 with no seller concessions.  Here are a few pictures of this beautiful home:

This listing generated a lot of buyers interested in living in McNeil Manor.  If you are considering selling, please give Felipe Crook a call at 1-866-589-1646.  Even if you are completely upside down, my real estate team has a full time short sale negotiator able to negotiate with the banks on your behalf.  If you'd like more information about short sales, here are a few resources for you:

 How can I keep my home?

This is a question I get all day long.  There are some viable loan modification programs and consumer advocacy groups that help struggling home owners.  Below are local and national resources to help you stay in your home:

Here are links to important downloads, resource sites and articles concerning short sales, HAFA and HAMP, and alternatives to foreclosure. 

To Download this Post as a PDF: Download ShortSaleResourceLinks

HAMP/HAFA

• Making Home Affordable http://www.makinghomeaffordable.gov/
• Home Affordable Admin Site for Servicers https://www.hmpadmin.com/portal/index.html

 Downloads:

• Download Home Affordable Foreclosure Alternatives Program_SD0909 The Official Guidelines from the US Treasury- Supplemental Directive 09-09 (12-30-09)

From Realtor.org:

• http://www.realtor.org/government_affairs/short_sales_hafa
• (PDF) Download HAFA+Brochure+Text
• (PDF) Download Government_affairs_hafa_brochure
• (PDF) Download Government_affairs_hafa_faqs_121109

Resources for Short Sales

• Realtor.org Short Sales: The Basics - http://www.realtor.org/shortsales
• Realtor.org - Short Sales Tools, Tips - http://www.realtor.org/realtors/short_sales_tips_tools
• GLVAR Short Sale/Foreclosure Resource Guide http://www.lasvegasrealtor.com/reo/ GLVAR has compiled a resource guide of informational articles dealing with short sales, foreclosures and REO transactions. Covering tips on the short sale and REO market, representation, taxes, disclosure.
• http://www.shortsaleprofessionalnetwork.com/ - FREE membership for all CSP graduates

Alternatives to Foreclosure

Download FTCFactsforConsumers  Clearly defines all alternatives to foreclosure - from FTC
https://www.hopenow.com/homeowner-options.php - Hope Now Homeowner Options

Avoid Foreclosure - Help

• RentalForeclosure.com http://www.rentalforeclosure.com/ Tenants can find out if a property is in Foreclosure - NOD file
• Freddie Mac - Working with Your Lender to Avoid Foreclosure
  http://www.freddiemac.com/avoidforeclosure/stop_foreclosure.html
• Hope Now - https://www.hopenow.com/ http://www.housinghelpnow.org/ an alliance between counselors, mortgage companies, investors, and other mortgage market participants. This alliance will maximize outreach efforts to homeowners in distress to help them stay in their homes and will create a unified, coordinated plan to reach and help as many homeowners as possible
• Housing Help Now- http://www.housinghelpnow.org/ National Foundation for Credit Counseling
• Home Foreclosure and Debt Cancellation - (IRS.gov)
  http://www.irs.gov/newsroom/article/0,,id=174034,00.html
• The Mortgage Forgiveness Debt Relief Act of 2007
  http://www.irs.gov/individuals/article/0,,id=179414,00.html
• HUD.gov Avoiding Foreclosure page
  http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure
• Foreclosure Prevention Resource Center (Mortgage Bankers Association) - http://www.homeloanlearningcenter.com/YourFinances/ForeclosurePreventionResourceCenter.htm

Nevada Foreclosure Help and Resources

• Nevada Foreclosure Mediation Program - http://www.nevadajudiciary.us/index.php/foreclosuremediation - This program allows homeowners to sit down with mortgage lenders, under the leadership of trained mediators, to discuss alternatives to foreclosure.
• Nevada Foreclosure Help http://foreclosurehelp.nv.gov/   - Useful resources and info from Nevada Department of Business & Industry
• Nevada Hope at Home http://www.nvhopeathome.org/ -  collaborative effort between Nevada Public Radio, local nonprofit organizations and local financial institutions to help provide residents in southern Nevada access to reliable, easy-to-find information on the foreclosure crisis in southern Nevada
• Legal Aid Center of Southern Nevada http://www.lacsn.org/go/foreclosures/ - Legal Aid Center of Southern Nevada (LACSN) is a private, non-profit (501 (c) (3)) corporation which is a charitable organization dedicated to providing free community legal services to those in need.  LACSN has been providing free legal aid for Clark County's low-income residents since 1958.
• HUD Approved Housing Counseling Agencies - Nevada 
  http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=NV

If you'd like to call me directly, call toll free 1-866-589-1646.  There is HOPE!

Felipe Crook

PRudential Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

We're number 1, we're number 1....in up-side-down mortgages. Again, not the thing you really want to be leading the nation with, but that's our market right now.  There is a great report just released from First American CoreLogic on the Fourth Quarter housing statistics.  Over 11.3 million mortgages are under water.  Nevada seems to be the epicenter of the housing meltdown, even though prices have stabilized, the numbers are surprising. Here's an excerpt from the report:

 Negative equity continues to be concentrated in five states: Nevada, which had the highest percentage negative equity with 70 percent of all of its mortgaged properties underwater, followed by Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (35 percent). Among the top five states, the average negative equity share was 42 percent, compared to 15 percent for the remaining 45 states. In numerical terms, California (2.4 million) and Florida (2.2 million) had the largest number of negative equity mortgages accounting for 4.6million, or 41 percent, of all negative equity loans.

The blog "Calculated Risk Blog" reported:

These homeowners are far more likely to default.

The rise in negative equity is closely tied to increases in pre‐foreclosure activity and is a major factor in changing homeowners' default behavior. Once negative equity exceeds 25 percent, or the mortgage balance is $70,000 higher than the current property values, owners begin to default with the same propensity as investors.

 Here is figure 4 from the report.

The default rate increases sharply for homeowners with more than 20% negative equity.

This graph fits with figure 2 above and suggests a large number of future defaults in Nevada, Arizona, Florida and California.

The aggregate dollar value of negative equity was $801 billion, up $55 billion from $746 billion in Q3 2009. The average negative equity for an underwater borrower in Q4 was ‐$70,700, up from ‐$69,700 in Q3 2009. The segment of borrowers that are 25 percent or more in negative equity account for over $660 billion in aggregate negative equity.

Because Nevada is SO upside down, loan modification programs, and short sales have taken over our market.  Out of the 10,135 Single Family Homes, Townhouses, and Condos that are currently available on the multiple listing service in Las Vegas/Henderson, 4900 are short sales, and 1550 are foreclosures or bank owned properties.    Banks are now on board the short sale wagon.  They want to work with sellers to avoid foreclosure.  Bank of America, one of the most notorious banks in the short sale world, is the first large bank to sign on for the Second Lein Holders program-H.A.M.P. (Housing Affordable Modification Program).  If you'd like more information regarding a loan modification, please visit Making Home Afforable.   These programs also facilitate the short sale process.  Some of these programs do seem to be making a difference.  Short sale closings have increased to 22% of all home sales in January 2010.

If you would like a FREE, confidential short sale consultation, please give me a call toll free at 1-866-589-1646.  We're here to help you avoid foreclosure, get a loan modification, or assist you to short sale your home.  Certified Short Sale Professional and Certified Distressed Property Experts handle every aspect of your short sale.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas, NV 89117

1-866-589-1646

I recently was able to help a client remove a federal tax lien from her property so we could short sell it.  Ok, if that's a lot of confusing terms, let's start with Short Sale.   A Short Sale is when a seller is trying to sell a property for less that what is owed on the property.  The bank who holds the mortgage has to approve the sale of the property in order for title to change names into the new buyers name. You can read even more about Short Sale by visiting my posts at http://www.LasVegasShortSaleConnection.com. I'm not quite sure why they call this type of transaction a short sale, because it typically takes a lot longer than a traditional transaction.   Bank have been so inundated with short sales, that they do not have the staff to cope with the thousands and thousands of short sale packages they are receiving each and everyday.  Having said that, the process is getting better and is becoming more streamlined.  I have a current buyer who got an approval on his offer in 30 days!! That's remarkable compared to the 200 day waits other clients have seen.

Anyway, in a short sale, the bank pays all of the real estate commission which is a question I hear all the time.  The bank will decide on the commission amount, the amount of closing cost it will consider for the new buyer, and all of the fee that you would normally see on a settlement statement.  The sellers DO NOT pay real estate commission.  If you have a federal tax lien on the property, all liens must be removed or discharge before clear title can be conveyed to the new buyer.  One of my clients recently had a tax lien and she was FREAKING out that the short sale processed was ruined.  After some carefully investigating on the IRS website and a few phone calls, I was able to find out how to discharge the lien in order to sell the home.  Here's a list of what they require:

First of all, there is no form to fill out. It's simply a letter typed out with certain verbiage and I would list each item in the package you're sending:

• Description of the property (Full Address) requesting the lien removal
• Show when the owner will be divested of all rights (The approval letter from the bank.  Sometimes the bank won't issue the release until the lien is discharge, but the IRS won't discharge until the bank approves the short sale.  That was an interesting hurdle to cross, but the IRS was shockingly helpful. GO IRS!!)
• A full copy of the lien OR a Pre-Liminary Title Report (Your Realtor should be able to provide this to you)
• A list of encumbrances OR a Pre-Liminary Title Report (Your Realtor should provide this or he's doing a bad job)
• A estimated HUD-1 showing all expenses of the property.
• An Appraisal of the property or two Broker Price Opinion from two disinterested parties qualified to give an opinion of value (I was able to use the bank's appraisal of the property instead of getting a comparative market analysis from colleagues of mine.)
• Your Full name, address, phone numbers and contact information where you can be reached.
• If you have an attorney, provide his contact information
• You must also copy a perjury statement VERBATUM and sign the letter.
• Also, you will need to get your escrow officer handling your short sale to sign an Tax Information Authorization.  Make sure you specifically name your escrow officer and not the entire title company.  That form is 8821 and can be downloaded from this link.

The full instructions available from the IRS.gov website is available by visiting this link:

Certificate of Discharge of Property from Federal Tax Lien

Now, all of this sounds like a lot of work, but actually your realtor will need to gather most of this documentation anyway.  Now, once you send it to the appropriate Tax office, (make sure you send it by certified or overnight mail so you can track the package) they will contact your escrow officer and start the process.  The have a total of 30 days to issue a letter of discharge.  When I sent my client's package overnight on a Monday, the package was received on Tuesday.  They called my escrow officer in TWO DAYS!! I was shocked.  After sending the IRS email statements from my client's lender, they issued a letter of discharge for the lien in one week.  I was absolutely, pleasantly surprised.   That was the easiest part of the short sale process.   It is definitely worth doing if you're serious about short selling your home.  If you'd like to discuss your options for your home, please contact me toll free at 1-866-589-1646 or email me at felipe@felipecrook.com.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas NV 89117

1-866-589-1646