Las Vegas Luxury Properties Link

I've had a lot of clients interested in returning to our market to pick up a steal or two. Invariably, they start their home search on the internet by clicking HERE and they find these fantastically priced homes. When they call me and ask me about the listing, 4 out of 5 times it's a bank owned property or a short sale. I wanted to write a post about the difference between the two. First let's talk a little statistics to get you up to speed with our current market: As of November 24, 2008 there are:

• 17,035 Single Family Homes on the market.
• 5,676 of those properties are Short Sales
• 5,770 of those properties are Bank Owned
• 5,589 of those are traditional sellers
• 1,818 Short Sales are under contract in contingent or pending status
• 701 Foreclosures are under contract in contingent or pending status
• 523 traditional sellers are in contingent and pending status.

So having brought you up to speed on the market, let me tell you from first hand experience the difference between Short Sales and Foreclosures. The biggest difference between the two is a short sale is still owned by the seller and they are trying to sell the property at a loss. The bank who holds the note has to approve of the terms of sale. This process on average in Las Vegas takes about 200 days. Only 10 % of the short sales that go to contract are actually closing and the long escrow is one of those reasons. I personally have a client who submitted an offer on a short sale on July 10th, and we have yet to hear a response. That is OVER four months!! Buyers run a couple of risks on short sales:

• The bank foreclosing on the property even while you're in escrow.
• Tying up earnest money for months at a time.
• The bank countering at a higher sales price than agreed upon by the seller.

Now, having said some of the down sides, if you are patient there can be some substantial deals with these short sales and there are short sales that have APPROVED sales prices. What does that mean? It means the agent has already started the short sale process with the bank, an asset manager is assigned to the property, and they have a green light to proceed at that specific list price. If a buyer comes in with a lower amount, they would have to go through the same process...just a little bit faster. Another experience I had with a client: We put in an offer on a short sale listed at $600,000. We offered $500,000 and the bank rejected it. Three weeks later it was foreclosed on, and put back on the market at $430,000. Yes folks, that is the kind of logic that we're dealing with in this market. Banks are ill equipped to handle the extraordinary amount of short sales landing on their desks and consumers....actually we ALL are paying the price. Foreclosures are properties that a bank has taken back from a seller for non-payment. Banks do not want to have these assets and try to sell them within 30 days of being put on the market. Banks have never stepped foot into these homes, and have no idea what has happened inside the property;therefore they are sold "AS-IS" with no repairs and no disclosures. They work just like a normal sale but there are a couple of things to be aware of if you're purchasing a foreclosure:

• Although faster than short sales, they take time too. 45-60 days for a "normal" escrow.
• Response times can get delayed and can be slow. (I had a client wait 3 weeks for a response)
• Banks send out addendums to clients after an agreed upon price, close of escrow, and a couple of terms. READ THESE ADDENDUMS TWICE!! These addendums basically rewrite the contract to protect the bank. There can be steep penalties for specific performance.
• Many of the properties are not in move in condition and are usually priced to reflect that.

70% of all closings in Las Vegas are Foreclosures. In fact, I have only sold 1 "normal" property the entire year. EVERYTHING else has been a foreclosure. These properties are usually priced in the bottom third of the market. Buying a foreclosure is very similar to a regular sale. You still have your inspection period, you still get to approve of the Home Owner's Association documents, you still have appraisal contingencies BUT READ YOUR ADDENDUMS!! All of these terms are spelled out in the addendums and can favor the bank. If you would like a list of foreclosures in Las Vegas with your specific criteria, please fill out the contact form below and I will gladly send you a list of properties. I am very familiar with the market here in Las Vegas and will gladly help you find the right home. If you'd like to discuss your real estate needs more specifically please call me toll free at 1-866-589-1646. Thank you!

Felipe Crook Prudential Americana Group Realtors