Las Vegas Home prices have dropped throughout 2008 and the trend could continue through the fall and winter. As more and more foreclosures hit the market, banks will continue to offer these homes at prices below market value in an effort to get them off of their books. So with that in mind, you have to determine if it’s the right time for you to sell your Las Vegas Home.
If you determine the time is right to sell because of divorce, loss of job, job relocation or any other reason, it’s important to understand the Las Vegas Real Estate Market. Unless you purchased your home before 2003 or put a substantial amount down, it’s unlikely your home has any equity and is most likely worth less than you owe. This means, you have two options:
- You can pay the difference that you owe at close of escrow
- You can attempt to sell your home as a short sale
You have the option of selling your home and paying the difference at close of escrow but that amount could be substantial! Not only do you have to factor in the difference between the offer amount and what you owe but also have to include real estate commissions, closing costs and taxes.
Selling your home as a short sale is not guaranteed! A short sale is when your lender agrees to accept an offer for the purchase of your home at a price less than what is currently owed. A short sale usually requires some type of hardship like divorce, loss of job or job transfer. A short sale package has to be completed and submitted to your lender for approval and this can take anywhere from 3 weeks to 16 weeks! Having an experienced Las Vegas Real Estate Agent that specializes in Las Vegas Short Sales is a must if you decide to sell your home as a short sale.
If you can afford to hold off on selling your Las Vegas Home in this market, I highly recommend it! The Las Vegas Rental Market is doing very well and you have a greater chance of renting your home than selling. Having an experienced Las Vegas Property Management firm representing you is important. With so many homeowners losing their home to foreclosure, they are being forced into the rental market. Completing a credit check is very important to determine the potential credit risk of your tenants.
Obviously your situation will play a key decision on whether you can afford to rent your Las Vegas Home instead of selling it in this real estate market. Feel free to contact us at 702.376.0088 to discuss your situation or visit us on our website at www.SenaSellsVegas.com.
{ 4 comments… read them below or add one }
If you don’t need the home and you have to move, then the most important consideration is “anticipated future value”. I know it’s hard to figure that out, but ask yourself, is the equity in this home going to grow faster if I leave it here or put it somewhere else. Most people make the mistake and only look backwards. They see potential losses compared to if they had sold 2 years ago and then decide they can sell it now. But if you don’t need the home anymore it becomes and investment decision only and you have look at the investment and determine if it’s better placed somewhere else.
I wish i could edit the above and say, “They decide they CAN’T sell it now” becuase they are looking backward.
I think a lot of home owners think their only option is to sell their home or stay in it — I really don’t think many consider renting as an option, though it is a great one. While a property manager is one route, and is an excellent choice for people who really don’t want to deal with the day-to-day issues of management, there are less expensive options. You can list on a direct owner-to-renter websites, like HomeAway.com, VRBO.com, VacationRentals.com, etc. The fee is nominal and people can find your listing online. The downside is that you have to deal directly with issues such as check-in/check-out, maintainence, cleaning, etc. Vegas rentals are always in demand, though, especially if they are in an area near tourist hotspots — some people really prefer renting condos or homes to small hotel rooms.
We are seeing a lot of people turn to renting out there homes here in Tampa since we are in the same type of market like Las Vegas, it is good advice to offer the property management services as an alternative to short sales or bring a boatload of cash to closing.