A Buyers Guide To the Short Sale Process

With Las Vegas Home prices and interest rates at an all time low, it is a great time for buyers to start shopping around.  However, it is a different market than it was five years ago and terms like “foreclosure” and “short sales” are on the tip of every real estate agent’s tongue.  Short sales can be a great way to save money on a property in Las Vegas, but it could come with some bumps in the road.  As a buyer it is important to know what you are getting yourself into.

A short sale is a negotiated settlement in which a lender agrees to accept less than the amount owed to payoff a home loan as an alternative to foreclosure.  The result is that the bank and the seller don’t have to go through the foreclosure process and the buyer gets the property at a discount.

Sounds simple enough, right?  Well, unfortunately for the buyer, the short sale process does not mean what its name implies.  It is usally not a short process.  Once an offer is submitted it can take anywhere from 30 days to six months to get an acceptance from the bank to do the short sale.  Some banks, like Bank of America, have historically been a very difficult instution in appoving short sales. Some of our team’s agents however, have reported Bank of America speeding up their approvals with the implementation of their Equator system. Equator is an online portal agents and the bank use to upload and process short sale documents.  This is where having the right agent is critical. Their experience can go a long way in helping a buyer analyze which short sales may have a better chance of closing in a more reasonable time frame and which ones a buyer may want to avoid.

Now that you are aware that you may be in for a long haul, here are a few things to expect when going through the process.  First, your offer will be submitted to the bank, while financial statements will be sent to the bank on the seller’s behalf to establish the need for the seller to do a short sale.  Second, the bank will do an appraisal on the property.  Third, a negotiator will be assigned when all paper work on the seller and buyer’s side has been submitted.  The negotiator will go through all the paper work and make sure everything works out.  At this point the bank should have an idea of what they expect to get from the property.  They can either accept the offer, counter the offer or reject it. If approved, the bank will issue letter which allows the property to be transferred. At this point the escrow can continue in earnest.

Each bank may have a slightly different way of doing things.  As well, each bank may work on different time tables.  Some work more swiftly than others, while some take their time.  What is important is knowing that it is often not a quick process, but if you are willing to wait, you could pick up a gem. A buyer will also have the benefit of locking up a transaction rather than being forced to continually look to foreclosures, many of which are now multiple offers due to the lower foreclosure inventory currently available.

Additionally, if you are a Las Vegas homeowner and have any questions about selling your home as a short sale, feel free to give us a call for a free consultation at 702.376.0088 or complete our contact form.

Why is now a great time to buy the golf course home of your dreams?  In the Las Vegas area there are over  50 golf courses with homes surrounding most of them.   Currently Las Vegas has over 800 properties listed in golf communities that range in price from a condo at Lake Las Vegas for $39,000 (no, that’s not a typo) to an estate in McDonald Ranch for $15,900,000.  There is literally something for everyone in every price range.  Selecting a home within a golf course community can be a very personal experience.   A community that meets your needs can include a view of the fabulous Las Vegas Strip,  private golf club,  recreational facilities with community rooms, pools, spas, walking paths,  exercise facilities, media rooms, massage,  on-site dining,  hotels and even a Casino, many have scheduled events, entertainment venues and much, much more.

Living in the Las Vegas area is truly an experience with great shopping, restaurants, freeways and beltways that can get you just about anywhere in the valley in less than 20 minutes – however, many find that life away from the “Strip” is much the same as anywhere else they’ve ever lived, a real community.   Many locals will tell you that they rarely go to the Strip except when company comes, but thankfully — it’s your choice.   In the coming weeks, I’ll give you insight into the various areas that are often overlooked.

GOLF IN HENDERSON

The very first Master Planned Community in the Vegas Valley was Green Valley in Henderson.  It was built in the 1970’s surrounding what is now the Wildhorse Golf Club, www.golfwildhorse.com.  Wild Horse  was built in 1959 and at one time owned by Hank Greenspun of the Las Vegas Sun and later by Howard Hughes.   Previously on the PGA Tour as the Sahara Invitational, it is now a public course owned by the City of Henderson.  (If you google this course, you’ll find it labeled as Paradise Valley Country Club.)   Wildhorse Golf Club recently had two holes chosen by the Las Vegas Review Journal’s readers for the Vegas Fantasy 18,  the par 3 4th and the par 4 9th.   This course was just re-designed  to provide recent xeriscaping to both beautify the property and conserve water.  Wildhorse offers an enjoyable round of golf at a reasonable price and is definitely a local’s favorite!

If you have interest in this golf community, there are only 91 properties that surround the course itself and possibly 5 vacant estate lots still available.    While many of the homes are older, a many have undergone extensive makeovers.    Interested?  There are only a few properties available that have golf course frontage.

If you are interested in a Golf Course Home in Las Vegas, feel free to give us a call at 702.376.0088 or fill out the contact form to the right.

The 18th annual Las Vegas Bowl sponsored by MAACO  pits No. 15 BYU against No. 16 Oregon State.  For the fifth straight year all the tickets have been sold out.  Fans can still contact BYU and Oregon State ticket offices for seats to the game.  The game will be played on December 22nd and a crowd of 40,000 is expected.  The game kicks off at 5 pm and will be televised nationally on ESPN.

BYU (10-2) is making it’s fifth straight trip to the Las Vegas Bowl.  Last year they were upset by Arizona 31-21.  Oregon State (8-4) makes it’s first trip back to the Las Vegas Bowl since their victory over New Mexico in 2003.  Oregon State could have easily been playing in the Rose Bowl against Ohio State but could not hold off Oregon in the last game of the season sending Oregon to the Rose Bowl.  Oregon State played earlier this year at Sam Boyd Stadium (Las Vegas Bowl) where they escaped with a victory over UNLV 23-21.

I am picking BYU over Oregon State 38-24.

Next time a Las Vegas Real Estate Agent shows up at your door and advises you need to move out as the home has been foreclosed, ask them if it is a Fannie Mae-owned foreclosure.  If it is, you can inquire about a month to month lease with Fannie Mae and stay in your home.  By signing a month to month lease, this will give you an ample amount of time to locate a new property to rent or purchase without the stress of having to vacate immediately.

To qualify, renters must live in foreclosed properties at the time Fannie Mae acquires the property. Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. The properties must meet state laws and local code requirements for a rental property. Fannie Mae will not require security deposits. The properties will remain on the market for sale.

Fannie Mae will hire a real estate broker or property manager to manage the property and rental rates will be comparable to rents in the area.  If comparable rental rates are higher than what you are currently paying, Fannie Mae will look into a mutual resolution.  They will not require a security deposit which is nice as it won’t tie up any funds needed to secure a new residence.

For more information on this program, visit the link to Fannie Mae or check out our Property Management Forum for discussions on this topic.

As we move into the slower season for the Las Vegas Rental Market, we are seeing more and more homes, town homes and condos hitting the market.  The reason is the re-sale market is hot right now.  Housing inventory is down and the market is saturated with real estate investors looking to score with home prices so low.  Real Estate Investors are buying at such discount prices, it is allowing them to pick up multiple properties which in turn, they are placing back on the market for rent at rates lower than market value.

The Las Vegas Rental Market currently has almost 5,000 available homes, town homes and condos.  This number doesn’t even reflect the amount of properties currently for rent by landlords.  To get homes rented, many landlords are forced to lower the rent or offer move-in incentives.  Potential tenants are aware of the excessive amount of properties for rent and are requesting incentives in order to sign a lease.

If you are a landlord or real estate investor looking to rent your home, town home or condo, contact Tony Sena with North American Realty of Nevada for all your property management needs.  See why our marketing program and tenant screening process is the best in the business.  We can be reached at 702.376.7379 or visit us on our website at http://www.LasVegasPropertyManagements.com or visit us on Facebook!

As a Las Vegas Real Estate Agent I receive numerous emails every week from Real Estate Brokerages soliciting me and hundreds of other agents to hang their license at their brokerage.  Most of the emails are all the same.  They indicate they have a great support system, low fees, 100% commissions and even leads.  This is great and all but can they help you close more deals?  If you aren’t closing deals, you aren’t putting food on the table!

I have a team of seven real estate agents that all handle certain niches within our real estate business.  This allows the agents on our team to become very knowledgeable in their field.  For example, Paul Rowe handles our entire short sale division and when anyone has questions pertaining to Short Sales, Paul usually knows the answer.  We currently have 35 short sales on the market that he handles.  Because of the all the short sale listings, we receive numerous sign calls and we just don’t have enough buyer agents on hand to meet with these potential buyers.

Dale Jones, our buyer’s agent manager oversees five buyer’s agents.  Dale fields all sign calls and disperses them to our team of agents and most of the time he has to call agents who aren’t on our team to assist.  Even though we get a great deal of sign calls, most of our buyer leads are generated from our main Las Vegas Real Estate website.  The website generates over 350 leads a month and many of these leads go unanswered as we just don’t have enough agents to stay in contact with all these potential buyers.

So here’s the deal, if you are a Las Vegas Real Estate Agent and you are struggling to get business or just don’t have enough business, give us a call and we can discuss how joining our team can improve your real estate business.  Give Dale Jones a call at 702.376.0088 or complete the contact form to the right.

I handle the Las Vegas Property Management Division that I just launched this past May and I currently have over 50 accounts.  I will be looking to bring on an additional property manager in the next 45-90 days, so if you are interested and would like to submit a resume, give me a call at 702.376.7379.

This single story custom home was built in 1995 in the Southeast part of Las Vegas, just minutes away from the famous Las Vegas Strip.  It sits on almost a half acre of land.  The home is approximately 2,377 square feet and has three bedrooms and two bathrooms.  It features brand new appliances, walk-in pantry and ceiling fans throughout.  It has a an over sized detached two car garage with separate work shop area.  This home is zoned for horses.

This Home for Sale in Las Vegas is conveniently located near the Las Vegas Strip.  This property is a short sale, all paperwork has been submitted to the bank and we are awaiting an offer.  The property is currently listed for $260,000.

Please call Dale Jones with North American Realty of Nevada at 702-376-0088 for more information on this property or to schedule a private showing.

Many homeowners who purchased their Las Vegas Home between 2004 and 2007 are most likely upside down, unless they put a substantial amount down of at least 40%.  With home values dropping from a high of $315K in June 2006 to today’s average price of $140K can make selling your home very difficult and most likely will require you to sell it as a short sale.  Unfortunately, just because you want to sell your home does not mean the Bank/Lender is going to agree to take a loss without some type of hardship such as job relocation, job loss, divorce or death.  So depending on your financial situation, renting your home for the next 3-5 years could be an option to selling.

Giving the state of the economy, the Las Vegas Rental Market is doing well.  Many former homeowners are now becoming renters as they have lossed their home to foreclosure or sold it as a short sale.  For those that lost their home due to foreclosure will be unable to purchase a home for 5 years, making them an ideal long term renter.  Knowing that there is still a market for rentals, the next step is determining what your home could rent for based on what other homes have rented for in the area.  The rental price could be the determining factor on whether you can afford to rent your home out or if the negative cash flow is going to force you to sell your home.  The last thing you want to do is rent your home out knowing full well you are going to let it go in foreclosure as this is very unethical and could cause a hardship for the tenants when they are forced to vacate the property.

If you are in a position that is forcing you to sell or rent your Las Vegas Home, it is important to contact the right real estate agent.  Chances are, if you are going to sell your home, you will need a real estate agent that specializes in short sales and remember there could be legal and tax implications.  If you are going to rent your home, I would recommend having a Las Vegas Property Management Company handle the management of your property.

If you have any questions about the short sale process, feel free to contact Paul Rowe at 702.376.0088.  If you are thinking about renting your Las Vegas Home and are in need of Property Management Services, feel free to contact Tony Sena at 702.376.7379.

This Beautiful 2 story home located in a gated community in Northwest Las Vegas is approximately 4,391 square feet and features a 3 car garage, 4 bedrooms and 4 bathrooms.  The property is sitting on almost a half acre of land making it ideal for an in-ground pool.  The home has soaring ceilings, tow tone paint throughout, travertine flooring, granite counter tops, balcony with city views and RV Parking.  It features a full bedroom and bathroom downstairs.  It has an over sized master bedroom with walk-in closet and a very large master bathroom with spa and walk-in shower.

This Northwest Las Vegas Home is conveniently located near US 95, shopping and schools.  This property is not a short sale or bank owned property and it is currently available for $547,500.

If you would like a private tour of this gorgeous Las Vegas Home or have any questions, please contact Dale Jones at 702.376.0088.

Las Vegas Real Estate sales of single-family homes, condos and town homes hit a record of 4,702 in June, beating the previous record of 4,414 set in June 2004 according to the information released by the Greater Las Vegas Association of Realtors.  The main reason for the increase in home sales is the average sales price of $140,000 which is considerably less than the average sales price of $242,000 in June 2004.  The drastic drop in home prices has made it affordable for first time home buyers once again and lucrative for real estate investors.

Majority of the Las Vegas Properties that sold in June were single family bank owned homes and short sales.  Condo and town homes also saw an increase in sales compared to June 2008.  This can also be attributed to the drop in the average sales price which is bringing real estate investors to the Las Vegas Real Estate Market.   Many real estate investors are buying condos with cash and then placing them on the market for rent with a Las Vegas Property Management Company.

Now that Banks and Lenders have lifted the moratorium, we should see a rise in bank owned homes hitting the market over the next 5 to 7 months.  This should fuel homes sales even more as many real estate agents are receiving multiple offers on their bank owned home and even short sale listings.  The bad news is the increase in bank owned homes for sale could drive down the average sales price even further as Banks and Lenders price the properties below market value for a quick sale.  Either way, don’t expect Las Vegas Home prices to increase any time soon.