QUICK FLIP IS ONE TACTIC FOR LAS VEGAS HOUSE FLIPPING SUCCESS
Most Las Vegas house flipping veterans can look back on their successful projects and place them in either of two columns. Either they were intended to be quick flips—turnarounds where speed was a prime ingredient because of an original tactical decision—or they were not. The quick flips depend on speedy, focused action in three of the four phases a house flipping project entails. In the opening phase— lining up the capital—speed is not important. Of course, nothing else will materialize unless financing for the Las Vegas property is obtainable when needed—but there is no timer ticking away. Once it is likely that funding will be obtainable, that’s when the clock starts. Phase Two—finding, negotiating, and closing on a suitable property—is a real foot race. A quick flip only materializes after a suitable property has been identified. “Suitable” in this context means a home that can be made attractive in the Las Vegas market without requiring extensive and time-consuming rehabilitation—cosmetically challenged, but not structurally unsound. If it is already on the market, it’s probable that the present owner’s circumstances make them disinclined to oversee any turnaround work themselves. The need for speed is apparent: since the current asking price has to be low enough to allow sufficient profit upon its resale, other interested parties will be interested once they get wind of the opportunity. This kind of qualified house at a sensible price is certain to find a ready buyer quickly. During the next fix-up phase, speed and agility are equally important. The work of repairing and renovating calls for fixing underlying mechanical issues, then making everything cosmetically inviting and immaculately clean. Time really IS money: not just the time a project takes, during which the investment capital can’t be allocated elsewhere—but also the house flipper’s time. It’s why many are themselves experienced contractors—and why most of the others have a deep contact list of those they can rely upon. When a turnaround effort drags on for a month after month during which the project is consuming rather than producing, the bottom line suffers. A quick flip’s success can be measured by its final net profit divided by the number of weeks it took, purchase to sale. The end phase of house flipping is the sale—which calls for expediency for the same reasons. If all else has proceeded as planned, speed here is likely for one simple reason. If the first three house flipping phases have been professionally executed, that means that a profitable sale can happen with an asking price that’s a touch beneath comparable Las Vegas properties. Nothing assures speedy success more than that! Quick flips are not the only kind of Las Vegas house flipping, either. Some properties need a lot more tender (and time-consuming) care before they can be profitably returned to the market. But for either kind of buying and selling, being able to rely on an experienced Town REALTOR® is a key asset. Whether your next real estate endeavor is in search of profit or simply a home that’s just right for your family, I hope to be answering your call!
LAS VEGAS BUYERS AGENTS A POPULAR CHOICE FOR GOOD REASON
A mega-proportion of serious Las Vegas house hunters ultimately decide it makes the most sense to team up with a real estate professional to get the job done. Las Vegas buyers may begin the process of finding and buying their next home on their own, checking through the online listings or driving target neighborhoods to check out the “For Sale” signs—but the NAR® reports that 9 out of 10 of U.S. buyers will eventually use a real estate agent in their search process. The most obvious motivation for that is because the buyer’s agent’s fee is paid from the seller’s proceeds. That alone could explain a 90% level of popularity. When you can benefit from a professional’s services at no cost to yourself, Las Vegas house hunters would have to think long and hard to come up with what the downside could possibly be. To run down the arguments that could explain how 10% might decide to pass up the buyer’s agent service, I looked for the most common arguments against the grain. Here are the Top Four, presented in no particular order. (Since I definitely do have a dog in this fight, I’ve also included some counterarguments): 1. Distrust. Something for nothing? A free lunch? Common sense teaches the same lesson, always and forever: THERE’S NO SUCH THING AS A FREE LUNCH! (Counter: the service is not free: the seller pays). 2. Independent Spirit. Some people know that they work and think better when they take sole responsibility. They may have been misled by “experts” too many times—may regret not relying upon their own instincts. After all, Americans are mavericks by nature: they are at their best using their own native ingenuity to solve problems. (Counter: a substantial portion of the process of purchasing a home in Las Vegas requires mastering technical legal and timing requirements. Although a buyer can take the time to learn about all of them, since their buyer’s agent has already handled them successfully many times, it’s wasted effort. IOW, this is a wheel that doesn’t need to be reinvented). 3. Commitment. If asked to okay an agreement that spells out the ground rules for working with a buyer’s agent, it’s as if a commitment is being forced prematurely. After all, who knows for certain that the right Las Vegas house at the right price is even out there? It just feels like putting the cart before the horse. (Counter: this is never a commitment to buy—just an agreement for how the search and commission will be handled if a suitable home is found and purchased. The buyer can make sure the arrangement can be severed without penalty if the service is not satisfactory). 4. Motivation. Since a buyer’s agent will profit from any sale—they’ll try to sell me anything. (Counter: Every buyer’s agent is legally and ethically duty-bound to represent their client’s interests—plus, since their entire career is utterly dependent on their reputation, their interests align). Whenever I represent any buyer, my motivation is 100% that of helping them reach their desired outcome. Reaching that goal—finding the right Las Vegas home, then negotiating and closing at the right price—is the way I keep the phone ringing. See for yourself by giving me a call!
BIGGEST HOUSE IN THE WORLD IS A SIZABLE COMMUTE FROM LAS VEGAS
Exactly what makes a house “big”? That’s a judgment call, for sure. In Las Vegas, houses that are 4,000 square feet or larger would certainly be considered “big,” “spacious,” “ample,” “accommodating,” etc. Most families can get along quite nicely with the U.S. average of 2,600—so even Las Vegas houses with 3,000 square feet can be thought of as providing a little extra elbow room. But are they “big”? The reason the subject comes up has to do with the all-important listing language. It’s Job One for a new Las Vegas listing that the descriptive language is as accurate as possible. It’s vital that prospective buyers come away with an accurate feeling for the property. Readers need to be drawn to the houses that should attract them—and, equally important, not be disappointed by the actual property when they tour in person. In other words, exaggerations are out. So when Forbes magazine recently ran an article about a listing for “The World’s Largest House,” it deserved scrutiny. Some of the specifics are mysterious—but overall, the details do make it likely that prospects would not be disappointed by many features of the actual property. For instance, house hunters looking for a spacious backyard would view the included 1600-acre forest as more than adequate. For those worried about having accommodations for out-of-town relatives at Thanksgiving, it wouldn’t even come up: there are 110 bedrooms. If hygiene is an issue, that’s also no problem: there are nearly as many baths as bedrooms, plus “many vintage outbuildings.” This is where the listing language comes into focus. That adjective “vintage” might turn out to be important since the actual house was apparently built in the 12th century. “House” isn’t quite right, either. “Castello” is better (Italian for “castle”). In fact, Forbes’ World’s Largest House is a castle—but a “rare” one. It includes, for instance, a “large, whole, crenelated towered 12th-century fort” (so security-minded Las Vegas house hunters shouldn’t be disappointed). The commute, on the other hand, would be an issue. But that’s also where the mystery comes in, because the listing agent does describe the 150,000 square feet (actually, “it’s 150,000-plus square feet”)—but not exactly where any of them are located. And since the most obvious point of interest—the property’s undoubtedly noble history—isn’t provided, Forbes understandably calls the listing “hilariously terse.” The privacy of the current owners is clearly being protected, but futilely so, since an aerial photo of the castle is provided. It’s understandable “quite famous” to everyone in the region, which is somewhere “east of Siena.” Even those Las Vegas house hunters with their hearts set on the right Italian castle will probably keep looking, though—although the price wouldn’t be the obstacle (it’s “a steal” at $32 million). The fact is, it’s somewhere “in the heart of Chianti”—yet no vineyard is mentioned! Sometimes what’s not in a listing can be telling. But putting that disappointment aside, fortunately—and much closer to home—there are many appealing Las Vegas houses available on today’s market. Call me anytime to arrange a tour of the ones that meet your requirements!
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