LAS VEGAS BORROWERS SEE SLIGHT FALL IN MORTGAGE INTEREST RATES
It was fairly clear that the table had been set for last week’s Federal Reserve meeting to result in a minimal rise in mortgage interest rates. Their Fed Funds rate directly influences the mortgage interest rates that banks observe. Since Las Vegas real estate activity can be spurred or dampened by the monthly payment amounts Las Vegas mortgage lenders offer applicants, this national story has meaningful local repercussions. It wound up as a non-event that nonetheless spawned action—albeit in a minor way. In May, Chair Yellen had said that a rate increase would be “appropriate” over the summer months. In the lead-up to last week’s meeting, other Fed governors had strongly implied that it was now time for a slight Fed Funds bump. Still, most commentators kept their prognostications vague; they had been vociferously anticipating a move for many cycles, only to hear serial postponements from the Fed. In addition to having been burnt before by Fed head fakes, there was also another reason why a no-go might happen this time around. Regardless of what the jawboning had been, economic and employment growth was still stuck in first gear—and a rate hike could retard improvement. The commentators weren’t wrong to hold fire. Once again, the Fed did nothing (except make even more noise about an interest rate hike…later). Yet, even so, the market forces that nudge mortgage interest rates one way or the other did seem to react. After the non-announcement, rates barely budged at first—but then continued steadily lower (the lowest in weeks, in fact). By week’s end, the Mortgage News Daily announced that the string of moves had brought mortgage interest rates into a “post-Brexit range”—similar to the conditions “that sent rates plunging toward all-time lows.” The reasons last week were less than certain, although frustration with the Fed’s lack of coherence was fairly unanimous. CNBC interviewed big time investment manager Bill Gross, who said that investors were left “very confused” by the meeting’s outcome. He pointed to the likely rate raise that Yellen had emphasized at last month’s Jackson Hole speech, as well as to Fed Vice Chair Stan Fischer’s earlier assurance that there would be two hikes this year. All this left Las Vegas mortgage interest rate watchers to make their own assessments about what to expect for future conditions—most importantly, whether current favorable low- interest rates could be counted on for long. There had been at least one indicator that optimists could welcome. Almost unnoticed was a footnote to the Fed’s announcement. Back in June, the Fed had predicted the lending rate to end 2016 at .9 percent. It now said the likely number would be .6%. That would result in Las Vegas mortgage interest rates still comfortably in the historically low range—hardly a flashing red light for would-be borrowers. Wherever the Fed heads eventually, it’s indisputable that right now Las Vegas mortgage interest rates remain fetchingly low—creating rare opportunities for buyers and sellers both. Why not give me a call to explore how you can take advantage today?
LAS VEGAS REAL ESTATE INVESTORS EXPECT THESE 5 TRUISMS
If you go looking for insights from successful Las Vegas real estate investors, depending on which areas they concentrate on, you could come up with a variety of takes. Despite the distinct differences that separate the commercial and residential investment spheres, there are some time-worn truisms about the real life experience that would have most investors nodding their heads— Expect to work at it. The myth of buying real estate, watching it appreciate, then just cashing in is a two-dimensional expectation. A typical Las Vegas real estate investment has to be discovered, investigated, negotiated, cared for, cared for some more—and sometimes sold—for it to ring up the profits that make real estate investing so lucrative. The best investors relish doing all of it. Expect to interact with a wide range of people. Math skills are important, but people skills are up there, too. Just about anyone can do the arithmetic that produces accurate cash flow projections, but being able to network with real estate professionals and lenders—and manage close working relationships with tradespeople—are also vital for sustained success. Anticipate changing conditions. Economic conditions are always in flux, so Texas and Las Vegas market conditions are always on the move. Last decade’s real estate investment strategies don’t guarantee success today—and certainly not tomorrow. Anticipating and planning for changing conditions is work that can pay real dividends. Expect losses. Any investment—including real estate investments in Las Vegas—involve some degree of risk. Serious real estate investors are those who profit the most from multiple investments over time. Necessarily, they expect that some projects won’t pan out as expected. Not expecting that to be true would be a rookie mistake. This fifth one is ancient: it sounds like something Ben Franklin could have come up with: A fast nickel is better than a slow dime. Strangely enough, this truism can be misinterpreted. One commentator thinks it means “owning real estate is easy; getting paid is tricky.” I think its core meaning is that knowing just when to sell is a terrific real estate investment skill. In fact, you could say that prioritizing when to sell is what distinguishes real estate investors from most of the rest of us—real estate consumers who are contented Las Vegas homeowners. In my profession, I get to facilitate winning transactions for investors and real estate civilians alike. I hope you’ll give me a call for all your own real estate dealings!
FOR YOUR LAS VEGAS HOME LISTINGS WHAT WORKS IS PART ART
The art of selling a home begins with the Las Vegas listings. Much serious study is continuously given to what works best when it comes to listing language and detail, yet a good deal remains a purely creative exercise. That qualifying “somewhat” is necessary because creating a Las Vegas listing does have a scientific component. In fact, of the two most important elements (that is, the two that listing readers pay the most attention to), one is mathematical. The first is the artistic “hero shot” photo of the home, ideally pictured at its curb-appealing best. The second is the asking price, which is an unambiguous number of dollars. The photo grabs attention either by fitting a pleasing archetype—or by just being pretty. The asking price number works (or fails to work) by either being too high, just right, or intriguingly low. If it’s too high, the listing price can sometimes draw further attention out of curiosity (“what are they thinking?”)—but will probably result in listing readers moving on. If the number is just right or lower than expected, serious house hunters will be engaged—taking the first step toward a showing and sale. Further down as influencers are each of the listed facts about the property. Anyone or two of these might either pique further interest or take the place out of the running. But Las Vegas listings also contain another creative element: the language. Modifying adjectives can persuade by setting a mood or a tone—or even making a promise. Accuracy is paramount—when I compose a listing, I’m summoning the most exciting language that accurately describes the property, because exaggerating can spoil the atmosphere when we get to the showing stage. A few years back, IBM’s app Wordle was used to address the question of what the most frequently used listing words were. After analyzing 300,000 listings, the resulting compilation demonstrates that almost all the top rankers had adjectives attached: Beautiful Hardwood (with “floors”) stainless (with “steel appliances”) private great (with “room”) dream granite wood burning (with “fireplace”) There were also some creative action-oriented phrases: Priced to sell Build your dream (with “home” or “house”) Must see Move-in ready Listings are the Grand Opening of the business venture that is the selling of your Las Vegas home. I make it a focus as we launch that venture—but it’s only one step in the process that ultimately ends in your handing off the front door keys to your satisfied customer!
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