LAST YEARS LAS VEGAS REAL ESTATE INVESTORS THEYRE SMILING NOW
Last year comprised a decision point for many a local investor who had been holding back from the Las Vegas real estate market. There’d been a number of good reasons for them to hesitate. First, there were memories of the pervasive price drops that followed the global financial meltdown. Not exactly what a prudent investor was looking for—even given the real estate’s traditionally invincible long-term record. Then there were fears that the economy’s slow reverse out of the Great Recession (a term that was in itself enough to freeze many a checkbook!) would hamper apartment and single family unit rental increases. A landlord could get squeezed by inflation…if there were any inflation…who could know for sure? But as 2013 began, some positives that were at last beginning to provide a degree of optimism. Last year’s Las Vegas real estate investment decision was looking a little less risky when the historically low mortgage loan rates were taken into account. They penciled out to what looked like a potentially rosy cash flow outlook. And even the more hesitant investors had been noticing for a while how institutions had been pouring their own cash into residential real estate—you had to wonder why so many of the larger investment concerns suddenly seemed to want to become local landlords… Now we can look back at 2013 and realize what a fantastic year it was for a Las Vegas real estate investment up in some places 30%. First, there was the rise in real estate prices, which was nationwide. According to the S&P Case-Shiller Index, U.S. real estate prices increased 11.3%—the highest rate of increase in many years. We are predicting that the rise would continue through 2014 at a steady (and less superheated) rate. That tempering was attributed to the gradual rise in still-low mortgage interest rates—and to the inevitable fact that the most extreme bargain properties had been snapped up. The latest news on multi-family dwellings shows that fears of inflation outpacing landlords’ ability to increase rents were exaggerated (to say the least). National research firm Reis has just reported that for the 12-month period ending in June, rents rose 3.4%—the 18th consecutive quarter of rent increases! “You have definitely seen the recovery now spread to all of the major markets around the country,” according to Reis economist Ryan Severino. Single-family home rentals are on the rise also. According to the Year-over-Year Rent Index, “increase renter demand is driving rental appreciation” even though rent affordability continues to be low in terms of percentage of incomes. What does this mean for today’s investor deciding whether to enter the Las Vegas real estate market? That’s always a choice individuals make for themselves—although, as a not-entirely neutral observer I tend to side with landlords throughout the ages whose reliable backstop has always been the real estate “they aren’t making any more of.” One thing is for certain: checking out the values to be found in this summer’s Las Vegas real estate offerings is the only sure way to gauge the opportunities that are out there. In other words, give me a call. It’s only prudent!
HOW TO FIND THE RIGHT REALTOR IN LAS VEGAS
When you set about buying a house, you will have already taken as a given that this will be among the most expensive purchases you will ever make. It’s going to be your house on the line; you’ll want to make sure you have the top resources in your arsenal. Chief among them will be having a Realtor® in Las Vegas who understands your goals, respects your bottom line—and who sees the joint goal the way you do: recognizing the right properties when they become available, and helping to remove any and all obstacles to securing it.But this summer, just how will you recognize the Realtor® in Las Vegas who fits the bill? Who Do You Know? The right Las Vegas Realtor knows every leading vendor in the business and can introduce you to as a valued client. Need an inspector or attorney? Maybe a floor guy to price out staining the hardwood? The right Realtor will know the key players at every step, and will be able to get the facts and inside scoop to help you sound out the right decisions. Often you’ll be presented with multiple options for each resource so you’ll be sure you have a vetted group of experts to choose from. What am I Looking For? The right Realtor in Las Vegas will interview you to pin down as closely as possible which of your goals are must-haves…and which want-to-haves. Before long, your Realtor will understand instinctively what matters to you, how that translates to the current listings; and even how it matches inventory that’s waiting in the wings. If you’re a first-time homebuyer, you’re likely to find that the right Las Vegas Realtor will answer some of your questions even before you know what to ask! How Can I Reach You? If you’ve ever had trouble—real trouble—reaching an agent, you’ll appreciate that a great Realtor in Las Vegas has not only excellent communication skills, but back-up systems in place to be quickly available for questions, showings and negotiations. So make sure you ask all Realtor candidates how she or he plans to field last-minute or urgent requests. The right Realtor in Las Vegas will always demonstrate having your best interests at heart—from the first home viewing to the day you close. If you’re interviewing Realtors in Las Vegas to help with either buying or selling a home, I’d love to show you what my team and I can accomplish for you this summer!
LAS VEGAS FOR SALE BY OWNER THE TOP 5 CHALLENGES
When you determine to sell your house, one of the first choices that comes up is tactical: do you try to sell it yourself as a Las Vegas “For Sale by Owner” property—or do you enlist a real estate agent? Since your object is to maximize your profit, you might think that most thrift-minded home owners would decide to eliminate the agent’s commission and do the work themselves. But that’s not the case. The majority of sellers ultimately team up with a Las Vegas real estate agent. Sometimes they go the For Sale by Owner route first, but after testing that method, change courses. The statistics show that the selling price of Realtor®-assisted home sales is higher (a $40,000 difference, according to the latest study) which certainly would explain part of the reason. But other factors come into play, too: 1. Pricing: If you aren’t immersed in Las Vegas’s real estate business five to seven days a week, there’s no way you can have the intimate knowledge about the current market that comes with daily work in the field. A real estate agent comes armed with extensive knowledge of the local market and all the changes that have brought it about. It’s extremely important to price your home correctly to sell it on the first go-round. It’s a demonstrated fact that the longer a home sits on the market, the lower its final sale price. 2. Time and Energy: A Las Vegas For Sale by Owner sign in the front yard means you are in charge, 24/7! That’s despite any other demands on your time—for example, your job! One of the benefits of using a real estate pro is that selling your property is our singular focus: our job! It means marketing, networking, working with buyers. Doing whatever it takes to get your house sold is our first priority. Lacking the same kind of time and resources, a For Sale by Owner seller is at a clear disadvantage in the competition to sell houses. It’s a marketplace where one missed buyer can mean the difference between a listing that turns into a sale…and a listing that turns stale. 3. Objectivity: The house is yours: you designed or decorated it; you’ve fixed and painted and mowed and swept it. If you took your work seriously, you feel at least some pride in how it’s presented. Unfortunately, that’s a problem. Lacking objectivity in the sales milieu can be one of the biggest hindrances to actually selling your house. It makes it hard for you to negotiate—to see and acknowledge the flaws a buyer sees. And it can make buyers wary of even wanting to negotiate with you in the first place. Either factor can prove costly. Separating owner from sales agent opens communication. It’s a relief for everyone! 4. Paperwork: This is the most obvious point. If you choose to wade into the paperwork/deadline process yourself, you’d be wise to count on needing a bit of extra attention from a good real estate attorney—if only to avoid potential litigation down the line. 5. Security: It’s unfortunate, but putting your house up For Sale by Owner in Las Vegas (or anywhere) can make you a target. Less-than-honest folks are out there—creeps who may specialize in sellers who might not follow the proper measures for letting people into their homes. If you are looking into selling your own home this summer, I’d like to offer you a complimentary property evaluation. Whether or not you decide to go the Las Vegas For Sale by Owner route, it’s sure to be well worth discussing what to expect from today’s market!
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