INTERNATIONAL HOME BUYERS MIGHT BE LAS VEGAS NEXT PROSPECTS
Las Vegas homeowners could benefit if the influx of international home buyers continues to expand. According to a study from the National Association REALTORS®, the trend in that direction has been accelerating. In the most recent release covering the twelve-month period ending last March, foreign nationals are reported to have spent more than $92 billion in the United States for the year. That’s growth at a blistering pace: an increase of 35% over the $68 billion spent in 2012! How Las Vegas homeowners stand to benefit from the increase in foreign buyers has a lot to do with today’s changing real estate marketplace. Since international home buyers need to learn as much as possible about a property from afar, the improvements in an online presentation serve a very necessary purpose. When one of our Las Vegas listings includes an extensive selection of photos or video footage, it becomes a legitimate part of the emerging international marketplace. Combined with today’s easy-to-navigate links to detailed information about Las Vegas ’s neighborhoods and local amenities, a local property is realistically accessible to buyers from anywhere in the world. Last year’s foreign sales were split almost equally between foreign buyers whose primary residence is outside the country and those currently living here. Not surprisingly, the greatest number of sales—19%—came from Canadian nationals, closely followed by the Chinese (16%) and Mexicans (9%). Both Indian and United Kingdom nationals weighed in with 5% of last year’s purchases, while lesser percentages of international home buyers hailed from Germany, followed by the French, Brazilians, and Japanese. The NAR study also delved into the reasons international home buyers increasingly favor U.S. properties—although the answers were wide-ranging. For some, it was the investment potential that was the biggest draw: owning U.S. properties is seen as a solid way to diversify foreign portfolios. International buyers value the relative economic stability and attractive prices present in our real estate market. Other buyers are relocating to the United States for professional reasons while still others purchase a property for children attending college. One aspect that Las Vegas property owners might find interesting is that international home buyers tend to purchase higher-priced houses. That might be due to the impact of the Chinese buyers, whose primary focus is in areas like New York and California where properties are more expensive. In contrast, Canadians are more likely to purchase in lower-priced areas of the country. This is one reason, although Canadians purchased more properties last year; the amount they spent ($13.8 billion) represented a slight decline from the previous year.International buyers have another standout attribute that Las Vegas home sellers should find attractive: they are more likely to pay entirely in cash! About 60% of all purchases made by international home buyers required no financing—that’s up a third from 2007. When you consider the average sales price, it represents a fairly hefty cash infusion. If your Las Vegas home will be on the market soon, I hope you will give me a call to discuss how we can create a strong presentation for local and international home buyers alike!
LAS VEGAS REAL ESTATE WATCHERS FIND TREND CONFLICTS
Las Vegas, the real estate trackers, stay informed via the most recent listing and sales numbers, which is the solidest information of all. It’s helpful for planning purposes—even though what has happened in the past is only a suggestion of how real estate in Las Vegas will perform in coming months. To get another indicator of future activity, the broader national trends are worth watching, along with the analyzes and predictions of the top real estate experts. But it’s not always clear which trend is emerging, or which expert is right. Case in point concerns younger families abandoning more urban areas to take up residence in the suburbs. Everyone acknowledges this group has been slow to settle into their first single family homes; but now there is a trend that has them selling their expensive condominium in downtown core areas, then using the proceeds for down payments on a house in the suburbs. Real estate commentators who see this trend can bring convincing logic to their argument. Condominiums in most major downtown city cores have become increasingly expensive. For the lucky owners, it means they have gained significant real estate equity. However, especially for those with growing families, the downside is that they can’t afford to grow into a larger condo in their current neighborhood. Their best option is to sell the condo and move to the suburbs, where their money will get them more real estate. Urban Studies Professor Joel Kotkin confirms that the first group of millennials, now entering their 30s, “are beginning, like preceding generations, to move to the suburbs.” It’s a trend that sounds reasonable enough…but not to everyone. Others disagree, convincingly. In fact, it’s more than a disagreement: they propound the opposite—a movement is toward city cores. The 36th edition of the seriously respectable Urban Land Institute/PricewaterhouseCoopers Emerging Trends in Real Estate report says, right there in Chapter 3, that “vibrant urban centers are almost a universal trend” in all 75 markets surveyed. That’s quite a few markets (compiled by 1,400 contributors). Lest anyone is unclear about the emerging trend itself, those quotes come from the section called “Continuing Urbanization Trend.” To be fair, both perceived trends are subject to qualifications and footnotes that, it’s fair to say, muddle the picture. Under the Urban Land Institute/PwC’s Continuing Urbanization Trend heading, for instance, lies the statement, “Interviewees…cited activity in the traditional downtown area and also in suburban nodes.” In other words, perhaps the Urbanization Trend could also be suburban, sort of. Las Vegas real estate watchers, hoping to spot a trend, could conclude that young families are moving to and fro… In any case, you don’t have to fall into the Millennial, Gen X, Gen Y, Boomer or even the Greatest Gen category to follow one distinctly local trend: if you will be looking for a new home in Las Vegas—or have one to list—giving me a call is the thing to do!
PREPARING FOR LAS VEGAS SHOWINGS YIELDS PEACE OF MIND
Getting properties ready for open houses or other showings in Las Vegas takes a bit of determination—especially when it comes to paring down all the ‘stuff’ that has accumulated through the years. It’s a push-pull between I still use that every day! And this room still looks too crowded! You may update the paint, add some fresh landscaping, but it’s the emptying-out part that sometimes takes the most resolve. So, after that’s all done, are you ready for showings? Not quite. Showings and open houses are a bit like concerts and plays. They’re presentations which (hopefully) result in an experience that is pleasurable. In order to make that happen, there have to be workers who prepare behind the scenes. When successful, their efforts are invisible—a “hit” show seems to progress by itself, effortlessly. Las Vegas showings and open houses have that in common with theatrical productions, and to be successful, one other thing has to be present: the focus should be on the audience, not the cast members or crew. For home showings, that means thinking about what the prospective buyer (the audience) will encounter as he or she walks from room to room. Allowing yourself to imagine how someone not familiar with your house will experience it is an exercise that yields another useful side effect. It reminds you that showings and open houses are staged to invite strangers onto the property—and that should prompt a few additional precautions. First, think about children. You can’t keep Lookie-loos from showing up occasionally, but Las Vegas prospects who bring their children usually mean business. You should ensure that your home is free of potential child hazards before showings. Just as you would child-proof for family member visits, eliminate unnecessarily long extension cords, tempting (and sharp) fireplace pokers, knickknacks small enough to be choking hazards (should have packed them up, anyway!) and any other dangerous thing that might attract little fingers. Not only because of children, clear as much of the half-used debris from cabinets and shelves as possible. Make them look like the spacious ones you see on HGTV—your “audience” will be impressed with the abundance of storage. Don’t forget the medicine cabinet. Secure all medications, so you don’t have to worry when you are gone or out of the room. Clean out the “junk drawer” or the place where you keep mail or bills. Everything will look organized, and your private information will be secure from over-curious eyes. For these and jewelry, you may want to get a lock box for added security. When you do walk-throughs like a first-time visitor, you will find that you’re much more able to relax while your trusted real estate agent is conducting showings. Showings are just part of what will make up an effective marketing effort for your Las Vegas home. Give me a call to discuss how we can make all the parts fit together!
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