A NON SUBJECTIVE ELEMENT FOR CHOOSING A LAS VEGAS HOME FOR SALE
If you are among this July’s consumers who are actively shopping for a home for sale in town, you have probably already taken a look at the Las Vegas listings and most likely jotted down some addresses you’d like to examine in detail. Then, if you find yourself in the happy situation of finding more than one Las Vegas home for sale that passes your first in-person tour visit, the tough question arises about how to pick between two or more quality homes. Should you depend upon your emotional leanings—even if a few practical details seem to point you in the opposite direction? Or should you simply let price be the determining factor? Or is there some other criterion the most experienced house hunters rely on? Of all the factors that could go into that decision, truthfully, pointing out which are the most important is always a subjective exercise (all except for one I’ll bring up last). Here are some of the most useful ones: o Compare the neighborhoods, and take a close look the adjacent streets. Drive by the properties at different times of the day and at least once on a weekend. See how the neighbors keep their homes. Neglected Lawns (or bars on too many windows) are not signed you may want to ignore—just as uniformly well-kept landscaping should count on the positive side. o Next visit to the candidates, do a consciously thorough walk-over. Pace the perimeter of the home and lot. Look for fencing issues you might need to address, or even how intrusive neighbors’ windows might be. Check for signs of water pooling anywhere on the lot with an eye to whether drainage problems could become an issue when the rains come. o If there is another home for sale on the street, drive the immediate Las Vegas looking for more. If there is more than one home for sale, check the web to see if there are too many—or enough that it indicates that values are in flux. If it appears there are many—but no reason other than chance—it could be a good sign that your offer will be very welcome! What is that less subjective factor (the one I said I’d bring up last)? It’s one that calls for becoming more skeptical than you really are: one that has you pretending to be a member of the public at large who doesn’t feel particularly drawn to either of the homes for sale you are comparing. Put yourself into that mindset—then judge which of the homes will be easier to sell in the future where you have decided to move on. Deep-six your idiosyncratic leanings, and concentrate on elements that the majority of people would agree are those that add or subtract resale value. Experienced house hunters have bought and sold often enough that they are keenly aware of how much easier it is to sell a home that has universal appeal—even over one that’s more personally attractive. Keeping aware of the personal factors that may make you comfortable but which could adversely affect saleability will help you determine a property’s future value to others (and, many would argue, that is the real value!)… This summer, we’re fortunate to have a market that offers many Las Vegas homes for sale offering exceptional value. I hope you’ll give me a call to help find your family’s next home!
US REPORT OUR LAS VEGAS REAL ESTATE INVESTMENT OUTLOOK
Last week’s reporting showed the same kind of upward movement that’s become commonplace for Las Vegas real estate investment news watchers. A standout: CoreLogic’s finding that national home prices in May increased by 6.3%, marking the 39th consecutive monthly year-over-year increase. Actually, to a lot of us, that looked stronger than expected: the steady increase in U.S. sale prices had seemed to have leveled off in the 5% range for the most part…CoreLogic’s own Chief Economist had prognosticated, “We expect house prices in our national index to be up about 5 percent in the next 12 months” just 30 days ago. Those who track U.S. real estate investment performance for its Las Vegas implications, two other interesting observations were noteworthy. First, even including distressed sales, prices have now risen to within 8.4% of the April 2006 peak—what is generally considered an unsustainable “bubble.” Yet it’s impossible to find any expert who believes the current price levels are indicative of anything of the kind; nor that the expected continuing rises would expose those making residential real estate investments to equivalent risk levels. Except in a very few Las Vegas ties, there is scarcely any “bubble” speculation to be found—even as national price increases continue to outpace inflation. Part of the reason is that supply continues to be tight; distressed property sales continue to decline; and overall U.S. economic conditions are perceived to be improving, however gradually. Corelogic also keeps track of sales and momentum for different price ranges, which perform differently, as real estate investment analysts know. The lowest-priced tier, which represents to most modestly priced 25% of homes, has now actually surpassed its pre-crisis peak…and the highest end of luxury residences (the top 25%) are within 5.7% of their peak. The second point made in last week’s reporting was continuing good news for those whose real estate investment portfolios include rental properties. Apartment vacancy rates “are down to their lowest level since the 1980s” according to Economist Frank Nothaft. “Rents are up, and apartment building values are at or above their prior peaks.” The robust performance wasn’t confined to multiple-unit housing, either. Following the housing crash—between 2006 and 2013—3,000,000 detached single family homes were added to the nation’s rental stock. They now make up 40% of the market. In terms of their real estate investment performance, the combination of rising rental rates and shrinking vacancy rates are exactly what investors hope to see. For regular homeowners, too—even those with no plans to sell anytime soon—those 39 straight months of steady price appreciation is comforting news. And if you are watching this summer’s Las Vegas real estate listings for the investment opportunities they represent, I hope you’ll give me a call!
A BUSINESSLIKE DECISIONSWITCHING YOUR LAS VEGAS REALTOR
It’s true of any commercial offering: sometimes a perfectly saleable item doesn’t move off the shelves as rapidly as predicted. Real estate is no exception—not every town home is sold as quickly as its owner and the property’s REALTOR® wish. When that happens, and the term of the original listing expires, an important decision must be made: should the listing be renewed, or should another Las Vegas REALTOR be enlisted to try a different approach? If you have been dissatisfied with the amount of effort your current area REALTOR has demonstrated up to now, the decision will be easier than otherwise—especially if you have already communicated your impression and been less than overwhelmed by the response. You are right to expect that your town REALTOR will have posted attractive, accurate listing material for the MLS, has included your property in the advertising program that goes out to the community, and has been diligent and professional in showings and (if it was agreed upon) open house presentations. You should have been able to contact her or him within a reasonable amount of time when communications were called for, been satisfied by the punctuality of appointments when scheduled. If performance in any of these basics has been unsatisfactory, it’s entirely reasonable to entertain a change in representation. On the other hand, if your REALTOR has not disappointed in any dimension, you are left in a problematical situation—one which has no clear-cut solution. Whether or not your inclination is to stick with the team in place, to make the right decision you need more information. The best guidance is—get it! • Before you decide whether or not to extend the relationship, ask your agent to review the days on market (DOM) for similar nearby Las Vegas properties. An analysis will show whether yours is the only slow-moving property, or whether it has simply hit a lull in neighborhood activity. • Ask yourself whether you have paid attention to the suggestions offered by your current REALTOR. If you have chosen to bypass any of them, this could be an appropriate point at which to reappraise. • If you have had many showings with few offers forthcoming, it’s a pretty good sign that your asking price is higher than prospective buyers believe is justified. If that’s the case, changing REALTORs alone isn’t likely to have the desired effect. You’ll need to fix whatever problems visitors are seeing…or else lower the price. If a hard-headed analysis tells you that switching Las Vegas REALTORs is warranted, don’t worry too much about the reaction you will get. Most REALTORs are very professional; they know that clients do occasionally change the representation for some reasons, and that hard feelings are simply not warranted. Be ready to interview several agents and to compare what they offer. Pay extra attention to how they propose to stimulate activity—you are well-positioned to appraise their ideas! For my clients, in addition to an energetic marketing approach, I put a premium on keeping the highest quality communications flowing at all times. Give me a call whenever you have a Las Vegas real estate query!
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