YOU TOO CAN BE A LAS VEGAS HOME BUYING GENIUS
One of CNN’s most popular sites is called CNNMoney. Dollars and cents are its singular focus—no film reviews, fashion statements, or political insights. For Las Vegas readers minding their bank accounts, it makes consistently interesting reading. The other day, an eye-catching ad for CNNMoney appeared on the screens of real estate sites. If you’d been browsing the Las Vegas listings, there it was, with this challenge: “Are you a home buying genius?” For anyone who couldn’t be sure of the answer, the ad led to an online quiz. A simple mouse click brought up the first question. It was a good thing CNNMoney isn’t called CNNGrammar because the first question was “How will a bad credit score effect (sic) your ability to buy a home?” The choices were four, starting with “I may not qualify for a mortgage.” Then came, “I may need a bigger down payment;” “I’ll have to pay a higher mortgage rate;” and the last, “All of the above.” They all looked possible, so Las Vegas home buying geniuses had an easy time with that one. But others could have tested the neurons of any home buying, Einstein. “What’s the most surefire way to get the financing you need?” was one. “Play the Powerball” was clearly not the right answer, but the difference between “Get pre-approved for a mortgage” (choice #2) or “Have the mortgage pre-underwritten” (#3) might depend on the Las Vegas mortgage broker’s office terminology. If you went for #3, you got it right. If you knew that Las Vegas closing costs usually run between 2%-5% of the selling price, you had another right answer. Likewise, if you chose the standard “28% of your gross monthly income” as the most, you should budget for a mortgage payment. By now, it had become clear that this quiz had been put together by someone with an interest in promoting mortgage loans. All the questions were dealing with mortgages, and now ads for national mortgage outfits were beginning to appear at the bottom of the screen. Since this is nothing new when it comes to web quizzes, most readers would have kept at it. They would have run into one question about how much savings you “should have left” after you buy a home—the kind of question that could start a debate. This one could challenge any genius. For instance, if you are The Donald, you really wouldn’t need the “at least six months’ worth of savings” that was ruled the right answer. The explanation sounded reasonable (“you’re probably spending freely to furnish or update the place”), but what if you had just bought a new home or one of the spotlessly renovated Las Vegas listings that are now on the market? The amount it would cost to move in could just as easily be next to nothing! Such quibbling in internet quizzes isn’t allowed. If you got all the answers right, you were pronounced a home buying genius (with an exclamations point)…and an offer to tell the world via Facebook or Twitter. If not, you could retake the test before you told anyone anything, which does seem a little bit like an offer to peek at the teacher’s answer sheet… In my opinion, you don’t have to be a Las Vegas home buying genius to score a spectacular home in this summer’s offerings. The properties are there, and the financing numbers are still historically terrific! It won’t hurt to have a knowledgeable professional clearing the way, either. Just call, anytime!
SHOWING A LAS VEGAS PROPERTY OCCUPIED OR NOT ITS A BALANCING ACT
In a perfect world, before you set about selling your Las Vegas property you would have emptied it of all evidence of human habitation, called in the best staging pros on the planet, and set off to vacation in a Caribbean island spa-hotel so you could sift through the dozens of offers in comfort. “Let’s see,” you would soon be musing to no one in particular, sipping your first mimosa of the afternoon as you thumbed through the sheaf of faxes from your Las Vegas agent; “should I accept this all-cash offer for 150% of comparable value—or hold out for this one for 200% of comp that came in with only 50% earnest money…?” It is here where we might best depart from this reverie to point out that in this less than perfect world—the one that we actually live in—the more probable situation is one where your Las Vegas property is fully occupied, either by your family or a tenant. How do you make the most of that mimosa less situation? If you and your family are the occupants, your Las Vegas property fits the most common profile, so the standard to-dos apply: you will want to clear the clutter and store any non-essential furnishings; de-personalize as much as practical; deep clean; and work with your agent to make showings as routine as possible. But what if you have a tenant? It’s going to be a true balancing act that affects four parties: seller, listing agent, tenant, and buyer. Of these, the one with the least to gain is the tenant, who is paying for the privilege of tenancy while being asked to keep the property clean and showable on the others’ schedules. Let’s face it: this could be a minefield. Almost any tenant’s interests lie elsewhere. In fact, they may very well like your Las Vegas property so much they would just as soon discourage prospective buyers—and there are subtle (and less-subtle) ways to go about that! One solution that is sometimes offered involves this creative procedure: Compensate the tenant for their cooperation by offering a significant bounty (say, 20% of the monthly rent) to be placed in an escrow account. It’s a meaningful award for the tenant’s full cooperation—one that will grow with the payment of each month’s rent. It will be turned over upon the completion of the sale. This ingenious plan has the effect of reversing the natural order of things. Since the amount in escrow grows with each passing month, rather than becoming increasingly annoyed with each ensuing showing, the tenant is increasingly incentivized to make the property ever more appealing. There’s cash on the line! In fact, as the escrow account builds, who’s to say the tenant won’t start doing some arithmetic…and start considering becoming the buyer himself…??? In any case, the best results for selling your Las Vegas property happen when there is rock-solid communication between the listing agent and owner—and when a tenant is involved, that’s another party who should be included as well. It’s the best way to ensure that everyone can go about their business with a minimum of disruption and inconvenience. If you are sizing up the coming fall market, whether your Las Vegas property is occupied by a tenant or your tribe, I hope you will give me a call to discuss how I can get the results you’re after!
ONE HOUSING SOLUTION LAS VEGAS HOMEOWNERS CAN DO WITHOUT
Las Vegas residents been hearing about unbelievably tight housing situations in some U.S. cities for many years, but last week there was one report that would have challenged any imagination. This was about a Wharton School graduate who is spawning a new way to afford rents in the San Francisco Bay Las Vegas. His solution: live in a shipping container. The article appeared (with pictures) in BloombergBusiness. The photos weren’t exactly flattering of Luke Iseman’s 160-square-foot “box”—in fact, the bright blue painted walls seemed definitely in need of a decorator’s input (not to mention the cords and ducts strapped from ceiling to floor). With a shower constructed from discarded boat hulls and a camp stove set atop what appears to be a deconstructed wooden crate, the overall look might be described as post post modern urban chic. But Mr. Iseman is making progress turning his container housing option into a business. In fact, he is already presiding over 11 of the “miniature residences,” where his tenants live inside a warehouse he leases across the Bay from San Francisco. In case Las Vegas real estate watchers suspect this is a less-than-serious attempt to forge a new kind of rentable living arrangement, a quick review of housing costs in the City by the Bay will have them thinking twice. According to Bloomberg, the median rents in June jumped 16% from a year earlier (15% in the wider metro Las Vegas). Median sales price is over $1.1 million in the City. The chief market analyst for one S.F., real estate outfit, put the housing situation in perspective. “People have to get creative,” he said. Bloomberg put its perspective another way: “The market…is crazy…” Iseman’s “new model for urban development” does have some serious hurdles to clear before the “more sustainable, affordable and enjoyable” urban development model gets much further. One of the hurdles is that it’s illegal—he’s already been rousted from two other sites. But with Bay Las Vegas building inspectors busy dealing with converted garages, offices, living room conversions and other unlicensed structures (like rental tents), his startup concept may last a while longer. What seems somewhat comical to Las Vegas observers is a creative answer to a very real problem. Iseman had been paying $4,200 a month for a badly maintained two-bedroom apartment before he thought up the container idea. He bought his first container, which had been classified as industrial waste, for $2,300 (delivered), spent $12,000 converting it, and voila!—suddenly he had himself some affordable East Bay housing. In and around and Las Vegas where ten jobs are added for every new residence, who’s to say this stop-gap solution might not prove to have some staying power? One thing is for certain—our Las Vegas, real estate scene, is going to continue to offer a choice variety of affordable housing offerings, even without the benefit of shipping containers. Give me a call whenever you’d like to go over the wide range of opportunities today’s market is providing.
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