LAS VEGAS REFINANCE RATES SEND HOMEOWNERS TO THEIR CALCULATORS
What goes up must come down. Every second-grader has heard and verified this. Second-graders also are reasonably confident that two plus two equals four, and a stitch in time saves nine. By the time second-graders hit high school, they all have developed their consumer common sense, too. They know that the best time to buy something is when it goes on sale. (I checked, but there doesn’t seem to be a maxim to cover this). This same basic precept for how consumers behave would normally cover the refinance market in Las Vegas (you would think). Following this precept, the volume of Las Vegas refinances applications would normally increase or decrease as interest rates change. After all, if you get a flyer advertising T-bone steaks for 99¢/lb. unless you are a committed vegan, you’ll make a beeline for that market. Likewise, if it looks like your monthly mortgage payment could be substantially lessened by taking advantage of lower refinance rates, it would be careless not to at least investigate further. That used to be true, but within limits—and if those limits haven’t been reached, we are certainly close to them. Last week, the Bankrate web site was reporting that interest rates over the entire range of home loan products were falling again. The weekly national survey of large lenders notched rates that were tottering ever closer to the 3% mark across the board: 30-year and 15-year fixed mortgages; adjustable of all stripes—the works. Refinance rates were virtually flat—with 15- and 10-year offerings priced below the 3% mark! Ninety-nine cent steaks! This is the kind of news that used to mean lenders could sit back and wait for an onslaught of Las Vegasrefinance applications…yet if they echoed the national reports, no such traffic was on the horizon. Never mind that, as one California loan officer observed, “It’s a great time to refi; rates haven’t been this low in years.” Instead, The Washington Post headlined, “Mortgage rates sink to lowest levels in more than a year”—then followed up with a Mortgage Bankers Association reading indicating that refinance loan application volume “tumbled 9%.” What goes? The simple fact is that rates have been so low for so long, almost every Las Vegas homeowner who could benefit from a refinance has already done so. For them, the further notch downward doesn’t promise enough of a savings advantage to make it worth the trouble. Still others, having recently refinanced, can’t believe it could possibly be worthwhile. In case you haven’t checked into your own mortgage arithmetic recently, I recommend at least taking a look at your last statement. There definitely are some folks in Las Vegas who would benefit substantially by a refinance at this juncture. If you have any questions on that score, or would like to compare notes regarding any other Las Vegas real estate matter, please don’t hesitate to give me a call!
LAS VEGAS PROPERTY CAN FEATURE GOOD OR NOT SO GOOD WATER
It’s one thing when you see the word “water” figuring prominently in descriptions of Las Vegas properties. Any time that word comes into play, it’s a cinch that the property in question is more valuable than any waterless neighbors. Everyone knows that a shorefront or beachfront property is likely to be worth more than an identical inland place. In Las Vegas like Florida, condos with docks (or even access to a dock) are highly prized. Wherever a lake, river or stream is noted in a listing’s description, it’s likely to add significantly to the asking price—even if it’s only because of a distant view. The conclusion anyone would draw from the foregoing is that as a general principal, “water” is a desirable feature when it comes to real estate—and Las Vegas real estate would be no exception. But that’s only for good water. Bad water is something else again. Bad water is the kind of water you can’t do anything useful with. If it’s not there for recreation, or even for scenic enjoyment—then you are dealing with “bad” water! It includes an entire catalogue of water that is unwelcome. The only thing you can do with this kind of water is to get rid of it. Whenever you are taking a look at property in Las Vegas, water should be near the top of the list of things to be watching out for (that is, if it isn’t mentioned in the listing). Later on, your property inspector will check for the wrong kind of water; but if you keep your eyes open, you can do some preliminary detective work yourself. And it does take detective work because bad water has usually already made its getaway before you arrive. But it can’t help but leave a few clues. Here are some common ones: Foundation clues. A single inch of rain creates 600 gallons of runoff—and if that water isn’t properly directed away from the foundation, nothing good will come of it. Piles of silt or landscaping gullies where they don’t belong are two clues. Gutter clues. Accomplices that can cause foundation issues reveal themselves in the guise of gutters that aren’t doing their job. A visual reconnoitering of the overhead gutters and downspouts is usually sufficient to spot these perps. Stain clues. Standing water will usually leave forensic evidence, long after it has fled the scene. Pavement, flooring, or even ceiling stains are clues; and walls can show efflorescence (the minerals left after water has evaporated). Olfactory clues. Moisture in walls and in attic spaces can be hard to see, but easy to sniff. If it gives rise to mildew on the underside of the roof, work needs to be done! Even if you aren’t planning to put your Las Vegas property on the market any time soon, getting an early preventative bead on drainage problems can ultimately become a true dollar-saver. Of course, when it’s time to sell—I hope you’ll give me a call!
REDUCED PRICES ATTRACT LAS VEGAS HOUSE HUNTERS
When you are skimming through the Las Vegas listings, now and then you come across attention-grabbing terms like “one of a kind” or “extremely motivated seller.” “Reduced” is another one. After all, who doesn’t like a bargain? Especially when that bargain is associated with a major commitment, who wouldn’t think it’s worth looking into? Today’s listings may no longer be saturated with short sales, foreclosures, and scores of listings reduced by enormous percentages, but patient Las Vegas house hunters can still strike pay dirt if they are diligent and methodical. Nevertheless, there are some tried-and-true cautions that need to be observed to ensure that the “penny-wise, pound foolish” saying doesn’t wind up describing the result. Most of what is being written on the subject of real estate bargain hunting fall into the common sense category—for instance • Low-balling the offer seldom works. The hope that you can create a bargain just by making a shot-in-the-dark low-ball offer is much more likely to result in a resentful homeowner than a successful deal. As in most business transactions, success is more likely to develop when both sides understand the motives and goals of the other. Since any seller whose Las Vegas property is on the market is assuredly quite well aware of the likely value of his offering, unless the seller is in desperate need of a deal, this tactic is counterproductive (and if the seller does really need to move on, odds are the property has already been reduced to reflect that). • ‘As-Is’ also means ‘Heads-Up!’ A home that’s been “reduced” simply means the market is suggesting that an asking price correction is needed. When “as-is” is appended, it could also indicate that the place probably needs work—maintenance work (and work from potential buyers to discover how costly that maintenance is likely to be). In some cases—when a home has been perfectly maintained—it could mean that some features that are expected in today’s Las Vegas homes are missing. In any case, “as-is” means “heads-up.” There is one more caution that isn’t usually written about, but which can be easy to overlook when an epic bargain looks to be within reach. Since the process of buying a house takes some time to accomplish, it’s one that often occurs before it’s too late, anyway—namely, it’s not a bargain if it’s not what you really want! It can happen that the asking price is so affordable for a home that has more (or better) features than you thought you could manage, that you are in danger of being charmed into making an offer on something that’s not a very good fit. When you discover a property that’s been reduced to bring it within your price range, it still needs to fit your family’s most important requirements. An Olympic-sized swimming pool can add an exciting and unexpected dimension, but if the place is one bedroom short, in the long run, it might not be such a bargain, after all. This spring, many sensational offerings are out there for Las Vegas home hunters. Give me a call when you are ready to take a tour of the ones that meet your requirements!
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