Penny's Blog

Foreclosures & Market Conditions

2008-04-03T19:43:28Z

The Media is having a great time blasting Vegas for having the nation's highest foreclosure rates. This sounds like a great opportunity for buyers, right? Not necessarily! It depends on the willingness of the investors, who put up the funds for the original mortgage, to take a loss.

When an investor is trying to mitigate the damages, his strategy is TIME. By waiting, he hopes to recapture more of his investment. So, although a property may look great on the Multiple Listing Service, it may not result in a sale at list price. WHY? Because the investors will wait. . . wait to see if prices rise. . . wait to see if a cash buyer will come along (cash is finally king!) . . . wait to see if they can get more offers. . . wait to counter any offers they do get and try to get everyone to send in their "highest and best."

When you're out looking for a property to purchase, keep in mind that you are not alone. The media has informed everyone that there are great deals in Vegas. So, there are many buyers out there, looking for the same great deal that you are. The end result is, multiple offers and higher prices. Not so many great deals!

I have heard that people are getting deals of 5% to 20% below market. To buy a house at 5% under market value is fine, but in my book, it is not a killer deal. 20% would be a killer deal, but frankly, in my analysis of recent sales, that has only happened twice, and both times it was to a cash buyer. The "deal" that you will get is dependent on the willingness of the seller to "give" you a deal, as well as how many other buyers are writing offers on your "deal". If you find a property you like, make an offer and be prepared to wait for a response.

There are many variables for the seller to consider when looking at offers, so it pays to use an agent who is aware of those variables and knows how to write a "clean" offer. I won't give away my secrets!! Only my clients will learn the tricks from me. The rest of you can learn the hard way (like I did). Sorry!

One of my sources of statistical analysis is the monthly report from Bob Thompson. Bob is a math professor at UNLV (University of Nevada, Las Vegas). He often comes into our office, at my broker's request, to train us and to bring us up to date. He has been a fantastic source of information, which I use constantly to help my clients. In his report for March, 2008, he mentions the following:
"PERCENT SELLING (market efficiency) and ABSORB RATE (market speed) demonstrated a slight

increase after a long decline signaling market bottom has been reached (in terms of demand). Positive changes

in the level of sale pendings indicate that both Percent Selling and the Absorb Rate will be on the rise in the

near future (slowly). However, prices have not bottomed especially for SFR and will continue their current

negative trend led by distressed sale situations. Condo is less clear and appears to be demonstrating more

resiliency. Confirm this by reviewing (on the MCR) that pending-contingent price for SFR lies below current

closing price, but not so for Condo.

The market is currently in a contraction cycle of unknown duration. Some areas are "hotter" than others in

terms of transactions. Some price ranges in hot areas turn out to be cold. The above areas and price ranges are

both hot in terms of area and price range. A listing in the areas and price ranges indicated will have greater

expected value than those not in these areas and price ranges (SFR ONLY). "

For those of you wanting to read Bob's reports, which are sponsored by Equity Title, please send me an email and I will forward them to you. As I learned in statistics class at Cal-State, you can prove anything with statistics. Luckily, Bob is not trying to prove anything; he is only trying to help us understand current market conditions. We are always in "balance", according to Bob. The buyers and sellers strike a balance in each transaction. The basic "supply and demand" theory that we learned in Econ 101 still applies, notwithstanding the media.

The good news is, there is still a lot of inventory in Vegas. You will be able to find the home you want. Will it be cheap? Doubtful. Will it be representative of the current market demand? Yes. Is it a good time to buy? YES!

Single Parent Properties

2008-03-05T14:44:50Z

I am pleased to have been selected as part of an elite national network of Realtors dedicated to protecting the interests of single parents and low-to moderate-income families here in Boulder City and Henderson, Nevada. I recently became approved as an Ambassador agent for Single Parent Properties, an organization dedicated to educating single parents and other vulnerable consumers about affordable housing programs. To learn more about Single Parent Properties, click here http://www.singleparentproperties.com/

Travel Adventures

2007-12-14T00:44:41Z

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Penny K. Andrews, ABR, GRI

Universal Realty, Inc.

2490 Paseo Verde Parkway Suite 115

Henderson NV 89074

702-938-7700

fax: 702-293-6594

cell: 702-232-1607

'The earth is but one country and mankind its citizens.' ~Baha'u'llah

Relocating to Henderson, NV

2007-09-30T11:30:29Z

Henderson, Nevada, sister city to Las Vegas, Nevada, is mainly a planned urban development (PUD). In the 90s the City instituted its master plan to provide a fabulous flow of life. Residents now enjoy easy access to work, parks, recreation, shops, doctors, and freeways, while living in a subdivision or condo that suits their needs and budget. The beginning of this plan was called "Green Valley," and a large amount of beautiful landscaping was installed to provide the "Green" part of the desert.

The media tells you that the real estate market is in a slump, and that house prices are falling. This is only partially true in Henderson. It is a good time to be a buyer because the rush is over. You can take your time and look for a few days before deciding to write an offer.

However, when you factor in your particular wants and needs list, you may be looking at only 3 or 4 houses. Don't wait to make an offer! Get your financing lined up, have your earnest deposit ready, and hire your realtor before you go looking. You will still need a pre-approval letter, or better yet a full approval, before you make your offer. You want to be ready when you find the perfect house at the perfect price!

If you do your research on the internet, with your agent by your side, you will reduce the amount of time and stress in looking for a house. A typical Buyer's Consultation at my office will take 1 or 2 hours, so plan accordingly. I would much rather do all the research possible while sitting at the computer, then drive all over the valley for days looking at houses that just won't work.

A Buyer's Relocation Guide is full of great information for anyone new to this area, or new to real estate. Be sure to get one from your agent or title company. We have them on hand at the office so that you can get all the information possible.

Henderson is a wonderful place to live, especially if you need to go to the Las Vegas Strip or the McCarran International Airport. It's quick and easy to get to either one. Henderson has its own shopping mall, Galleria Mall, as well as many large strip-malls, and the Belz Outlet Mall. Green Valley Ranch Casino has wonderful shops and restaurants, as does The District at Green Valley. Bowling alleys, movies, baseball fields round out the activities. The MultiGenerational Center in Henderson is a fabulous place for culture and arts, swimming and other sports. Lake Las Vegas is at the far east end of Henderson and is a beautiful world unto its own.

The City of Henderson has done a fine job in planning this exciting and fresh young City. Contact me for information on specific homes available.

Buyer Data Sheet

2007-09-02T11:18:13Z

Looking to buy a house in America? Be sure to let your real estate professional know your needs and desires. Fill out this Buyer Data Sheet and send it to me; I'll link you up with a mortgage professional and a real estate professional for your area. You can fax it to 702-293-6594 or email it to penny@universalrealty.com.

BUYER'S DATA SHEET

Name _______________________________________________________________________________

Address ______________________________________________________________________________

Phone #s, incl. Cell ___________________________________________________________________

Email________________________________________________________________________________

Date you want to be in your new home ________________________

Do you need to sell your existing home? _______________________

Location of new home (city, state) _____________________________________________________

Desired property features:

# bedrooms __________________ # bathrooms ____________

Square footage _____________________ Garage size _____________

Price range ____________________________________________

RV Parking (yes/no) ___________ Pool (yes/no) _________ Spa (yes/no) ________________

Financing desired ______________________________________

Do you need a referral to a lender? ____________________

Other features, please check if desired:

Desert landscaping _________ Large back yard ___________ Gated community_______

Formal dining room _________ Separate family room _______ Age restricted _________

One story ___________ Guest quarters _____________ Large master suite______

Any other features you require:

WHAT'S HAPPENING IN BOULDER CITY

2007-09-01T23:57:13Z

Mark your calendars! The first full weekend in October is our annual Art in the Park. Over 100,000 visitors will come to visit our fund-raiser for the Hospital.

The dates this year will be October 6 and 7. Come early (by 9 am) if you want to park uptown and walk to the parks. Or park at the edge of town (follow the signs) and ride the shuttle-bus. Be prepared with a hat and drinking water, especially if you're taking the shuttle. The fun only goes until 5 pm, so don't be late!

Food abounds at the festival. The central walkway takes over Colorado Street for vendors selling roasted corn, Chinese food, BBQ, sodas, etc. Tables and benches, and grass, are fine seats. Or walk one block to our local restaurants, such as Chiarelli's Deli (my favorite, the cleanest restaurant you ever saw), Milo's winery, the new Brew Pub, and other fine eating establishments within walking distance. The air conditioning will feel great! Milo's even has misters for those who are seated outside. Great idea, Milo!

This weekend has historically been our last hot weekend. The skies may fill with rain clouds, but only a few drops ever seem to reach us. Mostly it will be summery-hot, so load up with sunscreen and water. If you run out of Gatorade or fresh fruit, head over to Central Market on Arizona Street.

Bring your credit cards and browse for fine art, craft items, jewelry, wood carvings, doodads and other amazing creations by the talented artists of America. A percentage of the sales go to benefit our local Hospital, which is a community-owned hospital. (I bet you didn't know we had a hospital in Boulder City!) Even if you buy nothing, you will have a great time. There's even a playground for the little kids. Come on down, y'all!

BOULDER CITY HOUSING

2007-09-01T23:47:05Z

Boulder City, my hometown since 1980! We are a niche market. We are not in the Las Vegas Valley (surprise). We are the only town in Nevada to have no gambling. We have a city-charter form of government. We have our own Credit Union. We have a low-growth ordinance, which means city council is limited in the number of building permits it can issue in any year (120).

For the person who is looking to buy a home in Boulder City, the surprising news is that there are fewer than 200 properties on the MLS. Ranging in price from $189,000 to $8 million, you might be able to find one or two to suit you. Don't be surprised at the prices for these properties; with high demand for our cherished lifestyle, and limited inventory, the prices are still higher than Las Vegas.

Our local saying is, "Boulder is older." You have to want a home with charm, character, or patina. If you're looking for a cookie-cutter home, your choices will be limited.

We have several districts in town. We have the "horse territory" which consists of streets names after horses, such as Appaloosa, Pinto, Chestnut. We have the "Indian territory" named after Native American tribes such as Paiute, Shoshone, Cheyenne. We have the "girl streets" which are named after girls, such as Jeri, Esther, Ramona, Nadine. Heading up town, into the original section of town, we have Avenues and we have Numbers. Also we have the States, such as Colorado, Arizona, Wyoming, New Mexico. On the edge of downtown, lies Del Prado, with street names like Otono, Paloma, Olmo. A few other small subdivisions, and the custom home areas of the two public golf courses and "B" hill (horses allowed) round out our offerings.

Each district might have 4 streets or 11 streets. Each one was built within a few years. For example, the girl streets were built in the mid- and late-70s. Del Prado was built in the late 70s and early 80s. The Avenues were built from 1930-1965, and the Numbers were also built during those years.

So, if you're planning a trip to Boulder City to look at homes, keep in mind what era you prefer. Are you okay with low ceilings, small bathrooms & charming yards? Do you require newer features such as 9 foot ceilings, rounded corners, and open floor plans? It's not just the square footage and the number of beds and baths that should be considered. It's such mundane details as "how large is your master bedroom furniture" that need to be addressed before you go look at houses that just won't work. It is definitely helpful to use one of our local realtors, who know the town, the neighborhoods and, in many cases, even know each particular home.

Boulder City, with its low crime, low pollution, low traffic, quaint stores, walking paths, beautiful parks and trees, might be the ideal city for you. Just check in with me for answers to your questions before you start your search. Be patient, eventually you will find just the right house for your new life in our low-stress City.

Buying a Home NOW in Las Vegas market

2007-09-01T10:18:14Z

POSITIVE NEWS FOR BUYERS! There is INVENTORY. New Home Builders are offering some great incentives, such as landscaping your backyard, paying your closing costs, or credits toward upgrades. Offers vary by builders.

Resale homes are also offering incentives, such as paying all or part of your closing costs. Sellers are more willing to look at your offer and Counter it rather than rejecting it. That does not mean you can make a ridiculously low offer and expect it to be accepted. It does mean that if you are serious about a house, you can negotiate with the Seller in a way that I haven't seen since 1986.

The sky is not falling!! The media is full of negativity, but remember this: there is no such thing as a nationwide real estate market. If you want to live in a certain city, in a certain school zone, near a certain freeway, or enjoy a certain-sized yard or house, you are not looking in a national market. You are looking at your needs, your parameters, your budget, and making your decision, in your local market.

We are finding an increase in buyer traffic at our office. I personally wrote 3 offers within one week! Two have been accepted so far. . . the third should be done in a day or two. WHY? Why all the "sudden" interest?

It's the age-old balance of supply and demand. Basic Keynesian economics as taught by John Maynard Keynes. When supply rises, prices fall. When demand falls, prices fall. Put those two together and you have our current market situation. Is this Doom and Gloom? No. This is Balance. The Balance between supply and demand determines market price. Not the Seller! Not the Buyer! The two working together. . . that is Balance and that determines market price.

So, whether a person wants to buy or sell, the time is always "now" because of the market balance. And the time is really NOW for all Buyers because of the Supply. A lot of sellers are still greedy . . . the lack of a Buyer proves it. Some sellers took all their equity out, thinking it was free money (what were they thinking????). There are enough serious sellers for Buyers to be happy with the home-buying process.

And that's why we're busy at our office!! Our listings are selling, once we educate the Sellers about the Balance of the market. And our Buyers are buying! We're happy!

EXPAND YOUR SPACE

2007-08-09T15:55:44Z

We have thousands of homes for sale in the greater Las Vegas valley. 94% of them are tract homes, using the same floor plan. "Seen one, seen them all." Once a buyer has determined what he wants, how will he remember yours after looking at 10 or 12 identical homes? You might think the answer is custom paint, or upgrades, or cleanliness, or staging. Nope, it's something simple and it's free.

The answer is "EXPAND YOUR SPACE."

EXPAND YOUR SPACE is a visual trick that you will play on the buyers. They will think that your house is bigger. For a simple reason: you will take 85% of your stuff out! Empty the closets, the cupboards, the garage, the bedroom, the living room, every single inch of your home. Put it all in storage. PRESTO! Your home just grew in size!

Clean out the clutter. I know, you love your possessions! That's why you possess them!! However, too many Buyers will think that the possessions come with the home, and they will think there's too much stuff. It sounds ridiculous to think that someone assumes the house comes with the stuff -- but they do assume that, subconsciously. As a Buyer's Agent, I have heard too many people say, "Ooh, I don't like that couch" or, "There's too much furniture in this small room, it's too crowded."

Don't take the risk that the Buyer is thinking of keeping your stuff!! And don't assume that the Buyer's Agent will know what to say, because most of them don't. Get ahead of the competition and box up your treasures and put the boxes in the garage. Or better yet, put the boxes in a storage unit. Get the house down to the bare essentials; one couch, one table and 4 chairs, one bed per bedroom. That's about it. Put the rest of the furniture in storage.

Your Buyers will be impressed by how spacious your rooms are. They won't be taking turns to get through the room because of that big recliner....or too many chairs at the dining table. They won't stumble over a microwave cart in the kitchen. They won't stick their head into the bedroom and then back out. They will actually walk through your home going "WOW" this one looks SO MUCH bigger than the last one!

Then they will sit down at your clean and empty table and write their offer. Congratulations, you just beat out all the other sellers who won't be getting any offer at all. And you did it FOR FREE.

P.S. You also reduced your moving-day stress load, because you are packed in advance. Good Job!

9 Steps to Buying a Home in Nevada

2007-07-10T23:17:04Z

9 STEPS TO BUYING A HOME IN NEVADA

1. Pre-approval. Meet with a loan officer and find out how much you can borrow. Get a pre-approval letter from him. Ask him what your closing costs will be, and how much you will need for a down payment. Ask him how much the monthly payment will be. Ask him how many months you need to have your money in hand before you can qualify for a loan. Save up for your Earnest Deposit ($2,000 to $5,000 is normal).

2. Hire a Realtor. Every real estate agent is not a Realtor. I am a Realtor, a licensed agent who can look at all the homes for sale on the MLS (Multiple Listing Service). I will represent you and help you through the purchase process. I am also an Accredited Buyer's Representative (ABR), and a Graduate of the Realtor Institute (GRI). Typically, the fee for my service is paid by the Seller. The Buyer's Brokerage Agreement, which is now required by the State of Nevada, spells out the hiring terms. We will review this during our Buyer's Consultation Session.

3. Start looking for homes. Let me know where you want to be, what your price range is, what type of home you want. Give me as much information as you can, so I can identify the best homes to look at. I will ask you to fill out a Buyer's Data Sheet.

4. Write an Offer. Once you find a home you want, I will prepare the contract for an Offer on the house. You will have to sign the contract and write a check for the Earnest Deposit. There are 10 pages in a purchase agreement, so schedule at least an hour to review and sign everything. If you are buying a house with someone else, that person will have to sign the contract also. We can fax or email the contract if needed.

Next, I will present your contract to the Seller's agent (or to the seller if it is For Sale By Owner). There will be a deadline, so the Seller has to respond to you quickly. That way you will know if they accept your offer or not. If the Seller accepts your first offer, then you will have a deal and the escrow will be opened. Your check will be turned in to the title company to be cashed and put in your escrow account. We will be "in escrow."

The Seller may "counter" your offer; which means, your offer will be accepted subject to any changes written on a Counter-Offer form. We will review any Counter, and decide to accept it or not, or even to change it. Once everyone agrees, in writing, to the terms, then you will have a binding contract. I will then take the contract, the counter, and your earnest deposit check to the Title company and open the escrow account. After that, the contract cannot be changed unless both you and the Seller agree, in writing.

5. Property Inspection. Once the escrow is opened, you will need to pick out a Property Inspector to inspect the property. This is highly recommended, even on new construction. You will be present at the inspection if you wish. You will have to pay the Inspector at the time of inspection. It's usually around $200-$450. The inspector will let you know if repairs are needed, and we will negotiate those with the Seller.

6. Appraisal. I will also send your Purchase Agreement to your loan officer. He will order the appraisal. He will usually ask you to pay for the appraisal at the time it is done. Appraisals usually cost $350-$450. The exact amount will be on the Good Faith Estimate that the loan officer gives you (this is required by law).

7. Home Owners Associations. 85% of the homes in our county are in Common Interest Communities (formerly called homeowners associations). The restrictions, rules, fees, minutes, financial statements, and litigation disclosures will be given to you for review. If they are acceptable to you, you will sign a receipt for them and a statement that you intend to go forward with the purchase of the home.

8. Loan Documents. Once the appraisal is done, the loan company will gather your data, review the file, prepare your loan documents and send them to the Title company. This usually takes 3 weeks. The Title company will call you to come in to sign the documents, and will let you know how much money you need to bring. You (and anyone else on the loan) will have to go to the title company, with your driver's licenses, and a certified check (bank check) for your down payment and closing costs. Then you will sign the loan documents and other papers prepared by the Title company. I will be there to help you and to handle any problems that might arise.

Before you go to sign your loan documents, we will do the Walk-Through inspection. That is usually done 5 days before the closing date. It's your final chance to be sure the property is still in good condition and that agreed-upon repairs were done.

9. Recording. The next step is to wait for the loan company to send their money to the Title company. Then the title company will go to the County Recorder's office to record the name of the new owners (you). As soon as we know that is done, the house is officially yours and you get the keys! The Seller has to be moved out by that time. They do not have 3 days, as in some states. Here, closing is a process which takes about a week. It is not done in one day around a table with the other parties, as in some states.

It is very important to do these 9 steps in the right order. Making sure all of these are done on time and in order is my job. Guiding you through the process is also my job. I will also be supervising everyone else involved (title, loan officer, inspector, appraiser, other agent).

I hope this helps you and I look forward to helping you find the perfect home!

Penny K. Andrews, ABR, GRI

email: settlingin@hotmail.com

Universal Realty, Inc.

2490 Paseo Verde Parkway Suite 115

Henderson NV 89074

cell: 702-232-1607

fax: 702-293-6594

blog: activerain.com/blogs/bouldercity

Helping my clients achieve their real estate goals with smooth & efficient transactions is my joy!

Housing inventory in Boulder City

2007-06-12T00:23:45Z

At least once a week, someone asks me, So, how is your real estate business doing? How is the inventory in Boulder City?

I'm going great!! I enjoy repeat business and referrals, and I am happy to report, we do not have excess inventory in Boulder City! We have fewer than 200 properties for sale. This is normal for us. We always have people ready to buy a property if they can find the one they like from our small inventory. And, once they get over "sticker shock" they usually go ahead and buy in Boulder. If not, Henderson is just over the hill.

The quality of life in Boulder is not the same as in Las Vegas. There is no gambling in Boulder City. There are a lot of retired people. Some people have lived here for 50 years -- that's stability. It's a lot like junior high school -- you know the people around you, you watch out for your buddies, there's someone older for advice, there are clubs to join, you don't feel lost in a big pool of strangers.

The other questions that I hear often is, What are interest rates doing? They are hovering around 6.5% which is a bargain! Do you remember the interest rate before 9/11? It hovered in the 8's. 8% or 8.5% was thought to be a good rate.

The first home that I bought here was financed with an ARM (Adjusted Rate Mortgage), which started at 13% and went up to 16%. No wonder we think 6.5% is great!

Yes, I am still excited to be a real estate agent in 2007. Inventory is reasonable and interest rates are low. Southern Nevada is in high demand. I'm happy serving the people who come to me. Let me know if there's anything I can do to help you with your real estate goals. If you're dreaming of real estate, let me show you how to transform a dream into a goal, and how to achieve your goals. It's a step-by-step process and it works!

Las Vegas home market

2007-06-06T01:21:18Z

OK, here's the deal. We are in a balanced market. Don't listen to the doom-and-gloom folks. Just look at the balance in the market place. We have almost 2 million people here, so of course we have 23,000 properties for sale. Thousands are still moving to the Las Vegas area each and every MONTH. We have lots of buyers and tenants coming here every day, and luckily we have lots of homes available. It is not the end of the market; interest rates are still low; employment is high; it's a good time to buy a home AND you have a lot to choose from. It doesn't get any better.

We are selling over 3,000 properties a month. The rush is over, we're back to business-as-usual in Nevada. I've been involved in real estate here since 1980. I'm not worried! I love these times. I can focus on each client more carefully and thoroughly. We have enough time to digest what is going on.

Las Vegas is still the center of the Universe! It's the most exciting city to live in because it is creating a major city, thanks to our fearless leaders and confident residents. Do we enjoy the sunshine, dry climate and no state income tax? You bet! Don't forget our low property taxes!

If Vegas is too rushed for you, come check out the master-planned community of Green Valley. The City of Henderson very wisely decided to plan where to put houses, apartments, condos, highways, shopping centers, schools. It flows!

And if Green Valley is too busy for you, look at Boulder City. It's a lovely retirement community that has its own hospital, doctors, dentists, shops, parks, Chamber of Commerce, swimming pool, tennis courts, clubs, Senior Center, etc. Also, two elementary schools, one middle school and one high school. With a population of around 15,000 it's a sweet place. The limited growth ordinance keeps the growth rate manageable. Check out Lake Mead! Only 4 miles from Boulder City, the recreational opportunities are stellar.

Yes, I'm sold on Southern Nevada. If you're thinking about buying or selling here, call me for an interview. I will do my best to help you make an informed decision. It's a great time to buy or sell!