Yes, Las Vegas is definitely having a half price sale! Prices have dropped on average of 59.2% from their all time highs in early 2006. But despite reports of doom and gloom in the local and national press about the Las Vegas real estate market, the actual sales volume stats for the year 2009 say something different. The total number of closings for single family homes in 2009 finished at 38,127, a 53% increase over closings in 2008. Condos and town home sales volume finished the year at 8752 closings, a 137% increase over 2008.

In fact, total closings in 2009 actually EXCEEDED the number of closings in 2005, the former sales volume annual record holder. Inventory for single family homes is down to 9,119 as of today's date compared to a peak inventory of 26,000. Of the available homes currently on the market, almost half are short sales and the rest are divided pretty evenly between Las Vegas bank foreclosures and "real" sellers.

And why is the inventory of Las Vegas homes for sale so far down and why was the 2009 sales volume so high? Investors, attracted by the low sales prices which yield a good rate of return for rental income, are flocking back to the city. They are coming with cash and competing with first time homebuyers and move up buyers for the limited number of available listings.

December closings sold according to the following terms:

Cash 41% with an average sales price of $117,522
Conv 23% with an average sales price of $192,915
FHA 30% with an average sales price of $143,515
VA 5% with an average sales price of $188,113

Prices in some of the most popular areas of the Las Vegas Valley actually appreciated a small percentage in December, most notably in Summerlin, Anthem and the Southwest. The big banks are still sitting on a large number of foreclosures that have never been put on the market, but sources indicate that they will only be releasing these in controlled numbers over the next year or two so that prices remain stabilized.

Is previewing homes for clients a dying art? I have noticed over the past five years (at least locally) that fewer and fewer agents are actually previewing homes before they take buyers out to look at them. As an agent for more than 25 years, this is incomprehensible to me. Yes, we have more resources online with photos and virtual tours, but in my opinion these should be used to narrow down what you want to preview for the client, rather than to define what you are showing them. We are supposed to be the professionals, and there is no way to tell if the home backs up to power lines, has obnoxious pet odors, or is next door to the neighbor from he** without at least a cursory physical inspection. To me, not previewing (unless of course the client wants to go out at the last minute and does not give you notice) is rude and sloppy, and says that you don't value the client's business or time.

Another trend I have noticed, is that agents let the clients tell them which specific listings they want to see, rather than the agent guiding the search. With the advent of Internet MLS access, buyers are making the decision based on photos of a home, rather than the experienced agent's knowledge of all homes for sale, community and floor plans.  I can't tell you how many times I pass by a conference room where the agent is sitting with the client (who booked weeks in advance), looking up listings that the client found and then hastily making last minute appointments to rush out to see what turn out to be inappropriate homes. It should be exactly the other way around - the agent listening to what the client wants and then going out ahead of time and finding the BEST homes that meet the client's needs. By the time the client gets in the car, the agent should have a comprehensive knowledge of the homes he/she is showing and good reasons why they are NOT showing other homes the client may request.

When I question agents about the two items above, I generally get the same responses, "everyone does it that way now" or "I don't have time to preview" or "homes are selling too fast." No wonder buyers and sellers don't respect real estate agents! Too many have become lazy and reliant on the clients themselves to do their homework for them. You can really establish credibility by knowing your inventory BETTER THAN THE BUYER does. At the very least you can always do an evening drive by the night before if the client is last minute. And personally I have also picked up quite a few great listings on homes that later expired where the sellers were impressed that I took the time to preview.

Finally, after years of construction and financial turbulence, the $8.5 billion dollar MGM City Center is making its grand debut on the Las Vegas Strip on 67 acres between the Bellagio and Monte Carlo resorts. Las Vegas residents are hopeful that an influx of tourists to the latest mega attraction and over 12,000 more jobs generated by the project will infuse new life into the Las Vegas real estate market and Las Vegas condo sales.

This week MGM Mirage celebrated the openings of several key elements of its long awaited urban lifestyle mixed use development. The Vdara Hotel and Spa was the first to open on December 1st with a gala that was co-hosted by Vanity Fair and attended by celebrity guests Orlando Bloom and Rosario Dawson. Vdara features 1,495 condo hotel suites, an 18,000 square foot two-level spa and salon, a world class fitness facility, and over 10,000 square feet of meeting space.

Next to open on December 3rd was Crystals, the City Center's 500,000 square foot retail and entertainment complex. Crystals shopping mall features high-end retailers like Louis Vuitton, Hermes, Prada, Christian Dior, Bulgari, Van Cleef & Arpels, Tiffany & Co., Mikimoto and Ermenegildo Zegna, as well as five gourmet dining restaurants. "Originally, when we put together a portfolio of all the stores, we realized this is a niche that the market is missing - a selection of retailers under one canopy that are extremely high end, and that's what we went after," Crystals Vice President and General Manager Farid Matraki said. Matraki also added that it was a priority to capture brands not already in the market.

Then on December 4th the latest Mandarin Oriental with 392 guest rooms, 227 private luxury condominium residences, a 27,000-square-foot spa and 12,000 square feet of meeting space. The condominiums in this most recent edition of the internationally acclaimed Mandarin Oriental Hotels are already 93% sold out, with price tags starting at over $1M for a one bedroom residence.

And on December 16th the center piece of the City Center, the massive 4,004 room (including 568 suites) Aria Hotel and Casino, will debut with its own grand opening celebrations. I will be attending a special VIP party that night and expect to have lots to report later next week on all the amenities which include: 150,000 square feet of gaming, three primary pools with 50 cabanas and one European-style pool, 16 restaurants and 10 bars and lounges, including a nightclub, an 80,000 square foot two level spa and salon with 62 individual spa treatment rooms and 55 salon stations, and an 1,800 seat theater that includes the celebration of the timeless musical legacy of Elvis Presley from Cirque du Soleil.

If the project takes off as expected, by spring new employees of the MGM City Center should feel confident enough in their jobs to fuel a fresh spate of home buying, just in time to take advantage of the first time home buyer tax credit and the affordable homes for sale in Las Vegas. With the number of Las Vegas foreclosures at an all time low, we may even see price increases during the first half of 2010.

Buyers of Las Vegas homes need to be aware of several proposed changes to FHA guidelines that may soon be implemented buy the Federal Department of Housing and Urban Development which will impact their purchasing power. It is estimated that more than 71% of FHA's losses over the next five years will come from existing loans, prompting HUD to re-evaluate criteria for new loans in an effort to minimize further losses.

Proposed changes to the current guidelines could include:

* Reduce the maximum seller contribution towards buyer closing costs from 6% of the purchase price to 3%. The current level exposes the FHA to excess risk by creating incentives to inflate the appraised value to cover costs paid by the seller.

* Raise the minimum FICO score for new FHA borrowers.

* Increase the down payment that a borrower has to bring to the table for an FHA-backed loan to make sure that FHA buyers have more "skin in the game" and a stronger equity position in their loans. Currently FHA minimum down payment is only 3.5% of the purchase price.
Increase the mortgage insurance premiums currently charged. This could be in the form of an up front payment or an increase to the annual premiums paid as part of the monthly mortgage payment.

* Require lenders to indemnify the FHA fund for their own failures to meet FHA requirements, and holding lenders accountable for any improper activities. This would ensure that lenders assume all responsibility for any losses associated with loans not underwritten to FHA standards.

Greater down payment requirements and higher FICO scores will certainly impact the Las Vegas real estate market, especially for first time homebuyers trying to take advantage of the extended first time homebuyer tax credit and all time low prices. Even under current guidelines they are already in competition with all cash investors for the limited supply of affordably priced Las Vegas foreclosures, and stricter lending requirements could nix the dream of American home ownership for many. Buyers that have even been thinking about purchasing a property with an FHA loan should be aware of these impending changes and act quickly before they are put in place.

A few days ago I posted a letter on this blog from one our Las Vegas real estate inspectors, Spectrum Inspections. The letter addressed the responsibility of the listing agents to disclose known defects on Las Vegas foreclosures they were handling, despite the fact that the properties were being sold "as is, where is." In this particular case, the inspector was aware that the listing agent had ordered mold remediation done on the property prior to placing it on the market, though there was no disclosure about the remediation to the subsequent buyers. The inspector's quandary was whether or not to let the listing agent know about their potential liability to the buyer, since Las Vegas real estate agents are required to disclose all known material defects about a property, even though the property is being sold "as is, where is."


Below are excerpts from the inspector's follow up letter detailing the resolution that resulted from alerting the listing agent to the issues.


Dear Diann,

I would like to thank the many people who responded to my request for guidance and provided me with input. Most of the guidance and direction recommendations that I received were very similar. However there were a wide array of suggestions that ranged from, "Do nothing; you're just the home inspector," to "you must take this issue to the state legislature to ensure this type of thing never happens again." Some people thought we were over stepping our boundaries as home inspectors, while others complimented our involvement. During my twenty-one years in the military one lesson I learned was that the proper initial course of action is always to try and resolve problems at the lowest level. This is what I did.

When I called the Listing Agent and spoke about the potential liability he may be incurring by not disclosing material information that he should disclose in accordance with the "Duties Owed" he was very grateful and receptive. He went on at great length about how he is buried with REO listings and appreciated me bringing this issue to his attention. He is a good guy, trying to do the right thing, and did not need to be either reprimanded or incarcerated.


He sent an addendum to the Selling agent disclosing that the home was plumbed with Kitec. He also sent the Selling Agent copies of all the repair orders, documentation of the repairs that were accomplished, and even forwarded the results of the post mold remediation testing that was performed. It appears that his actions to address the damage and the mold were done by the book. The buyers were very grateful that nothing seemed to be glossed over and now feel that they received the level of disclosure they were entitled to receive.


We also suggested the Listing Agent contact the Asset Manager, request that the Kitec replumb be accomplished prior to title transfer at the bank / current homeowners expense, and to have the prospective buyer sign an agreement that assigns any remuneration from the class action lawsuit to the bank that paid to have the replumb accomplished. Everyone involved thought it was a good path of resolution that created a win/win situation. The buyers are willing to move forward with the transaction once the replumb is accomplished, and will have a better than expected 25 year warranty on the plumbing system. All the repairs the Listing Agent had performed were professionally accomplished and this was confirmed during the course of our inspection. The buyers are now looking forward to spending the Christmas holidays in their new Las Vegas home.

A great home inspection will not only uncover all the significant problems with the home, but will provide you with a course of action or path of resolution for addressing the issues. Both agents in the transaction were delighted at the level of involvement we provided. Don't you love a happy ending?


Paul J. Donohue, RHI, RREI, CREI
President, Spectrum Inspection Group Inc.
8345 Coyado StreetLas Vegas, NV 89123
Phone: (702) 269-6716

Have a question about homes for sale in Las Vegas? Contact us at 702-985-7654!

Here is a letter recently sent to us by Paul Donohue of Spectrum Inspections, one of the leading home inspection companies in the Las Vegas Valley. As usual, Paul keeps us informed of ongoing inspection issues that we, as Las Vegas real estate agents, need to be aware of. Paul sent us the information below just this past week which raises an interesting question: What responsibility do REO listing agents have to disclose defects that they are aware of?


Recently REO agents have been hiding behind the "as is, where is" clauses inserted by sellers (banks) into their contracts. But this does NOT relieve them of responsibility to disclose anything they know about a Las Vegas home for sale that they have listed.


Excerpt from Paul's letter:

No Disclosure

We were recently involved in an inspection on a Las Vegas home in foreclosure where the Selling Agent and buyers were very worried about mold. They had somehow gained entry into the home before it was "officially" on the market and observed an extensive amount of water damage and mold. But the Listing Agent, through the Asset Manager, had the damage repaired and mold remediation performed before the home was placed on the market. When the Selling Agent inquired about the damage the Listing Agent informed her that the home was being sold "AS-IS" and that there was no SRPD being provided. No disclosures about the property condition were going to be provided. They had an accepted offer to purchase contract in place.


The SRPD is the Sellers Real Property Disclosure Statement. True enough, especially with a fully signed NRS 113 waiver in place, the bank who owns the home is not required to make any disclosures about the material condition of the home.


But in this case it was the Listing Agent who arranged and coordinated the repairs that were accomplished. Forget about the SRPD, think about the "Duties Owed" The DUTIES OWED BY A NEVADA REAL ESTATE LICENSEE specifically states: Licensee's Duties Owed to All Parties:A Nevada real estate licensee shall:1. Not deal with any party to a real estate transaction in a manner which is deceitful, fraudulent or dishonest.2. Exercise reasonable skill and care with respect to all parties to the real estate transaction.3. Disclose to each party to the real estate transaction as soon as practicable:a. Any material and relevant facts, data or information which licensee knows, or with reasonable care and diligence the licensee should know, about the property.b. Each source from which licensee will receive compensation.4. Abide by all other duties, responsibilities and obligations required of the licensee in law or regulations.

Our inspection revealed that the home was plumbed with Kitec® plumbing and that a plumbing system leak was the cause for all the previous water damage the home had sustained. The leak and the damage had been repaired but the issue that caused the damage (Kitec® plumbing) still existed in the home.


This particular home was a Woodside Home. Woodside is currently in bankruptcy and no Kitec® replacement actions are going to happen on any Woodside homes until the bankruptcy is completed. If or when the buyers move into this home and then happen to develop mold related health issues do you think that the Listing Agent is going to be immune from litigation?


I am not an attorney and as such I do not provide legal advice. But as is the case with most home inspectors I always am cognizant of the potential liability that may exist in any inspection situation. There is no doubt in my mind that unless the Kitec® in this home is replaced, and replaced soon, there will be other water intrusion issues occurring and further water damage is imminent. And when the homeowner is unable to obtain relief from the Kitec® class action lawsuit they will be looking for other ways to obtain remuneration for the repair and replacement expenses they will have incurred. The buyers are already questioning the responsibility of the Listing Agent to provide the disclosure they seek. Once they lament to an attorney that the Listing Agent was aware that previous damage existed and failed to disclose any information about the issue it seems to me that it is very possible that the Listing Agent could be held liable and end up in court.

Las Vegas home inspectors are licensed by the Nevada Real Estate Division, just like real estate sales people and our guiding regulations NAC 645D.460, which outlines professional conduct, states: A certified inspector shall:1. Perform his duties with the highest standard of integrity, professionalism and fidelity to the public and the client, with fairness and impartiality to all. In light of the information we possess and in consideration of our responsibility to the standards that we are required to observe should we advise the Listing Agent of the potential liability that exists?

I would appreciate your input so that I may decide how to act upon this issue. And thank you for your time. Paul J. Donohue, RHI, RREI, CREIPresident, Spectrum Inspection Group Inc.8345 Coyado Street Las Vegas, NV 89123Phone: (702) 269-6716Web: http://www.inspectlv.com/

For Las Vegas home owners who have been unable to qualify for a loan modification and are facing foreclosure, a new Fannie Mae program would at least allow them to stay in their homes for up to a year if they are willing to sign over their homes to the bank on a deed in lieu of foreclosure. The bank would then lease the house back to the borrower at current market rate for up to a year. After the initial lease period expires, there's the possibility that the bank would extend the lease on a month to month basis.

The program, called Deed for Lease, is designed to help stabilize neighborhoods and reduce the amount of foreclosures on the market. Foreclosures in Las Vegas have been among the highest in the country. Many neighborhoods built during the boom period were bought out by investors and currently stand half vacant. According to Dean Baker, co-director of the Center for Economic and Policy Research, "Families that like their home, their neighborhood, or the schools for their children will have the opportunity to stay in their house even after foreclosure. This is also good policy for neighborhoods that have been hard-hit by foreclosures. The Deed for Lease Program will keep the homes occupied rather than being an eyesore and a potential safety hazard."

To qualify for the deed for lease program, the home must be the borrower's primary place of residence. A borrower-turned-tenant must be able to prove that the market rental payment is no more than 31% of his gross income. Any subordinate lien holders (second trust deeds, judgments, etc.) must agree to release those liens in full. For most homeowners, the rental payment will be far lower than the mortgage payments they were making.

The Las Vegas real estate market would seem ideally positioned for this new program. There are even rumors that in the future Fannie Mae would seek to sell the homes back to owner/tenants. Current short sale guidelines prohibit more affluent friends or family members from purchasing a borrower's home in the hopes that one day they would be able to buy them back. Banks could gain from potential appreciation over the next few years, rather than going through the expense of the foreclosure process and low prices now.

For a complete listing of Las Vegas MLS listings including foreclosures, please contact us at 702-985-7654,

Las Vegas real estate agents and homeowners alike are celebrating the news! It looks like the first time home buyer tax credit will be extended through April 30th of 2010, and more buyers than ever before are now eligible to take advantage of the new credit guidelines. Income caps have been raised from $75,000 to $125,000 for individuals, and from $150,000 to $225,000 for couples.  In addition, move up homeowners are going to get a piece of the pie as well. Any homeowner who has owned his home longer than five years can get up to a $6500 credit on the purchase of a new principal residence. (The credit is available for the purchase of principal homes costing less $800,000, and vacation homes do not qualify for the credit.)

So what does that mean for the local market? The inventory of Las Vegas homes for sale has already dwindled dramatically in the third quarter of 2009, with less than 8,500 single family homes on the market at the end of October, down from a high of over 25,000 in October of 2007. Price decreases of more than 50% in the market lured investors back into circulation during 2009, and first time homebuyers, squeezed out during the boom, took advantage of affordable pricing. Competition for Las Vegas foreclosures has been fierce, with multiple offers submitted on properties under $250,000. (One property received a record 75 offers in less than three days on the market!)

One of the most frustrating aspects of the market during the past year, for both buyers and agents, has been trying to get an offer accepted. With more than 80% of the properties for sale being either bank owned foreclosures or short sales, the process has been arduous to say the least. Many buyers on short sales have waited over 6 months waiting for bank approval only to have the short sale package denied or to find out that the bank had foreclosed on it, even though there was a valid contract in escrow. And in some cases the sellers have "disappeared" prior to closing since they are getting no money out of the sale. Most buyers have had to put in more than a dozen offers on properties before finally getting one accepted. Plus the banks are writing all the rules. Negotiators are requiring full preapprovals from Las Vegas mortgage lenders before they will even consider an offer. And buyers are taking homes in "as is, where is" condition with no repairs made and no warranties or recourse against the sellers. 

With any luck the new tax credit for move up buyers will stimulate "real sellers" to put their existing homes on the market. They will be pleasantly surprised to find that they are able to command more money for their homes than the bank repos and short sales, as frustrated agents and buyers will be zeroing in quickly to claim a "normal" transaction without all the headaches and hoops of the repos and short sales. Higher sales prices for homes should stabilize the market as well, and may even lead to increases by the time spring buying season rolls around. So break out the champagne and the paint brushes!

We have discovered a great lender for Canadians wanting to buy Las Vegas homes or condos, either as a second home or as an investment! This lender charges no loan discount points or origination fees, and the rates are the same as what a US citizen can obtain.

Lately all our blog posts have been about finding Las Vegas mortgages for our clients. With the high rate of national foreclosures, many traditional venues and programs have been discontinued, leaving buyers, even those with substantial down payments, in limbo. It has truly been a challenge for us to find mortgage lenders with reasonable down payment and rate structures.

In our never ending quest for foreign national financing for Las Vegas real estate purchases, we have literally stumbled across a lender who is able to loan money at competitive rates to Canadian citizens. This lender is able to use Canadian credit scores and income to provide mortgage loans for the thousands who are trying to flee a harsh winter climate for a few months each year.

General program guidelines for this lender are as follows:

The program is available for both second homes and Las Vegas investment properties. The minimum down payment is 20%, although the best financing on investment properties would be with a 25% down payment.

The programs that are offered are full qualifying loans. Available are the 3/1, 5/1, 7/1, and 10/1 Adjustable Rate Mortgages. Each is a 30 year loan with a 30 year amortization locking in the loan rate for the short term of the loan. For example, if you got a 3/1 ARM, your start rate would be locked in for three years. (Rates are typically lower for shorter loan locks.)

The typical documentation list is as follows. Based on your own individual circumstances, more documentation may be required:

2 years personal tax returns including all pages and schedules
2 years T4s
2 years corporate tax returns including all pages and schedules (if self employed)
Most recent 2 months bank statements reflecting name, account number, and 2 month transaction history
Most recent 1 month retirement / investment account statement reflecting name, account number, and current balance.
Mortgage statement on any property owned in borrowers personal name reflecting name, property address, current balance, current interest rate, and current payment.
Line of credit statement on any property owned in the borrowers personal name reflecting: name, property address, current balance, current interest rate, current payment, and available balance.
Lease agreement for any rental properties.
Clear copy of passport to include the signature page and picture page.

Two unique benefits of this lender are their rate renegotiation prior to closing and their loan modification process.

The rate renegotiation is available to a client in the event that they lock their rate in but before closing rates drop. The borrower has the ability to renegotiate the rate to that day's pricing with a modest premium paid.

The loan modification process would come in to play should rates drop after the borrower has closed the loan. There is a one time modification available to the borrower. It allows them to simply lower the rate with no documentation, appraisals or closing fees that a refinance would incur. It is one page that the client signs and it gets recorded behind the deed of trust. Again, a modest fee is paid for this privilege should the borrower elect to take advantage of it.

Like all loan programs, there is no guarantee on how long this one will last. So if you are a Canadian citizen who has been thinking about purchasing property in the States, call us right away so we can put you in touch with this lender. 702-985-7654 Once your financing is in place, we can find you a phenomenal STEAL on Las Vegas foreclosures! Las Vegas Nevada real estate hasn't been priced this low in almost ten years.