Home > Blogs > Mary Kennedy > Mary Kennedy's Blog from Las Vegas

Las Vegas Foreclosures...An Interesting Process for Learning

By Mary Kennedy

Real Estate Agent with REMAX CENTRAL Summerlin

June 02, 2008 09:01 AM

It was quite and April and May for Las Vegas Valley Real Estate. So far June doesn’t seem to be slowing down. It’s a GREAT market for buyers! Homes currently in escrow that are scheduled to close have doubled over the past 2 months. That’s the good news! The not so good news is that all the homes on the market from foreclosures are keeping prices down. So if you’re a seller that’s not in a hurry, WAIT!

Now, a thought or several about the buying process for a foreclosure. I have shown well over 100 foreclosures and put buyer offers in on 10. The homes are not stripped and are in decent shape. We have been lucky and have closed on 5 of them.

The banks or mortgage companies generally have a Real Estate Management company working on these properties. The list price for the property is what they want for the property plus 3% more to cover the closing costs. That’s it! It’s a waste of time to write the offer below the list price. They price the property low to attract multiple offers and they get them. I’m working on one now that currently has 19 offers on it.

You are not able to find out if there are multiple offers on a property until we put your offer in. Once we submit your offer, a letter will come from the management company telling us that that there are multiple offers on the property. A multiple offer form is enclosed to fill out asking for the best price we are willing to pay. Once we determine that price, we send the form in and wait for a letter of acceptance or rejection.

All of the properties are sold on an as is basis. If your offer is accepted, I tell my buyers to buy a home inspection ($300-$400) and get done right away to make sure that there’s not a major issue with the home that could not be seen with the naked eye. Examples of a major issue may be mold, faulty air conditioners or furnaces. If you find major issues, you have two choices.

Buy the house and make the repairs at your cost or

2. Back out of the purchase within 10 days due diligence or sometimes less.

Now, please don’t think that I’m trying to scare you away from foreclosures. There are some great buys out there and there will continue to be probably through 2009. The process for buying a foreclosure is just a little different. Plus, I have a 500 batting average and every one I sell is a new learning experience. I will keep you posted!

I also have a couple of great articles to send along to you.

Here is an article about Summerlin that a recently appeared in the New York Times. When national media say nice things about your backyard, it’s time to sit up and take note.

Click here for the full story--à Leaving Las Vegas for the Suburbs

Here is another syndicated article that was lifted from the New York Times and appeared in the Las Vegas Review Journal last this past Saturday. The article outlines “Why It Could Be a Good Time to Buy” depending on your situation. There is a little “Paralysis of Analysis” in the article, but its one good way of getting to an answer.

Click here for the full story by David Leonhardt - As Home Prices Drop Low Enough, a Committed Renter Decides to Buy

As always, if I can help you with any Las Vegas Valley Real Estate Buying and/or Selling decisions, please feel free to call on me at anytime. Have a GREAT June!

Mary Kennedy