Category Archive : Real Estate

If you’re a first-time home buyer or looking to upgrade to your dream home, there are 10 steps you’ll want to complete before you even start looking at listings of Las Vegas homes for sale.

Step #1: Figure out how much Las Vegas home you can afford. Figure out how much money you make and how much you’re able to use for your new home. A good rule of thumb is that your new home’s value should equal between two to three times your gross income (that means if you make $100,000, your new home should cost no more than $300,000).

Step #2: Create a wish list. Write down what you want in your new home. Do you want four bedrooms and three baths with granite throughout? A backyard big enough for pool and swing set?  Golf course views?  You’ll also want to prioritize your list. Write down (from top to bottom) what’s the most important to the least. Do you really need (or want) a fourth garage?

Step #3: Pick three or four neighborhoods. Drive through neighborhoods that seem appealing to you and your family. Do you like the way the homes are maintained? Are the neighborhoods close to school and work? Find out the neighborhood statistics like crime rates.  Find out about future developments (including road expansions) planned for the area.  Your Las Vegas real estate agent will help you get that information; we have some of it here on our website.

Step #4: Do you have enough money saved? Determine if you have enough money to cover your down payment and closing costs.  Depending on the type of mortgage you get, your down payment could be anywhere from 3% to 20% of the purchase price of the home.  Plus, you’ll have to pay closing costs, which typically run 2-3% of the loan amount (though many mortgage lenders will wrap those closing costs into the loan).

Step # 5: Check your credit. Make sure your credit is up-to-date and accurate. Get a copy of your credit report and go over every section of your credit history. Does your report say that you’re delinquent on a credit card when you actually paid it off? It can mean the difference in several points in your mortgage interest rate (which can mean a higher monthly mortgage payment).   To learn the ins and outs of your credit score, check out our recent blog Score High for Your New Las Vegas Home.

Step #6: What size mortgage do you qualify for? After you have checked your credit report (and had any errors corrected), you can approach a few lenders for a mortgage pre-approval (it pays to shop around.  Explore all the different loan options (ARMs and fixed rates, 15-year and 30-year).

Step #7: Get all of your documents in order. Since you’ll want to get pre-approved for a mortgage before you start looking at homes, have all of your necessary paperwork ready you give to your lender. The documents you’ll need to get started are:

• Pay stubs
• Bank account statements
• Tax returns

Step #8: Research if you qualify for any federal mortgage or down payment assistance programs. You may be surprised how the government may be able to help you buy your new home. There are specific restrictions with some programs, but the potential savings make them worth looking into (we can help).

Step #9: Calculate how much it’ll cost you to own (and maintain) your home. Some regular expenses to think about (other than your mortgage) are:

• Property taxes
• Homeowner’s insurance
• Home maintenance costs (landscaping, pool/spa, air conditioning)
• HOA fees (if applicable)

Step #10: Find an experienced real estate agent. Our agents at Shelter Realty can help make sure that you’ve completed all 10 steps and can help make your new Las Vegas home purchase as smooth as possible.  Call us at (702) 376-7379.

Hiring a real estate agent can be a confusing process, especially if you are new to the market and don’t already have someone you know and trust lined up to help. Yet whether you’re selling a Las Vegas home or buying a new one the right Las Vegas agent can make all difference.

When deciding who is the right person to help you find the right home at the right price (buyer’s agent) or the one who can get your home sold for the most money in the least time (seller’s agent), interview in person at least two or three agents.  Ask all of them these 10 questions.

1. How long have you been a Las Vegas real estate agent?  You can never underestimate the power of experience, though you’ll want an agent who’ll give you excellent service (and sometimes this can come from newer agents, who have fewer clients and more time to spend on you).

2.  Do you have experience closing your listings in a depressed market? Do you have at least 25 closed short sale listings (If  you’re considering a short sale). If you want to sell your home as a non short sale (meaning you owe less on your mortgage than the home’s worth), you’ll want to ask the agent how they plan to price, market and sell the home in an evironment of declining values.

If you’re looking to buy a home, you’ll need an agent with real experience in representing buyers on foreclosures, short sales, new homes and traditional sales, since you may encounter all four types when purchasing.

3. How are you going to sell my home or find me a new one?  If you’re buying a Las Vegas home, your agent should only show you homes within your price, location and need range (so you’re not wasting your time shopping at Wal-Mart, or Barneys, when Dillard’s is really your range).  As a Las Vegas home seller you’ll want your agent to design a marketing plan that will sell your property the fastest and for the most money.

4. Can you give me any references?  All agents have references, even if they’re new to the real estate business. If a reference had a good experience with the agent, then most likely you will too.

5. What are the top 3 things that separate you from your competition?  Any of these traits would be good to have in an agent: honest, trustworthy, assertive, a good negotiator, easily to contact, friendly, analytical, professional and most importantly a good communicator.

6. Will you allow me to review all documents before I sign?  A good agent should make all forms available to you. As a buyer you’ll want to see the Buyer’s Broker Agreement, Agency Disclosure, Purchase Agreement and Buyer Disclosure. As the seller you’ll want to see the Agency Disclosure, Listing Agreement and the Seller Disclosure.

7. Can you recommend additional professionals (mortgage brokers, title companies, home appraisers, home inspectors)?  Since you’ll most likely need the services of some or all of these professionals during the home buying or selling process, getting a referral can save you time (you won’t have to thumb through the yellow pages) and a good agent will be able to recommend other good professionals.

8. How much do you charge?  Generally speaking, real estate agents charge a percentage. Usually the percentage negotiated between the seller and the listing agent covers both commissions if there are two agents involved in the deal. Commissions and fees are fully negotiable.

9. Do you offer a guarantee?  Finding out if or what kind of guarantee an agent offers can help you decide if the agent is a good fit for you. Will you be able to cancel your listing/buying agreement if you are unhappy with your service? How does the agent’s company handle canceled agreements?  Has anyone else ever canceled before?

10. Is there anything that I forgot to ask you but need to know?  An agent should always have something to add (to make you feel confident in their service). After all, they’ll be representing you in your real estate transaction, so good communication is important.

If you’re looking for a Las Vegas real estate agent, you’ll want to call Shelter Realty.  With experienced, expert buyer’s agents and seller’s listing agents, we’re happy to answer questions.  To make your appointment today, give us a call at (702) 376-7379.

The Las Vegas neighborhood you choose can have a big impact on your lifestyle.  Safety, available amenities, and convenience all play their part in your decision. So here are six tips to help choose your next Las Vegas neighborhood:

Tip #1: Make a list. Write down all of the activities (health club, church, volunteering, movies) that you engage in regularly as well as the places (school, work, family and friends’ homes) that you visit frequently. See how far you would have to travel from each neighborhood you’re considering in order to take part in your most common activities. Is the neighborhood convenient?

Tip #2: Check out the school district. On our website we have the most up-to-date school information: test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future (statistics show that school districts impact home sales).

Tip# 3: Find out if the neighborhood is safe. Ask the local police department for neighborhood crime statistics (or check out the latest Las Vegas crime reports here). Consider not only the number of crimes but also the type – burglaries, armed robberies – and the trend of increasing or decreasing crime. Is crime centered in only one part of the neighborhood, such as near a retail area or more near homes?

Tip #4: Determine if the neighborhood is economically stable. Check with your local city economic development office (or better yet, your Shelter Realty agent) to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months? This could mean a declining neighborhood.

Tip #5: See if you’ll make money when it comes time to sell. Ask your Las Vegas real estate agent to get information about price appreciation trends in the Las Vegas neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. Your Shelter Realty agent can also tell you about planned developments or other future changes in the neighborhood (like a new school or highway) that might affect your new home’s value.

Tip #6: See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there and walk around. Take pictures and document what you see.  Are homes tidy and well maintained or are they in disrepair? Are streets quiet or busy with traffic? Pick a day (or time of day) that’s comfortable outside where you can walk and talk to neighbors in the area and see if the neighborhood gives a friendly feeling. A picture says a thousand words… but so do the neighbors.

Of course, our job as your Las Vegas real estate agents is to help you answer all of these questions as we work to find the Las Vegas home that is right for you.  Why go it alone, when you can have expert help? Call us now at (702) 376-7379 or contact us online.  You can also check out the Las Vegas neighborhood homes for sale.

If you’re facing the possibility of losing your Las Vegas home to foreclosure and wonder if your bank can come after you for the remaining balance of your mortgage… yes it can!

Nevada home loans are known as full recourse loans, meaning that lenders can pursue deficiency judgments against homeowners who default.  In other words, after a foreclosure your lender can sue you for the difference between what you owe on your mortgage and the price that the bank sells the home for.

When you got your mortgage, you used your Las Vegas home as collateral on the loan, meaning that the bank can take the home if you fail to uphold your end of the deal (pay your mortgage on time every month).  But in Nevada (the laws are different in every state) that’s not the only recourse the bank has if you fail to meet your obligation. . . the bank can also get a deficiency judgment against you for any deficiency between the mortgage balance and the value of the home (what it sold for).

And that difference may be a lot. If you have a mortgage of $400,000 and your Las Vegas home sells in a foreclosure sale for $200,000, your lender can obtain a deficiency judgment against you for $200,000 as long as the lender files suit within six months of the foreclosure sale.

What should you do if you think you might face a deficiency lawsuit?

Remember lawsuits are expensive – even for mortgage lenders. So, just because you may be facing a foreclosure doesn’t mean you’ll be sued for a deficiency judgment. The reality is that if you don’t have enough money to pay your mortgage, you probably don’t have any assets for your lender to go after (so the lender might not even try). In most cases, if you cornered a lender in secret, they’d probably tell you they would prefer to settle on a short sale rather than the risk the expensive path of foreclosure.

But even if it’s not likely (and how likely it is depends on a myriad of factors) that you are sued there’s a good chance you’ll lose to your lender if they go to the trouble. If awarded a deficiency judgment, your lender can garnish your wages (take money out of your paycheck) and place liens against any of your other properties (second home, boats, motorcycles). You may be able to work out a payment plan to pay your lender back.

A deficiency lawsuit can be a scary possibility for any Nevada homeowner.  If you’re struggling to pay your mortgage, selling your Las Vegas home may be the best option.  No matter your situation (even if you owe a lot more than your home is worth) we can help. Call us right now at (702)376-7379 or visit www.shelterrealty.com.

Disclaimer: Neither I nor my colleagues at Shelter Realty are attorneys. Nothing that we’ve written here or elsewhere on www.ShelterRealty.com should be construed as legal advice.  If you’re facing foreclosure in Nevada, you should consult with a legal professional.

Las Vegas Foreclosure Home Buying 101: 5 Things Every Buyer Should Know

A large percentage of homes for sale in Las Vegas right now are foreclosed homes (also called REO or bank-owned, these are homes that the bank has foreclosed and now own). Often, savvy home buyers can purchase a foreclosed home for less than a comparable traditional sale. But when it comes to buying bank-owned homes, there are some important things to watch out for.

If you are looking to buy a foreclosed home – especially if you are a first-time foreclosure buyer – then there are 5 things you’ll need to consider before signing on the dotted line:

1. Assemble your foreclosure home buying team.  You’ll want to hire a real estate agent who has experience with foreclosed homes, a title company, a reputable home inspector who has a good eye for problems, and a maybe real estate attorney (if your agent recommends one) who can help with any legal issues that may surface and protect you as a buyer.
2. Be aware of what may be hiding (or missing). Remember that you are buying a home that the owner stopped paying for; it may have been neglected. A thorough home inspection is always important to reveal any problems with the property, but it is especially important when buying a foreclosed home.
3. In our work with Las Vegas homebuyers we’ve seen it all – from bank-owned homes that were impeccably cared for to the end to those that the homeowners totally trashed.  Pay special attention to potential damage like holes in walls, damaged carpet, missing floor tiles, and broken windows.  Watch out also for missing or dysfunctional appliances (ranges, dishwashers, ceiling fans, just to name a few).
4. Las Vegas bank-owned homes are typically sold as-is; meaning that even if the home inspection reveals damage, the bank typically won’t repair it. Still, have the home inspector document the damage and what he has recommended be repaired and/or replaced.  Then get an estimate of what those repairs and replacements will cost.  A good real estate agent can negotiate with the bank to at least determine that the sales price reflects the repair expenses you’ll have to incur.
5. Clean the title.  There have been a number of lawsuits around the country by former homeowners who allege that their banks improperly foreclosed on their homes.  Even if those homeowners win their suits, it’s not likely that a judge would take away the property from a homeowner who purchased it from the bank.  But it raises the issue of “clean title.” A part of any home buying process, doing a thorough check to ensure that the title is free and clear is critical.

Another point to watch out for: sometimes there will be a lien (or liens) on the property, often from unpaid back taxes or homeowners association (HOA) fees. The bank might raise the price of the home to try and cover those liens, which must be paid before the home sale can be finalized.  This is another point on which an experienced Las Vegas REO real estate agent can really help.

1. Get financed.  We always recommend getting at least a mortgage pre-approval before you start the REO home purchase process. That way, you’ll know how much you can afford. Remember to include the money you’ll have to spend on repairing the property when you calculate the sales price you can afford. Sometimes, banks will offer qualified buyers mortgage deals on the foreclosed properties they’re selling (as an extra incentive to get the property off the banks’ books).  Your real estate agent can help you negotiate this as well.
2. Get fair market value. As always, you want to pay at or below fair market value for the home. That means you’re paying at or below what comparable homes (similar age and size in the same neighborhood) have sold for. Compare apples to apples, not apples to oranges ­– compare to other foreclosed home sales, not to traditional or even short sales. At Shelter Realty we have access to all the Las Vegas area home sales statistics, and we’ll make sure our offer is at or below fair market value.

If you’re thinking about buying a Las Vegas bank owned home – either to live in or as an investment property – Shelter Realty has the foreclosure expertise and the experience to help.  Call us today at (702) 376-7379.  To see the Las Vegas foreclosed homes currently for sale, visit www.shelterrealty.com.

I ran across a report the other day from Zillow.com that got me thinking about the different types of real estate investors – and the fact that some markets are better for some kinds of investors than others.  Read on to see where you fit.

You know you’re a “traditional” rental income real estate investor if. . .

• You plan to hold on to the property for at least a few years
• You plan to rent out the property
• You are more concerned with generating rental income (positive cash flow) than with appreciation

If you fit in this camp it’s important to look for Las Vegas investment properties that will generate stable income over the long term.  Think about what kind of renters you want to attract.  Lower income?  Middle income?  Vacationers?  Then buy a property with the needs of those renters in mind.  (Learn more about how to generate a successful rental income here.)

You’ll also want to consider the help of a professional property management firm.  You could do it yourself, of course, but before you go down that path, know what it entails (see DIY Las Vegas Property Management? First, Consider This. . .)

You know you’re a “quick win” (rapid appreciation) real estate investor if. . .

• You buy property for the short term to take advantage of rapid price appreciation
• You look for properties that are undervalued by the market, or have hidden potential for rapid appreciation
• You’re far less concerned with the “fundamentals” of the property than with the likelihood that it will appreciate in value significantly over a short period of time

“Quick win” real estate investors were like bees to honey during the Las Vegas real estate boom market in the early and mid-2000s.  With prices rising so quickly at the time it was easy to buy one month, sell three months later and cash in on 20 percent net appreciation.

Not so any more.  With prices still falling in the Las Vegas real estate market (and markets around the country), rapid appreciation is no longer a source of quick wins.

You know you’re a foreclosure “fix-and-flipper” if. . .

• You focus on distressed properties (some short sales, but mostly foreclosed homes)
• After purchasing the home you make quick, primarily cosmetic, improvements
• You then resell the home at a profit
• You frequent public auctions of foreclosed homes

Just as the boom market of the early and mid-2000s was a boon for rapid appreciation investors, so has the bust market been a boon for savvy foreclosure flippers (many of whom used to be the former, but have tweaked their investment strategies to fit the realities of the Las Vegas real estate market).

Because banks typically sell foreclosed homes below market value, there can be significant profit to be made – especially if you can separate the homes that need only cosmetic improvements from those that need significant (and expensive) work before they can be resold.

Remember that on the courthouse steps, it’s caveat emptor – buyer beware.  Banks sell foreclosed homes “as is” so you’ll need to do your homework to know which homes can yield a profit and which might be money pits.

Many of the most successful foreclosure investors work with real estate agents experienced in finding those homes with the most profit potential.  At Shelter Realty, our foreclosure experts can do the work of sorting through available properties, and even going to auctions for you.  Browse bank-owned Las Vegas homes on our website here, or give us a call right now at (702) 376-7379.

The fact that foreclosed homes still represent a fairly large percentage of the Las Vegas real estate market means great potential for foreclosure investors and for rental income investors too.  Whether you’re looking for help investing in Las Vegas bank owned homes or need a great property management company, Shelter Realty is here to help.  Contact us today.

It may seem contradictory that in the real estate market leading the nation in foreclosed homes, where prices have fallen so dramatically that a large percentage of homeowners are underwater, new home developments can be succeeding.  But in Las Vegas, they are.

Why?  Because there is demand for newly-built Las Vegas homes. With prices lower than they’ve been since the early 2000s, many Las Vegas homebuyers are capitalizing on the opportunity to get a brand new house at a super-low price.  Many say, “Why buy ‘used’ when I can get such a great deal on a new home”?

Some analysts say that’s bad for the Las Vegas real estate market – that we’ll never get out of the real estate funk until we deplete the excess supply of homes on the market.  Indeed, there are far more homes listed for sale than there is demand for Las Vegas homes.  And the laws of supply and demand tell us: prices won’t rise (not significantly anyway) until demand is greater than supply.

But there are Las Vegas neighborhoods – and certain types of Las Vegas homes (namely, new builds) – that have their own demand, unique from the broader real estate market.  Roughly 25 percent of Las Vegas home sales were new builds.  And that’s a good thing, because new housing developments help support the Las Vegas economy.

Buyers will find new home developments across the Las Vegas area.  In Henderson, KB and Ryland Homes are developing vacant land at Horizon Ridge Parkway and Gibson into plots for more than 200 single-family homes.  But they’re going about their development a bit differently this time around.  Instead of a “build it and they will come” approach, many Las Vegas home builders are instead selling homes first and then building them

Buying a new Las Vegas home

One benefit of buying a new home over a resale is that you can design it just so. Upgrades, layout, décor – choose whatever best suits your needs.  Another benefit: new homes come with at least a one-year top-to-bottom, inside-out builder warranty (not something you’ll typically get in a resale).  And, new homes may be more energy efficient (and those savings can really add up).

A point of caution: many potential homebuyers think that buying a new home means they don’t have to hire a real estate agent – and most home builders don’t eagerly suggest otherwise.  But it’s important to remember that the builder’s sales agent works for the builder – to sell you the home for the most money they can get.

Doesn’t it make sense then, to have someone on your side, working for you?  (Remember, the seller pays the buyer’s agent – you won’t have to pay anything for the benefit of having an experienced real estate agent helping you through the process.)  In most cases, builders require that you bring your real estate agent with you the first time you visit the sales office or model homes.  So give us a call today at 702-376-7379.

Have you wanted to own a Las Vegas home but figured you could never afford it?  Well, when sales prices were in the $300s (or higher) that might have been true.  But now that the median sales price of a Las Vegas home is in the low $100s, homeownership might be in the cards for you after all.

And now could be the time to buy.  Statistics from the Las Vegas housing quarterly report by the Center for Business and Economic Research (CBER) at the University of Nevada point to 3 great reasons why now is a good time to buy a Las Vegas home:

• Las Vegas home prices are dropping. The median Las Vegas home price is now $130,000 – down from $135,000 a year ago.  The price per square foot is down, too, from $74 to $72.  That means more house for less money.

• Las Vegas leads the nation in the number of foreclosed homes.  And, Las Vegas has the highest negative equity rate among all U.S. metropolitan areas. (In other words, more homeowners in Las Vegas are underwater – owing more than their homes are worth – than anywhere else in the country.)  Significant negative equity can make it difficult for homeowners to keep their homes when circumstances change (interest rates adjust, a homeowner loses a job, etc.).  So it’s not surprising that Las Vegas also leads in the nation in the number of foreclosures.But for buyers, a large supply of foreclosed homes (also called REOs, or real estate owned by the bank) can mean a great opportunity to buy a nice home at a great price.  Remember, banks aren’t in the business of owning homes – they’re eager to sell these homes (the longer they hold onto them, the more money they lose).  Yet buying a Las Vegas foreclosed home can be trickier than buying a traditional resale – so the help of a real estate agent experienced in REO purchases is important.

• The Las Vegas foreclosed home rate is slowing. Although Las Vegas has the most foreclosed homes in the nation, that trend may be shifting. The CBER report shows that foreclosure filings are down (not gone yet, but down).  So now may be the right time to get in on a great Las Vegas REO deal.  Hiring a real estate agent with knowledge (and experience) like Shelter Realty can help you find a good deal on your Las Vegas home – before the good deals are gone.

The data says it all: there are great deals to be had by Las Vegas home buyers.  From foreclosed homes, short sales, new builds, and traditional resales, there is lots of great inventory out there.  For now.  For helping finding the right home at the best price, give Shelter Realty a call today at 702-376-7379.

Las Vegas is the #1 real estate market to invest in rental property, according to a report published Monday by HomeVestors of America, Inc. (known as the “We Buy Ugly Houses®” company) and Local Market Monitor (a leading forecaster of real estate markets). Here are the 5 reasons why (and why you should consider investing in a Las Vegas rental property):

#1: The Las Vegas real estate market offers the best three-year potential. ­The HomeVestors ranking is calculated based on “three-year forecasts of home prices (reflecting underlying home-price appreciation potential) and gross rents (as a proxy for potential investor cash flow).” On those measures, the Las Vegas real estate market tops the 99 other U.S. markets rated in the report.

#2: Las Vegas is a housing jackpot. Sales of relatively low-priced Las Vegas homes hit a 5-year high in May. There is still a good supply of affordable homes that can relatively easily be turned into rental properties, but that supply is rapidly shrinking as savvy investors are buying up prime rental properties.

#3: Las Vegas homes are relatively affordable. Las Vegas home prices have dropped more than 50% since peaking in 2006, so the real estate market offers some great investment values. In the spring of 2011, 4 out of 10 homes sold for under $100,000 (Wall Street Journal), with investors buying 20% of all homes sold in April (MarketWatch).

#4: There is a high demand for rental property in Las Vegas. The homeownership rate in Las Vegas is a relatively low 55 percent. Demand for rental property here is higher than in many other markets for two reasons: First, with the casino and tourism industry, Las Vegas has a high proportion of lower-wage workers, meaning a larger-than-typical number of people who can’t afford to buy a home. Second, the Las Vegas real estate market has a relatively high rate of foreclosures – but people who have lost their home to foreclosure still need a place to live, and many prefer a house over an apartment.

#5: Rental properties can generate positive cash flow and tax advantages. In contrast to a fix-and-flip real estate investment, a rental property can generate a steady flow of cash. Plus, there may be significant tax benefits associated with owning rental property.

Clearly the Las Vegas real estate investment market is hot. If you’re looking to get in on the action, Shelter Realty can help. Give us a call at 702-376-7379 or contact us here.

Important Announcement – If you are considering securing FHA 3.5% down financing for a home in Clark County (Las Vegas, Henderson, North Las Vegas, Boulder City), you have until October 1, 2011 fund on your loan before the loan limits drop from $400,000 to $271,050.

What this basically means is that the alternative to FHA Mortgage Loans is finding a Conventional Mortgage, which may require a much larger down payment (up to 20%), as well as higher credit scores and income requirements.

Quick Background:

When Congress passed the Economic Stimulus Act in 2008, FHA loan limits were temporarily raised to help borrowers in higher cost areas obtain financing through FHA to help offset the reduction in private financing due to the credit crunch. These Loan Limit increases were substantial in many areas of the country and were set to expire in the future. ( I wonder if Congress knew we’d have a housing bubble )

Congress passed additional legislation to extend these loan limits for the past couple of years. However, barring any Congressional action, the FHA Loan Limits are set to revert to the 2008 formula as of October 1, 2011.

Clark County FHA Loan Limits / Proposed Changes:

* Sources: Search FHA Loan Limits | May 26, 2011 – FHA Loan Limit Brief

How Will This Impact Buyers?

A few of the major benefits of an FHA Mortgage Programs:

• Liberal Credit Requirements (580-640 Fico Scores May Work)
• Lower Rates (Not hit with rate increases due to lower FICO scores – LLPA)
• 3.5% Downpayment

While there is mortgage money available… for now, Section 941 of the Dodd-Frank Act pertaining to risk retention and the Act’s definition of qualified residential mortgages (QRMs) could make it very challenging for many First-Time Home Buyers to get a loan. (Video: “Skin In The Game)

However, the difference in downpayment and higher rates may actually force the sellers who have their properties listed in the low $300,000 range to drop their prices just to compete for the FHA borrowers.

Not sure, but this theory makes sense to me, especially if we’re talking about Las Vegas Short Sales and REO’s where the banks will need to price their listings according to accurate market comps.

Buy now, or wait for the FHA loan limits to decrease, along with property values?

Tough question to answer if you’re only concerned with value, equity and other “investment” related topics that probably shouldn’t be mixed with the decision to purchase a primary residence.

And if you’re a cash investor, then this FHA loan limit decision probably won’t impact the homes in your price range of Las Vegas real estate investment deals under $145,000.

Keep in mind that 51% of residential properties purchased in Clark County last month were paid for in cash, and not secured by a mortgage loan.

Either way, the following map and list of homes for sale in Las Vegas and Henderson may give you an idea of what you could miss out on once the FHA Loan Limits in Clark County decrease.

The two main questions to ask yourself area whether you would rather pay 3.5% or 20% down, and if you’re willing to risk getting a higher rate by waiting until after October 1 to see what the market does.

* This list updates every day from the “ACTIVE” listings in the MLS. Once a property goes into contract or “Pending” status, it is automatically removed from this list.

Las Vegas has made several top 10 real estate and economy lists in the past few years, yet this is the first positive mention of our local market that I’ve seen in a while.

CNNMoney.com named Las Vegas as one of the 10 best cities for homebuyers due to the high occupancy rates of rentals, low cost of housing and popularity by cash investors.

Don’t worry, this is not just another post from a REALTOR on a real estate site about why it’s a good time to buy a home.

Actually, our Las Vegas investors and property management clients have known about the cash flow rental income opportunities in Las Vegas for a while.

And, most of our VA Loan Eligible buyers are already out looking at homes that are 60% – 80% less than the properties they lost to foreclosure as little as two years ago.

Home builders have also started scooping up vacant land at around a 50% discount from what they were paying per acre during the boom years.

However, the flip side to the “Buy Now” debate has some great points as well, especially since the Dodd-Frank mortgage reform bill may potentially hurt real estate values due to the tough qualifying requirements being imposed on lenders and first-time home buyers.

Either way, it’s nice to be mentioned on a positive real estate list for a change.

If you’re one of the lucky ones out there with a steady job, a nice cushion in savings and an opportunity to buy a new home, you’re shopping in the best house-buying environment available.

In many areas where the prices were exorbitantly high, they are now reasonable and have been for some time.

In areas where prices only rose marginally, the prices are back down and with a huge surplus of homes still on the market, you can essentially have your choice of house when you’re shopping.

Some of the main differences between the best bargains on Las Vegas real estate depends on whether you’re purchasing an existing resell property, short sale, recent foreclosure (bank owned) or new construction. And, the actual home buying process between each of these types of purchase transactions varies as well.

There are definitely pros and cons between resell vs new construction, but I’ll cover a few of the top money saving tips in this article for either option you choose.

New Construction

There are still homes available that are being built from the ground up. In fact, you can walk into a builder’s office today and start the process of building your own home and likely walk out with a nice incentive or two. The builders have been hit substantially in the past few years and homes aren’t selling quickly. This means the builders are likely to try and draw you in with huge savings, freebies and specials. While absolutely enticing, these new construction homes might not be your best choice in the long run.

If a builder is offering $10,000 in free upgrades, for example, that’s enough to put in hardwood flooring and maybe buy a refrigerator depending on the quality of the floors and the size of your house. Yet even with beautiful floors and a shiny new refrigerator, you’re still looking at the costs of moving in, fixing things up and dealing with blank walls, empty rooms and absolutely no special touches. Those costs can’t often be fixed by dealer’s incentive and while you don’t have repairs to make with an older home, it doesn’t have any distinguishing characteristics either – it’s one plain white room after another – and that costs money to improve and make your own.

Existing Homes

Many argue that you’ll find the best deals in existing homes, and it’s easy to see their point. Sellers are anxious to move their existing homes. Even if the market is starting to stabilize, homes may still be sitting on the market for months holding up plans of the seller, making them almost desperate to sell. Almost all existing homes come with negotiable prices, but some are more negotiable than others. While most of the real estate market has fallen and is still considered sluggish, the most desirable neighborhoods saw only a bit of a slowdown.

If you’re hoping to pick up a foreclosure for pennies on the dollar, or grab up a hot bargain after an intense negotiation process, you’ll likely be looking in an area slightly away from the best neighborhoods. It’s not just the least desirable neighborhoods that have foreclosures and houses sitting on the market ripe for negotiation, but the closer you get to the best school districts or the center of the city’s lifestyle, the more you can expect prices to rise and stay there.

Of course there is added benefits to buying an existing home, even if you didn’t get a hugely discounted purchase price. The sellers of existing homes know that competition is fierce, and even if they aren’t willing to negotiate much on price, they are willing to work with you on other things, in many cases. You may be able to have the seller fix any and all problems with the home. You may be gaining a swimming pool, deck and hardwood floors as part of the price. The walls may already be painted a neutral color and any upgrades made to the house stay there, in most cases.

Getting the Most Bang for Your Buck

The best way to determine the true price of a new home is to make a list of all of the things you’ll be expected to buy as part of the deal. If you’re getting a new construction home, plan on the window treatments, wall paint and every upgrade you’ll need to make it feel like home.

If you’re considering an existing home, factor in the cost of repairs and additional benefits you may be getting that you’d otherwise have to pay for in the new construction. Buying a new home is intensely personal, but while picking out what suits you best, take your time and work the numbers – this is a great time to get an outstanding bargain.