Category Archive : Real Estate

Just as successful businesses don’t use one single marketing strategy to the exclusion of all others, so is it with real estate.  Successful Las Vegas real estate agents use a number of marketing tools to market their clients’ homes.  That said, some are more popular than others.

Listing online.  Once the mainstay of real estate marketing, newspaper ads have become dramatically less popular.  With the rise of searchable home listing sites like REALTOR.com, Zillow.com, Trulia.com, and others, flipping through the pages of a physical newspaper is, for most buyers, so 1999.  And that’s the key in successfully marketing your Las Vegas home to sell – going where the buyers are.  Sure, you can get a killer deal on a 1/4 page ad in the newspaper, but if very few buyers read it, what’s the point?

Another benefit of advertising listing online is the ease of measurability.  You can easily measure the number of impressions your ad or listing received (how many times it appeared on a page that a web visitor was looking at), the number of clicks on that ad or listing, and more.  That way, you can see what’s working – and what isn’t – and make smart changes in response.

It’s all (or partly at least) about who you know.  They say that most real estate transactions are the result of connections.  That’s why the best real estate agents have extensive networks of other buyers’ agents and sellers’ agents who act as one big referral network.  That way, I can target my clients’ listings to buyers’ agents who help buyers in that particular neighborhood, for example.

Market, then market some more.  At the end of the day, marketing – online, offline, through connections, with a yard sign, whatever – is how you’ll get the word out about your home for sale.

When interviewing real estate agents to help you sell your home, ask about their marketing strategies – ask how they spend on advertising and where they advertise. (How much money a real estate agent spends on marketing is not nearly as important as how he spends it.) Ask what kind of innovative technologies they use to market your home.  And perhaps most importantly, ask to see the proof.

Ask me how we can market your Las Vegas home for sale.  Call us at (702) 376-7379 or contact Shelter Realty online here.

They’re a growing problem, especially in those Las Vegas neighborhoods most heavily affected by foreclosures. You know who they are – they’ve got weeds as high as corn and chipping paint on the outside of their homes.  They can wreck havoc on the value of any neighborhood.

No one wants to live near an eyesore and have to see that mess every day.  But homes like that can also affect whether or not buyers will buy in your neighborhood.  It’s bad enough living near an eyesore, but if you’re a buyer, of course an eyesore is going to affect whether or not you buy. Why?  You know, who wants to live next to an ugly house or yard?

And remember, the kind of neighbors who don’t keep up their homes and yards are the kind of neighbors who can be problematic in other areas – loud noise, disruptive behavior and police visits at all hours of the night!

For those reasons, if you’re thinking about selling your Las Vegas home and there’s an eyesore nearby, you’ve got to do something about it. After all, it’s still a buyer’s market and competition is still tough. To maximize the chances of selling your home (and selling it for the most money), you want your neighbors to be “on their best behavior.”

What you can do about it

. . . If the home has been foreclosed (or is being foreclosed and is empty), then it’s the bank’s responsibility to maintain the home – especially if there’s an HOA or city code. You’ll have to investigate what the codes are (no weeds, overgrown shrubs or peeling paint, for example) to determine if the home is in violation of any codes.

Since most Las Vegas bank-owned homes are listed for sale by a real estate agent, you may be able to call the listing agent and point out the problem. If that doesn’t work, file a complaint with the HOA or city code department.

Resolving the eyesore problem may take time, so one of the quickest (and easiest) ways to get the problem fixed is to clean things up for yourself. Band together with your other neighbors to at least remove weeds, mow the grass and trim shrubs.  Be sure to get permission from the owner before your start; you don’t want to be charged with trespassing.

. . . If the home is owner-occupied

If someone lives in the home, use tact and diplomacy when confronting them about the problem. Try talking to them face-to-face (maybe bring over some fresh baked cookies or cupcakes to ease any tension) to resolve the issue. If the lawn needs to be cut, then bring some names and phone numbers of lawn service companies with you.

Explain why their untidy yard is important to you and your neighbors and that you are willing to help them if they need it. If kindness doesn’t work, then file a complaint with the HOA or city code department (again, assuming that the problem is an infraction of the code). Most HOAs take those kinds of complaints seriously and will work hard to resolve the problem.

If you’re thinking of listing your Las Vegas home for sale, give our agents a call at (702) 376-7379 to see how we can help you.

Do you want potential buyers to see your beautiful hardwood floors, granite countertops and custom built-in bookcases? Well, they won’t if you have furniture, knick knacks, and piles of stuff covering every square inch.  Indeed, clutter can (and probably will) drive buyers right out your front door.

You don’t need to throw things out (although this would be a good time to “simplify” your belongings before you move), but getting them out of sight (not crammed into closets and under the bed) is a good idea. Here are 6 de-cluttering tips to help you prepare your Las Vegas home before it goes up for sale:

#1: Remove most appliances from your kitchen counters. If you have a counter microwave, then removing it may not be sensible (you use it every day and it’s big, besides) but stowing your coffee maker and toaster after breakfast is a good idea. Showing as much counter space as possible will make your kitchen look larger.  Buyers love to look at the kitchen, so make the most of your space.

#2: Reduce the amount of stuff in your cabinets, closets and built-in bookshelves. Even though I just said to store appliances away in your cabinets, you’ll want to eliminate excess and unnecessary items stored there. You’ll want your closets to show how organized they can be (not how much you can cram into them). Potential buyers are buying the closets, built-in bookcases, and cabinets along with the rest of the home, so show how spacious they are.

#3: Clean up the kids’ stuff (their bedrooms, playrooms and wherever they leave their things). Kids’ toys, books and games tend to scatter throughout a home, but they’ll be distracting to potential buyers. Use bins, totes and baskets for sorting and storing (don’t forget to label everything).

#4: A sparkling bathroom indicates a well-maintained home. Most buyers judge a home by how well a bathroom looks (and smells). If you’ve taken care of your bathroom (it works properly and is clean), then most likely you’ve taken care of the rest of your home (fewer repairs for a buyer). Again, store everything out of sight (even your rubber ducky!). Don’t forget to clean out the medicine cabinet – yes, buyers definitely snoop in there!

#5: Remove all bills, newspapers and magazines that pile up around your home. Paper can be very distracting and take the focus off of your rooms and onto your messes. As you remove these items, dust and clean (plus sort, discard and file any papers).

#6: Remove and/or rearrange your furnishings. Now I am not saying get rid of your heirloom grandfather clock, but if it blocks a hallway or door entrance, then move it or put it in storage. Take down family photos and other personal decorations (sorry, the hunting trophies need to go into storage). Again, it’s the house that buyers should be looking at – not your daughter’s kindergarten graduation picture.

I know some of these de-cluttering tips can be a pain, but they can help sell your Las Vegas home (and, let’s be frank, sellers need all the help they can get). Our agents can help you determine where and how to de-clutter – and give you all the other tips that will help you sell your home for more money in less time.  Give us a call at (702) 376-7379 or contact us at www.shelterrealty.com.

Imagine lying awake at night listening to your brand new Las Vegas golf course home cracking or needing to replace the roof on your new home even before you replace its light bulbs. This isn’t a science fiction thriller – this is reality for some homeowners of newly-built homes.

The scenario doesn’t stop there – some homeowners are forced to move out only months after moving in (thanks to toxic mold growing in their new home). You see, you don’t have  to own an older home to experience defects or problems – they can also happen in newly-built homes.

What should you do?

Bottom line: Despite what many people think, a home inspection is a must – even when you’re buying a newly-built home.  An inspection by a reputable, licensed building inspector (the state of Nevada requires all inspectors to be licensed (NAHI)) will help you avoid buying one of the 17% of new homes with significant defects.

It’s also a good idea to get another home inspection (in addition to the one you got before you bought your home) just before the builder’s warranty expires. Since some problems don’t show up until the home is one or two years old, any problems that come up can be fixed at the builder’s expense as long as you catch them before the warranty is up.

During the height of the real estate boom, builders and sub-contractors wanted to build as many homes as possible to keep up with the red-hot demand – at times sacrificing quality in the process and resulting in homes with defects.  Some of those homes are now being resold, and if the defects weren’t addressed, they’re probably now worse. Plus new problems may have developed and they’re all expensive to fix. Bottom line: When you’re buying a resale Las Vegas home (whether it’s two years or 100 years old) you should get a home inspection.

What happens if you have an unsatisfactory home inspection?

After you sign your purchase agreement, you have ten days to get a home inspection. You can specify in the purchase agreement that your offer is contingent upon a satisfactory home inspection – that means that if the home’s inspection is unsatisfactory, then the deal is off (or the price can be negotiated lower to reflect repair costs). This can save you many headaches (and money) in the future.

If you’re about to sell your Las Vegas home, then a home inspection before you list is a good idea too. An inspection can make you aware of any problems and give you time to fix them. It may also prevent a sales deal from falling through (something you don’t want in today’s tough real estate market).

For these reasons (and more) getting professional help to buy (or sell) your Las Vegas home is important. Call us at (702) 376-7379 or contact us at www.shelterrealty.com.

Updated March 24th, 2017:

NAHI closed its doors last August 2016 and their website went dark in September 2016. Here is a great article on What Happened to NAHI.

The other day I wrote about the first 5 questions you should ask when buying your new Las Vegas Condo.  Here are the other 5.

Question # 6: Has the condo unit been professionally inspected? It’s a good idea to include a contingency clause in your purchase offer for a profession inspection (you don’t want to be “surprised” by any defects). If the condo is a new-build, don’t rely on the buildings permit of occupancy (city building inspection) – the city carries no liability for defective or incomplete inspections.

Question #7: Is the condo soundproof? The main problem with condos is the lack of good soundproofing. It’s a good idea to view the condo in the afternoon or evening (when most neighbors are home). If they’re making noise (like watching TV, listening to music or talking), then you should be able to tell if the condo has good soundproofing. To reduce the chance of noise, try to buy an end-unit or top-floor-unit – this will limit the amount of neighbors (down to one) and therefore the amount of noise.

Question #8: Is the seller up-to-date with the applicable state statutes? If the condo was built before 1978, then a written lead-based paint disclosure report is required.  You may opt to have the condo professionally inspected (at your own expense). Additional local or state disclosures may be required for energy efficiency, building-code compliance, radon, and well-water quality; our agents know which disclosures are required in Las Vegas and Nevada.

Question #9: Are there any special contracts or long-term leases affecting the condo complex? You’ll want to find if the condo owners have control over the whole complex. Some new complexes still have titles (and contracts) through the developer, which gives the developer control – not the HOA.

Question #10: What are the key points to consider when assessing the condo complex?

• Floor plan
• Construction
• Parking
• Street access
• Location
• Property taxes
• Amenities (community center, pool, tennis courts, golf)
• Visual obstructions or sound concerns (power lines, factories or noisy railroads)

Buying a condo can be complex if you don’t know the right questions to ask. Hire a Shelter Realty agent to help you find the right Las Vegas condo at the best price and ensure that you’re asking the right questions. Call (702) 376-7379 to speak to one of our agents or browse our Las Vegas condos for sale.

Think buying a condo is easy? Think again. When you’re buying a condo, there might actually be more to consider than when you’re buying a home.  Just knowing what to look for (and ask) can be a challenge. Hiring a good Las Vegas real estate agent and asking the right questions is a start, so here’s a list of 10 questions to ask before you make on offer on your Las Vegas condo.

Question #1: What about the HOA? Most Las Vegas homes, whether they’re single-family or condos, have homeowners associations (HOAs).  Before you buy, you want to check up on that organization whose umbrella you’ll be living under.  Check out:

• Covenants, conditions and restrictions (CC&Rs)
• By-laws and rules
• Financial reports
• Minutes from most recent meetings

You’ll also want to ask: How and when might my association fees increase?  Is the HOA involved in any lawsuits? Are there any plans for major repairs (new roof or new pool) in the near future?

Question #2: What is the percentage of renters in the complex? Mortgage lenders tend to see condo buildings with more than 20 percent renters as a lending risk.  That means they’ll charge higher interest rates or won’t lend at all.  Plus, a higher proportion of renters to owners can impact how easy (or difficult) it is to sell your Las Vegas condo down the road.  It also often lowers market values (renters usually don’t treat the condo as well as owners). As a safe rule, look for condo buildings that have less than 10 percent renters.

Question #3: Is the complex professionally managed? All condos need regular maintenance and repairs and using a professional management company usually pays for itself.

Question #4:  Are the complex fees similar to other comps? For that regular maintenance and repairs, plus management of facilities like a pool, you’ll pay a monthly fee in addition to your mortgage payment.  Compare maintenance fees at the different Las Vegas condos you’re considering.  Given factors like the size and age of the condo complex and level of amenities offered, fees should be comparable.

Question #5: Has your condo seller prepared a defect disclosure report? Most states require a defect disclosure report (Nevada is one of those states).  If the seller discloses that something is wrong with the condo, get a professional contractor to estimate repair costs, then factor those costs in to your offer.

Buying a Las Vegas condo can be more complicated than buying a single-family home in large part because so much of your condo ownership experience will depend on those neighbors with whom you share walls.  From dealing with common area maintenance needs to reselling your condo, you’re kind of all in it together.

So stay tuned here tomorrow for the next 5 questions to ask when buying a Las Vegas condo, or go ahead and give the Las Vegas condo experts a call at (702) 376-7379 or view our lists of condos at www.shelterrealty.com.

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.