The shakeout of the sub prime market in the US is taking longer than what was initially anticipated. Since late 2006 214 major US lending operations have ceased doing business. What’s happening now is a re-alignment in both the mortgage industry as well as the real estate market – even though they are not directly related. Home prices are decreasing in multiple markets across the nation including Las Vegas, Nevada.
Buyers are looking in various directions for advice on what to do in this present time. The media is constantly issuing reports of how bad the housing market is so the general public is scared to purchase. That is exactly the opposite reaction the general public should be having. Right now is the time to purchase. You don’t wait for the market to get better when house prices are increasing to purchase. The theory here I’m trying to get across is buy low and sell high. When the media & analysts are reporting that the market is bad, that is the time to BUY, BUY, BUY. The wrong time to buy is when the media and analysts are saying the market is hot. If you wait to purchase when the real estate market is doing well then there is a good chance you will be purchasing when prices are increasing. And in some instances the market could be inflated. We are coming off of an inflationary period so this is the time to purchase. I talk to realtors every day in my business and I’ve never heard such comforting news than now when story after story is how the homes on the market today came down $50,000, $100,000, or $200,000 from its previous levels.
8 tips to purchasing a home in Las Vegas in 2008
- Negotiate – this is the perfect time to get a realtor involved. They know what the values are which is important and they can guide you as to whether you could get your closing costs paid for by the seller or even have money towards your down payment included.
- Know Value – don’t ignore what previous homes sold for in the same area. Also take a look at what homes are currently listed for in the same area and better yet, the same development or community. Having a realtor there for you to do this is your best bet. You can look this info up on the internet, but a realtor is going to be able to give you the best estimate of value. And your appraisal must come in or else financing will be a problem.
- Do not wait - until summer, or fall or winter. Do it now. We are nearing a bottom of this decline and waiting for another year to go by will only put you behind the 8-ball. Additionally, if you’re paying rent now, you could put those costs towards your mortgage over the next year.
- Always think resale – finding a property in a growing area, near shopping, sources of employment, schools, parks or other amenities that will make your resale in the future easier. Remember traffic is an issue in our growing city. If you hate the drive to where you are contemplating moving, then there’s a good chance others will also despise the drive when you try to sell it.
- Don’t pass up the fixer uppers – You could be passing up on a great value if you are passing on diamonds in the rough. Don’t just focus on a home that has everything in it now. It will not lend the same value as if you found a home that needed some minor repairs or installations.
- Think about purchasing in slow season – purchasing in the winter is a much slower season than in the spring or summer when the kids are out of school. A seller is more motivated to negotiate during the slow selling seasons.
- Find Bargaining Chips – Ask when seller purchased their home and what they paid for it. Knowing this information will help you to know if they truly have room to negotiate. Find out why they are selling. At the very least, they can tell you why they are selling. The other information you could find out on the Clark county tax assessor’s website.
Request contingencies in the negotiation process – During the purchase contract phase, make your purchase offer contingent upon the appraisal coming in at that amount, the home passing inspection and on contingency of you finding financing. The more wiggle room you have, the better you may be able to back out if need be without risking your earnest deposit.
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