MyVegasRealEstateBlog

For those of us who woke up this morning with a hangover brought on by an excessive intake of yesterday’s bad news, here’s a little tonic to take away the pain.

There’s no question that the collapse of Lehman Bros and Merrill Lynch was a catastrophe of epic proportions, and our sympathies go out to the thousands of employees and small investors who will undoubtedly suffer. But in reality, once the preferred stock holders get their money back (and they will), and the dust settles, the world’s financial institutions will re-adjust and get on with the job in hand.

So where’s the silver lining in these dark, hostile clouds? Well, let’s just remind ourselves that the purpose of this Blog is to keep buyers and sellers of real estate informed, and hopefully, inspired. The fact is that when the financial markets are volatile, the money still has to go somewhere, and it tends to go into bonds. When bonds strengthen, guess what happens to interest rates? That’s right…they go down, and that’s great news for buyers and sellers of real estate.

As recently as last week, FHA mortgage rates were right around 6.75%. Today they’re at 6%. If things continue as they are, the likelihood is that very soon rates could well be in the 5s. If that’s not a solid silver lining, then I don’t know what is!

1. Bathrooms. You might be surprised to learn that bathroom remodels can often increase your resale value. Consider replacing outdated tubs, sinks, vanities, toilets, fixtures and flooring. Even basic updates like recaulking the tub, replacing old shower doors, and applying a fresh coat of paint to the walls may make a difference. A few stylish touches like plush new towels and bathmats can
   help too.
2. Kitchen. Many times, the heart of the home can be the heart of a sale. Make sure countertops and flooring are in good shape. New cabinets are a great way to give the whole room a lift. If you′re on a strict budget and can′t afford to replace old wood cabinetry, you can sand and paint them for a fresh update. Other things to consider that may appeal to buyers: stainless steel appliances and window treatments.
3. Exterior. It′s just like the old saying: ″You never get a second chance to make a first impression.″ Curb appeal should be a top consideration because it′s the first thing potential buyers will notice. Make sure the lawn is in good shape and consider planting flowers or a tree. Even little touches like a potted plant or a welcome mat can help make a difference.

If your home doesn′t need major improvements, there are still many things you can do to help make it more attractive to buyers. Start with a clean slate: scrub the walls, clean the carpets, wash the windows, and shine hardwood floors. Repair anything that′s broken—no matter how minor—so it doesn′t detract potential buyers.

As a finishing touch, stage rooms to show off their true potential. You can hire a professional to help, or go it on your own. Get a storage unit and clear out excessive clutter and personal belongings. Display furniture and décor in a way that makes the rooms feel inviting and warm while maximizing space.

So go ahead, and don’t wait to Spring-clean your home…try a Fall-clean instead!

Reason 1:
It′s a buyer′s market.

It may sound strange, but a downturn in the housing market is actually positive for buyers. Right now, it′s a buyer′s market—and that means you can get more for your money. Some experts have called current affordability the best in years, especially with attractive interest rates and a variety of loan programs.

If you′re thinking about waiting until the market improves, consider this: waiting could mean missing out on the great opportunities available right now. There′s only one way to take advantage of a buyer′s market—and that′s to buy!

Reason 2: History is on your side.

The homebuilding industry is cyclical. Instead of looking at short-term dips and rises, focus on the bigger picture. Historically, long-term home values have increased substantially despite short-term market fluctuations. The last housing downturn occurred in the late 1980s and early 1990s. New home sales began recovering in 1992 and continued growing until the next peak in 2005.

So what does this mean for you? It′s a sound reminder to think about your long-term goals. This may be an ideal time to ″buy low″.

Reason 3: Attractive new financing opportunities.

Not only are interest rates attractive, there are a variety of loan programs geared toward current needs. For example, temporary changes were made to FHA loans earlier this year, which increased the loan amount that homebuyers could potentially borrow. If you′re shopping in a market where homes were previously above the FHA loan limit, you may now be able to obtain an FHA loan.

Reason 4: Potential tax savings.

If you′re a renter, you′ve probably heard about the tax savings homeownership can offer. Taking advantage of those savings is not as complicated as it sounds

Additionally, The Housing and Economic Recovery Act of 2008 provides several reforms designed to help offer homeownership assistance, including a new $7,500 tax incentive.

Reason 5: Life doesn′t wait.

Think about the reasons you′re shopping for a new home. Is it because you want a little more space? A location closer to family or work? Or maybe you just want a change of scenery! Whatever your reasons, chances are they have less to do with the market and more to do with your lifestyle needs.

Remember, life doesn′t stop just because the housing market experiences challenges. Dreams can be reality, so why wait to start making them come true?

The long-running saga of the Fannie Mae / Freddie Mac meltdown has been playing across our screens like some far-fetched soap opera. But if we divorce ourselves from all the hype and drama for a second, what do we really see in the bigger picture?

It’s a bit like the “glass half full or glass half empty” question. If you’d have asked most people a few months ago, to predict the outcome of what has happened, they’d have probably painted an “end of days” scenario, with the world as we know it, self-imploding!

But what actually happened can really only be cause for celebration. As a nation, the United States of America has yet again proved that when the chips are really down, Uncle Sam will always come to the rescue.

Why do we always panic when things don’t always go according to plan? As Franklin Roosevelt famously said “we have nothing to fear but fear itself”. In spite of all the doomsday predictions, the fact is that world markets have mainly rebounded on the news that the Fed has stepped up to the plate, and purchased Fannie and Freddie outright, mortgage rates have eased, and financial experts have breathed a collected sigh of relief. And guess what? The world continues to spin, and we all get on with our lives.

So what lesson can we learn from this story? That seemingly impossible situations have a habit of resolving themselves? For sure! That today’s bad news is replaced by tomorrow’s new spin? Absolutely! But perhaps the most important lesson we can take from all of this, is that when considering purchasing or selling a home, we should always consider the fundamentals, and try not to get too caught up in what we see and hear in the media.

As a hard-working, busy Realtor, I spend a lot of time viewing and analyzing statistics, market trends, interest rates and many other reports relevant to my job. This gives me an edge when dealing with buyers and sellers alike, who quite rightly demand a sense of professionalism from their real estate advisor.

This morning, as I was getting ready for work, I realized how important my own home is, to myself and my family. A home is more than just walls, roof, yard etc. A home is the bedrock on which families are born and raised, it is the focal point of our social life, it gives us comfort and shelter, happiness and fulfillment.  Yes, we all want to feel we bought our home at the right price, that our home will increase in value, and that one day we’ll be sat on a handsome retirement nest-egg.

The fact of the matter is, that if we look back over the last few generations, home values have consistently gone up over the medium to long term. The reality is that downturns in housing values are always temporary.  The problem is that we all tend to get too fixated on short-term trends, and we miss the bigger picture:  Yes, we all want to buy at the bottom of the market, but in reality, a few thousand dollars up or down, spread over the time most people live in their home, is neither here nor there. 

So if you’re obsessing about when is the absolutely 100% perfect time to buy or sell a home, you need to take a deep breath, count to 10, and make a decision that’s right for you, rather than trying to look at the housing market, as if it were a speculative move on the stock market, or rolling the dice in a casino. Life’s too short to be miserable.

How many times have we driven past a particular property and thought to ourselves “I could have bought that for $100,000 a couple of years ago, and now it’s worth over half a million!” ? or “If only I’d have made the decision to buy that home, I’d now be sat on a chunk of equity.” ?

It’s amusing and amazing to see how many people hunt in packs, or to be less kind, act like sheep and blindly follow the leader. Since economies first began, there has always been one golden rule to acheiving the Midas touch: buy low and sell high!

So why are most people still sat on the fence waiting for the housing market to rebound? Scientists tell us that the definition of insanity is following a repeated pattern and expecting a different outcome. So why do we wait for house prices to sky-rocket before we buy, then complain we overpaid? Or wait and wait and wait, and then feel cheated because we missed the boat?

The other day I listened to an inteview with real estate guru, Donald Trump. We can all ridicule his hair style, but nobody can argue that he’s a genius when it comes to real estate investing. He said that for at least a year before the last peak in real estate, he begged anyone who would listen, to sell, sell, sell! Since the beginning of this year, he’s been urging people to buy, buy, buy! And Donald doesn’t say “do as I say, not as I do”… he’s been buying real estate like crazy, and putting his money where his mouth is. Does he know something we don’t know? No…he has the same information available to everyone. It’s just that most of us go through life oblivious to opportunities, even when they’re thick on the ground.

So come on people, wake up to reality and stop following the herd. Don’t say “I could have / should have / would have”… instead say “I did!!!”.

How many of us go through life, oblivious to the repercussions our actions can cause to those we deal with on a daily basis?

Although we try to do our best, sometimes that’s just not enough. Those of us who take great pride in doing the best job for our clients or customers, understand the need for constant self-assesment. If we make mistakes (and we do…even Realtors are guilty of human error!), we’re told to pick ourselves up off the floor, learn from our mistakes, dust ourselves off, and strive to improve.

In theory, these are easy concepts. But how to put them into practice?

Well, one way is to open the gates and ask my clients, colleagues, and people I’ve had business dealings with, to judge my performance through my new blog.

This is meant to be fun, informative, and revealing. I just ask you to follow 3 simple rules:

1. Only post genuine reviews.

2. Be brief and honest when  posting comments.

3. Please do not be a child. You don’t have to use profanity to get your point across.

It’s tough to accept critisicsm, but I’m willing to give it a try!

I’ll be adding new stuff daily, and I’ll confess right away that my posts will be good news…I’m an upbeat person, and I don’t buy in to all that negativity!!!

If I had a dollar for every time someone asks me “where’s the bottom of the local housing market?”, I wouldn’t be sitting here writing this post!

But joking apart, how will we know when we’ve hit rock bottom? Obviously we can’t know for sure until we have the luxury of hindsight. Real estate is subject to the basic economic law of supply and demand just like any other commodity. Housing markets are also “cyclical”, with peaks and troughs…a bit like a roller-coaster, only much scarier!

Here’s a few facts which may surprise you:

Sales of homes are up over 50% compared to mid-2007.

Inventory levels of re-sale homes have been consistently falling over recent months.

Inventory levels of new-build homes are down to literally a handfull per community.

Builders have not been pulling permits like they used to, which will impact on future supply.

Interest rates are near historical lows.

So what does that tell us?  Well, for sure this temporary “buyers’ market” won’t last forever. So if you’re thinking of buying a home, either as a residence or an investment, you may want to consider not sitting on that fence for too long…it’s the early bird that gets the worm!

I read an article from CNBC’s website regarding Las Vegas.  The contents of the article are much more positive than the headline suggests .  It highlights the success of City Center and the potential growth in general for  Las Vegas.  I particularly like this quote from Steve Wynn: “At my age I’ve been through a lot of cycles, and I’ve honestly thought that Americans, when times are bad they think there’s never going to be good, and when times are good they think they’re never going to be bad”…I think a lot of us can attest to that!

One notable statistic recently, is Las Vegas valley’s population growth.  According to an article in the RJ a couple of weeks ago, the Las Vegas valley continues to attract roughly 6,500 new residents per month.  (Data was compiled based on the number of driver’s licenses turned in). The valley is still considered among the top two fasting growing metropolitan areas in the country.  

Also of note, Nevada is one of the only escrow states in the nation.  (I believe there are 8 others).  It is relevant because it means that a bank can repossess a house much sooner (4-9 months) than in many other states, such as New York, where foreclosure proceedings can take up to 18 months.  So, while we may have seen values in homes depreciate the hardest as a result of the foreclosures piling into the market place, other states haven’t even begun to see swelling inventories yet.  An indicator that once again, Las Vegas will be one of the first markets to recover from this most recent economic down turn.

Thought I’d pass along some good news and comments from Matt Maltese @ Countrywide:

“As we slowly come to grips with the inevitability that Down Payment Assistance will be fading away with in the next 30 days, I wanted to take a moment to give you some bullet points on Nevada Housing’s State Bond program.  I think you will find that this should fill the gap for about 85-90% of the buyers that would ordinarily use DPA.  
The buyer can not have owned a home in the past 3 years
The buyer can not have more than $5,000 in the bank after closing
They can not make more than $76,680 (1-2 person household) or $89,460 (3 + person household)

Without getting into too many details, if your buyers meet these parameters, and they feel like they have lost the opportunity to buy a house as a result of DPA going away, please let them know about this program.  While there is a little more work involved for all parties, it is relatively simple to secure financing for this program if the loan officer has experience in working with State Bond..(Yes, my team and I have quite a bit of experience working with State Bond!)”