fbpx

How to Buy in Las Vegas – Bidding Wars & Lack of Inventory

It may seem crazy to celebrate buying a home for it’s appraised value. However, if you’ve been trying to buy a home in Las Vegas recently, you understand even buying one you like over appraised value is a huge accomplishment today. Homes are appreciating 1-2% per month in my markets recently. That means a $350,000 home now costs $3,500 – $7,000 more than last month!

Continued lack of inventory & historically low mortgage rates are driving Las Vegas housing prices up over the last 10 months. We initially saw a dip a year ago as Covid reality set in. Since then things have gone nothing but up!

In the last month, I’ve had two sets of buyer clients recently secure contracts for sale. So many others have been out-bid, or just became incapable of purchasing their dream home as prices rise. One is a case of sheer purchasing power pushing all other bids off the table to secure a gorgeous home. Most can’t do that, but don’t give up! If you don’t have the cash, you can use persistence, an amazing Realtor, & technology.

You CAN Do This

The other is a case of 1st time home buyers; working diligently, hand in hand with me through the last 4 months. We previewed homes in two areas that worked well for their family & work requirements. They discovered they needed more home than they initially thought. They knew one neighborhood in particular was their ideal place. We’d lost a chance to bid on a home we’d seen in December. It was perfect for them so both were initially disappointed.

Don’t Give Up!

A month later a model match on the same street came to market & guess what? It was in better condition, move-in ready & has better upgrades. It was also priced $5,000.00 more. The day it came online, neither of the couple were available to see it in person. I knew it was going to go quick, so I drove there by myself. I Facetimed one of them while I walked through, measured rooms & answered any questions he had. Then I re-walked the home shooting video for her, as she wasn’t available to Facetime from work.

Accurate Analysis of Accelerating Values Gives You Purchasing Power

We wrote a contract for $7,000.00 more than the model match that had closed the month before. Just $2,000.00 over asking & we locked it down. I knew the upgrades should cover 1/2 of that, but what about the other $3,500.00? Well, I now use a special system of valuation I’ve needed to develop for this crazy market. I was convinced our appraisal would come in where we needed it to.

Sure enough, the appraisal came in right at our offer price. Essentially homes appreciated almost 2% from the model match closed a month ago. I can’t guarantee my estimates will always match the appraiser’s. Appraisals are 1/2 science, but still 1/2 art. However; a normal year of real estate may see 3.5% appreciation. Lately in many neighborhoods I serve we’re seeing 10-12% annually. You can’t run comps the way you have been for years with 3x appreciation.

You’re may be trying to buy. You may be looking to sell without leaving money on the table. Either way, you need to know what your micro-market is doing. I can offer you consultation that understands what’s happening in your part of Las Vegas real estate.

How much will you want to offer to lock down that dream home? How likely is it the appraiser will uphold your offer price? How much should you hold out for when reviewing your stacks of multiple offers we’ll bring in for you when selling? Helping you navigate the numbers is one of my favorite ways to serve you. Let’s talk & see what I can do for you today.