Selling a Home Archives - Las Vegas Real Estate

What Is 2020 Doing To Las Vegas Real Estate?

It Depends On Who You Are

This has certainly been a unique and challenging year so far for many of us, particularly in Las Vegas. How 2020 has impacted our housing market depends a lot on where you are in the market. While there are as many particular situations as there are clients; for our purposes here, we’ll break them down into the following categories: Sellers, Buyers, & Homeowners .

Sellers – Possibly The Biggest Winner?

Those looking to sell their home this year have seen very little competition. The demand may not be quite what it was last year, but it is still well-outpacing available inventory supply. Many areas in Las Vegas are seeing 2-3 weeks as a median time on market. Historically, this is incredibly low. This demand is raising home values & in some cases for well-marketed homes, in show-ready condition, even creating bidding wars.

Yes, selling this year has its own set of hurdles to overcome, but in a cost-benefit analysis is still heavily benefiting sellers. There are particular challenges to selling a home today if the seller may be working from that home. This creates limited hours available for buyer showings. In homes with children, we could see school from home, or daycare from home further restricting showing availability. There are some excellent options available for initial showings including a 3-dimensional virtual walk-through such as this one from one of our office’s listings under contract already. Innovative solutions like this reduce intrusions for the seller & expand the buyer’s ability to get a feel for the home prior to in-person showings while keeping everyone safe.

There are also other things we can do to keep your home’s residents & potential shoppers safe as well. Requiring masks & providing booties at the entry point are some we’ve used. Keeping the home not only show-ready clean, but pandemic-clean with sanitizer at entry & disinfecting wipes for light switches, door handles & other surfaces after showings can also go a long way to keeping everyone safe & pleased throughout the process.

The Other Side Of This Coin, Of Course – Home Buyers

Buyers are seeing a lot of competition for the home of their dreams, & yes prices are rising. You may think if the sellers are coming out so far ahead, it must be at the loss of the buyer. However, for those mortgaging their purchase, the drop in interest rates is creating a win-win for both parties. In many cases the lower rates mean buyers making the same money this year as last, on average, can afford about $30,000.00

The Little-Known Secret of a Mortgage Recast, And How to Use it To Time The Real Estate Market

While over the long haul, home values will always go up due to inflationary pressure on the value of a dollar, we understand that there are times each year when homes are at a premium due to demand.  Yes, there are cycles (usually around 16 years for a complete cycle) of up-swing and down-swing on home values, but most of us can’t plan our major life events (births, deaths, job-changes, relocation, marriage, divorce, or inheritance, etc.)  around these larger market conditions.  What we can do is capitalize on the seasonal trends throughout the year we find our life demanding a change.

Generally speaking the months around the end of year holidays and the first few months of the new year see less demand for real estate than April through August.  Things like gift buying, travel for a family get-together, tax season, and just wanting to hibernate when its cold & dark outside restrict demand for most folks.  As things get warmer, brighter, and those with children see a break in the school year as an ideal time to relocate, demand and therefore prices, see a peak.

  • Buy NOW, Sell Later: If you are thinking of moving this year; and have savings to buy before you sell, you may be able to take advantage of the turning seasonal differences involving supply and demand.  You may implement a plan with your Realtor that will take advantage of buying at the tail end of when there is less demand, and selling when demand starts approaching its seasonal peak.  Depending on your current monthly payment, the average time in your neighborhood to sell, and seasonal swings anticipated in your price ranges this could save you a lot of money.
  • RECAST, don’t Refinance: There is a little known, little advertised feature of many loans backed by Fannie-Mae or Freddie Mac (Not available on FHA or VA loans)  called a “Mortgage Recast”.  What this enables you to do, is generally spend a few hundred dollars in fees to your mortgage servicing company to apply a lump sum of equity from your current home’s sale to your newly purchased home, without needing to spend thousands of dollars of fees on a more common and expensive refinance.
  • How a mortgage recast works (a hypothetical example): Your rate and term (say 30, or 15 year amortization) stay the same as they were (as will the date of your last payment) but your monthly payment will lower significantly when

Listed on Monday, in Contract on Wednesday, Closed for 100% of Appraised Value!

My listing in Arden Park had a lot going for it. The sellers had already purchased their new home, always kept it clean & well maintained, and they were realistic about their asking price. They didn’t imagine the Raiders football team hoisting their home’s value through the clouds. They were open to hearing what homes in the neighborhood had actually sold for, how long those listings took to sell, and implementing a plan to quickly sell for maximum profit.

Being right on the border between two neighborhoods, with very different valuations, they understood a professional who can extrapolate the data into a real asking price that will motivate offers can make all the difference. The average days Listing to Close for the area is 89 days. We sold at 45 days LTC with an in-contract extension to make some repairs to satisfy the 1st-time (but well qualified) home buyers; almost 1/2 the average time from putting it up for sale to collecting a good check!

How were we able to beat the market timing by almost 50%? First & foremost,