Damon Botticelli - Las Vegas Real Estate (Realtor)

Recently, this question has come up from Realtors and clients alike. Many Realtors refuse to show "short sale" homes because they can be a huge hassle for the Realtor and extremely discouraging for the home buyer. (I will save my opinions about why they are such a hassle and why the banks are pretty much shooting themselves in the foot when it comes to short sales for another blog.) I have considered making it policy not to show short sales, but decided that my job is to educate my buyers and let them make the decision about whether or not to look at short sales.

For a while now, my responses about short sales (for buyers) where based on generalities...gut feeling based on select and somewhat random experiences and office chatter. I always explain to the clients looking at a short sale..."Don't fall in love with the house...The list price doesn't mean anything...this could take weeks...just to hear a NO...we could get a yes which could later turn into a NO etc..."

I didn't THINK short sales were going for prices that would make my investors happy, but I really didn't have the facts to back up my statements...and in this day and age, that's not good enough!

So here are the facts based on the Southwest Las Vegas Area priced under $300k since 1/1/08. I am continuing to research different areas and different price ranges, and will provide that information as it pertains to my individual clients' needs.

Southwest Las Vegas Area priced under $300k since 1/1/08

430 Bank owned property sales

Median sale price per square foot $119.86

Average sale price per square foot $120.84

Median list price to sale price = 100%

89 Short Sales (only 89 closed!!!)

Median sale price per square foot $129.70

Average sale price per square foot $128.64

Median list price to sale price = 99%

512 NON short sale or foreclosure sales

Median sale price per square foot $131.55

Average sale price per square foot $135.19

Median list price to sale price = 98%

The first big obvious is that only 89 actually closed! That's very small considering there were more short sales listed at any given time compared to bank owned homes.

The next thing I notice is that the short sales are selling for about $8-$10/square foot more than the bank owned. Could this be reflective of the general condition of the home? Maybe, but with only 89 sales, the short sale is looking like a long shot with very little, if any pay-out for the buyer.

My conclusions from this information would be:

1. The biggest bargains appear to be from the bank owned homes.

2. If you're willing to make a reasonable offer on a short sale, it MIGHT pan out, but don't hold your breath.

3. Trust your "gut" - it's usually right!

Currently, you can get the foreclosure list(s) at http://www.Foreclosures.InvestInVegas.us

Las Vegas Real Estate MLS search, Community & School Reports, Home Values, Market Stats and more can be found at http://www.VegasProperty4u.com

The following is directly from the website where interested consumers can sign up for Las Vegas Foreclosure Lists.

Free List of Foreclosures and Foreclosed Homes

Serving the following areas: Las Vegas, Nevada including North Las Vegas, Henderson, Summerlin, Aliante, Mountain's Edge, Southern Highlands, Sun City, Lake Las Vegas, Rhodes Ranch, Lone Mountain, The Lakes and surrounding areas..

There is no charge or obligation for you to receive your foreclosure list(s). I provide this free service because I hope you'll find it valuable and want to take advantage of my full buyer's agent services (at no cost to you) when you decide to make a purchase.

Please take a minute to learn more about the foreclosure process and the lists available to you before selecting your foreclosure list(s).

Bank Owned Property

aka REOs, foreclosures, repos, repossessed homes, lender owned, distressed sale etc...

These homes can be a great opportunity for everyday home buyers and real estate investors to score some great deals. In most cases, you are able to inspect the property, get an appraisal, obtain financing, and even get a home warranty, just like a normal home purchase. The banks need to sell and they are pricing these homes low attempting to attract multiple offers.

When you sign up for the Bank Owned Property List, we can customize your foreclosure search to meet your specific criteria. Your list can be filtered by hundreds of options such as area, schools, bedrooms, size, price per square foot, and so much more...or you can simply ask for the complete list. An agent will contact you to discuss you needs. Detailed property information complete with pictures and addresses will be provided to you in REAL TIME via a private website where you can view the foreclosure properties as well as save your favorites and add your own notes to each property. An email notifying you of new properties can be sent monthly, weekly, or daily.

Short Sales

These are homes listed by sellers who, even if they get a full priced offer on the home will not net enough to cover the existing mortgage on the home. The bank(s) holding the mortgage must approve the sale allowing the "loss".

Buyers and sellers are often frustrated by what can be a slow and uncertain process getting short sale approval from the bank(s). You may want to contact me for the latest statistics on short sales before deciding whether you're willing to invest the time and energy into finding a short sale property if it's unlikely the offer will be ultimately be accepted.

Occasionally, home buyers and investors do purchase short sale homes they really like at prices they are very happy with, so if you have the patience and do want to look at short sales homes, I will be there every step of the way, and do everything I can to help find the home and get your offer accepted, if you choose to work with me as your buyer's agent.

Pre-Foreclosures - Notice of Default - Pros Only!

After a homeowner falls behind on mortgage payments, the lender may file a "Notice of Default". This starts the foreclosure clock ticking, and if the owner doesn't catch up the payments, the property will be sold at auction in about 5 months.

The Pre-Foreclosure List is sent daily when available (usually 5 days a week) and contains limited information about the property, the owner, and some financial information about the default.

These homes may or may not be listed for sale on the MLS and investors often try to strike a deal directly with the homeowner before the home is listed to create a win/win situation. This method can be very time consuming and is mostly used only by full time real estate investors.

Trustee Sales - Pros Only!

About 4 months after the "Notice of Default" is filed, if the default hasn't been "cured" a "Notice of Trustee Sale" is filed. This list is sent out about once a week and contains basic information about the property, the owner, the lender, the time and place of auction etc...

These auctions are CASH ONLY, AS-IS SALES. In fact you have to show certified funds in the full amount before you can even bid. Because the minimum bid is at least the lien amount and in todays market, often more than the value of the property, most of these "Trustee Sales" do not get sold and become "Bank Owned Property".