Whoever said you could not go back in time was not trying to buy a house in Las Vegas in the Spring of 2009. As of April, 2009, the median price of homes was at 1998 levels - $125,000. Home Builders Research, a local firm, estimated this figure at $130,000 - still a sharp contrast to the median price of $275,000 as recently as February, 2007.
What is pulling the prices down are foreclosures, which sell for an average $115,000 and comprised 62% of the market in April. Without the foreclosures, the median price would hover around $145,000, per Sales Traq figures. High-end home sales are not pulling up the averages, as these homes aren't moving. Jumbo mortgages are hard to get these days, due to stiffer credit requirements.
Not surprisingly, the low prices have greatly reduced the foreclosure bargain homes so that right now, fewer than 15,000 remain in inventory in Greater Las Vegas. Many more will be hitting the market after the latest round of foreclosures, but they aren't there yet. Homes under $200,000 are in just great demand that first-time homebuyers are bidding against investors to snatch them up.
This puts first-time homebuyers in an interesting position that underscores the need for a skilled Realtor® to be in the mix from the start when competing for homes. In a bidding situation, many investors are coming to the table with cash in hand and with a good idea of what the home needs to be rehabbed and resold at a profit. An inexperienced buyer might try to outbid the investor, only to find himself paying too much for a house that needs more than what he can afford to do, even with the help of a 203k loan. A good Realtor® should be able to assist in the negotiation process and tell the buyer when to move on to another property.
If the buyer is unable to find a bargain home, the Realtor® can help him find other options still within his range of affordability and maybe within a wider scope of communities than where he was looking. Areas like Summerlin, Green Valley, and other southwest areas attract investors who anticipate quick turnover later. Buyers can experience the "buyer's market" climate by looking at beautiful value-priced property elsewhere in the area.
If you are looking for a Realtor® to help you grab one of these incredible 1998 priced-values, look no further than the N&Y Team.
Be assured that we will help you with your financing questions. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
Click here to get a market snapshot of your home value!
P.S. We value and appreciate your referrals. As always, we promise to deliver such outstanding service that your family and friends will thank YOU for referring them to us. Give us a call if you know someone who needs a dedicated real estate consultant for life!
When HUD Secretary Shaun Donovan announced at a recent National Association of Realtors (NAR) Midyear Legislative Meeting and Trade Expo in mid-May that the $8,000 first time homebuyers credit could be used a down payment, the crowd went crazy. The NAR has$8000 long called for a credit that could be used at the down payment stage a spur to home sales. According to Donovan, buyers could in effect get their credit when they needed their down payment through a short-term bridge loan. Almost as soon as the word hit the street, it became apparent that Donovan was announcing a not-ready-for prime time program still in the development stage.
By May 29, the actual details of the program were unveiled. Buyers can still only get their tax credit by filing a tax return with the IRS, but state housing agencies and non-profits can "monetize" the credit so it can be applied to the down payment or closing costs. The money for the down payment would be in the form of a secondary loan. ML 0915 outlines the details of the program.
To assure that buyers have a personal stake in their home, they still must come up with a 3.5% downpayment on FHA deals, which can be supplemented with funds from parents, friends or employers,. Lenders can monetize amounts over the 3.5% so buyers can get a lower interest rate. With this transaction, the buyer can not receive any cash back from the transaction.
Will this new program help homeowners? The National Association of Home Builders is optimistic that the tax credit will spur 160,000 home sales - 101,000 from actual first buyers and 59,000 from existing homeowners who were able to buy another home because of the a first time buyer bought their home. Changes in the plan will help better plan their purchase since they know the funds from the credit will be available sooner. This should encourage prospective homeowners who are madly saving to buy that now is the time to make a move.
The problem, of course, is that buyers still have to come up with the first 3.5% - a substantial amount for some first time buyers. On a $230,000 home, 3.5% is still $8,050. If the program was written so HUD standards were been set aside for the time the credit will be in effect, it would be more helpful to buyers who were planning on putting down the minimum. For buyers who want to put more down, the program will be more helpful.
In this blog, we will keep you posted about Las Vegas agencies and non-profits who can help you get downpayment help within Federal guidelines. There are rules to this new program - don't let anyone convince you otherwise! It's important that you work through an approved funding source - not a scammer who will extract a big fee to help you.
Be assured that we will help you with your financing questions. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
Click here to get a market snapshot of your home value!
P.S. We value and appreciate your referrals. As always, we promise to deliver such outstanding service that your family and friends will thank YOU for referring them to us. Give us a call if you know someone who needs a dedicated real estate consultant for life!
The building boom in Las Vegas seemed on target just a couple years ago, when 6,000 new residents a month streamed into the area. Now that the economy has slowed down, the number of new residents is down, and a steady supply of foreclosed and bank-owned property food the market, some of the new homes and condos remain unfinished. Often, the original builder went bankrupt.
The unfinished properties pose a challenge to both the new owners and to the communities where they stand. The Upfront Condominiums in North Las Vegas sold only eight out of 75 units before the builder went into foreclosure. Some of the buildings are partially complete, while the pool and clubhouse have never been opened. This is particular project may be bought by another developer and renamed. The risk is that the longer the buildings remain in a half competed state, the more risk there is of vandalism, dumping, squatting, and theft.
For potential homeowners, unfinished homes appear to be a great way to acquire a new home for less. Should you bet on one? This special situation in home buying poses special risks and requires special care. Some concerns are obvious, but some not. Finding a good real estate agent to help you through the process of finding the home, deciding if you want to buy an unfinished home vs. the many other homes available, and completing the transaction is essential.
First, you don't want to buy a new home that requires costly repairs from the get go. If the builder was in trouble when he started the home, he may have cut corners or done shoddy work that could lead to later problems. In addition, the home may appear to have survived the time between its start and the present time, but depending on how much exposure it had to the elements and the stage at which building was interrupted, it may have damage that will only be uncovered by an inspector or a building forensics engineer. If the foundation or the plywood or other wood products used throughout was subjected to the elements because construction was stopped early in the process, the home could be subject to leaks, deterioration, and mold - not an ideal housewarming present.
Finding financing can be challenging as an unfinished home is not eligible for a mortgage; a construction loan is necessary first. Unless you are competent (which usually means licensed) to do the work, hiring a contractor is a necessary step to convince the bank to finance the project.
Your contractor should take care of ascertaining that work is done in accordance with current building codes and obtain any additional permits. If things have changed since permits were first issued, some finished work may need to be redone.
You will also need liability and property insurance on the project, as well as title insurance. Given that you are considering buying property with a history there may be liability claims against the property if someone broke their leg when they tripped over unguarded construction materials, tax liens, or mechanic's liens if a previous subcontractor did not pay for materials.
A good real estate agent should be able to make the process of purchasing an unfinished home a smooth one for you. A local agent can check on the history of the place for you and help you through the many parts of the homebuying process you don't have to think about when you buy a finished home.
We are experts in the Las Vegas area. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
Click here to get a market snapshot of your home value!
P.S. We value and appreciate your referrals. As always, we promise to deliver such outstanding service that your family and friends will thank YOU for referring them to us. Give us a call if you know someone who needs a dedicated real estate consultant for life!
When faced with a pile of bills, homeowners who have trouble paying their mortgage sometimes have to make choices about what to pay. When they chose to pay their mortgage and instead were late on a credit card or two, credit card issuers have raised interest rates to nearly 30% and cut credit limits - while charging hefty punitive fees for paying late and going over the limit. Even when consumers have paid most creditors on time, they could be faced with interest rate hikes or credit line decreases based on their performance with other creditors. Interest rate hikes applied to all consumers even extended to old balances. Companies charged excessive fees even to pay the bill.
Credit card companies are not to blame for people being behind on their mortgage, but from the standpoint of most consumers, the behavior of these creditors has gotten out of hand. If someone had a financial problem that they put behind them, high credit card interest rates and credit card company tricks serve as a perpetual reminder. Terms can basically change at any time with minimal notice.
President Obama will soon be presented with a bill that reforms certain abuses within the credit card industry. Key provisions of the credit card holder's "bill of rights" include:
More time to pay bills: Bills will be due on the same day every month, no less than 21 days after they are mailed or delivered. No arbitrary time before 5 pm can be set for when the payment has to arrive. No late fees can be charged for payment not made on the due date when it fall on weekends or holiday.
More limited interest rate hikes: Raising the interest on existing balances can only be done under certain conditions. Subprime fees can't be applied until a payment is over 60 days late. Terms can't be changed for paying off old balances. No more interest rate increases because the cardholder was late with someone else. More notice for interest rate increases.
Limits on fees and penalties: Subprime interest rates charged if a customer was over 60 days late with payment will revert to the original rate once the customer has been on time for six months. Fees and penalties must be reasonable, based on rates set by the Federal Reserve Board. No fee can be charged for making payments, unless they are expedited through a service representative. No over-the-limit fees can be charged unless the customer agrees to have account set up to permit authorization of over-the-limit transactions.
New way to apply payments: Payments above the minimum payment will be applied to highest interest rate items.
Other provisions deal specifically with new cardholders and cardholders under 21.
Not everyone is overjoyed with the new legislation. The credit card industry is crying that they will have to raise fees. Consumers who pay their balance in full every month are incensed that they may lose their reward points or be subject to annual fees charged to offset the loss of income. Other critics are disappointed that the focus has been taken away from needed reform that would help housing to promote this bill. Specifically, some are livid that the President is putting his weight behind this bill while not fighting harder for cramdowns that would have changed bankruptcy laws to allow judges to modify home loans.
As realtors working in a state hard hit by foreclosures and unemployment, we are unmoved by these outrageous that an industry that has not wanted to budge on loan modifications for homeowners has been so quick to change terms for consumers when in it suits them. The new bill does not reward the bad behavior of people who can't or don't pay, but does make the treatment of all consumers more fair.
Our policy is to encourage people to buy affordable homes and to use their credit wisely. When people need help, we work with them to find solutions beside foreclosure. In our minds, the new bill will help everyone.
For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
Click here to get a market snapshot of your home value!
P.S. We value and appreciate your referrals. As always, we promise to deliver such outstanding service that your family and friends will thank YOU for referring them to us. Give us a call if you know someone who needs a dedicated real estate consultant for life!
Short sales and other options to foreclosure are an important element in the real estate market in Las Vegas. As we noted recently in our blog, Short Sales a Long Shot for Many, they take a long time getting processed and may result in the bank's refusal to accept a lesser amount as payment in full for the loan. A short sale could often be a less costly remedy for lenders, but lenders have not jumped on this opportunity to resell the home to a willing buyer for a price closer to current market value than to the full amount of the loan.
Recent administration attempts to help distressed homeowners with the Making Home Affordable program did not address short sales. The new initiatives will help both those requesting a short sale and those who wished to surrender their homes to the lenders through a "deed in lieu" of foreclosure. The government would offer mortgage servicing companies an incentive of $1,000 and the borrower up to $1,500 for successfully completing the transaction. Second mortgage holders can receive up to $1,000 to release liens that might hold up the short sale or deed in lieu transfer.
The new facet of the program is expected to help "hundreds of thousands" of borrowers get out from under burdensome mortgages. While the thousand dollar incentive does not compensate the lender for the loss agreed to in a short sale, foreclosure is a very costly endeavor that has left banks with a vast stock of real estate that is often problematic to sell. The incentives are aimed at speeding up the process for buyers and sellers.
The new program guidelines also will offer additional payments to lenders, servicers, and investors to modify loans in areas where home prices have been dropping. This measure is intended to prevent redefaults on modified loans.
To date, under the Obama plan, 55,000 home owners so far have been offered loan modifications and 3,600 have been permitted to refinance. Over 51,000 applications to refinance have been submitted. Others who need help have too much debt or not enough income to qualify. Sometimes, for the lender and investors, foreclosure is more economical than modifying the loan.
Fourteen lenders, including Bank of America, Wells Fargo, Citgroup, and J.P. Morgan Chase, currently participate in the original plan, while several other major lenders (Sun Trust, PNC, American Home Mortgage Servicing, Inc.) are still evaluating the program, at least for their own loans. PNC and HSBS are using the program for Fannie Mae or Freddie Mac loans.
These newest program additions are an attempt to slow down rising foreclosures, which jumped 32% in April, 2009. Once again, Nevada, Florida, and California have the highest rates.
Yonas Woldu or Nebi Adhanom from Prudential Americana Realty can help you with a short sale on your
property. Contact us today.
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
Click here to get a market snapshot of your home value!
P.S. We value and appreciate your referrals. As always, we promise to deliver such outstanding service that your family and friends will thank YOU for referring them to us. Give us a call if you know someone who needs a dedicated real estate consultant for life!
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We keep your real estate purchase simple and fast! Our philosophy: Buy what you can afford now. Our goal is to serve you in Greater Las Vegas whether you seek a suburban home or downtown condo.
My name is Yonas Woldu. For the past 6 years,my colleagues and I at Prudential Americana Group, REALTORS® have served the Clark County, Nevada area - specifically, Green Valley, Henderson, and Las Vegas. Though like the rest of the country (and in particular, the State of Nevada) we have been hard hit by foreclosures and falling home values, Las Vegas and surrounding communities have vibrant economies that makes them great places to live and work. I have a passion for helping potential homeowners find a home in the area that is right for them now - at this point in their lives, for the circumstances they are in.
Though I am relatively young, I grew up in the real estate industry, often observing my mother (and current partner in the N&Y Team), Nebiat Adhanom. As a college student at the University of Nevada (UNLV), I obtained my real estate license and sold 7 homes my first year - above average for new agents. Once I realized that real estate was a career where I could use my finance background and help families, I knew I had found my niche.
Once out of college, I started in real estate in the boom times of 2004. I immediately noticed my mother was overwhelmed with sales that stalled at closing as lenders were overwhelmed as well. This caused me to assume a different role for several years - that of a lender. I wanted to make sure our clients received the best rates and the best loan product in a timely manner. While working in the loan industry, I was able to help over 200 clients over a span of 3 years.
Now serving once again as a full time realtor, my goal is to continue the growth of our real estate operation and work with as many buyers and sellers as possible and provide everyone the best service imaginable in regards to all real estate matters.
Our N&Y Team serves the Greater Las Vegas area, an area where I grew up and know well. When people think of Las Vegas, they think of only glitzy night life, but Henderson, Green Valley, and many nearby communities are great places to live and work, set in beautiful, park-like settings.
With my background in real estate and real estate lending, plus a thorough understanding of finance, I know how to prepare people to buy a home - whether it's a luxury condo near the Vegas strip or a home in Henderson, Nevada's third largest city. I feel strongly that the key to a stable economy is having a stable real estate industry; the key to a stable industry is having first time buyers or buyers with low debt and a strong employment history. As I saw first hand, permitting buyers to overextend themselves or encouraging them to agree to a loan not in their best interest will help neither them nor the local economy in the long run.
In this new world of real estate, advising sellers of the best way to position their home for a timely sale at a fair price is crucial. We work with sellers to find appropriate buyers who are preapproved and ready to buy.
As an unfortunate sign of the times, there are many properties in Clark County offered as foreclosures or short sales. Many of the available homes offer excellent values for qualified homebuyers, but often the process to obtain these properties is lengthy. I work diligently to make sure that these transactions are processed as quickly as possible so that both buyer and sellers can move on to the next stage in their lives.
"Yonas Woldu with the N & Y Team has been handling all my Real Estate and Loan needs for the past five years. I will keep using Yonas for my future needs. He provides outstanding creative loans and makes my closings quick and easy. I will continue recommending him to my friends and family."
- Edna Bartlett
"Nebi Adhanom and the N & Y Team with Prudential Americana were very productive! I had two homes listed in Southern Highlands and Nebi listed and SOLD both than a month-and-a-half! They were efficient in every step of the process and made sure the transactions went as smooth as possible. I highly recommend her and her team for anyone who is looking to buy and sell property".
- Matt Knox
SEE OUR WEBSITE AT WWW.VEGASREALPROPERTY.COM FOR MORE STRONG CLIENT RECOMMENDATIONS
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