Home buyers in Las Vegas urged to develop strategy
Teresa and Bryan VanAcker moved to Las Vegas from Lansing, Mich., this year to be closer to their daughter and grandchildren.
From what they’d heard about the local housing market, it wouldn’t be difficult buying a home at an affordable price.
They offered $167,000 on a short-sale home in the Silverado Ranch neighborhood that was accepted by the sellers. Unfortunately, the bank wanted $200,000, and the sellers decided to accept a deed in lieu of foreclosure, basically forfeiting the home to the bank.
“We waited six months. We were devastated,” Teresa VanAcker said. “I made a big mistake because I bought furniture for that house. It was supposed to be a sure deal. The banks knew what was going on that we didn’t. They knew investors were coming in and prices would go to $200,000.”
It’s a common story among Las Vegas house hunters looking to take advantage of discounted prices and the lowest mortgage rates in 40 years. Even if they’re fully qualified and pre-approved for a loan, they’re getting beaten out by cash investors.
The VanAckers have written four or five offers in the last couple of months, only to be told someone else came in with a higher bid. They looked at one house with 23 offers on it.
“They said, ‘Give us your best and highest offer.’ We said, ‘Forget it, somebody will come in higher,'” Teresa VanAcker said.
Prospective homebuyers need to develop a strategy to give them their best chance of getting an offer accepted, said Robyn Yates, owner and broker of Windermere Premier Realty in Henderson.
“In general, the buyer wants to put themselves in the seller’s shoes and think about what that seller must be going through in an effort to appeal to that seller,” Yates said. “For example, a short seller’s thoughts: I get nothing. I just want to get out of my situation.”
Since cash buyers are getting priority over financed buyers, anybody who has cash should use it and get a cash-out refinance after the close of escrow, she said.
Offers with Federal Housing Administration and Veterans Affairs loans have stricter lending and appraisal conditions that can make it more difficult for sellers. FHA and VA sometimes require seller concessions, the real estate broker said.
Some conventional loans no longer require 10 to 20 percent down. Some are as low as 3 percent down, but still carry the ease of conventional financing, which is more appealing to sellers.
Financed buyers should be fully approved before writing any offers, Yates said.
In general, the buyer goes to their lender for pre-approval, which means the buyer’s credit has been verified and minimal information has been reviewed. By getting fully approved, the buyer gains a stronger advantage over pre-approved buyers.
“Write a heartfelt letter to the seller about how much you love their home and how you see yourself living in the home,” Yates suggested. “Every seller loves it when someone else appreciates their taste and hard work.”
For short sales where the bank is being asked to take less than the principal mortgage balance, buyers should work with a real esate agent who is skilled in negotiating short sales. That agent can work with the listing agent to get permission from the seller to work on their behalf.
“Agents who are listing and negotiating short sales have the most amount of work to do to put the deal together,” Yates said. “Sometimes that listing agent really appreciates the help.”
Buyers can offer to maintain the property – mow the lawn, have trees trimmed, maybe have the pool cleaned until the close of escrow.
They can also pay for the seller’s
homeowners association package. That takes one more financial responsibility off the seller’s shoulders. The same goes for past-due HOA fees.
“Again, a seller doing a short sale is getting no financial gain out of the property. This sense of cooperation could lend a hand to the seller,” Yates said.
VanAcker is now looking at a 2,500-square-foot home in the gated Solitude Estates near Charleston and Nellis boulevards. It’s listed for $269,900, a little above her cap of $250,000. She offered $240,000, or about $94 a square foot, and received no counteroffer.
“We like this house, but why would you pay for something ridiculously overpriced? Maybe we could go another $1,000 and maybe wear them down,” she said. “We don’t know what we can do. Another scenario is waiting and if prices go higher, then we’re priced out of the market and won’t be able to buy a house.”
Comparables in that neighborhood are about $70 a square foot, but investors are trying to “flip” the house for $106 a square foot, said Jennifer Stuart, Van
Acker’s real estate agent. They bought it for $200,000 at auction in June, she said.
“They’ve been sitting on the listing, inflating the price and waiting for cash buyers,” Stuart said.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
