Impossible to get a home without getting outbid by cash buyers! Any advice?

Asked by ejholloway, Las Vegas, NV Tue Nov 19, 2013

Here is my predicament:

Looking for a house within the $150,000-$200,000 range. I have amazing credit. I own another house. Been approved for a good loan. Every time I go to place a bid, I immediately get outbid by a cash buyer. This has been YEARS of this process.

I've been with multiple different realtors and even tried going through law groups to get pre-listings with no luck!

Anyone out there that has actually had success buying a home here recently?

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Answers

23
Diann Tonnes…, Agent, Las Vegas, NV
Tue Nov 19, 2013
BEST ANSWER
Hi there,

Actually we have had great success in securing homes for our clients, including those that are getting loans. We are even getting homes for our VA clients with the seller paying all the closing costs. Yes, you are in a competitive price range for the Las Vegas market, but it can certainly be done. To get a the right home, you have to be quick and be prepared to make an offer right away.

You also have to be realistic in your expectations of pricing. You say you have been "outbid." Were you perhaps offering too little for the property? Would you be able to offer more if you had a loan with no lender costs? We work with a lender that has zero lender fees AND the lowest interest rates. Being able to get a loan with no origination fees, no processing fees, and no underwriting fees can save up to $2k or more that could be added on to your bid for a home.

Please feel free to contact us to discuss in more detail. We need to discover your what your bidding practices have been. Maybe we can refine them and help you get that home. It is certainly not impossible! Feel free to look around our site and find out more about us first.

http://www.GreatLasVegasHomes.com


Diann Tonnesen
Prudential Americana Group Realtors
sold@GreatLasVegasHomes.com
702-985-7654

The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"
1 vote
Damon Bottic…, Agent, Las Vegas, NV
Tue Nov 19, 2013
You wrote, 'I've been with multiple different realtors and even tried going through law groups to get pre-listings with no luck".

...this is probably causing much of the grief you are experiencing. Inventory is up...way up. competition is not nearly as fierce as it was over the past year, but there are 2 things to keep in mind as you search for a property:

1. If you are attracted to the properties that you consider to be the best "deals" because of price/location/amenities, then you are always going to be chasing the properties with the most amount of competition. Focus your search on the ideal property for yourself rather than the best list price.

2. Find a motivated and experienced buyer's agent and stick with them. If you can't show them some loyalty, they are likely going to focus their time energy on buyers who are willing to work exclusively with them.
2 votes
@ejholloway
I realize there is much more to your situation than I'm aware of, however I believe my advice still stands on it's own. Being loyal to the wrong agent will obviously get you nowhere. You now have some great advice from some of the best agents in the area...interview a few, pick one, follow the advice they give you and you will be closing on your new home before you know it!
Flag Tue Nov 19, 2013
Okay, that's loyalty! And that's all we ask when we are working for a client. How many offers did you put in?
Flag Tue Nov 19, 2013
The realtor I was working with before I was with for 2 years. If that isn't loyalty, I don't know what is. She found me nothing.
Flag Tue Nov 19, 2013
Damon makes a GREAT point here. If you are working with multiple agents, you will never be working with the BEST agents. The best agents are dedicated professionals with many years in the profession that go overboard to help their clients achieve their goals. They have spent years building up a following of "raving fans" and they demand the same loyalty from their clients as they give to them. Makes sense when you think about it. Get referrals and do interviews if you need to, but in the end, choose just one GREAT agent, and you will achieve your goals too!

Diann Tonnesen
Prudential Americana Group Realtors
sold@GreatLasVegasHomes.com
702-985-7654

The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"

http://www.GreatLasVegasHomes.com
Flag Tue Nov 19, 2013
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Tue Nov 19, 2013
Go where the cash investors aren't!

Sorry to say, but if you are bidding on the same homes that cash investors are, this is a battle you won't win. Cash is King as they say

I find it hard to beleive that ALL the houses in Las Vegas in a price range are bought cash.

You might not get the same low price as a cash buyer and you might have to set your targets lower, but my point is you need to identify houses that are not as appealing to cash investors.

Those guys are generally focused on the dollar and ROI. If you focus on steady cash flow or the long-term appreciation then you might have better luck.

Hope this helps
2 votes
Actually statistics for September that were already released show that cash buyers account for just under half of the closings. I expect those numbers to go down a bit over the next few months. We just got a VA buyer into a home priced at $210k yesterday and the seller is paying $3k in closing costs.
Flag Tue Nov 19, 2013
Thank you, Tony.
And no, not ALL of them, but A LOT of them. Actually, about 6 out of 10.
http://www.8newsnow.com/story/23783901/investors-future-homeowners-battle-for-keys

Appreciate the information.
Flag Tue Nov 19, 2013
Steven Goldm…, Agent, Las Vegas, NV
Tue Nov 19, 2013
Good afternoon EJ,
Look at he responses. These responses are from professionals that complete transactions every month. It looks like the issue is fraught with issues.

The market has changed in the last 90 days. A Buyer cannot squeeze every Seller till they scream. Try to squeeze the Seller and they go to the next Buyer. Your excuse of loosing to cash Buyers is just an excuse derived from lack of knowledge.

A Buyer MUST BE AS STRONG AS POSSIBLE in this market. Forget the line from your agent that "I will get the Seller to pay ...........................
A Buyer that wants a property needs to BE AS STRONG AS POSSIBLE.
Suggestions:
Provide more earnest deposit than the Seller wants, make the earnest money not refundable, be sure to have an APPROVAL LETTER from your lender. A pre-approval letter will not make it in this market. Offers with pre-approval letters become "B" and "C" offers to be rejected by a Seller.
If your Lender cannot give you an approval letter, call me for a referral to a lender that APPROVES Buyers before the offer is made.

Did your Agent present the offer to the Seller or just send it along by fax? When the Buyer's Agent does that, who is representing the Buyer in front of the Seller? The Buyer's Agent should be presenting the offer to the Seller as that is what they are being paid to do. The Buyer's Agent should be representing the Buyer. If your Agent is not meeting the Seller personally, go to another Agent and get representation!

My team is always looking for agents that want to increase their closings. My team supplies free apps, website, lock boxes, signs, and more to help the agent be productive. We train agents to close transactions with approved Buyers that we provide, such as yourself.

I use many additional concepts to make the Buyer STRONG. Call me for assistance and let's get you into your new home before the new year.



Try my new mobile app for your phone.
Go to http://www.teamgoldman.org and save it to your home screen.

Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.

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1 vote
Suzie Marqua…, Agent, Las Vegas, NV
Tue Nov 19, 2013
I am surprised that you have not been able to get a home. The cash buyers were ruling the buying process a few months ago but that frenzy has subsided. I know your frustration. I was tired of having our homebuyers excluded from the purchasing process. Many large cash investors and hedge funds were creating a impossible scenario for the family who just wanted to purchase a home to live in. Much of that has gone away now. We have helped several buyers purchase recently and did not get out bid by cash. Through this holiday season may be in your favor also. People are focused on other things and there may not be as much competition for a potential property. You definately will need a savy agent. I think you will have better chances of purchasing now than you had a few months ago. Don't give up and Good Luck,
Suzie Marquardt
702-234-7653
Fahrnyteam@yahoo.com
http://www.lasvegasrealestators?com
http://www.fastnevadashortsales.com
1 vote
Renee Burrows, Agent, Las Vegas, NV
Tue Dec 10, 2013
Inventory is way up since June and if you are not "fishing in a pond" with everyone else & a contract is written properly you shouldn't have an issue.
0 votes
David Cooper, Agent, Los Angeles, CA
Fri Nov 22, 2013
There is a short sale is 89149 that looks like an incredible investment opportunity. Interested?


David Cooper Las Vegas Investment Group Since 1994
Superior Investment Results Can Be Yours Today
Join our FREE foreclosure marketing list http://www.lasvegaswinner.org
or You Can Call 1.888.616.6226
0 votes
Becky Zisk, Agent, Henderson, NV
Wed Nov 20, 2013
You need to become a little more pro-active. In your offer think about offering to pay their utilities until closing of escrow. If they have a pool, offer to pay the pool maintenance until closing. If they have a yard and hire a yard person to do the mowing, offer to pay him until closing.

Go in with an "Approved" credit letter not a "Pre-approval." Attach a little note to your offer explaining reasons "Why" you want their home and ALL the good features that is has that meet your criteria and ask them VERY humbly to consider your offer.

I have found more times than not, that some of the above actions have been very successful in my clients obtaining their home. If I can assist you further, please get in touch. My very best, Becky
http://www.beckysellslasvegas.com bzisk@aol.com 702-299-5363
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Nov 20, 2013
Simply put you have to make the best offer you can within your guidelines. be pre-approved not just pre-qualified. Be ready to close in 30 days. Complete an inspection before making an offer so your offer is not contingent upon an inspection,. Have your agent assess what the home is worth and make your best offer your first offer.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Nov 20, 2013
Non-sense.
YOu are losing becuase your bids are not competive.
IT has nothing to do with cash, investors or any of the other issues frequently cited.
AT THE CLOSING TABLE IT IS ALL CASH ALL THE TIME!
-
Ask yourself, why are your bids not competive?
Lets see your list?
-
It wlll be because you are buying in the WRONG value segment or your offer is so laden with obstacles that your offer is easy to kick to the curb. The obstacles most easy to remove have the names Bank of America, Wells Fargo, Chase.
-
After two years, you should be seeing you are losing more competivieness as values creep up a percentage point at a time.
-
This is not rocket science. Get into the segment where you can be competive and get rid of the contengincies, don't make offers at the top of your capacity.......if you intend to be competive.
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After YEARS in the process you know what does not work. Now, listen to those who are represeting you. When you hear the words, "We can give it a shot" it is PC speak meaning , "Common Holloway, haven't we been down this road before? How many tmes will it take before you get real?"
=
My real buyers use the 'First Look" option. They buy one of the first three qualified homes that become available. They never get to see home number four. Real buyers. Real Sellers. Real results.
0 votes
Dennis Evans, Agent, Clifton Park, NY
Wed Nov 20, 2013
I don't do business in this area, But keep your head up... where there's a will, there's a way!
I would normally say that you need to find an agent that would hook you up with "new" listings as they came out, but seems like your doing that and more... I also looked at homes in that market and I still see some homes just sitting there, so, Im a bit perplexed why your choices are selling out so fast?
In any case, If they give you lemons, make lemonade... What about a reverse mortgage on your current home? how about getting an investor to back you at a slightly higher interest rate so you have cash too? Look for alternate ideas that may be able to put you on the same ground as your competitors.... In other words... fight fire with fire!
I will be moving to Vegas if they are selling that fast! I would just spend all my money I make on the strip! lol..
If all fails.... Put all your money on black and spin the wheel.........
0 votes
Daniel Mirea, Agent, Chicago, IL
Wed Nov 20, 2013
60 percent of all 2013 home sales are being driven by cash buyers. Find a very good realtor and stick to his plan ! Write offers every time you see a good deal! What is for you ......will be for you! Good Luck!
0 votes
Matthew D'Er…, Agent, Las Vegas, NV
Tue Nov 19, 2013
Yes...we do it all the time...I will share with you by phone. Matt & Kim Dercole 702.501.0973
0 votes
Chris Harris…, Agent, Henderson, NV
Tue Nov 19, 2013
Hi EJ,

Please read your question above....it reads more like a statement, and this is what YOU have been telling yourself for years. My 1st tip would be that You have to change Your mindset.

Don't get me wrong it doesn't have to be all rainbows and butterflies. But, for some reason or another you haven't been able to buy a home yet. Good thing for you is that your house is out there waiting for you to find it and buy it.

Now, Is the market competitive? Yes. Good news for you is the Las Vegas real estate market is shifting. With more properties coming on to the market daily.

2nd tip would be on how are you structuring your offer and if you're asking for closing costs?
3rd tip is that right now is a great time to purchase because of the Holidays, when only the serious buyers are out buying.

If your intereseted in how I can help you find and purchase your next home. Contact me today! I have helped other buyers that were in similiar situations as you, buy their home.

Thank you,

Chris Harrison
Keller Williams Realty
The Marketplace Summerlin
(702) 592-9510 cell
Chris.Harrison@msn.com
0 votes
Tim Kimball, Agent, Las Vegas, NV
Tue Nov 19, 2013
Are you getting out bid (cash offer high in price than your offer), or just not getting accepted because you are getting a loan and they are buying cash. Some sellers aren't getting the best advise about accepting the offer that is in the sellers best interest (best price in there time frame). Unless there is a real appraisal issue (price or condition) or the buyer doesn't have a solid loan letter it shouldn't make a difference. If all things are close to equal many seller would rather sell to an owner occupied than an investor. Make sure your agent is promoting you not just sending in an offer. Some of the investor cash offer are more likely to fall out than offers with loans.
0 votes
Myra Gouger, Agent, Las Vegas, NV
Tue Nov 19, 2013
You should have no trouble buying now. Most of the investors are out of the market. It should not be so difficult. It also depends on where you are looking. I'll be glad to help.
0 votes
"In September 47% were cash sales as opposed to 53% for financed sales. "
Flag Tue Nov 19, 2013
Hank Lauzon, Agent, Las Vegas, NV
Tue Nov 19, 2013
Good Answer Damon....

Hank Lauzon III
Signature Real Estate Group
9525 Hillwood Drive #120
Las Vegas, NV 89134

Cell 702-449-0899
Office 702-949-2409
Fax 702-543-6844

Web : http://HanksLVRealestate.com
Email: HankLVRealestate@aol.com
Facebook: http://www.Facebook.com/HanksLasVegasRealEstate

Never look down on anybody...unless you're helping them up.
0 votes
I like your quote a lot!
Flag Tue Nov 19, 2013
Rena Levy, Agent, Las Vegas, NV
Tue Nov 19, 2013
Hi Ejholloway

I am taking a new listing in Silverado Ranch. Its beautiful Single Family home with three bedrooms plus 2 1/2 baths. Almost 1500 SQF built in 2005 for $ 167,000. The house will be offered to investors only since there is a tenant in place that pays $ 1,150 per month and has been renting for the past two years. The lease was just renewed last month.

If you are interested, contact me at 702-992-7754 or email me at cvegashomes@gmail.com.

Rena Levy
International Broker/Associate
Realty Executives International
702-940-4500 Office
702-992-7754 Direct
Web Reference:  http://www.cvegashomes.com
0 votes
JMsellslasve…, Agent, Las Vegas, NV
Tue Nov 19, 2013
If you see a home you really want, you need to move quickly. And make your highest and best offer right away. Cash buyers/investors are slowing down here a bit. My clients have made successful purchases without being overbid. If you would like my assistance, please feel free to contact me. Thank you. :-)
jmsellslasvegas@gmail.com 702-493-5776.
0 votes
Diann Tonnes…, Agent, Las Vegas, NV
Tue Nov 19, 2013
Here are the latest statistics that were released by Salestraq for September. They tell you the average prices compared to previous months, inventory levels and cash vs financed sales. In September 47% were cash sales as opposed to 53% for financed sales.

Total Resale Closings = 3,888 Units (Aug: 4,249| July: 4,455 | June: 4,199 | May: 4,685| April: 4,456)

Non-Distressed Sales = 69.9% (Aug: 67% | July: 64%| June: 62% | May: 61%| April: 61%)

Short Sales 15.5% (Aug: 19% | July: 21% | June: 24% | May: 24%| April: 25%)

REO = 7.5% (Aug: 8% | July: 7% | June: 8% | May: 8%| April: 9%)

Median Home Price Resale $154,995 (Aug: $155,000 | July: $155,000 | June: $151,000 | May: $142,150 | April: $143,500)

47% resale closings were CASH (Aug: 48% | July: 55% | June: 55% | May: 58% | April: 59%) , that means there were 1,827 financed closings

MLS Listings = 8,842 units (Aug: 8,319 | July: 7,667 | June: 5,750 | May:4,316 | April:4,806)

New Home/Builder Closings = 580 units (Aug: 755 | July: 636 | June: 616 | May:714 | April:650)

Active New Home Subdivisions = 155 (Aug: 153 | July: 152 | June: 151 | May:155| April:151)

Median Home Price New Home $267,856 (Aug: $266,389 | July: $267,254 | June: $266,725 | May:$255,565 | April:$238,194)

Currently, there are 1167 Active Single Family Home Listings in Las Vegas between $150k and $200k:

http://www.greatlasvegashomes.com/idx/?refine=true&searc…

And there are 131 Active Single Family Home Listings in Henderson between $150k and $200k:

http://www.greatlasvegashomes.com/idx/?refine=true&searc…

Your home is in there somewhere!
0 votes
Working with multiple different realtors is NOT what I would do. Find an experienced, top-notch agent that has superior negotiating skills, and you will get a much better chance of success.


David Cooper Las Vegas Investment Group Since 1994
Superior Investment Results Can Be Yours Today
Join our FREE foreclosure marketing list http://www.lasvegaswinner.org
or You Can Call 1.888.616.6226
Flag Tue Dec 10, 2013
Kevin Dunlap, Other Pro, Las Vegas, NV
Tue Nov 19, 2013
In today's market there is a lot more inventory out there than there was just 2 months ago. Sure there still some cash buyers out there, however there are plenty of homes to choose. As the gentleman implied below, you must have a very restrictive search that only pulls up homes that attract other investors. Maybe if you broaden your search. At the time of this comment there are 1664 houses between $150,000 - $200,000. 1937 homes are in C or P status (meaning under contract and under contract after all contingencies have been removed). Of those homes 995 are cash deals, which is about half. The rest are FHA, VA or Conventional loans.

How many offers have you made and how recently were those offers made.

Contact me for more information on your scenario.

Kevin Dunlap
Realtor @ VIP Realty
702-591-1784
0 votes
Hank Lauzon, Agent, Las Vegas, NV
Tue Nov 19, 2013
Give me a call,..

I Just p[icked up a listing in your price range...

Contact info is below....

Hank Lauzon III
Your Las Vegas Realtor

Signature Real Estate Group
9525 Hillwood Drive #120
Las Vegas, NV 89134

Cell 702-449-0899
Office 702-949-2409
Fax 702-543-6844

Web : http://HanksLVRealestate.com
Email: HankLVRealestate@aol.com
Facebook: http://www.Facebook.com/HanksLasVegasRealEstate

Never look down on anybody...unless you're helping them up.
0 votes
Andrew Lunsf…, Agent, Las Vegas, NV
Tue Nov 19, 2013
Call me. I have great success with getting buyers into homes. You may need to change some search parameters but many cash buyers are slowing down.

Andrew Lunsford
Realtor
702-415-4819
0 votes
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