The local market in Las Vegas is definately a "Seller's" market. Of course prices are much lower than what they previously but we are very SHORT on listings right now. Hence we are receiving anywhere between 3-18 offers per listing. On a few of my bank owned lsitings i have received up to 25 offers...most of which were well above list price. Obviously the comps need to be made so you know where your offer should be and NOT what the list price is necessarily. Many keep saying that we will be receiving a bunch of new listings soon but hey have been saying that for over a year now. Fact is a "balance market" for las vegas is a 6 months supply of inventory. Currently we are below a 3 month supply. Hence, there is not enough homes for the buyer. Of course the lower cost of the home the higher the number of offers they typically receive. If you are looking around $100K to $250K be prepared for a lot of competition and do not wast your time putting low ball offers in. You will burn yourself out and miss out on the home you want.
Most important...be prepared to make the offer when you see something you want.
1. Prequal (PQL) with multiple lenders all at once (less of a hit than individual requests over 2 to 3 month period. Specifically, get a BofA & Wells PQL as well as your credit union and anyone else you are interested in. Most bank owned properties(REO's) are owned by Wells or BofA and many of the listings agents require a PQL from the bank that holds the note! If you don't have the appropriate PQL "prior" to submitting the offer, the listing agent will often not submit your offer to the seller.
2. The only exception to the PQL is if you are paying Cash. In that case you will need proof of funds (POF) that is current (less than 30 days) from your bank..
3. EMD-Ernest Money Deposit is required to submit an offer. Again without the copy of the EMD, listing agents will not typically submit your offer to the seller. Your agent will ask you to right a check to a Title/Escrow company for a specific amount which is stated on the MLS form. A copy is then made and submitted to the listing agent along with the Offer and the PQL. The check is NOT ever deposited until you are in receipt of a fully executed contract. That is...the seller and you have signed all required documents and agreed to all the terms. It is always best to have your agent redact (remove/black out) t the account number from the "copy" of the check that is submitted to the listing agents office.
It is important to select an agent that is experienced in dealing with contracts surrounding REO (real estate owned by banks) and Short Sales (SS) . There are a lot of variables that you don't want your agent to figure out after the fact especially now! Knowing that there is a shortage of listings, seller's are not granting extenstions to contracts without charging per diem to the buyer...hence mistakes/delays will cost the buyer approximately $50 to $100 per day past date of scheduled closing in the contract.
Valerie Edwards, REALTOR
RRG, SRES, SRS, RSPS, SFR, ATHOM
Premier Real Estate