Why are these properties so hard to get?
You are not the only buyer running around town. 140 properties EVERY DAY are purchased in Las Vegas. Your problem isn’t the bank or the listing agent. You have a lot of competition and if the house you like is in good condition, there are probably several offers on it already.
Why do we have to visit so many properties?
The average primary buyer has to put in 4 offers to get a property. If you are getting a mortgage, the process for getting a property is very complex and contingent on the appraisal. For example, you could get an offer accepted on your favorite property but if the appraisal is too low, you won’t be able to get a loan. There are lot of stars that have to line up and in the meantime, the listing agent is collecting other offers.
Do I have to bid over list price to get a property?
Sometimes. Generally, a property that’s in “A” condition priced below comps can be purchased at about 8% over list. A property in “F” condition can be purchased at about $15% below list. If you are not willing to pay above list on a property that is in “A” condition priced below market, you are essentially wasting everyone’s time.
Should I consider short sales?
A short sale means the owner is attempting to sell the property for less than the loan balance. They come in 2 flavors: approved and unapproved. An unapproved short sale means the lender hasn’t agreed to a haircut on the loan. Some lending institutions take up to 2 years to make up their mind!!! Unless you are willing to wait a year to move into a home, we don’t recommend that you pursue these.
More Hunting Tips
We will not take you hunting without proof of funds.
No exceptions. We don’t care if you are the Dalai Lama with a Black American Express card. Your hunting trip will be cancelled if you don’t show up with ammunition. 2 of the properties we visit while hunting will be gone by the time you have dinner. We will be putting in offers that evening if you are serious about getting a property.
Wrap your mind around these numbers.
140 properties in Las Vegas are purchased every day. Half of those were buyers like you. 140 buyers a day are putting money down to purchase a property. If the property you are looking at is in “A” condition, it probably has several offers on it by the time you see it.
Take notes and rate properties as we go along.
We will give you more tips on rating properties when we go out in the field. Your notes are an integral part of deciding which property you want to bag. Keep in mind that at least 1 of the properties you visit will be gone by the time you have dinner.
We will be starting early. NO EXCEPTIONS.
It gets seriously hot in the summer. We do not take pleasure in watching you collapse in the heat. Most people go into a coma by 3pm in August. Trying to think clearly in a house that’s 115 degrees is extremely difficult. Hunting in the evening is useless as 90% of the properties don’t have electricity. We start early because we have to, not because we want to torture you.
Don’t fall in love with a property.
You will bid on at least 4 properties because the chance of you getting your favorite is not very good. If you fell in love with a property, this means 20 other people also fell in love with it. There will be 20 other people stepping all over themselves to get it. Unless you pay 20% over list, you will not be guaranteed to get the property.
If you are a number cruncher and need to spreadsheet this stuff, bring your laptop or tablet.
Nearly every hotel and coffee shop in Las Vegas has free wireless. If you really need to crunch more numbers than the ones we have provided, you need to get on it immediately. For every day you need to think about it, you lose an opportunity to make an offer. This means that by the end of one week, every property we showed you will be gone.
There is a major element of luck in getting a property.
There are so many variables in choosing and getting a property, that there is no way to predict which property you will get. For example, you may be the third highest bidder on a property and still get it because the top 2 bidders went MIA. Many buyers are shocked that they bid 20% over list on their favorite property and didn’t get it. Listing agents don’t tell us who or what the highest bidder is simply because they are not the decision makers AND it’s illegal for them to tell us. You will be blasting a shotgun into the tree – something will fall out.