This is the last entry on the old blog system.

Please alter your book marks to reflect the new WordPress site:

robin.lvablog.com

[Add Comment] [Email Blogger]

So I'm in class earning my Certified Distressed Properties Expert (CDPE) designation, and who am I surrounded by? REO agents. Hmmmm...why are REO agents learning to help people avoid foreclosures? Don't they make their living selling foreclosures for their clients - the banks and asset managers?

I think you all know how I've always felt about short sales. I preferred root canals and blind dates. Up until recently, only 1 in 8 were successful, and I hated to set my clients up for heartbreak when there were so many great REOs to pick from. Now the approval rate is about 1 in 3. Things are looking up for distressed sellers hoping to avoid a game-ending foreclosure, as well as for buyers looking for a bargain.

Short sales can still be a nightmare when one of the agents (especially the listing agent) isn't experienced at persuading banks to accept less than what's owed. While my own closing ratio is already very high, I'm told the average approval rate for CDPE designees is over 80%. With over 10,000 CDPE designees nationwide, you sellers may want to ask your agent to show you their credentials.

Why are REO agents getting CDPE designations, then, when they get a listing if the bank forecloses? Someone moved their cheese - the writing is on the wall. Whether forced or just resigned to it, banks that were unwilling to work with people struggling to meet their mortgage payments are much more receptive to short sales now. More short sales means fewer REOs. Fewer REOs means fewer listings for REO agents.

Contrary to popular belief, homeowners can't just do a short sale to avoid their debt. A homeowner with $400,000 in liquid assets isn't likely to be approved for a short sale just because he no longer wants to owe twice as much as Joe Neighbor, who bought the same house last month for half the price. There must be an actual hardship, such as loss of income or impending loss of income, divorce, a death in the family, relocation demanded by a job, or other hardship that prevents a homeowner from making payments.

It's exciting to be in a room full of real estate agents that have a common goal of helping people avoid foreclosure. Short sales are still miserable; sellers still walk away empty-handed and without a home. But at least sellers who absolutely can't make their payments walk away with much less damage to their credit than a foreclosure or a bankruptcy would cause.

Guess if things ever slow down I'd better revise my own website and take back all those dismal things I've told reporters about short sales. With REOs in short supply and privately-held homes still largely overpriced, short sales are becoming increasingly attractive to my buyers.

[Add Comment] [Email Blogger]

Just a few quick statistics on the market before I run to show homes to a client looking for a second home:

     Median price rose to $138,000

     4039 homes were sold in September

     44% of sales were cash

That cash figure is phenomenal. It's the investors. Easy to see where the smart money is being invested right now.

I wrote 3 offers on Thursday and had 2 of these accepted on Friday. I think I'll sell one or two more before the weekend is out. At this pace we may not see our normal holiday slowdown until December 24.

With Reflection Bay Golf Club closed at Lake Las Vegas, homes there are selling unbelievably low. If you're looking for a second home, this is a great time to look. Do your research on this one so you are aware of the bankruptcy issue. It's the uncertainty that's driven the prices so low. I never recommend this to investors (too far out for most renters), but for a second home in a postcard-pretty setting, this might be ideal for you. Plan to hold until they get their issues resolved.

[Add Comment] [Email Blogger]

If you've made more than one offer on a Las Vegas foreclosure lately, you'll totally get this.

With banks finally trying to spread their REO listings among more than a small handful of listing agents, we come up against new roadblocks, er I mean navigate new systems, daily.

Prices have climbed, albeit a nearly imperceptible rise. With multiple offers on nearly every home, some buyers are getting very frustrated. With fewer than 1600 REOs on the market today, you need to have the right offer to get it accepted.

Expect a roller coaster ride if you are shopping for a bank-owned home in the Las Vegas area right now. Not one of those smooth new highspeed coasters that glide quietly and seemingly effortlessly through the ride. More like that old mad mouse coaster on the Santa Cruz Boardwalk that jars your spine and frays your last nerve.

Use an experienced Realtor, friends. That's my best advice for today.

[Add Comment] [Email Blogger]

There are some upset mortgage officers in Nevada tonight.

As of October 1, real estate licensees in Nevada can no longer hold a mortgage license. I don't know why everyone hasn't known for months, but many are just getting the word from the mortgage banks today. And no one is very happy that the State of Nevada forced every mortgage agent to spend $200 and sit for a 30-hour course earlier this year, only to force them to choose between state licenses.  

All Nevada mortgage officers must now be W2 employees of a mortgage company. Real estate licensees can no longer be an employee of a mortgage company.

Personally, I don't think this is bad for the public. I've served my clients as a dual agent many times, and it can be very helpful to my client when I am on top of the mortgage as well as the real estate transaction. But as much as I hate to say this, not every agent is ethical.

I prefer not to do mortgages; I don't think it's easy to be the best you can be if you are torn between two industries. I think when real estate agents and mortgage agents are forced to pick between the two, you will find part-timers leaving the industry. And as complicated as real estate transactions have become, that's not a bad thing for the public.

[Add Comment] [Email Blogger]

I got home from the Bahamas on Saturday planning to spend a few more days in my sun/rum/time continuum, that zone of complete relaxation. I made the mistake of letting my office know I was back in town. So here I've been since Sunday working 15 hour days again. Not that I'm complaining - I LOVE what I do. Being a Realtor is better than being an astronaut or a major league pitcher. I'm just no longer moving like I'm wading through molasses.

The market has barely slowed, with a nominal drop in sales in August. September is usually slow as a new school year begins, but the pace remains brisk.

Dean and Jan just had another offer rejected; this one was more than $70,000 over list price. This time I'm shocked; this was a great offer. There must have been a very strong cash offer.

First-time homebuyer Dustin just made an offer on 3 homes, and was very fortunate to have an offer accepted. It's not easy getting FHA offers accepted right now. When the bank asked for Dustin's "highest-and-best" offer on another, they had 80 offers on the house.

Flying back in to find temperatures in the mid-90's, I had an "aha" moment. People come to Las Vegas for the casinos, the great food, and the shows - but they move here for the weather. My clients who buy their 2nd homes and retirement homes in Las Vegas buy here because they can wear shorts when they come here in November.

FOR SALE: Snowblower, shovel and ice scraper. Never used, still in box. Ahhhh, Las Vegas. It's fall, and it's gorgeous today.

[Add Comment] [Email Blogger]

The price of new homes sold in Las Vegas in August rose 1.7%. That's the 3rd consecutive month in which the price of new homes sold has risen, albeit slightly. More evidence suggesting that we hit bottom a few months ago.

Nearly 3900 homes were sold overall in the Las Vegas area in August. That's a very slight decline from July, but a large increase over August of 2008. The percentage of sales attributable to foreclosure was barely over 70%. That's down from 82% in the spring, and reflects the increase in the number of sales of non-bank owned homes, whether resale or new. With a shortage of REOs, more privately-owned homes are selling.

Naturally, with a shortage of bank-owned homes we are seeing flippers in the market again. If you are buying a resale home and are using a mortgage, find out when the home was purchased last. Many lenders won't finance a flip, so if the home you want was sold recently, check with your mortgage agent up front to see if it's going to be a problem.

 I'm still enjoying a little R&R in the Bahamas, where the "no-see-ums" feast on me as I float, half awake, on a mat in the ocean. The diving in the Exuma Islands isn't spectacular, but Gavin and Nick, owners of Turtle Diving, rewarded us with a one-hour layover at Chat N' Chill on Stocking Island after our shallow dives yesterday.

 It will be hard to get back into heels when I return to work...a dilemma I face every year around this time, when I generally return from some down-time in the Caribbean.

[Add Comment] [Email Blogger]

Incredibly, the demand for Las Vegas homes is still strong, even in traditionally-slow September. One of my clients just had an offer rejected at $60,000 over list. The winning cash offer trumped our 30%-down offer.

Dean and Jan have been looking for a home for at least a year. I don't know anyone who is better at getting offers accepted than I am, but we have been bested time and again. Initially, their offers were too low, against my advice. There were 2 good offers I was sure would be accepted last week, but weren't. Yet, I just had 5 of 7 cash offers submitted last week for another client accepted!

But Dean and Jan have very good taste, and there are a lot of cash buyers in the market who have the same good taste. Fortunately for this couple, we are entering the slow season. With less competition, we should be able to find something soon. I take it personally when they find a home they love and their offer is rejected. This time was like a punch in the stomach. We had a great offer. Woulda, coulda, shoulda...it's tough to compete with all cash right now.

I've noticed that some banks are pricing houses way too low in the past 2-3 weeks. That doesn't mean they can be had for that price, even for cash. I couldn't convince an investor 2 weeks ago to ignore the list price and go by the comps, so he missed by a long shot. I can't imagine why banks are listing homes at $110,000 when there are good, recent comps in the $165,000 range on the same street! Or why they are listing homes with $400,000 comps for $325,000. But be forewarned - my agents and I are seeing a lot of it this month. And while I actually can imagine why, I'll let you draw your own conclusions.

I'm in the Bahamas, on a very sleepy island, enjoying some sand, sun and rum. Not enough sun, but that's the drawback of visiting Exuma, or any island, in hurricane season.

I usually travel to the Caribbean in the low season because no one else does. What a great time to get to know the owners of local establishments such as Dee, of Santana's Cafe, and her mom, a.k.a. Mom, of Mom's Bakery next door. Dee served up a tender lobster, just pulled from the ocean by her husband. And shared some great photos of the celebrities who manage to find her little corner of the world.

Exuma is a relatively undeveloped island of 6,000 inhabitants. It can't compare to Grand Cayman or even Turks and Caicos - but it's a great place if you're looking for rum punch and a good cigar from you-know-where!

I'd better go chase some sun before the rain returns. Oh, wow, I just saw a fight between the former hotel owners and the guy who is managing it for the new owners. That's probably the most excitement this island has ever seen. Now, back to sun and a rum punch.

[Add Comment] [Email Blogger]

I just don't get it some days.

Yesterday my partner Ron Branson and I showed a 9,000+ square foot Spanish Trails home to a nice young woman and her mother. They loved this impeccable home, and arranged to have Ron show the mother's husband a short time later.

This incredible home on the golf course sold for $4 million previously. It was foreclosed on at $3.5 million. It was immaculate. The master bedroom was the size of a small house, and you'd almost need a golf cart to travel between the "his" and "hers" master bedroom closets.

The price is less than $1.9 million. There's a lot of money to be made on this house. These opportunities don't come along every day.

If I had a dollar for every house I could pick up a quick million on... Well, I'd have a dollar.

[Add Comment] [Email Blogger]

I'm checking out the incredible new tool Ron just bought for me - a miniature keyboard that is Bluetooth enabled. Unbelievable...I'm typing on a little keyboard hooked up to my cell phone!

Ron apparently doesn't want me to have any excuse to miss my blog writing. And now I don't!

This is incredible.

[Add Comment] [Email Blogger]