This is our first time hosting the Carnival of Real Estate. At first I was worried we wouldn’t get any entries but over the holiday weekend my fears turned out to be unfounded. I want to thank everyone who took the time to submit to this, the 149th edition. There were a lot of great entries, unfortunately not all were a right fit for this edition.

After reading through them all, I have our winners. And the “winners” are….

The top spot goes to Dan Melson at Searchlight crusade submitting a great post about Short sales and the sales process. If you haven’t stopped by his blog yet, Dan consistently writes great stuff about our industry.

Claudia Gonella has a great post that gives you a very comprehensive look at the real estate market in Nicaragua.

On the lighter side, Sarah Greenleaf posted an interesting article on famous American homes on an era bygone showing some famous (and not so famous) residences. I was surprised at the modesty of Al Capone’s former residence in Chicago.

On the marketing side, Ben Roberts put up a great cautionary tale listing the top 10 ways not to promote your real estate career and listings on twitter. A fun, yet informative post about What NOT to do on Twitter as a real estate professional… I LOVE number 3.

That concludes this edition of the Carnival of Real Estate. Thanks for stopping by!

This weekend only, Saturday February 28 through Sunday, March 1st, Engle Homes is holding their super weekend sale on select homes. They are offering discounts of up to $70,000 and 4.5% 30 year fixed mortgage rate (for those that qualify). There are qualifying homes on sale in the Mountain’s Edge communities of Rivendell and Beacon Hill, plus Cambria, Watercrest at Duck Village and Escalante. Engle Homes also offers up to $10,000 towards closing costs when you use their preferred lender.

On their website they also make the case of buying now versus waiting 12 months. However, they leave out a critical piece of information, the first time home buyer tax credit. Here is their argument:

Now if you are a qualified first time home buyer, in the above breakdown you would receive an $8,000 tax credit for purchasing a home now, instead of waiting 12 months. There are some stimulations (when isn’t there?) for the sale Engle is having. Home purchases must close escrow before March 31st.

If you would like to tour the current Engle homes for sale, call 702-493-8033 or contact me through email.

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One thing is always certain, you can tell sales are down when companies start offering additional products/services by purchasing one of theirs. I received an interesting email from Lennar homes, politely reminding me that they have a great selection of homes ready for immediate move-in. The email also mentioned that a valued member of the Lennar family, I would be eligible to receive special discounts and benefits from a whole list of companies including Blockbuster, Target, Avis, Home Depot and many more. Rewards like these are nothing new, airlines have been doing it for years. Even gas stations back in the day would give you coupon books good for other things from different companies. But if you are determined to only buy a brand new home, why not buy one that gives you extras beyond the norm?

Here is a partial list of the move-in ready Lennar Las Vegas homes for sale:

SOUTHEAST:
Gardens at Silverado Ranch
Orchid Plan – 1,369 square feet
Priced as low as $190,990

Clemont in Anthem Highlands
Biarritz Plan – 2,302 square feet
Priced as low as $302,990

NORTHWEST:
Hampton Glen inside of Providence
Easton Plan – 1,795 square feet
Priced as low as $215,990

Antelope
Plan – 1,775 square feet
Priced as low as $179,990

• 20 X 20 Tile
• Ceiling Fans in all rooms
• Garage floor sealed with apoxy
• All appliances are included
• Corner Homesite
• Gated Community
• 6% for closing costs with any lender (or use Lennar’s lender and get special financing)

NORTH CENTRAL:
Lexington Park off of Craig & Jones
San Carlos Plan – 1,531 square feet
Priced as low as $175,990

This is just a sampling of the standing inventory Lennar Homes has. Remember, you should have your own agent representing your interests when visiting a home builder. As your buyer’s agent, my services to you are free. If you have any questions, feel free to call me at 702-493-8033 or send me an email.

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I would have to say that Lennar Homes does more email advertising than any other home builder. My inbox receives a lot of email from Lennar, offering their latest sales and information. The latest email was about their latest sales offering. Lennar like many other new home builders in the valley are having a hard time competing against the sheer number of homes for sale. Foreclosures have depressed home prices to levels not seen in the Las Vegas valley since the late ’90s. That combined with harder financing has produced the current market. Terrible if you have to sell your home but unprecedented if you are looking to buy.

Lennar is taking a new tack for them: upgrades. These Lennar homes come with some nice goodies including stainless steel appliances, raised panel cabinets, granite counter tops and window coverings:

Home in Silverado Ranch
1,369 sq. ft. (3 Bed, 2.5 Bath, 1 Car)
- Gated neighborhood with community pool and spa
- Full length driveways
- Upgraded flooring
- Priced at $186,990

Northwest
1,621 sq. ft. (3 Bed, 2.5 Bath, 2 Car)
- Master planned community of Providence
- Gated neighborhood
- Near plenty of parks
- Priced at $195,990

1,516 sq. ft. (3 Bed, 2.5 Bath, 2 Car)
- Master bedroom with retreat
- Easy freeway access
- Near the newly built Centennial Hills Hospital
- Priced at $182,990

North
1,882 sq. ft. (4 Bed, 2.5 Bath, 2 Car)
- Back yard landscaping included
- Community Park
- Near Nellis AFB
- Priced at $189,990

This just a sampling of the new homes available in the Las Vegas valley. If you are thinking about buying a new home, call me at 702-493-8033 and I’ll send you information on the latest new homes for sale.

Uncertain about your Options?

One of the most common questions I’m asked as a Realtor is whether someone should wait and rent or buy now. It’s a great question. My advice is to buy now, if you plan on staying in the area for at least two years. Now some critics will say well of course you said buy now, that’s how you make a living! Of course, that statement is true. I don’t make a dime unless someone makes a purchase. However, I take my fiduciary duty to my clients very seriously and am proud to say that no one of my clients have lost their home, nor did they get one of those ridiculous loans. Let me explain why I think it is in your best interest to purchase a home now, rather than wait and rent for six months or a year.

1. Interest rates. Interest rates are at a historic low, provided you have a decent credit score. For those with less than stellar credit, interest rates are still not that bad. The rate will be around the same rate you would have received a few years ago.
2. Supply and Demand. Right now there is a huge surplus of housing available for sale. With low demand and high supply, simple economics dictate that prices will be lower than they would be in a normal market. Therefore you will get a lot more home for your money now than you will when the supply decreases and interest increases.
3. Sales volume. Despite the huge number of foreclosures still occurring, the amount of inventory isn’t growing by leaps and bounds. However, the number of sales completed has exceeded the sales numbers of the ‘boom years’ in our market. First time buyers and investors are buying up bargain properties and some homes are receiving multiple offers.
4. Rent money. Say you wait a year and spend $12,000 on rent. That same $1,000 a month could have been applied to your mortgage. Average rent in the valley is around $1,200 for home. Even a loan for $145,000 at 6% with taxes and insurance will be around $1,150 per month.

That’s just the short list. After all, everyone has to have a place to live. If you would like to discuss your options, feel free to call me at 702-493-8033.

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Privately owned homebuilder Astoria Homes has joined the ranks of thousands of home owners in foreclosure. They are losing 30 brand new, never-lived-in homes in Aliante and the northwest. The company has laid off 17 people last week and is down to a total of 17 employees. The president of Astoria Homes, Tom McCormick, stated that they stopped construction because they were unable to secure loans in the national credit crunch.

Fast Facts: Astoria’s sales have gone from 627 in 2006 to 320 in 2007 to 192 in 2008. The builder is selling fewer than 10 homes a month. source: Las Vegas Sun

The company is not facing bankruptcy and will finish completing 60 homes in five neighborhoods using its current cash stockpile and sales proceeds.

Given the current level of inventory and the median price of a home, this is a smart move by Astoria Homes. A common problem facing new home builders is the price of the land. Most builders paid a premium for the land they are now building their homes on. That combined with increased materials cost has cut into any profits generated by sales. Add in the difficulty of obtaining financing and you have an accurate picture of the market new home builders are facing. It wouldn’t be surprising to see other builders follow in Astoria Homes footsteps and stop building until the market balances out.

What this means for Home Buyers

While most media coverage has been focused on the latest bailout, et al, home sales around the valley fueled by bank owned properties have exceeded in volume the number of sales from the “boom” years. Prices have been driven to levels not seen in almost a decade (when is the last time you remember seeing a home for sale in Green Valley for under $150,000?). While cash is king, there are still programs available for first time home buyers and yes, banks are still lending money. Now before you rush out and grab up a bargain property there are some things you need to do (and know). Quite often a REO (bank owned property) listing will require that you provide a pre-qualification (prequal) letter from your lender OR from a lender they specify (quite often the same bank that owns the property). Without one, you are wasting your time because the really good bargains are not staying on the market that long. By the time you get your ducks in the row, the property may be sold. It is not uncommon to see multiple offers on homes that are historically under priced for the area. Another thing to remember, just because it is a bank owned property, that doesn’t make it a bargain, nor does it make it more likely for a low ball offer to be accepted. A good majority of bank owned properties had loans given for more than the current market value. While banks are eager to clear these properties off of their books, they are also cognizant of the fact that government help may be on the way. Making an offer of $50,000 less than list on a home that has already been discounted (in the bank’s eyes) by $100,000 and is listed for $148,000 doesn’t have a high probability of being accepted. While I’m sure some lucky buyers or investors have found deals like these, they aren’t by any means commonplace. Some of these institutions also have shareholders they must answer to as well. That doesn’t mean there isn’t room for negotiation, but you need to know the market history and listen to your agent. After all, that’s why you picked a professional to represent you.

If you are thinking about buying a home in the Las Vegas valley, feel free to contact me at 702-493-8033 or by using our email form below.

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I received an interesting email today from Lennar Homes advertising a “certified pre-owned” Lennar home! Apparently they have some homes that were repossessed and have decided to handle the sales of those homes. One of the things Lennar is touting is reliability by buying from them. Here is a quote from their email:

• These like new homes are priced thousand’s below new home value
• Lennar conducts a meticulous wall to wall inspection
• Any items that need repair or replacing are taken care of!  Including electric plumbing, windows, appliances, drywall, roof, flooring, etc.

They are competing against a lot of bank owned properties in the valley as well as regular listings. It will be interesting to see if this foray into the resale market works out for them. The email also listed one of their Antelope homes for sale, floor plan 1775. If you are thinking of buying a home in that neighborhood, you might want to consider this one. The house has been upgraded to GE stainless steel appliances, granite slab kitchen counter tops, cat 5 wiring and comes with the Lennar 1-2-10 warranty program. All of the homes in Antelope are Energy Star certified and come with low e windows, Honeywell programmable thermostat and a 13 seer ground mounted air conditioning unit.

If you would like to see the property, call me at 702-493-8033 and arrange for you to take a tour.

Related reading:

A recent article on CNN.com listed the top six cities for the best real estate bargains. The article stated some of the things I’ve been saying for the last several months on my different blogs: there are great real estate bargains to be had in the Las Vegas real estate market.

Miami Florida came in number one due to its extremely high level of inventory (about three year’s worth), a 40% price drop since last year and almost non-existant sales for homes and condos. A perfect buyer’s market to the extreme.

Las Vegas came in at the number two spot. According to the S&P/Case-Schiller home price index, home prices drop 22.8% in a year. There are also massive foreclosures as well due to heavy investing by flip-oriented investors and consumers getting adjustable rate mortgages. The article recommends Vegas for two specific markets, high rise condos and retirement. Most high rise projects were announced years ago either during or right before the real estate boom and are just being completed. Prices for most Las Vegas high rise condos are down compared to last year. The lure for retirees is the lack of state income tax, mild winter weather and wide range of entertainment options. CNN recommends buying a new home but not necessarily in one of the many Las Vegas retirement communities that have sprung up over the last several years.  Interestingly enough, they recommend outlying areas like Summerlin or the planned community of Providence.  Personally, I would add to that list based on the homes that I have just shown the communities of Anthem and Tuscany in Henderson.

Other cities to the make the list are Phoenix, San Diego, Tampa and Denver. If you are thinking about buying a home in the Las Vegas valley, feel free to contact me at 702-493-8033 or by email.

For those of you that have been watching the Sarasota Association of Realtors case versus Marc Rasmussen, there has been a nasty new development. After losing the case in court, the SARS still fuming about being told no, decided to try a different tact. They went to ICANN to have the domain take by force from the owner and transferred to them. Their arguement was trademark infringement, but to date, no evidence of prior trademark ownership has been produced (anyone heard of Major League Soccer (MLS)?).

Apparently, that was not an issue for ICANN who has grabbed up the url and has given it to the Sarasota Association of Realtors. Now, we have all run across sites that have REALTOR and MLS in the URL, most of which belong to non-Realtors. Yet, strangely enough these sites continue to be online with nary a word of opposition from any REALTOR association? So why was Marc singled out? Simple, Marc had spent thousands of dollars and man hours promoting his URL so that it showed up on major search engines in the top spot for certain terms like…..Sarasota MLS. Now I’m wondering who in the association there in Sarasota is going to get the leads being brought in, now that they have control of the URL?

Their arguement: consumers could be confused by Marc’s url, since it was not THE SARASOTA MLS.

I’m not sure what that says about what they think of the average Internet home searcher. Marc’s site had been up since 2003 and had a disclaimer at the bottom clearly stating that his site was not THE SARASOTA MLS and he was a REALTOR. The URL had been redirected to Marc’s new URL, ensuring that no one would be ‘confused’, but apparently that wasn’t good enough for SARs. Marc is still fighting the Sarasota Association of Realtors in court.