Over 63% of homes in Las Vegas are over priced and would not appraise in value. According to statistics from the Greater Las Vegas Association of Realtors. So how do Buyer's find a property in this market, that is full of cash buyer's? The answer is stay consistent and be ready to write offers on homes you like immediately. Another thing is make sure you are pre-approved with a lender not just pre-qualified, the difference is you have turned in your Loan Application, Credit, Income, Paystubs, Tax returns and all your Debt to an underwriter and the underwriter has reviewed and determined what amount your approved for. Rather than just some lender running your credit asking you some questions and determining from those answers what you might qualify for. This makes you a stronger Buyer and gives you more buying power when competing against cash buyer’s.
Unfortunately, most listing agents know their homes are overpriced but are afraid to argue the fact with their seller’s because they might lose the listing. Seller’s have a crazy notion that they know the facts about the market, when in reality they don’t! They just know what they have heard on the news or read somewhere online about the market. A seasoned agent will gather all the facts about a particular home and the area and inform a seller that the property needs to be listed for X and should sell for X. The sell for X number is extremely important for financed offers because, an appraisal still needs to be completed. Any agent can sell a property for $25,000 over list price but when the appraisal comes in, they are probably putting the property back on the market, trying to get another offer and now that seller has lost valuable time and money.
The proper way to value a home is to take the “Like Kind” Properties that have recent SOLD, usually with in the last 30-90 days in the subdivision or with in a half mile radius and determine what those properties sold for, this is called the Comparable Sold Approach and is an appraisers main focus when appraising a property. They also use the Cost Approach which tells, what the value would be to replace the cost of the home. The Comparable Sales Approach will give an agent a high and low range of what the home’s appraisal should come in at. To many agents get caught up in the Contingent and Available properties which have no bearing on the value of a property.
It is extremely important for Seller’s to list their homes right from the start, so they can always capitalize on a smooth transaction and save them valuable time and money.
If you would like to schedule an Buyer Appointment or Seller appointment, please contact me Jeff Hatfield 702-204-1969