Ever wondered how the chill of December 2024 is shaking up the Las Vegas real estate market? Discover how the holiday spirit and plummeting temperatures have led to a dip in single-family home inventory, while condos and townhomes are seeing a slight rise. The flurry of new listings and an increase in homes under contract hint at a promising season, with interest rates for 30-year conventional loans averaging 6.8% making this an appealing time for homebuyers. If you're curious about the changing dynamics, this episode provides a comprehensive breakdown of the current market trends and what they mean for you.
Navigating the world of real estate loans can be tricky, especially if you're self-employed. This episode sheds light on the often-overlooked bank statement loans, designed with flexibility in mind to cater to those who might not meet the typical lending criteria. We discuss the benefits of these loans, from the absence of tax document requirements to their adaptability for various property types. However, it's not all smooth sailing—learn about the potential challenges like prepayment penalties and the importance of maintaining a clear deposit trail. If you're a business owner or freelancer, this segment is essential for understanding your options in securing a loan.
Considering buying a home without a realtor? Think again. We use compelling analogies to explain why personal representation is crucial in navigating real estate contracts, disclosures, and negotiations. Whether you're a young professional eyeing median-priced homes or exploring the luxury market with cash purchases, we offer insights into the unique challenges and opportunities at various price points. Stay informed about the implications of property taxes and homeowners association fees, especially in the high-value sector, to help you make the best financial decisions in today's competitive market.
Welcome to Vegas Realty Check, the informative podcast that dives deep into the world of Las Vegas real estate.
Our expert hosts break down the complexities of the ever-changing Las Vegas property market, analyze market trends, economic indicators, and unique property features to provide you with valuable insights on timing your home sale or purchase.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Intro (00:01):
Welcome to Vegas Realty.
Check your go-to podcast forall things Las Vegas real estate
.
Whether you're buying, sellingor investing, we bring you the
latest market trends, insidertips and expert insights to
navigate the ever-changing LasVegas realty landscape.
Tune in each week as we breakdown the data, answer your
questions and help you make thebest real estate decisions in
(00:22):
the entertainment capital of theworld.
Trish Williams (00:28):
Hey Vegas and help you make the best real
estate decisions in theentertainment capital of the
world.
Hey Vegas.
Thank you for joining us backhere at Vegas Realty.
Check your local Las Vegas realestate news show.
I am Trish Williams, courtneyBone, and we are here to provide
you updates.
We're in December, right now,2024.
It is freezing cold outside.
It is like cold in Vegas Rare,but freezing.
(00:51):
So we'll get into our marketnumbers on what we are.
What's going on in the marketthis week in Vegas.
Courtney Bohm (01:01):
So it looks like right now, single family homes
on the market were at 5,272.
Trish Williams (01:07):
Yep and that's down 132 from last week, so a
little bit lower inventory.
I don't know particularly ifthat's all in homes being sold
or some being maybe withdrawn.
People often withdraw theirhomes from the market for the
holidays because the hollowholidays, cause they have their
Christmas trees up and thingslike that and um, condos and
(01:31):
townhomes on the market.
Courtney Bohm (01:33):
Uh, those are at 1813, which is pretty much what
we were last week.
It's up 16.
So not too much movement onthat.
Trish Williams (01:41):
Yeah.
Courtney Bohm (01:41):
Yeah.
Yeah, pretty much during theholidays, people are just, you
know, not everyone, but mostpeople are just buying gifts and
having family come and yeah.
Trish Williams (01:50):
They're not thinking about real estate right
then, like most people that aredoing real estate during the
holidays.
Really, uh, have to for areason.
Um, new listings on the market.
Courtney Bohm (02:00):
We have 710, which is 183 more than last week
.
So I mean we're still busy.
It's still busy out there.
Trish Williams (02:09):
Yeah, and price decreases, those are up a lot.
Courtney Bohm (02:13):
Those were 696 and that's up 253 from the week
before and we are under contractat 625 this week, which is up
110 from last week.
That's good, so that is goodnews.
So we're definitely seeing alot of movement in the market
and I have a feeling it clearlyhas to do with, you know, the
rates are changing a little bitas well, so that's really good
(02:36):
news to see.
Yeah, midweek last week theygot really good.
They did.
They got lower and I'll go overthat in a minute, but we're
starting to really see a slowbut trending down.
We are trending down, so that'sa great, great thing and after
an election, I always feel likethere's going to be some
movement.
So the fact that we're gettingsome more homes under contract,
(02:58):
that's really good news.
Trish Williams (02:59):
Yep and solds Solds were up 60 from the week
before at 582.
And so where are we right nowwith rates and how are new loan
applications looking?
How's all that going?
Courtney Bohm (03:12):
So we are starting to definitely see an
uptick as far as loanapplications and people selling
and buying, so that's reallyreally good news.
Right now we're not hittinghuge drastic changes, but we're
slowly trending down.
So a couple of weeks, or Ithink the week before, we were
seeing, you know, the 30 yearconventional loans sitting right
(03:33):
under 7%, which for us as anational average, which is huge
deal.
We haven't seen that in a while, and so right now we're slowly
coming down.
This week our average 30-yearis sitting right at about a 6.8.
Trish Williams (03:47):
All right, I like that.
Courtney Bohm (03:48):
So that's really really good news and we're
hoping obviously it startstrending down even more.
Trish Williams (03:54):
Is that conventional?
The 6.8?
Yes, the 30-year conventional.
Courtney Bohm (03:57):
So 15-year, if you're looking at a 15-year,
we're sitting right at about a6% Nice, and that's going to be
the same.
On a 30-year FHA and a VHA,we're sitting right around a 6,
6, 6.1%.
So really really great, reallydoable, and it's really going to
take the payment down a goodamount.
Yeah, you know, that's anational average.
(04:18):
Of course, some people couldcome in a little bit lower, you
know, a little bit higher, basedon credit and things like that,
but that's good news.
A 6% is super doable, yeah,definitely, and so that's why I
think we're getting, you know,more homes under contract.
The payments are getting moreaffordable, and so you know,
that's really great news for usas a lender and also, of course,
yeah, you know for you.
Trish Williams (04:38):
We need you guys to be doing good for us to
Same.
Courtney Bohm (04:42):
Yeah.
Trish Williams (04:43):
Yeah, definitely.
And then you have every weekyou're going to like tell us
about like a loan program orlike different things, so people
can understand the differentprograms that are out there and
available.
So which one do you do you haveto talk about this week?
Courtney Bohm (04:57):
So this week I really wanted to focus on.
I believe the averageself-employed.
Self-employed person in theUnited States is right around a
43%, so we really try to have alot of different loan options.
Not everyone's going to fitinto a square box, and what I
mean by that is when you'relooking at conventional FHA VA,
(05:17):
typically your credit has to beat a 620 and you have to have
all this documentation of taxesand W-2s and things like that.
So we really try to go outsideof that box and especially with
self-employed.
So if you've ever dealt withself-employed or someone who's
1099, not all the time, buttypically we're not seeing that
(05:40):
everyone always shows everythingthey make.
Trish Williams (05:43):
Oh, yeah, I mean, I think that's just kind
of a thing with self-employmentyou get to do deductions which
helps to reduce your tax burden,and you know it's legal.
It's all in the code, the stuffthat you do.
But yeah, that does tend to.
The downfall of that is itreduces your annual income to a
(06:04):
much lower amount and yeah, thatcan be a challenge.
Courtney Bohm (06:08):
And we've seen a lot of people that deduct so
much that it virtually showstheir income is sometimes more
than half of what they're making, which is fine on a year that
you know you're doing that andnot looking for a home.
The issue becomes then when youwant to buy a home and now you
have so many deductions thatyour income goes from 100 to 50
or 150 to 75.
(06:29):
And so one of the great loansfor someone who is self-employed
is a bank statement loan.
Okay, so a bank statement loanis typically a loan that is
going to be.
You know we're not going tolook at your taxes.
We're not going to look at.
You know there's no W-2sbecause you're self-employed.
So what we're really going tolook at is just your bank
(06:51):
statements, literally just thebank statements, and that's how
we're going to create yourincome.
So with bank statement loans,typically they're going to look
anywhere between 12 and 24months.
Okay, so, based on yourbusiness, the 12 or 24 months.
Usually, if you provide 24months, the rate's going to be a
tad bit lower.
So with the 24 months or 12months, what they're going to
(07:15):
look at as far as income is ithas to be deposits.
There has to be depositsshowing.
So I've had people have sent mebank statement loans and
unfortunately, you know, for thelast 12, 24 months they weren't
really depositing all the money, so they were keeping some cash
.
So unfortunately, if you'retrying to get a bank statement
loan, you want to be depositingevery penny you make.
(07:38):
Reason being is because then wecan use that as income.
If you're not depositing themoney, we can't prove it's there
.
Trish Williams (07:44):
Yeah, yeah, absolutely, and cash is one of
those things that we talk about.
Mattress money all the timethat's a professional term in
real estate, but I mean it'sreal.
Courtney Bohm (07:55):
There are a lot of people that keep cash
literally under their mattressat their house.
You know, typically theseasoning on that is 60 days on
average.
So you want to make sure thatwhatever you have is showing,
else you can't prove that whereit came from or what it is what
it is.
Trish Williams (08:13):
Yeah, so it's.
It's um, if you're stuffing youknow cash somewhere, you can't
just take that, throw it in yourbank account and say here, I
have this money.
It has to sit there for a while.
Courtney Bohm (08:23):
Correct you typically have to have a little
bit of seasoning time or if it'sfrom a sale of a boat or
something proof of the receiptsso we can track where the money
came from.
And so with this type of loan,the biggest thing is make sure,
if you want to do this type ofloan, that you're actually
depositing all your money so wecan use it for income.
We look at personal andbusiness statements so it just
(08:43):
really depends on where themoney's coming from and where
you're putting it in.
I've had people who are tattooartists, things like that, that
are making a ton of money andthey're just depositing all of
it.
So the biggest thing is to makesure you're depositing it.
And I always tell people if youhave 24 months, it's just going
to reduce the rate a little bitversus 12 months, just so they
can look back.
So they're going to use that asyour income, and with this type
(09:07):
of loan, the great thing isthat they don't need to see
taxes or anything.
On a loan like this.
Typically, your average creditscore needs to be 680 or higher,
okay.
Trish Williams (09:18):
So you do have to have a better credit score.
Show a little more reliabilitythere as far as credit goes.
Courtney Bohm (09:24):
Okay, it is considered a higher risk loan
just because they're not lookingat standard documents.
Right, it's just your deposits.
So once we get the income,that's what we actually would
plug in from your bankstatements or personal bank
statements.
So with this, 680 or higher,the higher your credit.
Obviously, the little bitbetter the rate, the higher the
credit.
The great thing about this, too, is, like I said, they don't
(09:47):
look at taxes.
They're not going to ask for amillion different documents,
which is really really nice.
Usually, self-employed are verybusy.
They're handling businesses.
They don't have time, so justdoing that, getting the bank
statements.
Also, with this, typically it's10% down for a primary oh,
that's not bad, but 20%, you'rereally going to have a great
(10:09):
drop in the rates.
So could you do 10%?
Yes, but the rate's going to bea good amount higher.
So with these loans, you canactually do primary investment
or a second home as well.
It doesn't have to just be aprimary.
Trish Williams (10:22):
Okay, and typically when you put 20% down
you then don't have that PMI orMIP, so it can make your payment
overall lower.
Courtney Bohm (10:30):
It is going to be a good amount lower.
And there's some other littlecaveats with this loan.
But with this loan also, like Isaid, you can do primary
investment, secondary, so that'sa great option.
They do still look at debt toincome, so you need to be still
around about a 55% or less.
It's not like a DSCR loan thatI discussed where it doesn't
(10:50):
matter what your debt to incomeratio is, so they're still going
to go off that, but as far asthat goes.
Another little bit of a caveatis they do look at your reserves
.
So an average borrower is goingto have to have at least on on
average, six months of what itwould take to cover that
property or any other investmentproperty they own.
Trish Williams (11:11):
Yeah, Okay.
So you definitely have to havesome money saved.
You can't be using every dimethat you have towards the
purchase because back to, Iguess, responsibility just
showing that you are good andnot stretched to cover this
purchase because they're doingsuch little documentation too.
Courtney Bohm (11:33):
And they want to make sure if God forbid, you
don't get the home rented out intime that you have enough money
to cover the mortgage for youknow those five, six months, if
absolute worst case.
I have seen them in rareoccasions actually make sure
that there's reserves for theprimary residence as well.
That's pretty rare, but that'ssomething they're looking for.
And what's the timeframe?
Trish Williams (11:53):
for reserves, often, usually on something like
this.
Courtney Bohm (11:57):
I've seen it three months, but I'd say an
average is six months they'regoing to look for.
Trish Williams (12:02):
I usually tell people that you know having,
like you know, having a fewmonths reserves, whether you
know whether it's to purchase orqualify for a purchase or
regardless, having thosereserves is something that
everybody should work towards,no matter what.
Courtney Bohm (12:15):
Absolutely.
And these type of loans becausethey are higher risk, they're
going to make sure you have themoney to back it up if something
happens.
These rates are reallyfavorable.
They range anywhere from aseven and a half to an eight and
a half percent.
So it's really really doable.
It's not so crazy.
It's not in the tens, elevens,twelves percents where you're
seeing on some of these reallyhigh risk loans.
(12:36):
So it's really just such agreat option.
And another thing with these istypically there is a little bit
of a caveat.
Usually there is.
If you try to refinance withinthe first three years, you're
going to see somewhat of aprepayment penalty.
They're going to charge you sixmonths of interest.
But if the rates go way down,typically I always tell people
(12:56):
let's look at you know, once therates go down, where they're at
and how much you're going tosave.
Sometimes it could be worth it.
Sometimes it's not Um and soyou know if someone ends up
moving or selling and thingslike that, it's just a great way
to get your foot in the door,especially if you're not
possibly, you know, showingeverything on taxes or whatever
your situation is when you'reself-employed, you just want to
(13:19):
make sure the biggest thing isyou're depositing it.
Trish Williams (13:21):
Yeah, yeah, make sure you put it in the bank
.
You have that paper trail,because that is important when
you're trying to get money froma bank.
That it is.
Courtney Bohm (13:30):
And another little thing is they're also
going to look at based on thetype of business you have.
They will do a deduction.
So if you own a mobiledetailing, they might take off
15, 20% for products and thingslike that of your income.
So it's really going to dependon what type of business and how
much they deduct from youroverall income based on expenses
(13:51):
.
Okay, Okay, so that can vary.
Trish Williams (13:54):
That makes sense, and I'm sure they take
taxes into consideration, yourtax liability and things like
that, right?
Yep, yeah, that can vary.
That makes sense, and I'm surethey take taxes into
consideration, your taxliability and things like that,
right?
Yep, yeah, yeah, that thatmakes.
That makes perfect sense too,because those are things you
can't, um, can't get away from.
No, yeah, um, so, uh, so, yeah,um, that's a great program.
Um, so, that is the bankstatement program.
Intro (14:13):
Is that the official name for it?
Courtney Bohm (14:14):
It's a bank statement loan.
Trish Williams (14:16):
Bank statement loan so if someone calls you,
they can ask about the bankstatement loan, and, yeah, great
.
And so we have some listenerquestions today.
We can go ahead and get intothose.
I'll start with the first one,that is Nicole.
Nicole said she is buying ahouse without a realtor, a house
(14:38):
that she is interested in.
She talked to the listing agentand told them that she wants to
make an offer.
They told her that they willnot write an offer and she wants
to know if that is illegal.
Actually, no, that's notillegal at all.
The listing agent doesrepresent the seller and in
(14:59):
order for them to write an offerfor you, nicole, they would
have to be representing you, andthe seller may or may not allow
that dual representation, andthere's some agents out there
that won't do it just because ofthe risk involved.
There's a lot of risks.
Do you guys work with peoplethat that that do for sell by?
(15:20):
Like you know, that purchasefor sell by owners and stuff.
Courtney Bohm (15:23):
I mean we, we can, of course, you know, I
think I think when someone'sdoing that, I think it's always
in their best interest to havesomeone backing them If they're
trying to get a house on theirown.
There's just so many thingsthat you trying to get a house
on their own there's just somany things that you deal with
and so many things that areinvolved.
You know, if it was my familymember, I would never recommend
they just go in it on their own.
(15:44):
We know that a lot of peopletry to cut corners and think
that they can do things on theirown, but I'm sure you know that
there are so many weird thingsthat come up in the process of,
you know, buying a home and youcan go into a house and now all
of a sudden there's all theseproblems.
You really want someonefighting for you and, and you
know, challenging the, theseller's agent.
(16:05):
And yeah, you know you.
Just if you don't know whatyou're doing, it can really be a
disaster.
Trish Williams (16:11):
I met with um.
I met with a couple the otherday and the guy was telling me
that he's purchased a lot ofcars and he never goes to a
dealership.
So he doesn't understand why heshould have to need a realtor
for purchasing a home.
And I'm like, okay, but I mean,what a huge difference between
(16:33):
Price point typically isdifferent Price point typically
is substantially different.
You're dealing with a lot moremoney.
When you purchase a car, youdon't always have to go through
an escrow company, or I don'tthink you'd go through an escrow
company whatsoever.
I mean, there is so much moreinvolved.
That is a very silly analogy,but unfortunately it's not the
(16:54):
first time I've heard thatanalogy analogy, but
unfortunately it's not the firsttime I've heard that analogy.
So yeah, it is definitely.
There's a lot to the contractsin real estate, a lot of
disclosures that are involved, alot of things are involved and,
while the listing agent is alicensed realtor in most cases,
going directly to the listingagent's not always your best
(17:15):
option either going directly tothe listing agent is not always
your best option either, and youknow at that point too it's.
Courtney Bohm (17:22):
You know you want to make sure on the buy
side that you're getting thebest deal and everything's being
negotiated with your bestinterest.
So are there people who youknow are the agent for the
seller and the buyer?
It does happen, but I thinkthat can get sticky, you know,
can be tricky, because you wantto make sure that you know your
sellers represented as well asthe buyer sides represented, and
so if you're on both sides ofit, it not that it doesn't
(17:43):
happen right?
Trish Williams (17:44):
Yeah, no, it does happen.
But in most cases the listingagent will have a relationship
with the seller prior to evermeeting you.
So you don't know how long thatgoes back, how strong it is,
how everything.
And it's not saying that that'sgoing to make them act
unethically, because we do havestandards, but still I do think
(18:05):
that having your ownrepresentation is the best idea,
and it is.
You know, it's definitely notillegal for that agent to say
that they're not going to writean offer for you.
They are under no obligation toyou if they're not already in
contract or actuallyrepresenting you.
So if they are not going to,you either can contact a realtor
(18:29):
and hire your own realtor, orcontact an attorney, have them
draft an offer.
But even then that doesn'tcreate representation for you.
I would advise get your ownrealtor.
Courtney Bohm (18:41):
And I just you know, we've seen too many times
people trying to representthemselves and the documents are
just a mess and it's just toobig of a risk to really take on
a house.
You make mistakes once itcloses.
Yeah.
Trish Williams (18:55):
No, I mean, we have nightmares with closings
and even in our world.
Courtney Bohm (18:59):
You get to deal with, right, I get to deal with
every day.
Trish Williams (19:03):
But yeah.
So I mean, it's definitely not.
I can't imagine how peoplewould navigate that on their own
.
And you know one thing to makenote of too you know I said you
can get an attorney to preparethe offer.
Do things like that for you.
I have many attorneys that I'veworked with or have worked with
that choose to hire a realtorfor their representation in a
(19:26):
purchase or in a sell because,even though they are attorneys,
they understand the value ofhaving a realtor representing
them.
Courtney Bohm (19:34):
I think it's just really important you know,
just fighting for little thingseven as, as you know, simple, as
you know, negotiating to keepappliances or making sure
something's fixed or it's justreally important to have someone
fighting for you when it's sucha large purchase.
Trish Williams (19:50):
Yes absolutely.
Courtney Bohm (19:52):
Um so let's go into the next question.
So the next one is I'm buying ahome in a high rise in a high
rise.
On the title report it saysthat the owner of the building
has the first right of refusal.
What does that mean?
Trish Williams (20:05):
Oh, yeah, so that's a fun one.
Have you run across that beforeI?
Courtney Bohm (20:09):
mean, it is it, it's always.
If someone owns a building,they can say no yeah.
Trish Williams (20:16):
Yeah, and I know when.
Courtney Bohm (20:17):
um it's not illegal.
Trish Williams (20:18):
Yeah, one project um in particular is the
palms in Las Vegas.
Um, they have the right offirst refusal on the deed of
every unit they sell.
So what that means is that inselling the home you do have to
contact the Palms.
When you're making an offer,when you're in the purchase,
(20:41):
when title's pulled, there's aprocess of you contacting the
Palms to make sure our contractbasically is not official with
the buyer until the Palms saysthat they don't want to purchase
it at the price that you'reselling it for.
So in the last and most recentyears they haven't had any
interest in purchasing.
(21:01):
I'm sure this is something toprevent, or even something that
I feel like.
If the you know, the condosthere start at $250,000 and
above.
Courtney Bohm (21:11):
It's really to keep the value up a lot of times
in those types of situations.
Trish Williams (21:15):
Right, and I'm sure that if you're trying to
sell a $250,000 condo for 50,000, Palms will say, nope, I'll buy
it instead.
So I'm sure there's somethingbehind that and maybe in the
future they're saying that oneday they'll want to buy out
everybody and run it and own itsolely instead of having private
(21:35):
owners.
I don't know the long game forit, but yeah, certain projects
do have those kinds of deeds.
Sometimes people have them withindividuals.
They made an agreement withmaybe an ex-spouse or a family
member that says if I ever sellthis house, whatever the offer
price is that we receive fromthe buyer, whatever that
(21:55):
contract is, with the terms andconditions, you have the right
to review it, match it andrefuse it or move forward with
it before that buyer can moveforward with their purchase.
Courtney Bohm (22:08):
Absolutely.
But at the end of the day,someone owns the building, and
that's what they asked for.
Then they do have the right tosay no, and that's what they
asked for.
Trish Williams (22:18):
Then they do have the right to say no and
it's not illegal.
Yeah, Right of first refusal isa recorded deed on title and
the way you find out about it iswhen you get that title report.
When you open escrow, everybodywill get a preliminary title
report.
Usually within the first 10days.
When you get that title report,that is listed on the deed.
If there is a right of firstrefusal, that is recorded, Yep,
(22:38):
Yep.
So yeah, I haven't ran intothem.
On individuals, I know thatexists, but definitely in the
high rises that is somethingthat we see and that's pretty
common.
Courtney Bohm (22:48):
Any of the condo tells any of the.
You know it's definitelysomething common we see here.
Trish Williams (22:53):
And.
Courtney Bohm (22:54):
I'm sure in a lot of other cities too, any of
those high-rise buildings.
They really want to keep thevalue up.
So if someone's in an emergencyto sell they're lowering the
price.
It does ruin it for everybodyelse.
Trish Williams (23:03):
Yeah, yeah, absolutely, absolutely.
So Michelle says what is thetoughest price point to sell in
right now?
That's a hard question really,because there could be a lot of
different answers for that, alot of explanations.
What would you say in thelending side is the toughest
(23:24):
price point to qualify for right?
Courtney Bohm (23:27):
now.
I think that can be such abroad question for a couple
reasons.
I think there are some peoplewho you know are in their early
twenties, getting their lifeestablished and they want to buy
a house because rent is soexpensive.
So when we're looking at youknow debts and things like that
and their income especially ifthey're younger and it's just
(23:48):
their income, you know ifthey're making 80 or 70,000, you
know what they're qualifyingfor on average.
If you're looking at you know a350,000, you know what they're
qualifying for on average.
If you're looking at you know a350,000,.
You know dollar home give ortake at around a 6.75%.
I'm just giving some averages.
You know your your ballparkpayment, without insurance or
(24:08):
property taxes, is somewherearound 2450, 2400.
So I think that can be trickyif someone's trying to, you know
, get out of rent and get into ahome because there are things
that you know need to be putinto place and they do have to
qualify.
But obviously when you'regetting into more expensive
homes, you know they're $800,000, you know could be a payment
(24:30):
somewhere around give or take5,000, 5,500.
So I think it really depends onwhat's affordable to them.
Trish Williams (24:38):
Yeah, what's affordable and I felt like um
with the rates where they're atand jumbo loan rates are um a
lot higher than regular, youknow, fha or conventional right.
Courtney Bohm (24:49):
So we do have some great options where they're
pretty competitive with therates currently.
Typically, you're going toalways have 10% down or more for
any type of jumbo anything.
But we do have a couple ofplaces we work with that have
some really great jumbo loanrates.
But I mean, at the end of theday, what's hard to qualify for
(25:13):
is really based on what's doableto that person.
Yeah, I'm sure you've seenpeople buy million dollar homes
and it's not a problem at all.
Trish Williams (25:20):
Yeah, yeah, definitely.
I mean, I've seen payments ashigh as 20,000 a month and
they're like sure.
Courtney Bohm (25:27):
I mean, what are you seeing?
What are you seeing is the mostpopular for you right now as
far as getting someone into home?
Those price points.
Trish Williams (25:35):
Well, always, and it's always been true,
whatever that median price pointis is definitely like when I
get a listing that's in thatmedian price point and that's
like single family home and themid 400s, you know it will sell
right away because the medianprice point's always the hottest
market.
Courtney Bohm (25:52):
What is it right around 450?
.
Trish Williams (25:54):
Yeah, 450, 470 right now, but those are always
the hottest market.
Those are the people that arelike getting into their first
home.
There's more people in thatmarket traditionally than any
other market and that variesbased on.
I mean, when I started in realestate, median price point was
200,000.
Courtney Bohm (26:14):
It's crazy how much the homes in Las Vegas have
gone up in the last few years.
Absolutely I mean the equitypeople are building is crazy.
Trish Williams (26:24):
Yeah, and when I was first trying to build my
business, everybody wanted to doopen houses.
You know they always want to doopen houses and the like luxury
and the beautiful, like bighomes, you know, whatever, like
the extravagant ones.
And I was like no, no, no, Iwant to do open houses in the
median price point, the entrylevel home, which back then was
200,000.
(26:45):
But I want to do them therebecause those are the most
popular.
Those are the ones where peopleare just coming in like, yes,
I'm interested, I want to buy so, and that just it's always
stood true, no matter whatmarket we're in, that's the
hottest, that's the one thatmoves the fastest.
Courtney Bohm (27:01):
And then I also think you know, when you're
looking at homes that are underthe average price, if you have a
condo that happens to beselling for $250,000 or maybe
$300,000, there are so manyinvestors in this town looking
for a great deal and they willcome in and they will buy it
cash, they will fix and flip it.
You know, there's just.
I mean, those are gone inseconds, yeah fixer-uppers.
Trish Williams (27:23):
Those are always gone quick Always, I
would say.
I think the most challengingprice point right now is
somewhere between I'd say itstarts at $750,000, $750,000 to
up to about $2 million.
That's like an entry-levelluxury.
(27:44):
So that's the type of luxurywhere the buyer is usually still
in some sort of working class,but a higher end working class,
you know definitely making a lotmore income and revenue than
the average person.
But that is still.
There's still a paymentinvolved, right?
(28:06):
And I feel like when we get over2 million, a lot of times that
there's not really a lot ofloans on those products.
People in that price point andabove are often purchasing cash.
Courtney Bohm (28:19):
Yeah, and I think it gets tricky.
Then you're looking atmortgages that are, if they're
keeping a mortgage and notpaying cash, somewhere in the
$8,000, $9,000, $10,000 range,mm-hmm.
So obviously just to evenqualify you have to be showing a
really great amount of incomeand then it to be affordable.
Obviously, when you have peoplebuying 20, $30 million homes,
(28:40):
they have the money to do so.
Trish Williams (28:41):
Yes, absolutely .
And I mean, there's one of thethings we always talk about
property taxes are so low inVegas, right?
Courtney Bohm (28:48):
They really are.
Trish Williams (28:49):
And they're, on average, 1%.
But one thing you have to keepin mind, because if we're
talking about a loan, just forinstance, a $6 million home
right With no mortgage, if youwere to pay it outright cash, no
mortgage you're still lookingat $60,000 a year in taxes,
which averages about $5,000 amonth.
That's just your property taxes.
Courtney Bohm (29:09):
And then that's not including.
Typically, if you're getting ahouse like that, you're living
somewhere where the HOA isprobably minimal $500, $600 a
month.
Yes, plus, you have to have awhole team of people to maintain
it Landscapers school and thenyou're going to have your
homeowner's insurance.
So even if someone pays cash,you still have to be making a
good amount of money just forthe upkeep.
Trish Williams (29:31):
Yeah, it's not like you pay cash for a home and
there's no monthly monthlypayment or monthly expenses that
go.
There is definitely a recurringexpense.
So when you add a mortgage tothat, it's yeah.
We just don't see a lot ofpeople doing financing in that
in those price points, you know,once they get that high.
So so yeah, that's.
(29:52):
I hope that answers yourquestion, michelle and Courtney,
how do people contact you ifthey want to talk more about
loans, about what's available?
Courtney Bohm (30:01):
what's out there .
Yeah, so if you're interestedin any, you know, if you have
some questions about loans ordifferent options we have, you
can give me a call at702-416-6918.
I'm always available.
If you want to give me a call,shoot me a text.
I'm happy to give you a callright back.
Trish Williams (30:17):
And if you guys are watching the show, please
take a moment, like, share,subscribe, tell your friends.
And we have a link tree whichis www Do you have to still say
that anymore?
Wwwrealtycheckvegas.
There you can connect with uson everywhere where we're at.
So all of our socials, all ofour links, the audio link,
(30:41):
everything is right there.
So please check us out.
And if you need to reach me, myphone number is 702-308-2878.
I'm Trish Williams and thanksguys for joining the show.
Courtney Bohm (30:52):
Thank you, we appreciate you.
Trish Williams (30:54):
Yes, we do, and we will see you next week.
Bye, bye.
Welcome to Vegas Realty.
Check your go-to podcast forall things Las Vegas real estate
.
Whether you're buying, sellingor investing, we bring you the
latest market trends, insidertips and expert insights to
navigate the ever-changing LasVegas realty landscape.
Tune in each week as we breakdown the data, answer your
questions and help you make thebest real estate decisions in
(00:22):
the entertainment capital of theworld.
Trish Williams (00:28):
Hey Vegas and help you make the best real
estate decisions in theentertainment capital of the
world.
Hey Vegas.
Thank you for joining us backhere at Vegas Realty.
Check your local Las Vegas realestate news show.
I am Trish Williams, courtneyBone, and we are here to provide
you updates.
We're in December, right now,2024.
It is freezing cold outside.
It is like cold in Vegas Rare,but freezing.
(00:51):
So we'll get into our marketnumbers on what we are.
What's going on in the marketthis week in Vegas.
Courtney Bohm (01:01):
So it looks like right now, single family homes
on the market were at 5,272.
Trish Williams (01:07):
Yep and that's down 132 from last week, so a
little bit lower inventory.
I don't know particularly ifthat's all in homes being sold
or some being maybe withdrawn.
People often withdraw theirhomes from the market for the
holidays because the hollowholidays, cause they have their
Christmas trees up and thingslike that and um, condos and
(01:31):
townhomes on the market.
Courtney Bohm (01:33):
Uh, those are at 1813, which is pretty much what
we were last week.
It's up 16.
So not too much movement onthat.
Trish Williams (01:41):
Yeah.
Courtney Bohm (01:41):
Yeah.
Yeah, pretty much during theholidays, people are just, you
know, not everyone, but mostpeople are just buying gifts and
having family come and yeah.
Trish Williams (01:50):
They're not thinking about real estate right
then, like most people that aredoing real estate during the
holidays.
Really, uh, have to for areason.
Um, new listings on the market.
Courtney Bohm (02:00):
We have 710, which is 183 more than last week
.
So I mean we're still busy.
It's still busy out there.
Trish Williams (02:09):
Yeah, and price decreases, those are up a lot.
Courtney Bohm (02:13):
Those were 696 and that's up 253 from the week
before and we are under contractat 625 this week, which is up
110 from last week.
That's good, so that is goodnews.
So we're definitely seeing alot of movement in the market
and I have a feeling it clearlyhas to do with, you know, the
rates are changing a little bitas well, so that's really good
(02:36):
news to see.
Yeah, midweek last week theygot really good.
They did.
They got lower and I'll go overthat in a minute, but we're
starting to really see a slowbut trending down.
We are trending down, so that'sa great, great thing and after
an election, I always feel likethere's going to be some
movement.
So the fact that we're gettingsome more homes under contract,
(02:58):
that's really good news.
Trish Williams (02:59):
Yep and solds Solds were up 60 from the week
before at 582.
And so where are we right nowwith rates and how are new loan
applications looking?
How's all that going?
Courtney Bohm (03:12):
So we are starting to definitely see an
uptick as far as loanapplications and people selling
and buying, so that's reallyreally good news.
Right now we're not hittinghuge drastic changes, but we're
slowly trending down.
So a couple of weeks, or Ithink the week before, we were
seeing, you know, the 30 yearconventional loans sitting right
(03:33):
under 7%, which for us as anational average, which is huge
deal.
We haven't seen that in a while, and so right now we're slowly
coming down.
This week our average 30-yearis sitting right at about a 6.8.
Trish Williams (03:47):
All right, I like that.
Courtney Bohm (03:48):
So that's really really good news and we're
hoping obviously it startstrending down even more.
Trish Williams (03:54):
Is that conventional?
The 6.8?
Yes, the 30-year conventional.
Courtney Bohm (03:57):
So 15-year, if you're looking at a 15-year,
we're sitting right at about a6% Nice, and that's going to be
the same.
On a 30-year FHA and a VHA,we're sitting right around a 6,
6, 6.1%.
So really really great, reallydoable, and it's really going to
take the payment down a goodamount.
Yeah, you know, that's anational average.
(04:18):
Of course, some people couldcome in a little bit lower, you
know, a little bit higher, basedon credit and things like that,
but that's good news.
A 6% is super doable, yeah,definitely, and so that's why I
think we're getting, you know,more homes under contract.
The payments are getting moreaffordable, and so you know,
that's really great news for usas a lender and also, of course,
yeah, you know for you.
Trish Williams (04:38):
We need you guys to be doing good for us to
Same.
Courtney Bohm (04:42):
Yeah.
Trish Williams (04:43):
Yeah, definitely.
And then you have every weekyou're going to like tell us
about like a loan program orlike different things, so people
can understand the differentprograms that are out there and
available.
So which one do you do you haveto talk about this week?
Courtney Bohm (04:57):
So this week I really wanted to focus on.
I believe the averageself-employed.
Self-employed person in theUnited States is right around a
43%, so we really try to have alot of different loan options.
Not everyone's going to fitinto a square box, and what I
mean by that is when you'relooking at conventional FHA VA,
(05:17):
typically your credit has to beat a 620 and you have to have
all this documentation of taxesand W-2s and things like that.
So we really try to go outsideof that box and especially with
self-employed.
So if you've ever dealt withself-employed or someone who's
1099, not all the time, buttypically we're not seeing that
(05:40):
everyone always shows everythingthey make.
Trish Williams (05:43):
Oh, yeah, I mean, I think that's just kind
of a thing with self-employmentyou get to do deductions which
helps to reduce your tax burden,and you know it's legal.
It's all in the code, the stuffthat you do.
But yeah, that does tend to.
The downfall of that is itreduces your annual income to a
(06:04):
much lower amount and yeah, thatcan be a challenge.
Courtney Bohm (06:08):
And we've seen a lot of people that deduct so
much that it virtually showstheir income is sometimes more
than half of what they're making, which is fine on a year that
you know you're doing that andnot looking for a home.
The issue becomes then when youwant to buy a home and now you
have so many deductions thatyour income goes from 100 to 50
or 150 to 75.
(06:29):
And so one of the great loansfor someone who is self-employed
is a bank statement loan.
Okay, so a bank statement loanis typically a loan that is
going to be.
You know we're not going tolook at your taxes.
We're not going to look at.
You know there's no W-2sbecause you're self-employed.
So what we're really going tolook at is just your bank
(06:51):
statements, literally just thebank statements, and that's how
we're going to create yourincome.
So with bank statement loans,typically they're going to look
anywhere between 12 and 24months.
Okay, so, based on yourbusiness, the 12 or 24 months.
Usually, if you provide 24months, the rate's going to be a
tad bit lower.
So with the 24 months or 12months, what they're going to
(07:15):
look at as far as income is ithas to be deposits.
There has to be depositsshowing.
So I've had people have sent mebank statement loans and
unfortunately, you know, for thelast 12, 24 months they weren't
really depositing all the money, so they were keeping some cash
.
So unfortunately, if you'retrying to get a bank statement
loan, you want to be depositingevery penny you make.
(07:38):
Reason being is because then wecan use that as income.
If you're not depositing themoney, we can't prove it's there
.
Trish Williams (07:44):
Yeah, yeah, absolutely, and cash is one of
those things that we talk about.
Mattress money all the timethat's a professional term in
real estate, but I mean it'sreal.
Courtney Bohm (07:55):
There are a lot of people that keep cash
literally under their mattressat their house.
You know, typically theseasoning on that is 60 days on
average.
So you want to make sure thatwhatever you have is showing,
else you can't prove that whereit came from or what it is what
it is.
Trish Williams (08:13):
Yeah, so it's.
It's um, if you're stuffing youknow cash somewhere, you can't
just take that, throw it in yourbank account and say here, I
have this money.
It has to sit there for a while.
Courtney Bohm (08:23):
Correct you typically have to have a little
bit of seasoning time or if it'sfrom a sale of a boat or
something proof of the receiptsso we can track where the money
came from.
And so with this type of loan,the biggest thing is make sure,
if you want to do this type ofloan, that you're actually
depositing all your money so wecan use it for income.
We look at personal andbusiness statements so it just
(08:43):
really depends on where themoney's coming from and where
you're putting it in.
I've had people who are tattooartists, things like that, that
are making a ton of money andthey're just depositing all of
it.
So the biggest thing is to makesure you're depositing it.
And I always tell people if youhave 24 months, it's just going
to reduce the rate a little bitversus 12 months, just so they
can look back.
So they're going to use that asyour income, and with this type
(09:07):
of loan, the great thing isthat they don't need to see
taxes or anything.
On a loan like this.
Typically, your average creditscore needs to be 680 or higher,
okay.
Trish Williams (09:18):
So you do have to have a better credit score.
Show a little more reliabilitythere as far as credit goes.
Courtney Bohm (09:24):
Okay, it is considered a higher risk loan
just because they're not lookingat standard documents.
Right, it's just your deposits.
So once we get the income,that's what we actually would
plug in from your bankstatements or personal bank
statements.
So with this, 680 or higher,the higher your credit.
Obviously, the little bitbetter the rate, the higher the
credit.
The great thing about this, too, is, like I said, they don't
(09:47):
look at taxes.
They're not going to ask for amillion different documents,
which is really really nice.
Usually, self-employed are verybusy.
They're handling businesses.
They don't have time, so justdoing that, getting the bank
statements.
Also, with this, typically it's10% down for a primary oh,
that's not bad, but 20%, you'rereally going to have a great
(10:09):
drop in the rates.
So could you do 10%?
Yes, but the rate's going to bea good amount higher.
So with these loans, you canactually do primary investment
or a second home as well.
It doesn't have to just be aprimary.
Trish Williams (10:22):
Okay, and typically when you put 20% down
you then don't have that PMI orMIP, so it can make your payment
overall lower.
Courtney Bohm (10:30):
It is going to be a good amount lower.
And there's some other littlecaveats with this loan.
But with this loan also, like Isaid, you can do primary
investment, secondary, so that'sa great option.
They do still look at debt toincome, so you need to be still
around about a 55% or less.
It's not like a DSCR loan thatI discussed where it doesn't
(10:50):
matter what your debt to incomeratio is, so they're still going
to go off that, but as far asthat goes.
Another little bit of a caveatis they do look at your reserves
.
So an average borrower is goingto have to have at least on on
average, six months of what itwould take to cover that
property or any other investmentproperty they own.
Trish Williams (11:11):
Yeah, Okay.
So you definitely have to havesome money saved.
You can't be using every dimethat you have towards the
purchase because back to, Iguess, responsibility just
showing that you are good andnot stretched to cover this
purchase because they're doingsuch little documentation too.
Courtney Bohm (11:33):
And they want to make sure if God forbid, you
don't get the home rented out intime that you have enough money
to cover the mortgage for youknow those five, six months, if
absolute worst case.
I have seen them in rareoccasions actually make sure
that there's reserves for theprimary residence as well.
That's pretty rare, but that'ssomething they're looking for.
And what's the timeframe?
Trish Williams (11:53):
for reserves, often, usually on something like
this.
Courtney Bohm (11:57):
I've seen it three months, but I'd say an
average is six months they'regoing to look for.
Trish Williams (12:02):
I usually tell people that you know having,
like you know, having a fewmonths reserves, whether you
know whether it's to purchase orqualify for a purchase or
regardless, having thosereserves is something that
everybody should work towards,no matter what.
Courtney Bohm (12:15):
Absolutely.
And these type of loans becausethey are higher risk, they're
going to make sure you have themoney to back it up if something
happens.
These rates are reallyfavorable.
They range anywhere from aseven and a half to an eight and
a half percent.
So it's really really doable.
It's not so crazy.
It's not in the tens, elevens,twelves percents where you're
seeing on some of these reallyhigh risk loans.
(12:36):
So it's really just such agreat option.
And another thing with these istypically there is a little bit
of a caveat.
Usually there is.
If you try to refinance withinthe first three years, you're
going to see somewhat of aprepayment penalty.
They're going to charge you sixmonths of interest.
But if the rates go way down,typically I always tell people
(12:56):
let's look at you know, once therates go down, where they're at
and how much you're going tosave.
Sometimes it could be worth it.
Sometimes it's not Um and soyou know if someone ends up
moving or selling and thingslike that, it's just a great way
to get your foot in the door,especially if you're not
possibly, you know, showingeverything on taxes or whatever
your situation is when you'reself-employed, you just want to
(13:19):
make sure the biggest thing isyou're depositing it.
Trish Williams (13:21):
Yeah, yeah, make sure you put it in the bank
.
You have that paper trail,because that is important when
you're trying to get money froma bank.
That it is.
Courtney Bohm (13:30):
And another little thing is they're also
going to look at based on thetype of business you have.
They will do a deduction.
So if you own a mobiledetailing, they might take off
15, 20% for products and thingslike that of your income.
So it's really going to dependon what type of business and how
much they deduct from youroverall income based on expenses
(13:51):
.
Okay, Okay, so that can vary.
Trish Williams (13:54):
That makes sense, and I'm sure they take
taxes into consideration, yourtax liability and things like
that, right?
Yep, yeah, that can vary.
That makes sense, and I'm surethey take taxes into
consideration, your taxliability and things like that,
right?
Yep, yeah, yeah, that thatmakes.
That makes perfect sense too,because those are things you
can't, um, can't get away from.
No, yeah, um, so, uh, so, yeah,um, that's a great program.
Um, so, that is the bankstatement program.
Intro (14:13):
Is that the official name for it?
Courtney Bohm (14:14):
It's a bank statement loan.
Trish Williams (14:16):
Bank statement loan so if someone calls you,
they can ask about the bankstatement loan, and, yeah, great
.
And so we have some listenerquestions today.
We can go ahead and get intothose.
I'll start with the first one,that is Nicole.
Nicole said she is buying ahouse without a realtor, a house
(14:38):
that she is interested in.
She talked to the listing agentand told them that she wants to
make an offer.
They told her that they willnot write an offer and she wants
to know if that is illegal.
Actually, no, that's notillegal at all.
The listing agent doesrepresent the seller and in
(14:59):
order for them to write an offerfor you, nicole, they would
have to be representing you, andthe seller may or may not allow
that dual representation, andthere's some agents out there
that won't do it just because ofthe risk involved.
There's a lot of risks.
Do you guys work with peoplethat that that do for sell by?
(15:20):
Like you know, that purchasefor sell by owners and stuff.
Courtney Bohm (15:23):
I mean we, we can, of course, you know, I
think I think when someone'sdoing that, I think it's always
in their best interest to havesomeone backing them If they're
trying to get a house on theirown.
There's just so many thingsthat you trying to get a house
on their own there's just somany things that you deal with
and so many things that areinvolved.
You know, if it was my familymember, I would never recommend
they just go in it on their own.
(15:44):
We know that a lot of peopletry to cut corners and think
that they can do things on theirown, but I'm sure you know that
there are so many weird thingsthat come up in the process of,
you know, buying a home and youcan go into a house and now all
of a sudden there's all theseproblems.
You really want someonefighting for you and, and you
know, challenging the, theseller's agent.
(16:05):
And yeah, you know you.
Just if you don't know whatyou're doing, it can really be a
disaster.
Trish Williams (16:11):
I met with um.
I met with a couple the otherday and the guy was telling me
that he's purchased a lot ofcars and he never goes to a
dealership.
So he doesn't understand why heshould have to need a realtor
for purchasing a home.
And I'm like, okay, but I mean,what a huge difference between
(16:33):
Price point typically isdifferent Price point typically
is substantially different.
You're dealing with a lot moremoney.
When you purchase a car, youdon't always have to go through
an escrow company, or I don'tthink you'd go through an escrow
company whatsoever.
I mean, there is so much moreinvolved.
That is a very silly analogy,but unfortunately it's not the
(16:54):
first time I've heard thatanalogy analogy, but
unfortunately it's not the firsttime I've heard that analogy.
So yeah, it is definitely.
There's a lot to the contractsin real estate, a lot of
disclosures that are involved, alot of things are involved and,
while the listing agent is alicensed realtor in most cases,
going directly to the listingagent's not always your best
(17:15):
option either going directly tothe listing agent is not always
your best option either, and youknow at that point too it's.
Courtney Bohm (17:22):
You know you want to make sure on the buy
side that you're getting thebest deal and everything's being
negotiated with your bestinterest.
So are there people who youknow are the agent for the
seller and the buyer?
It does happen, but I thinkthat can get sticky, you know,
can be tricky, because you wantto make sure that you know your
sellers represented as well asthe buyer sides represented, and
so if you're on both sides ofit, it not that it doesn't
(17:43):
happen right?
Trish Williams (17:44):
Yeah, no, it does happen.
But in most cases the listingagent will have a relationship
with the seller prior to evermeeting you.
So you don't know how long thatgoes back, how strong it is,
how everything.
And it's not saying that that'sgoing to make them act
unethically, because we do havestandards, but still I do think
(18:05):
that having your ownrepresentation is the best idea,
and it is.
You know, it's definitely notillegal for that agent to say
that they're not going to writean offer for you.
They are under no obligation toyou if they're not already in
contract or actuallyrepresenting you.
So if they are not going to,you either can contact a realtor
(18:29):
and hire your own realtor, orcontact an attorney, have them
draft an offer.
But even then that doesn'tcreate representation for you.
I would advise get your ownrealtor.
Courtney Bohm (18:41):
And I just you know, we've seen too many times
people trying to representthemselves and the documents are
just a mess and it's just toobig of a risk to really take on
a house.
You make mistakes once itcloses.
Yeah.
Trish Williams (18:55):
No, I mean, we have nightmares with closings
and even in our world.
Courtney Bohm (18:59):
You get to deal with, right, I get to deal with
every day.
Trish Williams (19:03):
But yeah.
So I mean, it's definitely not.
I can't imagine how peoplewould navigate that on their own
.
And you know one thing to makenote of too you know I said you
can get an attorney to preparethe offer.
Do things like that for you.
I have many attorneys that I'veworked with or have worked with
that choose to hire a realtorfor their representation in a
(19:26):
purchase or in a sell because,even though they are attorneys,
they understand the value ofhaving a realtor representing
them.
Courtney Bohm (19:34):
I think it's just really important you know,
just fighting for little thingseven as, as you know, simple, as
you know, negotiating to keepappliances or making sure
something's fixed or it's justreally important to have someone
fighting for you when it's sucha large purchase.
Trish Williams (19:50):
Yes absolutely.
Courtney Bohm (19:52):
Um so let's go into the next question.
So the next one is I'm buying ahome in a high rise in a high
rise.
On the title report it saysthat the owner of the building
has the first right of refusal.
What does that mean?
Trish Williams (20:05):
Oh, yeah, so that's a fun one.
Have you run across that beforeI?
Courtney Bohm (20:09):
mean, it is it, it's always.
If someone owns a building,they can say no yeah.
Trish Williams (20:16):
Yeah, and I know when.
Courtney Bohm (20:17):
um it's not illegal.
Trish Williams (20:18):
Yeah, one project um in particular is the
palms in Las Vegas.
Um, they have the right offirst refusal on the deed of
every unit they sell.
So what that means is that inselling the home you do have to
contact the Palms.
When you're making an offer,when you're in the purchase,
(20:41):
when title's pulled, there's aprocess of you contacting the
Palms to make sure our contractbasically is not official with
the buyer until the Palms saysthat they don't want to purchase
it at the price that you'reselling it for.
So in the last and most recentyears they haven't had any
interest in purchasing.
(21:01):
I'm sure this is something toprevent, or even something that
I feel like.
If the you know, the condosthere start at $250,000 and
above.
Courtney Bohm (21:11):
It's really to keep the value up a lot of times
in those types of situations.
Trish Williams (21:15):
Right, and I'm sure that if you're trying to
sell a $250,000 condo for 50,000, Palms will say, nope, I'll buy
it instead.
So I'm sure there's somethingbehind that and maybe in the
future they're saying that oneday they'll want to buy out
everybody and run it and own itsolely instead of having private
(21:35):
owners.
I don't know the long game forit, but yeah, certain projects
do have those kinds of deeds.
Sometimes people have them withindividuals.
They made an agreement withmaybe an ex-spouse or a family
member that says if I ever sellthis house, whatever the offer
price is that we receive fromthe buyer, whatever that
(21:55):
contract is, with the terms andconditions, you have the right
to review it, match it andrefuse it or move forward with
it before that buyer can moveforward with their purchase.
Courtney Bohm (22:08):
Absolutely.
But at the end of the day,someone owns the building, and
that's what they asked for.
Then they do have the right tosay no, and that's what they
asked for.
Trish Williams (22:18):
Then they do have the right to say no and
it's not illegal.
Yeah, Right of first refusal isa recorded deed on title and
the way you find out about it iswhen you get that title report.
When you open escrow, everybodywill get a preliminary title
report.
Usually within the first 10days.
When you get that title report,that is listed on the deed.
If there is a right of firstrefusal, that is recorded, Yep,
(22:38):
Yep.
So yeah, I haven't ran intothem.
On individuals, I know thatexists, but definitely in the
high rises that is somethingthat we see and that's pretty
common.
Courtney Bohm (22:48):
Any of the condo tells any of the.
You know it's definitelysomething common we see here.
Trish Williams (22:53):
And.
Courtney Bohm (22:54):
I'm sure in a lot of other cities too, any of
those high-rise buildings.
They really want to keep thevalue up.
So if someone's in an emergencyto sell they're lowering the
price.
It does ruin it for everybodyelse.
Trish Williams (23:03):
Yeah, yeah, absolutely, absolutely.
So Michelle says what is thetoughest price point to sell in
right now?
That's a hard question really,because there could be a lot of
different answers for that, alot of explanations.
What would you say in thelending side is the toughest
(23:24):
price point to qualify for right?
Courtney Bohm (23:27):
now.
I think that can be such abroad question for a couple
reasons.
I think there are some peoplewho you know are in their early
twenties, getting their lifeestablished and they want to buy
a house because rent is soexpensive.
So when we're looking at youknow debts and things like that
and their income especially ifthey're younger and it's just
(23:48):
their income, you know ifthey're making 80 or 70,000, you
know what they're qualifyingfor on average.
If you're looking at you know a350,000, you know what they're
qualifying for on average.
If you're looking at you know a350,000,.
You know dollar home give ortake at around a 6.75%.
I'm just giving some averages.
You know your your ballparkpayment, without insurance or
(24:08):
property taxes, is somewherearound 2450, 2400.
So I think that can be trickyif someone's trying to, you know
, get out of rent and get into ahome because there are things
that you know need to be putinto place and they do have to
qualify.
But obviously when you'regetting into more expensive
homes, you know they're $800,000, you know could be a payment
(24:30):
somewhere around give or take5,000, 5,500.
So I think it really depends onwhat's affordable to them.
Trish Williams (24:38):
Yeah, what's affordable and I felt like um
with the rates where they're atand jumbo loan rates are um a
lot higher than regular, youknow, fha or conventional right.
Courtney Bohm (24:49):
So we do have some great options where they're
pretty competitive with therates currently.
Typically, you're going toalways have 10% down or more for
any type of jumbo anything.
But we do have a couple ofplaces we work with that have
some really great jumbo loanrates.
But I mean, at the end of theday, what's hard to qualify for
(25:13):
is really based on what's doableto that person.
Yeah, I'm sure you've seenpeople buy million dollar homes
and it's not a problem at all.
Trish Williams (25:20):
Yeah, yeah, definitely.
I mean, I've seen payments ashigh as 20,000 a month and
they're like sure.
Courtney Bohm (25:27):
I mean, what are you seeing?
What are you seeing is the mostpopular for you right now as
far as getting someone into home?
Those price points.
Trish Williams (25:35):
Well, always, and it's always been true,
whatever that median price pointis is definitely like when I
get a listing that's in thatmedian price point and that's
like single family home and themid 400s, you know it will sell
right away because the medianprice point's always the hottest
market.
Courtney Bohm (25:52):
What is it right around 450?
.
Trish Williams (25:54):
Yeah, 450, 470 right now, but those are always
the hottest market.
Those are the people that arelike getting into their first
home.
There's more people in thatmarket traditionally than any
other market and that variesbased on.
I mean, when I started in realestate, median price point was
200,000.
Courtney Bohm (26:14):
It's crazy how much the homes in Las Vegas have
gone up in the last few years.
Absolutely I mean the equitypeople are building is crazy.
Trish Williams (26:24):
Yeah, and when I was first trying to build my
business, everybody wanted to doopen houses.
You know they always want to doopen houses and the like luxury
and the beautiful, like bighomes, you know, whatever, like
the extravagant ones.
And I was like no, no, no, Iwant to do open houses in the
median price point, the entrylevel home, which back then was
200,000.
(26:45):
But I want to do them therebecause those are the most
popular.
Those are the ones where peopleare just coming in like, yes,
I'm interested, I want to buy so, and that just it's always
stood true, no matter whatmarket we're in, that's the
hottest, that's the one thatmoves the fastest.
Courtney Bohm (27:01):
And then I also think you know, when you're
looking at homes that are underthe average price, if you have a
condo that happens to beselling for $250,000 or maybe
$300,000, there are so manyinvestors in this town looking
for a great deal and they willcome in and they will buy it
cash, they will fix and flip it.
You know, there's just.
I mean, those are gone inseconds, yeah fixer-uppers.
Trish Williams (27:23):
Those are always gone quick Always, I
would say.
I think the most challengingprice point right now is
somewhere between I'd say itstarts at $750,000, $750,000 to
up to about $2 million.
That's like an entry-levelluxury.
(27:44):
So that's the type of luxurywhere the buyer is usually still
in some sort of working class,but a higher end working class,
you know definitely making a lotmore income and revenue than
the average person.
But that is still.
There's still a paymentinvolved, right?
(28:06):
And I feel like when we get over2 million, a lot of times that
there's not really a lot ofloans on those products.
People in that price point andabove are often purchasing cash.
Courtney Bohm (28:19):
Yeah, and I think it gets tricky.
Then you're looking atmortgages that are, if they're
keeping a mortgage and notpaying cash, somewhere in the
$8,000, $9,000, $10,000 range,mm-hmm.
So obviously just to evenqualify you have to be showing a
really great amount of incomeand then it to be affordable.
Obviously, when you have peoplebuying 20, $30 million homes,
(28:40):
they have the money to do so.
Trish Williams (28:41):
Yes, absolutely .
And I mean, there's one of thethings we always talk about
property taxes are so low inVegas, right?
Courtney Bohm (28:48):
They really are.
Trish Williams (28:49):
And they're, on average, 1%.
But one thing you have to keepin mind, because if we're
talking about a loan, just forinstance, a $6 million home
right With no mortgage, if youwere to pay it outright cash, no
mortgage you're still lookingat $60,000 a year in taxes,
which averages about $5,000 amonth.
That's just your property taxes.
Courtney Bohm (29:09):
And then that's not including.
Typically, if you're getting ahouse like that, you're living
somewhere where the HOA isprobably minimal $500, $600 a
month.
Yes, plus, you have to have awhole team of people to maintain
it Landscapers school and thenyou're going to have your
homeowner's insurance.
So even if someone pays cash,you still have to be making a
good amount of money just forthe upkeep.
Trish Williams (29:31):
Yeah, it's not like you pay cash for a home and
there's no monthly monthlypayment or monthly expenses that
go.
There is definitely a recurringexpense.
So when you add a mortgage tothat, it's yeah.
We just don't see a lot ofpeople doing financing in that
in those price points, you know,once they get that high.
So so yeah, that's.
(29:52):
I hope that answers yourquestion, michelle and Courtney,
how do people contact you ifthey want to talk more about
loans, about what's available?
Courtney Bohm (30:01):
what's out there .
Yeah, so if you're interestedin any, you know, if you have
some questions about loans ordifferent options we have, you
can give me a call at702-416-6918.
I'm always available.
If you want to give me a call,shoot me a text.
I'm happy to give you a callright back.
Trish Williams (30:17):
And if you guys are watching the show, please
take a moment, like, share,subscribe, tell your friends.
And we have a link tree whichis www Do you have to still say
that anymore?
Wwwrealtycheckvegas.
There you can connect with uson everywhere where we're at.
So all of our socials, all ofour links, the audio link,
(30:41):
everything is right there.
So please check us out.
And if you need to reach me, myphone number is 702-308-2878.
I'm Trish Williams and thanksguys for joining the show.
Courtney Bohm (30:52):
Thank you, we appreciate you.
Trish Williams (30:54):
Yes, we do, and we will see you next week.
Bye, bye.
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