February 14, 2025 • 31 mins
The episode provides an in-depth look at the current Las Vegas real estate market, including trends in home values, interest rates, and the rising interest in manufactured homes. We address common concerns about pricing and negotiation strategies, emphasizing the importance of informed decision-making in the buying process.
• Overview of current market statistics and trends
• Insights on the impact of interest rates on home buying
• Discussion of economic factors and potential budget cuts
• Examination of manufactured homes as a viable housing option
• Strategies for buyers to confirm home values before making offers
• Importance of effective negotiation tactics in real estate
• Explanation of appraisal gaps and their implications
• Encouragement for buyers to utilize the expertise of realtors
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (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.
Speaker 2 (00:27):
Hey Vegas and help you make the best real estate
decisions in the entertainmentcapital 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 and I'mCourtney Bone.
All right and well.
I guess our big breaking newstoday is yeah, it's raining and
yeah, I'll play weather girlhere, but it's the first rain
(00:48):
that we've had in like it's like, like I think it was saying
like over 180 days of actualrecorded rain here.
Okay, that that we before we'vehad any since we've had rain, so
we are glad we need water inthe valley, that's everywhere.
That's always a good thing, buttraffic gosh.
People don't know how to drivewhen it rains here.
(01:11):
We're not used to this type ofweather.
So what do we got going on inreal estate today?
On today's show, we're going tobe talking about, obviously,
our market numbers, and thenwe're going to get into talking
about values, home valueappraisal, contingencies, what
(01:32):
to do if you think a home'soverpriced.
So that's going to be some goodstuff that we have going on
today.
And what do we have for homeson the market this week?
Speaker 3 (01:45):
So this week our single family homes on the
market are 5,077.
So that's up 34 from last weekyeah, not bad.
Speaker 2 (01:55):
And condos and townhouses 1855, up 572.
There was something weird goingon with the numbers last week
and I keep on thinking maybe Ijust ran them wrong, because
that 572, they were down 500 andsomething last week and now
they're up 500 and somethingthis week.
So I think there might havebeen something miscalculated
(02:20):
last week somehow somewhere.
But we'll just take that as itis right now.
But there is $18.55 on themarket of condos and townhomes.
Speaker 3 (02:28):
And we do have 905 new listings, which is a good
amount, up 31 less than lastweek.
Speaker 2 (02:36):
All right.
And then price decreases.
Those are down 30 from lastweek at $7.21.
Speaker 3 (02:42):
And we have 815 under contract this week, which is
down four from last week, so nota huge movement nothing,
nothing to worry about there.
Speaker 2 (02:50):
And then our souls are down quite a bit this week.
Um, they're 438.
They're down 168 from last week.
But, um, we are also you.
Most contracts are usuallycontracts close towards the end
of the month.
So, um, we're just, you know,we're in the beginning weeks, so
maybe that's pretty normal.
Maybe that's all we're seeingthere.
We'll watch it.
We'll watch it and see whathappens, if that's anything to
(03:12):
be concerned about.
Where are we with rates?
Speaker 3 (03:16):
So rates.
So right now our rates are thehighest they've been nearly in a
month, and I always say that,but there really hasn't been a
drastic change in the market inkind of a while.
So since January 14th this isthe highest the rates have been.
We were getting a little closerto like a 7% and then we went
(03:37):
under a 7% for a moment.
Right now we're sitting rightat a 7.1% for a 30-year
conventional and the FHA VRstaying pretty similar.
They're right around a six anda half percent on a national
average.
So it did move a little bit,trending upwards, which we kind
(03:57):
of expected either way, to kindof stay pretty close to what
we've been at and, like I said,we're all hoping for March 18th,
19th, to see a trend down.
Speaker 2 (04:06):
Yeah, you know this hasn't been discussed or I
haven't seen a discussion aboutthis in the news and I know some
people out there.
This is a touchy subject forsome and whatever, I just need
to bring it up because I thinkit's relevant.
So this administration right nowis working on like budget cuts,
you know, cutting back allthese things and money going out
(04:29):
and all this stuff.
You know like all these cutsare being made and I was just
looking at the like economicaspect of that, of like lowering
our overall debt budget deficit.
All of that stuff does lowerinflation and if inflation gets
down, even though they're sayingthat we're not going to see
(04:50):
like big movement in rates thisyear, I feel like they're not
factoring in the fact that wemight have a very big change in
the inflation that we'reexperiencing, which, therefore,
is going to affect and hopefullylower rates.
I mean, is that a valid topic?
Because I just kind of lookedinto it, like in general, but I
(05:13):
haven't heard anybody talk aboutthat, so I don't know if I'm
making this up or so a lot hasto do with the bond markets and
the stock market and all ofthose things, so they all kind
of coincide with each other.
Speaker 3 (05:26):
I would like to be able to predict what's going to
happen, I just.
I don't even.
You know, if I had a crystalball I wouldn't have predicted
the rates would still be wherethey're at now.
Absolutely.
Me neither, and I don't think alot of people would have.
So I think on the lender side,you know, we always just try to
really really look at the ratesare not that high, I think.
(05:50):
I think they're higher than youknow, normal but.
But there has been many timesin the past 20, 30, 40 years
where the rates were almostdouble.
Speaker 2 (05:59):
Well, historically in the sevens was has been a good
rate, like, if you look overhistory, we just got spoiled
over you know recent years wherethey were a lot lower.
But when I bought my first homeI had the lender like, yeah,
you got a seven and a halfpercent rate, that's awesome,
good job.
And I was like, yeah, okay,that was great, we celebrated.
Speaker 3 (06:21):
Yeah, and so I think I think you know there's so many
factors and I think, with somany changes happening very
quickly with the new presidency,I so we're hoping to see a
trend down, but I don't, youknow.
Like I said, I think theserates are not horrible.
I really don't, and I thinkthat, realistically, where COVID
(06:42):
rates were, I don't think we'reever going to see that again.
We're hoping to get into thelow sixes by the end of the year
.
But I do think there's going tobe some changes and I'm hoping
to see the rates come down basedon a lot of the cuts and a lot
of the things that we're tryingto help fix at this point.
Speaker 2 (07:00):
Yeah, and I just think that it's one thing that
not many people are talkingabout is the uncharted territory
that we're kind of going intoright now, with everything that
may have a change other thanwhatever the expectations have
been, because there's this newthing happening that we've never
seen happen before.
So maybe that will changethings and who knows what the
(07:21):
effect will be.
But we will watch and see andkeep you posted.
So you have a loan program tohighlight.
Speaker 3 (07:28):
Yeah, so today I was just going to briefly touch on
manufactured homes.
Okay, so manufactured homes arebasically a home that is built
in a factory and broughtsomewhere.
So we can do FHA loans onmanufactured homes and we can do
conventional loans.
And, you know, it's just agreat option to have because it
(07:50):
is more affordable typicallythan a standard home right now,
which I think the median priceof a home right now is sitting
where Median prices are in thehigh fours.
Speaker 2 (07:58):
I think we're at $485,000, $495,000, somewhere
around there.
And manufactured homes are inthe twos.
They're getting up there in thethrees now.
They're not like they used tobe.
Not like they used to be.
Remember $50,000?
.
Speaker 3 (08:11):
I think I was just talking to someone actually
recently that bought amanufactured home like a few
years ago, and they said therewas around a hundred and
something.
So we know those prices havegone up drastically as well, but
it's just a more affordableoption to get someone into a
home.
Speaker 2 (08:30):
So just a quick point on that.
One of the, I guess pullbacksthat people have when looking at
manufactured homes is they'relike, oh, it's never going to
appreciate.
But obviously they haveappreciated along with
everything else.
Speaker 3 (08:42):
I think what's an average like a nice one that's
on the ground, that there's somethat are like 250.
Converted to real property.
Speaker 2 (08:48):
Well, we sold one recently.
That was 300 and our like,after appraisal and everything
came in at 314.
Speaker 3 (08:56):
And so they're not like they used to be 10 years
ago.
They're expensive.
They're beautiful inside aswell, some of them really really
nice.
So with manufactured homes wecan do loans on those.
Typically it has to beconsidered a double wide versus
single wide, so they are larger.
I don't know.
The average square footage onthose is usually around what
like a thousand.
Oh it varies.
Speaker 2 (09:17):
Yeah, just like houses, they'll go a thousand.
I've seen some that are like2,500 square feet.
I mean those things can getpretty big.
And, yeah, ones that are builtin recent years look very much
like a home.
Inside they have the stuccoedwalls or the.
What is it?
Texture, drywall, all the stuffon the inside They've the
stuccoed walls or the.
You know what is it?
Texture or drywall?
You know all the stuff on theinside.
(09:38):
They've come a long way.
Speaker 3 (09:39):
Yeah, they absolutely have, and that's just a great
affordable option for someone tolook at.
If maybe they don't want acondo or shared walls with
people, they want their ownspace, their own yard.
So with that and the biggestthing is you said that earlier
it has to be converted into realproperty.
Speaker 2 (09:55):
Which means that you own the land and it is attached
to the land.
It cannot be a trailer, atrailer that you can like, hook
up and move, because no bank'sgoing to lend on that.
Speaker 3 (10:07):
We don't want to lend on something.
And then, all of a sudden, thehouse is gone.
The house is gone.
We don't know where they went.
Speaker 2 (10:14):
Yeah, has to be permanently attached to the
ground, which is done withcertification and all of there's
a lot of things and you have toown the land that it sits on.
Speaker 3 (10:23):
That's the biggest thing.
Speaker 2 (10:24):
Yeah, there's a lot of communities that have
manufactured homes in Las Vegasthat you have to pay lot rent,
which means that you don't ownthe land.
Speaker 3 (10:32):
You're basically renting the land but you own the
property, the manufacturer home, so and then you see that a lot
in States like Washington,where it's a lot of like the
Indian reservations and thingslike that, so the land has to be
owned, you have to physicallyown the land, and then I've seen
things where it's set on afoundation so people assume it's
converted into real property.
(10:53):
Not necessarily always the case.
So you do actually have to goto the city or the county and it
is a little bit of a process,but we have to make sure it's
converted into real property oressentially it's a vehicle.
Speaker 2 (11:05):
Yeah, yeah, basically a vehicle, literally yeah, and
the tax record?
Once it's converted, the taxrecord will reflect that because
it will then show squarefootage of the home.
The tax record will reflectthat because it will then show
square footage of the home.
If the tax record does not showsquare footage of the home,
that means that it hasn't beenconverted into real estate, has
not been reflected on the taxrecord.
Speaker 3 (11:24):
Yep, and then there's a little bit of a not much, but
we get a normal appraisal likeyou would with a regular home.
The only thing is that we dohave to get what's called an
engineer's report.
That is a little bit of anextra step.
It's a little bit of additionalcost, but they're going to make
sure the home is what's calledstructurally sound and make sure
that it is on the foundation,it's properly attached to the
(11:47):
ground and that it's not moving.
So that's really the onlyadditional step that it is.
Other than that, you can do anFHA, a conventional Um, and so
it's a great option Yep, va aswell.
So it's a great option forsomeone who's looking maybe for
something a little bit moreaffordable in this market, but
maybe doesn't want a condo, has,you know, dogs and wants a full
(12:07):
yard.
Speaker 2 (12:07):
Yeah, yeah, A good, a good entry level, Absolutely,
and the um and and some peopleyou know, a lot of seniors,
there's a few like 55 pluscommunities around here and a
lot of seniors find that as avery affordable option.
You know to be in and still bein an age-restricted community,
you know and they have.
You know they have like socialcalendars and things like that,
(12:29):
so that's an option for a lot ofpeople too.
There is a year restriction.
A year restriction A yearrestriction, like there's a
certain age cannot be, financedon 1970,.
Speaker 3 (12:41):
I think it's 78 or 79 now, all of a sudden yeah, yeah
, yeah.
One of those years, so after acertain.
If it's made before a certainyear, they just won't do it,
just based on a lot of things.
As far as the age, the quality,there's a lot of restrictions
on that.
So I want to say it was 1978 ornine.
Speaker 2 (13:02):
Yeah, yeah, I think it was yeah somewhere around
there too, so yeah, there is anage restriction.
So look at that and you know,make sure that you that that is
considered to it when you arelooking.
Okay, let's get into ourlistener question for today from
Jasmine.
Jasmine wants to make an offeron a house.
(13:23):
She thinks the house is pricedtoo high and she wants to know
if there's any way that she canconfirm the value before making
the offer, because she doesn'twant to overpay for the house,
but she also doesn't want tooffer too low and have her offer
rejected.
Speaker 3 (13:38):
I think that's a huge concern with probably most
people when they're putting inoffers and that's where you come
in right.
That's where we come in, so ifyou have a good realtor.
Speaker 2 (13:48):
Let me just call some people out right there.
No, if you have a good realtor,you can ask your realtor to run
you some comparables on thehouse.
So basically, get an estimatedvalue of and I advise this in
any case you know get anestimate of what that home
should be selling for.
And we all see, in almost everymarket there's always times
(14:14):
where there's a home andsometimes it's just cause it's
like super upgraded, superattractive, super beautiful home
and it's priced a little higherthan the comparables but it
also has multiple offers.
So you know like, while you'relike to offer this certain price
, you know that's not gonna getyou the home and the appraiser
(14:36):
has to be the person that goesin and factors in those upgrades
to decide what that value is.
And it could come in at thatvalue because it has enough
going for it to justify it ormarket conditions have changed
and everything like that.
So comparables are estimates.
They're not the end-all be-alland unfortunately, the
appraisers are usually theend-all be-all that they are In
some cases.
I mean, you know you're neverforced to agree with.
(14:57):
The appraisers are usually theend-all be-all that they are In
some cases.
I mean you know you're neverforced to agree with the
appraisal, but we'll talk aboutthat too.
So talk to your realtor aboutcomparables.
Find out what the averagecomparables are.
I mean, if the house is priced$100,000 over the last sold,
comparable in the neighborhoodmight just be something you want
(15:21):
to stay away from, and I'm surethat goes the same for
something being completelyupgraded to the opposite, which
is something that probably hassome fix right.
Speaker 3 (15:30):
So what are the price ?
If there's a property thatmaybe really needs to have some
renovations done, then obviouslythere's some talking points on
maybe getting that price down alittle bit.
Speaker 2 (15:41):
Right, and sellers can price a house however they
want to price it At the end ofthe day.
I mean, sometimes it's no.
I've had times, literally,where I've called a realtor and
just said I'm not findinganything to even like remotely
justify the price that you havethis house listed for.
Can you please help me out?
Like, where'd you get this?
Speaker 1 (16:02):
number from.
Speaker 2 (16:03):
Like, help me understand, am I missing
something?
What's going on here?
And I have literally hadrealtors tell me, yeah, it's
completely overpriced, we havenothing to justify it.
But the seller said that'stheir number, like that, and
that happens.
It's real estate Like no onecan make you sell a home at a
certain price.
So, again, always very goodpractice to look at those
(16:29):
comparables and see where you'reat, and then days on the market
.
Speaker 3 (16:34):
I mean that's important because that's going
to say a lot as to clearly, ifit's been on the market for a
long time, then usually there'ssomething going on.
Speaker 2 (16:43):
Usually there's something going on.
Price is too high Pricecondition yeah, and nobody else
really wants it right now.
You know it's like it's.
It's like it's kind of likelike if you're you know if
you're like single and outdating or whatever and you're
like like really nice guy seemslike everything's okay, you're
like he's all right, but why ishe still single?
(17:05):
You know there's got to be anissue, right?
I mean not always, but a lot oftimes I hear that from people,
so I have-.
Speaker 3 (17:13):
So quick question.
And I know Vegas.
It's so much easier to pricebecause a lot of the homes are
next to a similar home that havejust been sold and there's 50
of the same house in the sameneighborhood.
But what if there's a housethat there really isn't anything
to compare it to?
Speaker 2 (17:28):
And we run across that a lot, yeah, especially in
luxury, oh my gosh.
Lot of times, like when we'retalking about pricing luxury, a
lot of times we really it iskind of a good strategy to have
an appraiser like pre-appraisethe home.
It does not mean you cannot usethat appraisal If the buyer's
(17:51):
financing.
You can't just like hand themthat appraisal and say, use this
, it still has to get you knowtheir own another appraisal done
.
But it does give you a goodballpark because they'll take it
, you know, based off it's.
It's basically based off priceper square foot and, um, the
everything that the home has.
So, um, there's that too.
(18:12):
So, yeah, I mean, a lot oftimes it's a it's a little bit
of guesswork and a lot ofestimating.
Speaker 3 (18:17):
Yeah, I think here that's probably less Luxury
market, of course, because everyhouse is so different, but in
places where I'm from, likeMichigan, every house next to
each other looks completelydifferent, so it's not so cookie
cutter, but I mean, you do runacross that as well.
Speaker 2 (18:33):
Yeah, and then you just take the average.
Maybe the house isn't the samebut the square footage is the
same, the area is similar, thelot that it's on similar and run
numbers based off that.
But again, still a lot ofestimating, a lot of like you
know kind of, you know guessingon what this might add to the
value and what this might add tothe value, and you know those
things.
And you know we already talkedabout condition being considered
(18:57):
in the offer.
You know, I mean, if thecondition's poor, you want to
take that into considerationwhen making the offer.
If you're making the offer andyou have no competition, I mean
I would say, you know, go intough.
You know most sellers, ifthey're in reasonable mind, are
going to counter and try to workwith you to come somewhere in
(19:18):
the middle.
I mean there's a differencebetween coming in strong and
aggressive on an offer andcoming in with an absolute low
ball.
Speaker 3 (19:27):
Just being ridiculous .
Speaker 2 (19:28):
Yeah, I rarely see low ball offers, get any.
I mean, usually the seller getsoffended and just rejects you
know it's too far off.
If you're offering $100,000 offwhat they're asking and there's
nothing to justify this offerthat you're sending in, you're
probably not going to get themto even play ball with you.
Speaker 3 (19:47):
They're just going to say no and then at that point
you've probably upset them andthey're probably ignoring you,
and that's it.
Speaker 2 (19:53):
And if you come back and I've seen that happen- too,
where they're like okay, let mecome back with a better offer
now where?
They're already upset with youand now they're just not.
You know you're not.
That doesn't help you, so thatis not a good strategy.
And then you also need toconsider if you're asking for
concessions.
Speaker 3 (20:12):
So if you're asking for concessions to be used
towards closing costs and thingslike that, then typically the
negotiation.
I'm sure it's a lot less.
If they're coming out of pocketto help you get into a home,
I'm sure there are somenegotiations, but I'm sure it's
less than what it would be ifyou weren't asking for that.
Speaker 2 (20:31):
Yes, absolutely, because, while I don't know, and
it's just the mindset of somepeople, they think it's all like
free money, you know, like tellthem to pay the closing costs
Like somehow this is like freesomewhere.
But at the end of the day andthis is something I always
explain to my clients like ifyou're asking for $10,000 in
closing costs right At the endof the day, that's $10,000 off
(20:53):
your offer price.
Even though it's not goingtowards the purchase price, it's
coming off their net, it's offyour offer price.
So that is a factor to consideras well.
Usually, if you're asking for alarge amount of closing costs,
you have to have a somewhatattractive offer to even have
that be a chance.
We are in a more buyer-friendlymarket right now, but it still
(21:15):
is a factor that has to beconsidered.
You know, if you want someoneto take your offer, you have to,
you know, make it.
It has to, it has to be awin-win.
It has to be, you know,something that you're going to
be okay with.
But they also have to feel likethey're not, you know, getting
shafted in the whole thing too.
Speaker 3 (21:34):
Absolutely.
I think it has to be a fair, afair negotiation right At some
point, especially if it's ahouse that's attractive and the
price is around a median pricepoint.
Now I'm sure in the luxurymarket and things that are more
excessive, there's probably alittle different type of
negotiation that goes on, butyou're also not usually getting
seller concessions and all theseother things covered and a lot
(21:57):
of people assume that you canjust get endless amounts of
seller concessions and all theseother things covered and a lot
of people assume that you canjust get endless amounts of
seller concessions, which is notthe case either.
Speaker 2 (22:03):
Yeah, yeah.
And you know, another thing Ithink is a good tip for buyers
out there.
I feel like some buyers, maybebuyers agents out there, there's
some, there's a, there'sdefinitely a a school of
thinking out there that thinkslike I can go in and, you know,
tell them, list them all thethings that we don't like about
the house and that's going tomake them take a lower offer.
But what you don't take intomind when you do things like
(22:27):
that is sometimes this ispeople's family home, like it
has.
You know.
They've had it for many years.
They're somewhat of anemotional attachment to it.
Speaker 3 (22:37):
And most of the time.
Speaker 2 (22:37):
I think don't go in and insult people because that
will often get you nowhere.
Um, if it's something that isdefinitely a material fact like
you know, the house has likeplumbing issues and you're
saying I'm giving you this offerbecause there's obvious
plumbing issues, obviouslythat's, that's reasonable.
But if you go in and say, likethe carpet's ugly and the, you
(22:59):
know ugly and I hate the colorof the walls and the kitchen's
hideous or like go in and I'vehad realtors like send these
like very insulting emails andtell me to tell my clients this
so that they will take theiroffer, and I'm like this isn't
going to go over.
Well, so obviously keep in mindthat you know, regardless of
(23:22):
what your plans are for the home, this still might be that
person's family home.
That means a lot to them.
So keep that in mind whenyou're trying to do negotiations
.
And then I mean appraisals.
So we talked a little bit aboutappraisals.
If you're doing a loan,Absolutely, and you go into
(23:44):
contract, Say you go intocontract.
Let's just throw numbers outthere.
Say you go into contract at$500,000.
Okay.
And you're doing a loan and theappraisal comes in at $480,000.
We have a $20,000 difference.
What happens?
Speaker 3 (23:59):
So something's going to have to happen.
So either someone has to paythe difference, or price has to
change, or and that's that'susually a sticky topic because
what it means is that the valueof the home came in differently
than what it's priced, so now wehave a price gap.
Speaker 2 (24:17):
Yes, and the loan will not give you a loan on a
home that is not.
It has to appraise at thecontract price Correct.
So there's no way around that.
You can't get the funds Again.
There's always the option tothrow cash at it on top, or you
know seller.
Seller says I'll drop 10,000.
Buyer says I'll pay an extra10,000.
(24:37):
But that's not even somethingwe are seeing commonly right now
in this environment, becausereally in this environment the
buyers are paying a lot of fees,things like that.
They're just saying we have todrop it to an appraised value
and go forward with that.
So it's the seller's decision,not mandatory.
Speaker 3 (24:58):
Correct.
I think you were seeing and wewere just talking about this I
think you were seeing a hugevalue gap when COVID was, when
these houses were selling for somuch higher and appreciating so
quickly.
Yeah, there was a lot ofappraisals coming back that were
just really different than whatthe purchase price was, and it
was interesting.
Speaker 2 (25:19):
And people were paying over.
That was common in the market.
So it depends on what's commonin the market that you're
purchasing it too Absolutely.
And the other thing with theappraisal gaps is you know, if
the seller refuses and says I'mnot going to work with you, the
buyer doesn't have the funds tocome in.
Because we have many situationsthat happen like that.
The buyer's like I don't havethe extra cash to put 20,000.
(25:40):
I need you to drop the price.
And the seller says no, I'm notdoing it and that appraisal in
most cases like if they're doingan FHA appraisal, they can't if
they get another FHA buyerwithin what is it?
160 or 190?
days 180 days, then thatappraisal is sticking with that
property.
So then they have to eliminateFHA buyers out of their pool of
(26:03):
buyers and go towardsconventional or try.
Va Doesn't mean that appraisalis going to come in higher the
next time.
It could, and I'm warning thesellers, it could come in lower,
it could come in lower, andI've seen that happen too.
I've seen that where a sellersays no to one because they just
(26:24):
refuse to accept the appraisal,and we go in again and the next
one comes in lower and they'relike what the heck, I want the
old one back, great is real, Ithink you know.
Speaker 3 (26:34):
Really, at that point it's like you know both agents
need to have a talk with theseller, talk with the buyer and
especially if you're trying toget a home sold, it's like let's
come to some point where we canboth be okay with whatever the
outcome is.
Speaker 2 (26:48):
Right, and you have to factor into the cost of
holding Absolutely that.
You know, sometimes the cost ofholding the property isn't
worth the amount that you'refighting over, especially when
it's like minimal, like $5,000,you know, you're like okay two
more months of mortgage payments, you're going to pay that
$5,000.
If this house didn't have a lotof activity and you have a
buyer.
Speaker 3 (27:08):
This makes more sense A hundred percent, especially a
buyer that's already qualified,where everything's good to go,
and then it's like you're reallygoing to let that just go.
For you know, I I don't thinkyou're seeing as many of of that
kind of situation at this point.
I think things are pretty deadon with how the appraisals are
coming back lately, so it's morerare that you're seeing that.
(27:30):
Obviously during COVID totallydifferent.
I saw appraisals come in andlike I was telling you, a
hundred thousand dollarsdifferent, which is an extreme.
But you know, I think that'swhere you're negotiating skills
and and really you know, havingthose, those types of
conversations come into play toget the deal done.
Speaker 2 (27:47):
Yeah, and then another thing, that um like
another, I guess, kind of wordof caution, because I have heard
people say um, in certainsituations, especially when
there's multiple offers, let'sjust offer higher and we know
the appraisal will come in lowerand then they'll have to drop
the price.
And it's strategy, but notalways a good one, because I've
(28:10):
seen that happen, where peoplehad expected that and the
appraisal came in on target.
A contract price Can'tguarantee what that number is
going to come into.
So there goes your strategy outthe window.
So warn people about that.
and also the fact that sellerdoesn't have to sell, and you
could go in with this greatstrategy to try to beat out all
(28:31):
the other offers and then whenyou come down to that seller
says nope, not doing it, andthen, um you, you lose your.
Usually, if you have anappraisal contingency, your
earnest money deposit is stillrefundable, so you get that back
in most cases.
But you have the inspectionfees, because your home
inspection is usually done butbefore the appraisal is and you
(28:53):
have your appraisal fee, whichyou know that is, that can be
substantial.
You know, around a thousand ormore Um, once all those fees are
put put together.
So that, um, are you willing torisk that money?
And if you are, you know somepeople are like, yeah, that's
nothing, let's just see if itworks.
Fine, you know that really justhas to be something you keep in
(29:16):
mind before getting into thatsituation.
Speaker 3 (29:18):
And that's why it's so important to have a great
realtor, because, at the end ofthe day, it's it's the guidance
that a lot of people need whenthey're going into these
situations, and a home isusually most people's largest
purchase they ever make.
Yeah, absolutely.
Speaker 2 (29:31):
Absolutely.
And um, for sellers, it's theirlargest investment and they do
want to get every bit of valueback on that because that's you
know, a lot goes into it.
A lot goes into it over theyears, so yeah.
So, courtney, if anybody wantsto talk to you about getting
(29:51):
some money, finances, loanprograms, all of this good stuff
how do they reach you?
Speaker 3 (29:55):
Yeah, give me a call 702-416-6918 or shoot me over a
text.
Speaker 2 (30:01):
All right.
If you guys want to find yourhome or sell your home, you can
call me 702-308-2878.
Want to give a shout out to ourmarketing partner, chicago
Title.
Thank you for your support andwe also would like you to check
out our Linktree website, whichis realteachekvegas.
(30:24):
You can find everything aboutus there.
You can link to us in alldifferent portals on that
website and see what's going on.
Connect with us, see what we'redoing, send in these listener
questions so we have somethingto talk about on the show.
Yeah, and we will see you guysnext week.
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.
Speaker 2 (00:27):
Hey Vegas and help you make the best real estate
decisions in the entertainmentcapital 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 and I'mCourtney Bone.
All right and well.
I guess our big breaking newstoday is yeah, it's raining and
yeah, I'll play weather girlhere, but it's the first rain
(00:48):
that we've had in like it's like, like I think it was saying
like over 180 days of actualrecorded rain here.
Okay, that that we before we'vehad any since we've had rain, so
we are glad we need water inthe valley, that's everywhere.
That's always a good thing, buttraffic gosh.
People don't know how to drivewhen it rains here.
(01:11):
We're not used to this type ofweather.
So what do we got going on inreal estate today?
On today's show, we're going tobe talking about, obviously,
our market numbers, and thenwe're going to get into talking
about values, home valueappraisal, contingencies, what
(01:32):
to do if you think a home'soverpriced.
So that's going to be some goodstuff that we have going on
today.
And what do we have for homeson the market this week?
Speaker 3 (01:45):
So this week our single family homes on the
market are 5,077.
So that's up 34 from last weekyeah, not bad.
Speaker 2 (01:55):
And condos and townhouses 1855, up 572.
There was something weird goingon with the numbers last week
and I keep on thinking maybe Ijust ran them wrong, because
that 572, they were down 500 andsomething last week and now
they're up 500 and somethingthis week.
So I think there might havebeen something miscalculated
(02:20):
last week somehow somewhere.
But we'll just take that as itis right now.
But there is $18.55 on themarket of condos and townhomes.
Speaker 3 (02:28):
And we do have 905 new listings, which is a good
amount, up 31 less than lastweek.
Speaker 2 (02:36):
All right.
And then price decreases.
Those are down 30 from lastweek at $7.21.
Speaker 3 (02:42):
And we have 815 under contract this week, which is
down four from last week, so nota huge movement nothing,
nothing to worry about there.
Speaker 2 (02:50):
And then our souls are down quite a bit this week.
Um, they're 438.
They're down 168 from last week.
But, um, we are also you.
Most contracts are usuallycontracts close towards the end
of the month.
So, um, we're just, you know,we're in the beginning weeks, so
maybe that's pretty normal.
Maybe that's all we're seeingthere.
We'll watch it.
We'll watch it and see whathappens, if that's anything to
(03:12):
be concerned about.
Where are we with rates?
Speaker 3 (03:16):
So rates.
So right now our rates are thehighest they've been nearly in a
month, and I always say that,but there really hasn't been a
drastic change in the market inkind of a while.
So since January 14th this isthe highest the rates have been.
We were getting a little closerto like a 7% and then we went
(03:37):
under a 7% for a moment.
Right now we're sitting rightat a 7.1% for a 30-year
conventional and the FHA VRstaying pretty similar.
They're right around a six anda half percent on a national
average.
So it did move a little bit,trending upwards, which we kind
(03:57):
of expected either way, to kindof stay pretty close to what
we've been at and, like I said,we're all hoping for March 18th,
19th, to see a trend down.
Speaker 2 (04:06):
Yeah, you know this hasn't been discussed or I
haven't seen a discussion aboutthis in the news and I know some
people out there.
This is a touchy subject forsome and whatever, I just need
to bring it up because I thinkit's relevant.
So this administration right nowis working on like budget cuts,
you know, cutting back allthese things and money going out
(04:29):
and all this stuff.
You know like all these cutsare being made and I was just
looking at the like economicaspect of that, of like lowering
our overall debt budget deficit.
All of that stuff does lowerinflation and if inflation gets
down, even though they're sayingthat we're not going to see
(04:50):
like big movement in rates thisyear, I feel like they're not
factoring in the fact that wemight have a very big change in
the inflation that we'reexperiencing, which, therefore,
is going to affect and hopefullylower rates.
I mean, is that a valid topic?
Because I just kind of lookedinto it, like in general, but I
(05:13):
haven't heard anybody talk aboutthat, so I don't know if I'm
making this up or so a lot hasto do with the bond markets and
the stock market and all ofthose things, so they all kind
of coincide with each other.
Speaker 3 (05:26):
I would like to be able to predict what's going to
happen, I just.
I don't even.
You know, if I had a crystalball I wouldn't have predicted
the rates would still be wherethey're at now.
Absolutely.
Me neither, and I don't think alot of people would have.
So I think on the lender side,you know, we always just try to
really really look at the ratesare not that high, I think.
(05:50):
I think they're higher than youknow, normal but.
But there has been many timesin the past 20, 30, 40 years
where the rates were almostdouble.
Speaker 2 (05:59):
Well, historically in the sevens was has been a good
rate, like, if you look overhistory, we just got spoiled
over you know recent years wherethey were a lot lower.
But when I bought my first homeI had the lender like, yeah,
you got a seven and a halfpercent rate, that's awesome,
good job.
And I was like, yeah, okay,that was great, we celebrated.
Speaker 3 (06:21):
Yeah, and so I think I think you know there's so many
factors and I think, with somany changes happening very
quickly with the new presidency,I so we're hoping to see a
trend down, but I don't, youknow.
Like I said, I think theserates are not horrible.
I really don't, and I thinkthat, realistically, where COVID
(06:42):
rates were, I don't think we'reever going to see that again.
We're hoping to get into thelow sixes by the end of the year
.
But I do think there's going tobe some changes and I'm hoping
to see the rates come down basedon a lot of the cuts and a lot
of the things that we're tryingto help fix at this point.
Speaker 2 (07:00):
Yeah, and I just think that it's one thing that
not many people are talkingabout is the uncharted territory
that we're kind of going intoright now, with everything that
may have a change other thanwhatever the expectations have
been, because there's this newthing happening that we've never
seen happen before.
So maybe that will changethings and who knows what the
(07:21):
effect will be.
But we will watch and see andkeep you posted.
So you have a loan program tohighlight.
Speaker 3 (07:28):
Yeah, so today I was just going to briefly touch on
manufactured homes.
Okay, so manufactured homes arebasically a home that is built
in a factory and broughtsomewhere.
So we can do FHA loans onmanufactured homes and we can do
conventional loans.
And, you know, it's just agreat option to have because it
(07:50):
is more affordable typicallythan a standard home right now,
which I think the median priceof a home right now is sitting
where Median prices are in thehigh fours.
Speaker 2 (07:58):
I think we're at $485,000, $495,000, somewhere
around there.
And manufactured homes are inthe twos.
They're getting up there in thethrees now.
They're not like they used tobe.
Not like they used to be.
Remember $50,000?
.
Speaker 3 (08:11):
I think I was just talking to someone actually
recently that bought amanufactured home like a few
years ago, and they said therewas around a hundred and
something.
So we know those prices havegone up drastically as well, but
it's just a more affordableoption to get someone into a
home.
Speaker 2 (08:30):
So just a quick point on that.
One of the, I guess pullbacksthat people have when looking at
manufactured homes is they'relike, oh, it's never going to
appreciate.
But obviously they haveappreciated along with
everything else.
Speaker 3 (08:42):
I think what's an average like a nice one that's
on the ground, that there's somethat are like 250.
Converted to real property.
Speaker 2 (08:48):
Well, we sold one recently.
That was 300 and our like,after appraisal and everything
came in at 314.
Speaker 3 (08:56):
And so they're not like they used to be 10 years
ago.
They're expensive.
They're beautiful inside aswell, some of them really really
nice.
So with manufactured homes wecan do loans on those.
Typically it has to beconsidered a double wide versus
single wide, so they are larger.
I don't know.
The average square footage onthose is usually around what
like a thousand.
Oh it varies.
Speaker 2 (09:17):
Yeah, just like houses, they'll go a thousand.
I've seen some that are like2,500 square feet.
I mean those things can getpretty big.
And, yeah, ones that are builtin recent years look very much
like a home.
Inside they have the stuccoedwalls or the.
What is it?
Texture, drywall, all the stuffon the inside They've the
stuccoed walls or the.
You know what is it?
Texture or drywall?
You know all the stuff on theinside.
(09:38):
They've come a long way.
Speaker 3 (09:39):
Yeah, they absolutely have, and that's just a great
affordable option for someone tolook at.
If maybe they don't want acondo or shared walls with
people, they want their ownspace, their own yard.
So with that and the biggestthing is you said that earlier
it has to be converted into realproperty.
Speaker 2 (09:55):
Which means that you own the land and it is attached
to the land.
It cannot be a trailer, atrailer that you can like, hook
up and move, because no bank'sgoing to lend on that.
Speaker 3 (10:07):
We don't want to lend on something.
And then, all of a sudden, thehouse is gone.
The house is gone.
We don't know where they went.
Speaker 2 (10:14):
Yeah, has to be permanently attached to the
ground, which is done withcertification and all of there's
a lot of things and you have toown the land that it sits on.
Speaker 3 (10:23):
That's the biggest thing.
Speaker 2 (10:24):
Yeah, there's a lot of communities that have
manufactured homes in Las Vegasthat you have to pay lot rent,
which means that you don't ownthe land.
Speaker 3 (10:32):
You're basically renting the land but you own the
property, the manufacturer home, so and then you see that a lot
in States like Washington,where it's a lot of like the
Indian reservations and thingslike that, so the land has to be
owned, you have to physicallyown the land, and then I've seen
things where it's set on afoundation so people assume it's
converted into real property.
(10:53):
Not necessarily always the case.
So you do actually have to goto the city or the county and it
is a little bit of a process,but we have to make sure it's
converted into real property oressentially it's a vehicle.
Speaker 2 (11:05):
Yeah, yeah, basically a vehicle, literally yeah, and
the tax record?
Once it's converted, the taxrecord will reflect that because
it will then show squarefootage of the home.
The tax record will reflectthat because it will then show
square footage of the home.
If the tax record does not showsquare footage of the home,
that means that it hasn't beenconverted into real estate, has
not been reflected on the taxrecord.
Speaker 3 (11:24):
Yep, and then there's a little bit of a not much, but
we get a normal appraisal likeyou would with a regular home.
The only thing is that we dohave to get what's called an
engineer's report.
That is a little bit of anextra step.
It's a little bit of additionalcost, but they're going to make
sure the home is what's calledstructurally sound and make sure
that it is on the foundation,it's properly attached to the
(11:47):
ground and that it's not moving.
So that's really the onlyadditional step that it is.
Other than that, you can do anFHA, a conventional Um, and so
it's a great option Yep, va aswell.
So it's a great option forsomeone who's looking maybe for
something a little bit moreaffordable in this market, but
maybe doesn't want a condo, has,you know, dogs and wants a full
(12:07):
yard.
Speaker 2 (12:07):
Yeah, yeah, A good, a good entry level, Absolutely,
and the um and and some peopleyou know, a lot of seniors,
there's a few like 55 pluscommunities around here and a
lot of seniors find that as avery affordable option.
You know to be in and still bein an age-restricted community,
you know and they have.
You know they have like socialcalendars and things like that,
(12:29):
so that's an option for a lot ofpeople too.
There is a year restriction.
A year restriction A yearrestriction, like there's a
certain age cannot be, financedon 1970,.
Speaker 3 (12:41):
I think it's 78 or 79 now, all of a sudden yeah, yeah
, yeah.
One of those years, so after acertain.
If it's made before a certainyear, they just won't do it,
just based on a lot of things.
As far as the age, the quality,there's a lot of restrictions
on that.
So I want to say it was 1978 ornine.
Speaker 2 (13:02):
Yeah, yeah, I think it was yeah somewhere around
there too, so yeah, there is anage restriction.
So look at that and you know,make sure that you that that is
considered to it when you arelooking.
Okay, let's get into ourlistener question for today from
Jasmine.
Jasmine wants to make an offeron a house.
(13:23):
She thinks the house is pricedtoo high and she wants to know
if there's any way that she canconfirm the value before making
the offer, because she doesn'twant to overpay for the house,
but she also doesn't want tooffer too low and have her offer
rejected.
Speaker 3 (13:38):
I think that's a huge concern with probably most
people when they're putting inoffers and that's where you come
in right.
That's where we come in, so ifyou have a good realtor.
Speaker 2 (13:48):
Let me just call some people out right there.
No, if you have a good realtor,you can ask your realtor to run
you some comparables on thehouse.
So basically, get an estimatedvalue of and I advise this in
any case you know get anestimate of what that home
should be selling for.
And we all see, in almost everymarket there's always times
(14:14):
where there's a home andsometimes it's just cause it's
like super upgraded, superattractive, super beautiful home
and it's priced a little higherthan the comparables but it
also has multiple offers.
So you know like, while you'relike to offer this certain price
, you know that's not gonna getyou the home and the appraiser
(14:36):
has to be the person that goesin and factors in those upgrades
to decide what that value is.
And it could come in at thatvalue because it has enough
going for it to justify it ormarket conditions have changed
and everything like that.
So comparables are estimates.
They're not the end-all be-alland unfortunately, the
appraisers are usually theend-all be-all that they are In
some cases.
I mean, you know you're neverforced to agree with.
(14:57):
The appraisers are usually theend-all be-all that they are In
some cases.
I mean you know you're neverforced to agree with the
appraisal, but we'll talk aboutthat too.
So talk to your realtor aboutcomparables.
Find out what the averagecomparables are.
I mean, if the house is priced$100,000 over the last sold,
comparable in the neighborhoodmight just be something you want
(15:21):
to stay away from, and I'm surethat goes the same for
something being completelyupgraded to the opposite, which
is something that probably hassome fix right.
Speaker 3 (15:30):
So what are the price ?
If there's a property thatmaybe really needs to have some
renovations done, then obviouslythere's some talking points on
maybe getting that price down alittle bit.
Speaker 2 (15:41):
Right, and sellers can price a house however they
want to price it At the end ofthe day.
I mean, sometimes it's no.
I've had times, literally,where I've called a realtor and
just said I'm not findinganything to even like remotely
justify the price that you havethis house listed for.
Can you please help me out?
Like, where'd you get this?
Speaker 1 (16:02):
number from.
Speaker 2 (16:03):
Like, help me understand, am I missing
something?
What's going on here?
And I have literally hadrealtors tell me, yeah, it's
completely overpriced, we havenothing to justify it.
But the seller said that'stheir number, like that, and
that happens.
It's real estate Like no onecan make you sell a home at a
certain price.
So, again, always very goodpractice to look at those
(16:29):
comparables and see where you'reat, and then days on the market
.
Speaker 3 (16:34):
I mean that's important because that's going
to say a lot as to clearly, ifit's been on the market for a
long time, then usually there'ssomething going on.
Speaker 2 (16:43):
Usually there's something going on.
Price is too high Pricecondition yeah, and nobody else
really wants it right now.
You know it's like it's.
It's like it's kind of likelike if you're you know if
you're like single and outdating or whatever and you're
like like really nice guy seemslike everything's okay, you're
like he's all right, but why ishe still single?
(17:05):
You know there's got to be anissue, right?
I mean not always, but a lot oftimes I hear that from people,
so I have-.
Speaker 3 (17:13):
So quick question.
And I know Vegas.
It's so much easier to pricebecause a lot of the homes are
next to a similar home that havejust been sold and there's 50
of the same house in the sameneighborhood.
But what if there's a housethat there really isn't anything
to compare it to?
Speaker 2 (17:28):
And we run across that a lot, yeah, especially in
luxury, oh my gosh.
Lot of times, like when we'retalking about pricing luxury, a
lot of times we really it iskind of a good strategy to have
an appraiser like pre-appraisethe home.
It does not mean you cannot usethat appraisal If the buyer's
(17:51):
financing.
You can't just like hand themthat appraisal and say, use this
, it still has to get you knowtheir own another appraisal done
.
But it does give you a goodballpark because they'll take it
, you know, based off it's.
It's basically based off priceper square foot and, um, the
everything that the home has.
So, um, there's that too.
(18:12):
So, yeah, I mean, a lot oftimes it's a it's a little bit
of guesswork and a lot ofestimating.
Speaker 3 (18:17):
Yeah, I think here that's probably less Luxury
market, of course, because everyhouse is so different, but in
places where I'm from, likeMichigan, every house next to
each other looks completelydifferent, so it's not so cookie
cutter, but I mean, you do runacross that as well.
Speaker 2 (18:33):
Yeah, and then you just take the average.
Maybe the house isn't the samebut the square footage is the
same, the area is similar, thelot that it's on similar and run
numbers based off that.
But again, still a lot ofestimating, a lot of like you
know kind of, you know guessingon what this might add to the
value and what this might add tothe value, and you know those
things.
And you know we already talkedabout condition being considered
(18:57):
in the offer.
You know, I mean, if thecondition's poor, you want to
take that into considerationwhen making the offer.
If you're making the offer andyou have no competition, I mean
I would say, you know, go intough.
You know most sellers, ifthey're in reasonable mind, are
going to counter and try to workwith you to come somewhere in
(19:18):
the middle.
I mean there's a differencebetween coming in strong and
aggressive on an offer andcoming in with an absolute low
ball.
Speaker 3 (19:27):
Just being ridiculous .
Speaker 2 (19:28):
Yeah, I rarely see low ball offers, get any.
I mean, usually the seller getsoffended and just rejects you
know it's too far off.
If you're offering $100,000 offwhat they're asking and there's
nothing to justify this offerthat you're sending in, you're
probably not going to get themto even play ball with you.
Speaker 3 (19:47):
They're just going to say no and then at that point
you've probably upset them andthey're probably ignoring you,
and that's it.
Speaker 2 (19:53):
And if you come back and I've seen that happen- too,
where they're like okay, let mecome back with a better offer
now where?
They're already upset with youand now they're just not.
You know you're not.
That doesn't help you, so thatis not a good strategy.
And then you also need toconsider if you're asking for
concessions.
Speaker 3 (20:12):
So if you're asking for concessions to be used
towards closing costs and thingslike that, then typically the
negotiation.
I'm sure it's a lot less.
If they're coming out of pocketto help you get into a home,
I'm sure there are somenegotiations, but I'm sure it's
less than what it would be ifyou weren't asking for that.
Speaker 2 (20:31):
Yes, absolutely, because, while I don't know, and
it's just the mindset of somepeople, they think it's all like
free money, you know, like tellthem to pay the closing costs
Like somehow this is like freesomewhere.
But at the end of the day andthis is something I always
explain to my clients like ifyou're asking for $10,000 in
closing costs right At the endof the day, that's $10,000 off
(20:53):
your offer price.
Even though it's not goingtowards the purchase price, it's
coming off their net, it's offyour offer price.
So that is a factor to consideras well.
Usually, if you're asking for alarge amount of closing costs,
you have to have a somewhatattractive offer to even have
that be a chance.
We are in a more buyer-friendlymarket right now, but it still
(21:15):
is a factor that has to beconsidered.
You know, if you want someoneto take your offer, you have to,
you know, make it.
It has to, it has to be awin-win.
It has to be, you know,something that you're going to
be okay with.
But they also have to feel likethey're not, you know, getting
shafted in the whole thing too.
Speaker 3 (21:34):
Absolutely.
I think it has to be a fair, afair negotiation right At some
point, especially if it's ahouse that's attractive and the
price is around a median pricepoint.
Now I'm sure in the luxurymarket and things that are more
excessive, there's probably alittle different type of
negotiation that goes on, butyou're also not usually getting
seller concessions and all theseother things covered and a lot
(21:57):
of people assume that you canjust get endless amounts of
seller concessions and all theseother things covered and a lot
of people assume that you canjust get endless amounts of
seller concessions, which is notthe case either.
Speaker 2 (22:03):
Yeah, yeah.
And you know, another thing Ithink is a good tip for buyers
out there.
I feel like some buyers, maybebuyers agents out there, there's
some, there's a, there'sdefinitely a a school of
thinking out there that thinkslike I can go in and, you know,
tell them, list them all thethings that we don't like about
the house and that's going tomake them take a lower offer.
But what you don't take intomind when you do things like
(22:27):
that is sometimes this ispeople's family home, like it
has.
You know.
They've had it for many years.
They're somewhat of anemotional attachment to it.
Speaker 3 (22:37):
And most of the time.
Speaker 2 (22:37):
I think don't go in and insult people because that
will often get you nowhere.
Um, if it's something that isdefinitely a material fact like
you know, the house has likeplumbing issues and you're
saying I'm giving you this offerbecause there's obvious
plumbing issues, obviouslythat's, that's reasonable.
But if you go in and say, likethe carpet's ugly and the, you
(22:59):
know ugly and I hate the colorof the walls and the kitchen's
hideous or like go in and I'vehad realtors like send these
like very insulting emails andtell me to tell my clients this
so that they will take theiroffer, and I'm like this isn't
going to go over.
Well, so obviously keep in mindthat you know, regardless of
(23:22):
what your plans are for the home, this still might be that
person's family home.
That means a lot to them.
So keep that in mind whenyou're trying to do negotiations
.
And then I mean appraisals.
So we talked a little bit aboutappraisals.
If you're doing a loan,Absolutely, and you go into
(23:44):
contract, Say you go intocontract.
Let's just throw numbers outthere.
Say you go into contract at$500,000.
Okay.
And you're doing a loan and theappraisal comes in at $480,000.
We have a $20,000 difference.
What happens?
Speaker 3 (23:59):
So something's going to have to happen.
So either someone has to paythe difference, or price has to
change, or and that's that'susually a sticky topic because
what it means is that the valueof the home came in differently
than what it's priced, so now wehave a price gap.
Speaker 2 (24:17):
Yes, and the loan will not give you a loan on a
home that is not.
It has to appraise at thecontract price Correct.
So there's no way around that.
You can't get the funds Again.
There's always the option tothrow cash at it on top, or you
know seller.
Seller says I'll drop 10,000.
Buyer says I'll pay an extra10,000.
(24:37):
But that's not even somethingwe are seeing commonly right now
in this environment, becausereally in this environment the
buyers are paying a lot of fees,things like that.
They're just saying we have todrop it to an appraised value
and go forward with that.
So it's the seller's decision,not mandatory.
Speaker 3 (24:58):
Correct.
I think you were seeing and wewere just talking about this I
think you were seeing a hugevalue gap when COVID was, when
these houses were selling for somuch higher and appreciating so
quickly.
Yeah, there was a lot ofappraisals coming back that were
just really different than whatthe purchase price was, and it
was interesting.
Speaker 2 (25:19):
And people were paying over.
That was common in the market.
So it depends on what's commonin the market that you're
purchasing it too Absolutely.
And the other thing with theappraisal gaps is you know, if
the seller refuses and says I'mnot going to work with you, the
buyer doesn't have the funds tocome in.
Because we have many situationsthat happen like that.
The buyer's like I don't havethe extra cash to put 20,000.
(25:40):
I need you to drop the price.
And the seller says no, I'm notdoing it and that appraisal in
most cases like if they're doingan FHA appraisal, they can't if
they get another FHA buyerwithin what is it?
160 or 190?
days 180 days, then thatappraisal is sticking with that
property.
So then they have to eliminateFHA buyers out of their pool of
(26:03):
buyers and go towardsconventional or try.
Va Doesn't mean that appraisalis going to come in higher the
next time.
It could, and I'm warning thesellers, it could come in lower,
it could come in lower, andI've seen that happen too.
I've seen that where a sellersays no to one because they just
(26:24):
refuse to accept the appraisal,and we go in again and the next
one comes in lower and they'relike what the heck, I want the
old one back, great is real, Ithink you know.
Speaker 3 (26:34):
Really, at that point it's like you know both agents
need to have a talk with theseller, talk with the buyer and
especially if you're trying toget a home sold, it's like let's
come to some point where we canboth be okay with whatever the
outcome is.
Speaker 2 (26:48):
Right, and you have to factor into the cost of
holding Absolutely that.
You know, sometimes the cost ofholding the property isn't
worth the amount that you'refighting over, especially when
it's like minimal, like $5,000,you know, you're like okay two
more months of mortgage payments, you're going to pay that
$5,000.
If this house didn't have a lotof activity and you have a
buyer.
Speaker 3 (27:08):
This makes more sense A hundred percent, especially a
buyer that's already qualified,where everything's good to go,
and then it's like you're reallygoing to let that just go.
For you know, I I don't thinkyou're seeing as many of of that
kind of situation at this point.
I think things are pretty deadon with how the appraisals are
coming back lately, so it's morerare that you're seeing that.
(27:30):
Obviously during COVID totallydifferent.
I saw appraisals come in andlike I was telling you, a
hundred thousand dollarsdifferent, which is an extreme.
But you know, I think that'swhere you're negotiating skills
and and really you know, havingthose, those types of
conversations come into play toget the deal done.
Speaker 2 (27:47):
Yeah, and then another thing, that um like
another, I guess, kind of wordof caution, because I have heard
people say um, in certainsituations, especially when
there's multiple offers, let'sjust offer higher and we know
the appraisal will come in lowerand then they'll have to drop
the price.
And it's strategy, but notalways a good one, because I've
(28:10):
seen that happen, where peoplehad expected that and the
appraisal came in on target.
A contract price Can'tguarantee what that number is
going to come into.
So there goes your strategy outthe window.
So warn people about that.
and also the fact that sellerdoesn't have to sell, and you
could go in with this greatstrategy to try to beat out all
(28:31):
the other offers and then whenyou come down to that seller
says nope, not doing it, andthen, um you, you lose your.
Usually, if you have anappraisal contingency, your
earnest money deposit is stillrefundable, so you get that back
in most cases.
But you have the inspectionfees, because your home
inspection is usually done butbefore the appraisal is and you
(28:53):
have your appraisal fee, whichyou know that is, that can be
substantial.
You know, around a thousand ormore Um, once all those fees are
put put together.
So that, um, are you willing torisk that money?
And if you are, you know somepeople are like, yeah, that's
nothing, let's just see if itworks.
Fine, you know that really justhas to be something you keep in
(29:16):
mind before getting into thatsituation.
Speaker 3 (29:18):
And that's why it's so important to have a great
realtor, because, at the end ofthe day, it's it's the guidance
that a lot of people need whenthey're going into these
situations, and a home isusually most people's largest
purchase they ever make.
Yeah, absolutely.
Speaker 2 (29:31):
Absolutely.
And um, for sellers, it's theirlargest investment and they do
want to get every bit of valueback on that because that's you
know, a lot goes into it.
A lot goes into it over theyears, so yeah.
So, courtney, if anybody wantsto talk to you about getting
(29:51):
some money, finances, loanprograms, all of this good stuff
how do they reach you?
Speaker 3 (29:55):
Yeah, give me a call 702-416-6918 or shoot me over a
text.
Speaker 2 (30:01):
All right.
If you guys want to find yourhome or sell your home, you can
call me 702-308-2878.
Want to give a shout out to ourmarketing partner, chicago
Title.
Thank you for your support andwe also would like you to check
out our Linktree website, whichis realteachekvegas.
(30:24):
You can find everything aboutus there.
You can link to us in alldifferent portals on that
website and see what's going on.
Connect with us, see what we'redoing, send in these listener
questions so we have somethingto talk about on the show.
Yeah, and we will see you guysnext week.
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