So, here we are again. It's Monday which means Market Stats for the Las Vegas area.
These numbers are all SFR an condos in Las Vegas, Henderson, N. Las Vegas and Boulder City.
As of today there are ONLY 6,833 homes available. We haven't seen inventory this low in YEARS. As a matter of fact, the last time it was this low we had a super frenzy... you remember it as 2003-2006.
Of those 6,833 available homes 39% are Short Sales. I realize that as rel estate professionals we all know what a short sale is. I have, however, found that there are Clients reading these market stats and so to be sure everyone is clear a Short Sale is when the Seller is asking the bank to take less money than is owed. For example: The Seller owes $250,000. The home is in escrow for $125,000. The Seller would then ask the bank to take a shortage of $125,000. Make sense? It's a bank controlled sale, just like REO's.
Only 15% are REO's, or banked owned homes. This is pretty low for us right now. Though we've heard that some of the banks are finding ways to get through the recent AB284 which virtually halted all foreclosures, it will be a slow process getting the REO market back up and running.
46% are Others, or Equity Sellers. REGULAR people, well normally. In todays market an equity deal is more than likely an investor who bought it at the auction and has repaired it to sell for more and make a profit. 46% is HUGE for this number.
Last week we had 1,672 go into escrow. 47% were Short Sales, 29% were REO and 24% were Other.
And finally, 789 closed escrow! 28% were Short Sales, 41% were REO and 31% were Other.
Let's just look at the REO numbers so we can better explain to our Buyers how if/when they fall in love with that REO home, how they need to act to make sure they get it!
REO's are only 15% of what is available. They are 29% of what went into escrow and 41% of what CLOSED. What does that tell us? (I just used a script on you, the same one you should use on your Buyers!)
The bottom line is that REO's are priced WELL. That's why they move, quickley. That's why there are multiple offers, almost instantly. That's why most sell for MORE THAN list price. These numbers tell us that if a Buyer wants to move on an REO, they need to do it NOW and put their BEST FOOT forward-in other words, don't try to low-ball this deal.
As agents, we should ALWAYS pull comparables so that a Buyer can make an educated offer based on the recent market. Just this past week I was assisting an agent who was working with some Buyers to write an offer on an REO. This list price was $214,000. The same model across the street with 1 less garage had just closed 2 months earlier for $240,000. Based on what we know about REO's, what should the Buyers decide to do?
See, here's the good news; because you're reading this and now have this information, you'll be able to assist your Buyers in making a solid offer based on the facts-rather than the "let's see what happens" approach.
Clients appreciate an agent who knows the market-IT'S OUR JOB!
Take this ammunition and go get 'em!
Wednesday, April 18, 2012 at 2:31PM 
Click Image to Hear the Show! After being asked by the regional owner of Exit Realty, Brandon Roberts, and his partner, Vandana Chima to be a guest on their weekly radio show, I simply couldn't resist!!!