Here is what buyers received in seller paid concessions on December 2010 Las Vegas Area (Henderson - N Las Vegas - Las Vegas) Closes:

• Less than $500:  71% ($500 only buys you a home warranty or (no and) an appraisal)
• Between $501-4000:  16%
• Over $4001:  13%

This pretty much means that sellers aren't giving up much of anything since Las Vegas is a Seller's Market and in dire need of sellable inventory!  Inventory levels are rising just slightly and we are seeing some movement/improvement in this sector which is good news, especially for buyers who want/need closing costs!

Last Month's Concession Stand

Most Current Concession Stand

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-606 (the average consumer probably asks, what’s that?)  It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley.  They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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I have provided some of the most commonly asked questions and helpful information for first home buyers. 

First home buyers have a lot of research on their hands and trying to collect this information in bits and pieces makes the process stressful. 

So many websites claim to have information for first time home buyers but then provide only bits and pieces and force feed their advertisements.

The following loans are available for first home buyers:

Conventional loans

Conforming Jumbo loans

Jumbo loans

Government insured loans

VA           FHA           USDA

There are specific requirements for each of these loan types.  Requirements vary greatly based on so many factors that we cannot explain them here without writing a 1,200 page manual.  It is imperative you speak with a licensed loan officer to know what your specific requirements will be.  In this series I will highlight the basic requirements that are mandatory for all first home buyers.

Part One

Conventional loans -

These loans are capped at a maximum of $417,000. 

Private mortgage insurance (PMI) must be paid to protect the lender in the event you have less than a 20% down payment.  This is not the same as homeowners insurance.

After paying closing costs you must have a minimum of two months equal to your monthly payment in reserves. Reserves means money set aside in checking, savings or retirement accounts.  You can only use 60% of the balance in your retirement account to meet this requirement.  For instance; if your monthly payment of principal, interest, taxes and insurance (PITI) is $1,000 you must have $2,000 saved. If in a retirement account you would have to have $3,334.

Conventional loans require that the first time home buyer have at least two years employment in the same line of work.

Self employed first home buyers must also have a minimum of two years of self employment, in the same line of work verified on their Federal tax returns. 

When it comes to mortgages, there are so many frequently asked questions. One mortgage topic that gets many misleading answers is mortgage insurance, specifically FHA mortgage insurance.

Why do I need FHA monthly mortgage insurance if I put 20 percent down?

Aren't FHA loans more expensive? (many refer to this because of the upfront mortgage insurance)

FHA monthly mortgage insurance will be there regardless if you put 20 percent down. If you put less than 20 percent down, you will have the FHA monthly mortgage insurance until you reach the 78 percent LTV level. (LTV = Loan-to-Value)  If you put 20 percent or more down, you will still have the monthly insurance for 5 years, guaranteed. Even if you put 19 percent down and you reach the 78 percent LTV in 3 years. This is a FHA guideline which is constant no matter what mortgage lender you use.

Comparing FHA loans with other mortgage programs, there are rumors that FHA loans are more expensive. Why do people say this?  In many cases it's because they are talking about the upfront mortgage insurance, which was reduced in October. Another reason would be because FHA raised the monthly mortgage insurance requirement back then also. If you break all of this down properly, depending on the borrowers credit scores and down payment amount, FHA loans are still cheaper in many scenarios.

Check out this scenario with 10 percent down and a credit score of 699. FHA loans vs Conventional loans with 10 percent down - What is not talked about much regarding conventional loans is it's very tough and or very expensive to get mortgage insurance on conventional loans with credit scores below 700 and or with less than 10 percent down.  Besides, Conventional loans will become more expensive come April 1st, 2011. Fannie Mae increases their pricing hits

Summary : One last thing that needs to be talked about is that you need a solid/strong loan officer who will not only be able to compare certain mortgage programs properly, but ask the right questions. An important question that gets over-looked are the borrower's goals, present and future.  I bring this up because I had a borrower who was buying a home that was worth $40,000 more than the purchase price. And by asking him the right questions, I was able to determine that he wanted a 5 year arm not only for the lower mortgage payment, but because he was planning on getting rid of the monthly mortgage insurance in less than 5 years with more equity in his property. I asked him, "what mortgage program will you be using when you refinance."  He had stated a FHA loan. Rut row... but as I mentioned above, you will still have mortgage insurance for 5 more years again, even if you refinance with 20 percent or more equity. The previous loan officer that he was shopping with and comparing me to never brought this up. Just because one loan officer might be cheaper in rate and or costs, it could still cost you thousands of dollars more when it's all said and done. Just food for thought when shopping for mortgages.

Las Vegas Real Estate Inventory is still increasing RAPIDLY.  Against my predictions, we are still a seller's market yet flirting with stable market territory. This will afford more opportunities for buyers to have less competition when placing offers in homes.

Las Vegas Area Market Activity (Includes North Las Vegas, Henderson and Las Vegas)

• Listings (1/15/2011):  15409
• Under Contract (1/15/2011):  10974
• Sold December 2010:  3856

Short Sales:

• 50% of Listings
• 26% of Sales

REO (Foreclosures, Bank Owned:)

• 22% of Listings
• 53% of Sales

In One Month:  Listings are DOWN -257 units, Contracted Listings DOWN -1000 units, Sales are UP +460 units.  Close ratios are going lower because much of the pending inventory is short sales which requires LONGER close times. 

 DOWN PAYMENT ASSISTANCE HAS NOT ENDED FOR FIRST TIME BUYERS, HOWEVER!!

Last Month's Pending Report

For Most Current Las Vegas Real Estate Inventory Market Report Click Here.

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-606 (the average consumer probably asks, what’s that?)  It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley.  They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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Keeping abreast of the FHA Condo Approval Process is crucial in ensuring successful closing of your condo listing or purchase.  There are very lenders doing spot approvals these days, so clarifying the status of a specific condo project BEFORE a purchase contract is entered into will save all parties concerned a lot of anxiety and frustration. 

It is also strongly recommended that the HOA certification is ordered at the BEGINNING of the loan process.  There are many reasons the purchase of a condo can run into issues in the underwriting process.  The most prevalent is the ratio of owner occupied units versus rentals; however, adequate reserves are becoming a serious obstacle when the vacancy percentage is high due to foreclosure or bank owned property.

TO CLARIFY THE CURRENT FHA CONDO APPROVAL/RECERTIFICATION PROCESS PLEASE SEE BELOW:

FHA Condominium Project Approvals Expiration Dates Extended:

FHA announces extension of condominium project approvals with an expiration date of December 7, 2010. Provided below are the extension dates based on five-year time frames with the exception of those condominium projects with original approval dates from 1972 -1985.

Initial Project Approval Dates     Current Expiration Date        New Expiration Date

1972 - 1980                              December 7, 2010               December 31, 2010

1981 - 1985                              December 7, 2010               December 31, 2010

1986 - 1990                              December 7, 2010               May 31, 2011

1991 - 1995                              December 7, 2010               July 31, 2011

1996 - 2000                              December 7, 2010               August 31, 2011

2001 - 2005                              December 7, 2010               September 30, 2011

2006 - 2008 (Sept)                    December 7, 2010               March 31, 2011

The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions.  Lenders and/or other interested parties are encouraged to begin the re-approval or recertification process as early as possible as it is not anticipated that any further extensions of project approvals will be issued.

The Condominium look-up page and the FHA Connection databases were updated on December 7, 2010 and now reflect the extended expiration dates.  The links to the sites are:

Condominium look-up page: https://entp.hud.gov/idapp/html/condlook.cfm

IN ADDITION, IF THE CONDO IS STILL ON THE APPROVED LIST THE UNDEWRITER IS RESPONSIBLE TO RECERTIFY THE CONDO AND WE STILL NEED THE FOLLOWING DOCUMENTS:

1-    Updated Completed Condo Questionnaire to make sure it still qualifies

2-    Current Budget

3-    Master Liability Insurance with a minimum of $1,000,000 coverage

4-    HO6 Policy

5-    UW to Complete Condo Recertification form

Public perception is that we put signs in yards, hold open houses, get a nice long lunch and 18 holes of golf in our day.  It could be further from the truth, take a peek at a typical day for me:

"This post is written as a submission to the ActiveRain Kodak Video Challenge contest. I have the chance to win the KODAK PLAYTOUCH Pocket Video Camera, great for realtors looking to
create wide angle home tours and real estate marketing videos!"

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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Have a mortgage question and keep getting conflicting answers and or information?  I get Trulia alerts for my state and about 70% of the time, there are both loan officers and or realtors answering mortgage questions that have misleading or completely wrong answers. It's not to say that any of us are perfect and or know it all... but I can say one thing, if I am not 100% sure, I seek the answer through the proper channels. Those channels would be my underwriters or the guidelines/manuals for such programs and or mortgage questions. With the mortgage industry changing more than ever before, one really needs to stay on top of this information.

Who are we?

Mortgage Myth Busters is a select group of mortgage professionals driven to share pertinent, accurate and relevant information. This information is provided to help both consumers and anyone in the real estate and mortgage industry. We are experienced, licensed loan officers from various companies across the country with over one hundred years of combined mortgage experience. Our purpose is to educate and assist the consumer in navigating the often confusing process of obtaining financing. It is our goal to dispel the confusion, myths, and lies that surround the real estate and mortgage industry.

If you have any types of mortgage questions, either as a realtor or as a consumer, you can ask us here. (click the box above)  ~ Ask a Mortgage Question ~

Special Announcement : We want to Welcome Eleanor Thorne to our group as of late last night. Eleanor is a loan officer in Cary, NC and comes with 20+ years of experience. She also has her D.E. license, which is the delegated underwriter license. We will have a press release later today and a new post on Eleanor by the weekend.

Where can you find a Mortgage Myth Buster?

You can click the logo below which will lead you to our main site. You can also find us @ :

Facebook Fan Page - Mortgage Myth Busters

Twitter -  Mortgage Myth Busters

LinkedIn mortgage questions group - Mortgage Questions & Discussion group

Mountain's Edge December 2010 Real Estate Resale Market Report:

• Listings (1/15/2011):  351
• Under Contract (1/15/2011):  282
• Sold December 2010:  90

Since Last Month:  Listings are UP +23, Pendings are DOWN -9, Sales are UP +2

Last Month's Mountain's Edge Market Report

View Mountain's Edge Homes For Sale Here (Updated Daily)

More Information on Mountain's Edge Real Estate Here

More Las Vegas Communities Here

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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Nevada Trails December 2010 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (1/15/2011):  33
• Under Contract (1/15/2011):  39
• Sold December 2010: 9

Since Last Month:  Listings are DOWN -2, Pendings are UP +1, Closes are DOWN -5

Last Month's Nevada Trails Market Report

View Nevada Trails Homes For Sale Here (Updated Daily)

More Information on Nevada Trails Real Estate Here

More Las Vegas Communities Here

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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Renting vs. Purchasing, which is better?

I recently came across an article on CNN Money, which talked about how to calculate whether you should be renting or purchasing a home. It referenced taking the purchase price of a home, and dividing it by the annual rent of a similar property. If the number exceeds 15, then you should rent as it will cost you less over time. If it is below 15, then you should investigate purchasing.

Although I am not sure this formula will work in every situation, I do think it is a good starting point for potential buyers to use to when determining which path to go down (renting vs. owning)

What are your thoughts?

Welcome Home To Southwest Las Vegas Community: Parcel 24 at Rhodes Ranch

Parcel 24 at Rhodes Ranch is a community developed by Rhodes Builders between 2002-2006.  Immediate Community Amenities include a playground and a community pool & spa.

There are currently 220 Townhomes & Single Family Homes in the Parcel 24 at Rhodes Ranch Community.

Homes in Parcel 24 at Rhodes Ranch range between 1259 sq feet entry level townhomes to 2418 single family homes.

Other amenities just minutes away:   215 Freeway Ramp which provides great proximity to the south strip and airport, Southern Hills Hospital, Red Ridge Park, Tenaka Elementary School, Faiss Middle School, retail, restaurants, professional offices and a medical corridor.

View Current Homes for Sale in Parcel 24 at Rhodes Ranch (links updated daily).

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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In my continuing series of answering some of the most frequently asked questions that I get from clients and prospects, in Part 6, I want to discuss what impound accounts are and why some borrowers may or may not need to have them in order to close their loan.  I will also discuss why some borrowers may want to have them even if they don't have to.

An impounds account (aka escrow acct) is simply an account that lenders use to pay a homeowners property taxes and insurance (mortgage & hazard).  At the close of escrow and every month thereafter, a lender will collect funds that make up a portion of the annual property taxes and insurance that is needed for the homeowner to own their home.  These funds are kept by the lender and are used to pay the homeowners property taxes (paid bi-annually), hazard insurance (paid annually) and the monthly mortgage insurance. 

Some conventional loan products may require an impound account in order to fund the loan depending on the loan-to-value of the loan amount.  Furthermore, some may also charge extra to those borrowers who choose to waive an impound account.  Government insured loans like FHA and VA will also require impound accounts regardless of what the ltv is.  With some loan programs, once your loan balance reaches a certain ltv, you can request to have your impound account canceled.

At the close of escrow (COE), your lender will require that at least 12 months of hazard insurance be paid for or collected before funding the loan.  Your lender will also collect at least two months of mortgage insurance and property taxes.  In CA, lenders are required to keep a borrowers impounds in an interest-bearing account and the interest earned on the account belongs to the borrower, not the lender.

One of the benefits of having an impound account is that you can budget your taxes and insurance over a period of time, which is something I have always recommended to my first time buyers.  First timers are not in the habit of paying taxes and insurance so having their lender help them budget for them is a good thing.  For my more mature and seasoned home buyers, they may not need any supervision in making sure their taxes and insurance are paid, they can set aside their own funds in their own interest bearing account and pay their own taxes and insurance when they're due.

One of the first things that many homeowners get confused about is when their monthly bill increases and they automatically assume that it's their loan payment that has gone up.  If you have a fixed rate mortgage (FRM), it's not the loan payment that went up, it's your impound account amount that went up.

Here in CA, when a homebuyer closes escrow, their lender will estimate the property taxes based on 1.25% of the sales price and depending on the county, there may be some additional taxes.  For example, here in Ventura county, a portion of our property taxes goes toward the unified school board and community college board but also to water board as well.

I will often have clients ask me why they received a supplemental tax bill after they close escrow.  This is because your home was reassessed at a higher value than what the previous owners were assessed at.  However, if your home gets assessed at a lower value than what the previous owners were assessed at, you would not receive a supplemental bill. 

Furthermore, for some low income homebuyers who purchase their home through a county or city bond program (i.e. down payment assistance (dpa) program), they become eligible for a special discounted property tax rate that is specifically for affordable housing properties.  Instead of the standard tax rate of 1.25% of the sales price, these homeowners are assessed at only 1% of the affordable sales price (sale price - dpa).  You will need to check with your county tax board to see if you are eligible for this program.  For example, Ventura county participates in this program but Los Angeles county doesn't so it does depend on the county.

Ventura county is considered a high cost county and as such many of those who work here in Ventura county can not afford to live here therefore, many of them are commuting quite a way to just work.  Now, with the various affordable homeownership programs, the dream of homeownership becomes a reality for many of Ventura county's employees and residents who would never be able to own a home any other way.

Buying a home is one of the most important decisions someone can make, which is why it's important to get as much information as possible before starting your search.  Furthermore, it's absolutely vital that buyers work with a seasoned MLO and lender that that will work with them in helping them to decide what is best for them and their mortgage needs.   

That's what I'm here for and I would love to be able to assist you in your search for an affordable home loan.  If you have any questions and/or concerns, please feel free to contact me, Donne Knudsen at 805.2069123 or donne4loans@earthlink.net.

What Kind of First Time Buyer Programs are Available in Los Angeles & Ventura Counties? FAQ - #1

What kind of property can I buy? FAQ - #2

What Kind of Paperwork Do You Need to Pre-Approve Me? FAQ - #3

Why Do I Have to Get Pre-Approved with Other Lenders I Don't Want to Use Before I Can Make an Offer on a Property? FAQ - #4

What Kinds of Things Can Go Wrong in the Loan Process? FAQ - #5

Can You Help Me Get My Kid Get Out of My House? FAQ - #7 

I'm Supposed to be Closing Next Week Can You Help Me? FAQ - #8 

If I Buy a Duplex, Can I Apply the Tenants Rent Towards My Mortgage? FAQ #9

What Happens if My Appraisal Comes in Low? - FAQ #10

What is a HomePath Property and How Can I Buy One? - FAQ #11

Can I Still Get a Loan if I Don’t Have Perfect Credit? – FAQ #12

Are There Still Loan Programs Where I Don't Have to Put Anything Down? - FAQ #13

Photos courtesy of:  jpersons vctaxassessor

Real Estate...It is What It is...Or is It?

Most folks in the real estate business have realized over the past 3 years that our business isn't what it used to be--the rules have changed and so have our individual business strategies.  Those who are 'in-the-know' realize that in this everchanging real estate climate, we must no longer just 'keep up with the Joneses' but, rather stay at least a step ahead.

In recent weeks, my listing activity has picked up considerably--not so much in sales but, semi-serious buyers who are interested in getting that '50% off' deal that they've heard so much about.  Their agents bemoan the fact that they can't seem to locate those deals for these clients and we eventually get off track to the 'how's your business?' conversation.  I'm always surprised by so many agents saying things like, "Well, it's not what it used to be in '05!" or "I've certainly gotten alot of my own home projects accomplished these last two years!"

When I ask them what they're doing to survive, they seem to all have the same mindset, "It is what it is!"  They truly feel that there's nothing that they can do about their own business; their company is going down the tubes and they're cleaning out their garage and painting their windows, adding on a screened porch and the like!  They're perfectly comfortable in the 'It is what it is' mindset.

I truly don't mean to imply that I don't respect these agents at all; some of them are favorite agents with whom I've worked in the past and they just don't have any earthly idea how to get their businesses going again.  They're not in 'research mode!'  Of course, many of them aren't using the internet as most ActiveRain members are but, what is so surprising to me is that they've basically put their businesses on standby for a few years.

During their time on standby, lending has changed, the way we do business in general has even changed; many of us have become masters at short sales (or so we say!) and it seems that we're in a perpetual virtual classroom.  How could one possibly catch up in this dynamic, ever-evolving business and learning environment?  

Recently spending a few days at the hospital with my hubby, I've not been able to spend the time taking webinars or reading NEARLY as many AR posts (which is where I often hear about some of our industry changes) and I ALREADY feel a little out-of-the-loop!  I cannot imagine playing catch-up after the changes during the last three years.  

I often wonder if other non-real estate business owners just allow their businesses to be on 'stand-by' for a few years.  I can't possibly imagine that a business owner would do just that.

Yes, in real estate...It is what it is...but, there's something very important that seems to have been forgotten:  The only constant is change in our business.

Are you rolling with punches or lagging behind, waiting for a return to normalcy?  If you're doing the latter, you may soon be lagging so far behind that you'll never catch up!

 

      

  Charlotte NC Homes for Sale

 (THE best Charlotte home search available - no kidding!)

Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310

     

  

 

    

      

       

 

         

   

Disclosure of material contained within.

Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Sun City Anthem is located in the Anthem Area of Henderson, NV (zip 89052 and 89044).  There are 7312 Homes in Sun City Anthem ranging from 1080-4567 Square Feet.  Community Amenities Include:  Community Golf, Gym, Pool, Spa, Tennis, Clubhouse and Recroom

Sun City Anthem Market Report:

• Listings (1/15/2011):  123
• Under Contract (1/15/2011):  53
  
• Sold December 2010: 30

Since Last Month's Report:  Listings DOWN -5, Contracted Escrows DOWN -1, Solds DOWN -8.  Sun City Anthem is currently enjoying a stable market.

For Current and Past Sun City Anthem Market Reports

View Sun City Anthem Homes For Sale Here (Updated Daily)

More Information on Sun City Anthem Real Estate Here

More Las Vegas Communities Here

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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So my recent post on Las Vegas Shadow Inventory has really caused a stir on Active Rain.  Comment #28 proceeds to ask:

Well it was my opinion because I am so entrenched in this market.  It was definitely what I see and feel all around me.  That comment (along with several others) has prompted me to actually do the research.

Ready for some boring numbers that will scare the “Shadow Inventory Boogeyman” back into oblivion?  (you may want to read this before bed as it may bore you to tears if you don’t like the numbers and truth!)

I am starting with two samplings:

• Half Mile Radius from My house
• One Mile Radius from My House

I choose this area because this is where I live and work around and since it boasts “newer” Las Vegas Communities– it is definitely a decent – yet provides a wide – sampling of trustee sales being held.  This is the area that I live, work and play around and this is also ground zero folks!

All the numbers are provided from 2009 trustee sales – this has given more than enough time for banks to get those assets off the books and deal with the things they need to deal with that I discussed in the Las Vegas Shadow Inventory article that caused much stir & controversy:  the legal, trashouts, tenants and uncooperative tenants.

The Shadow Inventory Boogeymen are going to GASP at how wrong they actually are when I get down to Clark County’s actual and factual numbers of holds.  FYI, this is all of Clark County – I did not filter it out for purely the Las Vegas Valley.  It does include outlying areas such as Mesquite & Laughlin.

So – after about a half an hour after digging in our tax records and without further a-do here we go!

Half Mile Radius from My Home in SW Las Vegas:

• 1689 Homes
• 188 Sold in 2009
• 94 Trustee Deeds Resold
• 87  Short Sale or Standard Sales
• 7 Trustee Deeds Not Resold – of those 7, 6 were purchased and are being held by private investors thatpurchased it at the trustee sale and 1 is being held and rented by the bank.  This represents an REO hold rate of slightly smaller than 16% of all trustee deeds that were actually held (foreclosure auctions) in 2009.

One Mile Radius from My House:

• 4253 Homes
• 533 Sold in 2009
• 288 Trustee Deeds Resold
• 230 Short Sale or Standard Sales
• 15 Trustee Deeds not Resold – 15 Trustee Deeds Not Resold – of those 16, 9 were purchased and are being held by private investors that purchased it at the trustee sale and 5 are being held and rented by the bank, 1 is being held by bank with occupancy uncertain, 1 sale happened to be a resale and wasn’t recorded properly.  This represents an REO hold rate of slightly smaller than 40% of all trustee deeds that were actually held (foreclosure auctions) in 2009.

In all of Clark County in 2009:

There were a total of 28332 Trustee Sales

A total of 26856 Trustee Sales were Resold.

1476 of those Trustee Deeds are still being held today.  Using my 16-40% samplings that means you have a total – again in all of Clark County of bank inventory – from 2009 to amount to the low 200s to the 500s (in units).  Take that times 4 years of hell and you only end up with 2000 units if you figure on the high end.  Maybe 1000 on the low end – when experts claim the amount that the banks are “holding” is really in the tens of thousands in our valley alone.

Bye Bye Shadow Inventory Boogeyman.  You will not be missed.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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My Lawyer seems to be avoiding me when I ask for my total closing costs…. should I proceed with caution?

I am all about transparency and making sure that I provide the correct answers. I know most of us want to be helpful, but can some of our answers be hurtful instead?

The question above was just asked on Trulia advice the other day, aka asking questions on Trulia. One answer ruffled my feathers, because unless you know all that you need to know about mortgages, this can be a dangerous question with answers that could backfire on a buyer.  One needs to evaluate and understand who to ask specific questions.

.

Here are some of the answers given by some realtors :

 (I know some of you don't like clicking to another site, but I am trying to promote my main site, The FHA Expert. And you can read the answers by 4 realtors in this post that is mentioned below.)

Answers to where should I get my closing cost figures from prior to settlement?

The absorption rate for Las Vegas Valley Area Short Sales has swung from a stable market back to a buyer's market. Inventory has DECREASED -130 units.  Under Contract has DECREASED by -481 units.    Sold units have INCREASED by +1006 units.

There are many reasons for the lack of closings in this market and it is outlined in this post. 

Short Sale Synopsis:

• Listings 1/15/2011:  7724
  
• Pending 1/15/2011: 7406
  
• Closed December 2010: 1006

Short Sales Currently Account for:

• 50% of All Las Vegas Valley Listings
• 26% of All Las Vegas Valley Sales 

Read here for last month's report on Las Vegas Area Short Sales.

Most Current Market Report For Short Sales

Information About the Short Sale Process for Las Vegas Area Short Sale Buyers & Sellers

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-606 (the average consumer probably asks, what’s that?)  It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley.  They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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Cash REMAINS KING in the Las Vegas Area Real Estate Market!!!  It is important for every buyer in the Las Vegas Area Real Estate Market to understand who their buyer competition is in this currently competitive seller's market LV is enjoying!  It is important to understand how a seller looks at each financing type:

Cash Offers:  Generally have less contingencies and quicker close times.  A cash offer may be accepted even if it is lower than a financed offer.

Conventional Financing:  Less strict with lender required repairs but larger down payments and more strict credit guidelines.

FHA/VA Financing:  Requires more scrutiny with lender required repairs via appraisal.  In general these take longer to underwrite and close so a cash or conventional offer looks more enticing to the seller.  FHA Requires the deed to be seasoned for several months so some flips bought at trustee's sales are generally out as options when competing with multiple offers!

Other:  Less common and creative financing types such as Lease Options, OWC (Owner Will Carry), etc.  The "other" category INCLUDES auction terms!!

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What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-606 (the average consumer probably asks, what’s that?)  It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley.  They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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I had written a blog post a few weeks ago, Conventional Pricing Adjustments coming in April, in which I talked about how FHA had raised it's monthly mortgage insurance premiums back in October and how Fannie Mae will be adding onto their pricing adjustments in April of 2011. A realtor had stated this - "We saw the writing on the wall a while ago that this was bound to happen.  If any time for a buyer to get off the fence and purchase would be now."

I have been reading these kinds of statements for the last 12 to 18 months. When we saw the home buyers tax credit, when values were dropping, and when interest rates dropped. But wait, are these the reasons why one should buy a home now? Or when we see changes in loan programs for the worst, one should blurt out, "now is the time to buy, before it gets worse." Sorry, but there is a lot missing to such statements. To me, there is a lot of false sense of education, because one should not buy just because of these reasons. Keys to home ownership should be thought out and not just because someone says it's the right time to buy now.

It's almost like the advertising that tells you to buy a car, tv, or furniture with no money down and interest free for the first 18 months. I wonder how many of those that buy very quickly when seeing such an add, plan out their future payments. Or does one just say, "awe, when that time comes, I'll deal with it then."  Raise your hands... I am sure some of you have said this one time or another.

Seriously though, this is not to throw anyone under the bus or to mock them for such thoughts. But when buying a home, it will usually be one of the biggest investments in your life time. There should be careful planning.  What things should be thought about when buying a home?

• How much of a payment can I afford? - One really needs to evaluate this; going over their budget to include their finances, their short and long terms goals, and making sure that they will have some cash assets after buying their new home.

The end result is that one should not be tickled pink from such incentives, especially if they weren't truly prepared to buy now.  Or to read comments from people telling you that you should by now. Making you feel like an idiot if you don't take advantage of such deals and or incentives now. I still get some home buyers that call me up last minute when their credit is very less than perfect and or that they have no money to their name. It should take some careful planning. Many say talk to a realtor first, but sorry, I will disagree. Speaking to a loan officer that actually understands finances, deals with money every day, and works with different mortgage programs should be your first stop.  The loan officer will usually be the one that understands credit and credit repair, and be able to help you with this and other questions. My main point though.... Be careful when buying your new home and have a plan, not a buying itch because it sounds good.

- In my opinion, it's always a great time to buy a new home, when having a plan and when you have been properly educated on the home buying process, even if you have bought before.

What Exactly is Shadow Inventory in the Las Vegas Real Estate Market?

Shadow Inventory has been a HUGE boogeyman in the Las Vegas Real Estate Market.  Experts wring their hands and have been telling us for YEARS how we are just going to get a bunch of Las Vegas REOhomes for sale just dumped on us overnight.

I actually feel bad for those that parrot what they hear on the news and pretend that they know what they are talking about.  Some people’s perception of REO shadow inventory is that banks just sit there and hold on to properties that have already been through the foreclosure process.  This could be further from the truth.  Banks (or servicers to lienholders/investors) DO NOT want to hold on to inventory or assets longer than they have to.

They want to get this stuff off their books & quickly!

There are many things that hold up the process to get them listed by a real estate agent on the free market such as bankruptcy, tenants, unwilling occupants, trash outs and even property rehab.  Once those items are taken care of, the home is listed or sold to investors in bulk packages.

Another way shadow inventory is presented is how many homes are in default or at risk of default.  Unfortunately this is not a good indicator for “the big dump” because many real estate market forces will absorb that inventory:  the homeowner could accept a loan modification, the homeowner could short sale the home successfully or an investor could purchase the home at the trustee sale or foreclosure auction and either rehab and resell or rehab and rent out for a long term hold.

Las Vegas Foreclosures will be around for awhile – I am not doubting that.  The only thing I doubt is that the shadow inventory fairy dumps an abundance of inventory on us one day.  I have been hearing about this for two years, I am sure I will be hearing about it for the next two years.  The only way we will see an abundance of inventory GROW is if all the Las Vegas Buyers decided to leave the building all at once.  Doubtful – but I have been wrong before.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty  702-966-2494

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