Our sales are mostly distressed which means pre-foreclosures (short sales) and REO account for almost 74% of our closed sales business. Even most of those "standard sales" that you see are really disguised as flips that were purchased from trustee sales by private investors.
In order of the most pricey Las Vegas real estate type from highest to lowest:
New Construction -the highest priced sale type! New Construction is currently giving decent incentives such as closing costs (which is always built into the price). The beautiful thing about New Construction vs other sale types is that you don't have to worry about an "as-is" transaction and most of the time you also get a home warranty. No such thing as "deferred maintenance" HOWEVER a home inspection is still recommended protocal as there is a such thing as "faulty construction".
Standard - the second highest price tag. TRUE standard sales are actually very rare in our market. As I mentioned above these sales are usually disguised as "trustee sale flips." For the most part with a real standard sale you will receive a SRPD (seller's real property disclosure) and maybe even get some non-lender required repairs taken care of.
REO (Bank Owned, Foreclosures) - the third on the food chain. While phenomenal bargains in good shape, can be found in this sector - homes are generally sold "as-is" which means sellers will not fix any aesthetics or small problems like standard sellers. Deferred maintenance can be looming behind the walls even though it is aesthetically pleasing throughout.
Short Sale - the "bottom of the barrel". Just because I am calling short sale "the bottom of the barrel" with pricing doesn't mean a fantastic bargain is waiting behind the front door. The problem with short sales is again, may be sold as-is with deferred maintenance. ALSO - the "sellability factor" of the short sale is an issue. Sellers may reject terms and conditions of the short sale approval by the lienholder(s) which would cause the buyer to go back (after patiently waiting for months on end) to square one with their purchase process.
...And There are Even More Variables
Yes, it all depends on where the recent closed comps are at for that specific sales type. Sometimes homes are purposely underpriced to get foot traffic and generate multiple offers.
You have to be careful out there, you don't want to place your offer too high and overpay for the property or too low and risk losing the home of your dreams!
Has Confusion Set in Yet?
Then you may want to consider working with a professional who can break it all down for you :) I have extensive BPO experience which makes it easy on the buyer when it gets to be "offer time"!
