Here is what buyers received in seller paid concessions on April 2010 Las Vegas Area (Henderson - N Las Vegas - Las Vegas) Closes:
- Less than $500: 66% ($500 only buys you a home warranty or (no and) an appraisal)
- Between $501-4000: 19%
- Over $4001: 15%
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!
Here's the question. What ARE closing costs in Las Vagas???
In Maryland where seller credits or closing paid closing is routine, especially in lower and moderate price ranges, closing is upwards of 5% of the purchase price without any discount/origination fee.
In Northern Virginia, we're looking at about 3% where closing cost help or credits are not as routine but popular.
The amount needed for closing makes a big difference.
This is great for sellers but not so good for buyers. Great reporting.
Renee, very catchy post title. You HAVE to go look to see what you are up to on this post. Can you send me the link or remind me how to watch the Picnik video and the Excel Chart video you created? I have to run my listings thru my new learned tech tools and I need a refresher before I do that tomorrow. Thanks you very much!
Lenn: About 3-5% for a financed buyer and 1% for an all cash buyer.
Tammie: You got that!
Cheryl: You are welcome.
This flys in the face of national media that keeps trumpeting that Nevada is the motherlode of upside down mortgages and you guys are a welfare state. Sure doesn't look that way to me in Vegas at least.
Renee,
I'm envious that you have access to this data. Our MLS only lists the sale price. As with Lenn's VA area, 3% is common but we cannot tell which sales had it. Many agents don't even put the type of financing, as it is optional.
Hi Renee -- Wow, a seller's market, great for sellers finally eh? How much have prices decreased from the peak on average? Is it the price drops that lowered inventory levels that caused the market to change or??? I don't keep up with the Vegas market at all.
Step Right UP!
Glad to see things closing for you in your area and that sellers are finally getting some relief!
Hey Renee . . . is the zip, zero, nada, doodley-squat on "traditional" sales, or are these REO's, or shorts??
Nice Pie Chart Renee!
However... I think That's going to change... REO inventory is going back up on the MLS and my price change notifications in the areas of Las Vegas I specialize in have been going nuts in the past two weeks.
The vast majority of May closings were pre 04.30.10 contracts so while no seller concession may be listed... the first time homebuyers tax credit was certainly an incentive. Too bad we'll really never know how many of these sales and terms were influenced by the first time homebuyers tax credit.
Bank of America is also getting aggressive on closing out those Countrywide loans from owners who have not paid their mortgage in a year or two...
The Tax Credit is over and buyers buying anything with any terms just to get money back in the form of a tax credit are over... No more Free Mortgage Payments!
I think the Servicers that have been sitting on the vacant homes to control inventory and did not put them up for sale before the tax credit expired made a Big, big mistake...
I guess we'll see in your future seller concession reports...
What a great piece of information for buyer (and sellers) to have! I'm going to see if this information is hidden somewhere in my MLS's statistics....Thanks for the idea (I might just have to copy you)...!
Renee - wow, a reall sellers' market now?
I'm impressed by the analysis - first of all that you did it, but also by the results. Do you fiond that the data are reported reliably? I don't see much noted in our MLS even though concessions should be cited. I would not trust the data in our area.
Jeff
Hi Renee! I stopped by to check on you and found your amazing graph and report has been featured! You go girl!
Love the graph and am still amazed that the vast majority of the home sellers don't have to pay any concessions--that is unheard of here--at least for now!
Have a wonderful weekend...
Mesquite seems to follow Vegas - seller concessions seem to be down here, too.
We have a new MLS system - hopefully it will provide some reports when it goes into effect - right now it is manual labor to pull statistics.
I gave your name and number to 2 guys at a car dealership yesterday - maybe you should mail me some cards?
RB - looks like u r very very busy - tell us all how u keep those all plates spinning!
I really like your way of looking at things- very interesting way to draw in clients!
That's the difference. In some area of my market, closing, even for a cash buyer can be 3-4%.
HI Renee,
Great graph and study of seller concessions in Las Vegas. I see more seller concessions in the low to mid market buyers. Not so much in the high end buyers here in Ann Arbor.
Renee; Where do you get that information? I really like the presentation.
Renee, I must say I am surprised at the stats! Interesting! I would have thought more would have received concesssions, especially in your area....
Renee - Last year almost every single one of my buyer's wanted the seller to pay for their closing costs, but this year that hasn't been the case and surprisingly (sarcasm) I've had no appraisal issues.
Hi Renee, nice graphic and stats. Glad market has turned. Been to busy to visit the Rain lately, expanding biz....
Hi Renee, nice graphic and stats. Glad market has turned. Been to busy to visit the Rain lately, expanding biz....