Here is what buyers received in seller paid concessions on July 2010 Las Vegas Area (Henderson - N Las Vegas - Las Vegas) Closes:
- Less than $500: 67% ($500 only buys you a home warranty or (no and) an appraisal)
- Between $501-4000: 20%
- 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!
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 101-605 (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.
Renee, As always, you provide absolutely wonderful graphs and information so consumers can really recognize your marketplace. I just wrote a post about the importance (okay, in a round about way) of drilling down to local market to get to the bottom of the National news. I am quite sure that Nationally no one would suspect that LV is a sellers market. You make a chart/graph sing, woman!!
Creative topic! I wonder how much of this is impacted by cash deals? Also by price point?
Renee, very nicely done. I'm looking for a few good idead to routinely put in my blog. Mind if I adopt this one? It seems that there are very few deals that go down here without concessions, but that's just going by what comes to mind, not looking anything up. Which I will do.
Renee, you pretty much cover all of LasVegas...another great post.
sellers aren't giving up much of anything since Las Vegas is a Seller's Market and in dire need of sellable inventory!
Wow! That's good to hear. Where did all your inventory go?
Renee
As a lender in Las Vegas I have noticed that more of the contracts that are coming across my desk have no concessions or only 1%. Realtors that I work with have told me their offers are getting accepted because they do not ask for concessions. Is this a good tactic to use or is the buyer getting short changed?
Deborah: Yup, Las Vegas is still a seller's market however we are moving towards stable market territory with the tax credit expiring. Which means - people who work with savvy agents who understand this may get more in concessions!
Drew: BLAH! You are making me want to great a new and intense market report here. I would say it depends on analysis of the individual property on whether you are going to get concessions negotiated or not. It is ALL about net in negotiations. I don't understand why a cash buyer would want concessions for closing if they could just pay a lower price (make sense?) IOW, if I personally know where that net is going to come in at no matter what, the cash buyer is going to be paying the same. So yes, cash purchases rarely ask for concessions. Some do get concessions and I believe that is from something happening DURING the escrow and inspections period that forced renegotiating. Back to individual properties - it depends on the price point, absorption (how many active listings vs pendings vs sales) and activity (multiple offers, showings, etc) the home has received on whether you will ask for concessions. This is a net number game and working with a true professional who understands the net component can help the buyer tremendously from over-paying, under-paying and winning the bid in a multiple offer situation.
Eric: Of course I don't mind when my non-competitors adopt or borrow :) This also shows TRENDS to buyers such as if your market is swinging into a seller's market then you could show the buyers where they need to put their offers in and how "clean" they need to be!
Rebecca: Thanks :)
Bruce: First time buyers seeking the tax credit "ate" it, haha!
John: Our market is shifting again currently. Back before the tax credit expired, barely any concessions were given or considered when buyers found themselves in multiple offer situations and would give up the concessions to give net so the property would appraise. Also, sellers would take away concessions when a property would appraise low. NOW we are seeing inventory building and concessions are coming back in style but see my responses to Drew & Deborah - all things must be considered and it all boils down to net for the seller.
Really cool to use the concession stand linguistics. I really like the pie graph, too.
Cheryl: Thanks as always :)