The most interesting statistic mentioned is that they will have the world’s largest shoe department featuring up to 300,000 pairs of shoes on any given day.

I’m not sure about men but when most women hear 300,000 shoes in one place – they have got to check it out.  How could you not find a pair of shoes to buy?  You’d be surprised.

If the inventory consists of boots, flats, high heels, sneakers and sandals as the major categories – most can be excluded from the search on any given day.  Then take away the ones that are out of your price range and the ones that don’t match your style.  You whittle down your options and you’re left with maybe a dozen choices. 300,000 down to a dozen.  If they have your size, width and color in stock and it looks as good on your foot as it does in the box plus it’s comfortable – you go home a winner.

Right now it’s easier to find a pair of shoes than a home in Las Vegas.  As you see in the statistics at the bottom of each newsletter, there are currently 7,456 single family homes available in the Las Vegas Valley.  This is a very low number – let me show you why.

Let’s say you’re looking for your personal residence, rather than an investment.  You don’t want something that looks dated, so you limit your search to homes built in 2000 or newer – there are only 3,732.  You want 3 bedrooms, 2 baths minimum, a 2 car garage and maximum price of $100,000 – that leaves 367 choices in all of the valley.  Take it further to just the Southwest and there are only 16 choices.  Make it a minimum of 1,500 square feet and there are 4 choices – click HERE.

Most buyers don’t want homes from 2000, they want something built in 2005 or newer.  If we raise the price point up to $150,000 – we have 145 choices – click HERE.

If you’re retiring and want to live in Sun City Summerlin, for example, the competition is really fierce.  If your budget is $125,000 – you’ll have 25 single-family and townhomes to choose from – click HERE to see.

Add in the other criteria that most buyers want and your choices dwindle down to almost nothing.  What’s important to you?  Think about these features – single story, master bedroom down, 3 car garage, pool or pool-sized lot, North/South exposure, no short sales, no foreclosures, a view of the Strip, mountains or the city, low or no HOA dues, no SID/LID, gated, pantry or island in kitchen, granite counters, high ceilings, not backing up to a main road, well-kept neighborhood, large bedrooms, specific school district, close to the Strip or airport – the list is endless and you may have to compromise.

One of the biggest limitations is financing and closing costs.  If you’re approved for an FHA or VA loan (both requiring little or no down payment), the home can need only cosmetic repairs.  If you don’t have enough money to pay your own closing costs and are asking the seller to contribute, you’re lowering your chances of getting an offer accepted down to a very small percentage.

When new listings come on the market, they have multiple offers in the first few days, driving up the prices.  This is a good thing for neighborhood values but not for a buyer on a budget.  You need to be prequalified by a lender before you start shopping and ready to see homes the minute they become available.  Your agent needs to be available, too.

If you’re an investor, the competition is even tougher.  Not only are you looking for a great deal but you want a good return on your investment.  Las Vegas is a magnet for investors for the last few years and it’s really frustrating if you’re not prepared and know exactly what you’re looking for.  Click HERE to see our weekly report of great investment opportunities.

The bad news is our inventory is showing no signs of increasing.  Due to recent changes to Nevada law, new foreclosures have almost completely stopped and there’s no end in sight.  This is a good sign for sellers as the reduced competition is terrific whether you’re a fair market or short seller.  The goal is to get in and out of the market as quickly as possible.

If you’re considering buying in the next three to six months, let us set up a specific search for you so you can see exactly what’s available.  Patience and preparation are key elements and we’re here to help you every step of the way.

The Karten Group will be listing 20 different homes over the next month and offering them to our readers and clients exclusively for 10 days before we publish them on the MLS.  I’ll tell you more about these in the next issue.

At first glance one of the biggest changes may seem surprising, but it really shouldn’t be when you stop to consider the reasons behind it.

A recent survey shows that more over 85% of home buyers (even first-time home buyers) now prefer a move-in ready house — one that needs few or no repairs at all. While you might have supposed that the tight economy would cause bargain hunters to head for the lower-priced fixer-uppers in order to save money, the opposite is true. The reason is reality-based. In light of today’s tight lending standards, many prospective home buyers are being asked to come up with more out of pocket cash than was previously the case. When you add the probable cost of repairing or updating a home,  the value of a move-in ready home becomes more readily apparent.

The conclusion is clear: if you want to sell your home, be sure to perform basic fixes before coming to market. That means no leaks on the bathroom floor or from the faucet, no squeaking doors or broken windows, fresh paint, clean surfaces!

Another hot button for local home buyers is the golden oldie: the value they get for their money. Although it’s always been the case, it is certainly true now.  If the price is right, potential home buyers will go after your offering. When pricing a property, take into consideration all of the important factors just as canny home buyers will. Consider the condition of the house, its wow-factor features (both those it has and those it lacks), and finally the price of your neighborhoodcompetitors. Since location is a true buyer hot button, don’t be shy about exploiting any high points like desirable distances to shopping centers, nice schools, or employment opportunities.

Extra time on market can be expensive, so avoid the mistake of pricing high “just to see.”  That extra 90 days on the market can cost you!

It is vital to know what potential buyers are looking for to understand what will be perceived as the strongest points of your own property. Once you identify the hot buttons for home buyers, emphasizing your home’s strong points will result a higher sale price. Contact me today to discuss the latest news about what the home buyers in Las Vegas are saying.

While the year is still too young to have established many economic indicators, here are some to watch for to help you make your own prediction regarding rent price trends that may affect your own decision-making:

• A quiet market in home purchasing. Americans remain anxious about the overall economy and have thus far refused to signal a clear end to the doldrums in home sales.  Many Americans tend to remain in rental homes as they await clearer signals of a more robust economic recovery.
• Continuing high foreclosure rates have the effect of forcing homeowners out of their homes and into the rental home market. This decreases vacancy rates, raises demand  — and therefore, rents.

Job growth fuels housing demand. As the population increases, at least some job growth is required to meet the resulting demand for goods and services – especially if growth in the supply of rental homes lags or remains flat.

To slightly balance those indicators, other signs could hint at a possible future stall in rental rates:

• Rental unit construction starts were up 33.3% in the third quarter of 2011. Although such projects take time to reach completion, when they hit the market they will add to the supply of available rental homes — and that absorbs some of the demand.
• Low mortgage rates make it more financially feasible to own rather than to rent. When rents have been rising for as long as they have, there is a growing likelihood that home sales will eventual rebound. When? That’s where the crystal ball would come in handy!

The big question is, if rental home rates do continue to rise in 2012, how much can owners and renters expect? While the majority of analysts agree that residential rents should continue to rise, they vary when asked how much – from 2.5% to 5.5%, depending on which one you ask.

But (even more than politics) all real estate is local. What is true in one market does not necessarily apply in another. Whether foreclosures in Las Vegas affect home prices here, and how much, depends on several independent factors.

The number of foreclosures sold compared to the number of non-foreclosures sold is the most important factor affecting home prices. As the National Mortgage Professional Magazine notes, it’s all relative. Take as an example, Las Vegas, an area where most sales are foreclosures. The situation dictates that appraisers and agents use those foreclosures as fully weighted comparables in their appraisals and comparative market analyses. In contrast, prices in a town with fewer foreclosure sales compared to non-foreclosures will be less affected. Those foreclosures appear more like aberrations than true representations of the whole market.

Prices of foreclosures are another important factor.  Throughout 2011, foreclosures frequently sold for something around 30% less than non-foreclosures, according to many national studies.  The lower the selling price of the foreclosures, the more they draw down comparable estimates and the affected market.

Proximity is an important factor, as anyone with a nearby foreclosure will agree. But “spread” is important, too. If they have occurred at every price point in every subdivision, prices are likely to be impacted more severely than if foreclosures are confined to a distinct area.  A clear example occurs when two subdivisions out of dozens contain the lion’s share of foreclosures. Of course, prices within the unlucky subdivisions will inevitably be more severely impacted than prices elsewhere.

If you are considering selling your home and would like to know how foreclosures have affected prices in your neighborhood, give me a call.  I will be happy to offer you a complimentary consultation and price evaluation.

The answers to each are equally valid, and surprisingly, they are also the same. The reason to use a Realtor® is so that you can make more money!

Perception

While it may not be true, many potential homebuyers who look for a Las Vegas “For Sale by Owner” sign assume that the seller will be quick to bargain on the price. After all, they reason, the seller is probably saving money by not paying a Realtor’s commission, so they should be able to come down in their price. Many buyers also assume that the DIY seller is unsophisticated. This may or may not be accurate, but it’s a common perception. It can lead some savvy buyers to attempt to take advantage of the seller during negotiations up to and during the closing process.

Negotiation

Some of the most important efforts put forth by a Realtor® on behalf of a seller involve determining the home’s current market value in Las Vegas, staging that home to increase its attractiveness to bring in the highest offers, marketing the home to the widest number of potential buyers possible, and negotiating with buyers on the final sales price. Highly experienced Realtor’s® have spent their careers negotiating for their selling clients…for them the process is second nature. Skillfully holding fast to a pre-determined sales price is not easy. It’s a skill most inexperienced homeowners find challenging when selling their homes without the assistance of a Realtor®.

Statistics

Quite simply, homes sold with the assistance of a Realtor® sell for more than those sold by the owner. According to the National Association of Realtors, in 2011 “the typical FSBO home sold for $150,000 compared with $215,000 for agent-assisted home sales.”  This is the bottom line reason why, if you are considering selling your home and your aim is to get the highest sales price possible, it only makes sense to hire a Las Vegas expert to help. It’s why we are here, standing by to provide you with just that expertise.

According to a 2010 study by Avid Ratings published in the Los Angeles Times, typical home buyers have a simple hierarchy of preferences: they want it all.  Even when pressed to name what they are willing to do without, the typical homebuyer’s long list of “must haves” remains pretty much untouched.

What they are not willing to compromise on are home offices, walking paths, children’s playgrounds and large kitchens.

Large rooms, in fact, sell homes.

Even if your Las Vegas house is full of small rooms, your listing agent can help them appear larger by hiring a home “stager”. Stagers are professional dream makers. Savvy about what today’s homebuyer is looking for, stagers use their designer skills to transform homes from “Can you show us the next house on the list?” to “Stop! I want this house!”

Homebuyers also want a home that’s in turnkey condition. In fact, a study performed by the Maritz marketing research firm found that 63% of the homebuyers polled said they are willing to pay more for a home they perceive to be “move-in ready”. And it’s a properly staged home that is more likely to help buyers get that “move right in” feeling.

Listing agents who provide home staging for their clients understand that a staged home sells faster and for a higher sales price. Some studies show that spending just $550 on home staging nets the seller almost $2,000 more at the close of escrow.

One possible drawback to having your listing agent provide home staging is that he or she may ask for a longer listing period in return. Higher priced homes tend to remain on the market longer than median priced homes. It only makes sense that if your listing agent invests in a designer to stage your home, they would like to have the greatest chance to realize a return on their investment.

What most buyers don’t realize is that the salespeople who are so friendly and helpful at each community only represent the builder.  That’s right – they will explain everything in detail about the homes, the lots, the features, upgrades, pricing and timeframe for delivery – but they’re not working for you.

You can haggle for price and they’ll present your offer to the builder, but they’re not representing you.  I’d say 99% of new home buyers don’t bring a Realtor with them because a) they think the on-site agent represents them and b) they think they will have to pay the Realtor to be with them.  Neither of these statements are true.

While you don’t have to have representation, it’s definitely in your best interest to have someone on your side, to explain and protect your rights and truly help you negotiate the best deal and incentives possible.  If you’re thinking of looking at new homes, give us a call and let us find the communities that best suit your needs (and explain the pros and cons of each one.)

With thousands of existing homes available at bargain prices, how can new home builders compete when it comes to price?  The short answer is, they don’t have to.  The new communities that have recently opened in Las Vegas offer unique features that justify their higher asking price.

I went to the opening of Durango Ranch yesterday, Pardee Homes’ newest community in the Southwest and was really impressed.  Located just south of Rhodes Ranch at the 215 and Durango, this will be a collection of 53 single story homes on 1/3 acre lots, starting in the $360′s.  Click HERE to see the community and floor plans (download the brochure).  What impressed me the most were the floor plans – very different from what’s currently available.  They gave you the impression it was a custom home, designed for entertaining and livability.

Pardee Homes are built on the concept of LivingSmart^® – where the features highlight energy savings and efficiency that result in lower utility costs.  They’re also focused on the materials used which effect your health and the sustainability of our resources.  Click HERE for the details.

With everyone’s increased awareness of utility costs, going “green” and solar energy – some builders have really embraced these possibilities and made them realities.  Here are some features that are available today.   While I encourage you to visit these models, if you’re thinking of buying, don’t register without us being with you.

KB Homes just introduced their “Zero Energy Home” – which is a techologically advanced new home that produces as much energy as it uses. The goal is to have zero monthly utility costs.  Click HERE for the details and location in Mountain’s Edge.  These homes start in the $160′s.

Also located in Mountain’s Edge, Meritage Homes has “Net Zero Homes” – that also give you the potential to have $0 utility costs.  Click HERE for the details and I highly encourage you to visit their models which include a deconstructed home, showing you the features behind the walls.  These homes start at $180,000.

Let’s go back to floor plans again.  D.R. Horton introduced a concept last year called F.R.O.G – which is a “Flex Room Over Garage.”  Click HERE to see this in detail at two of their communities.

Lennar Homes are known as the “Everything’s Included” builder as they feature everything you’d want in a house without having to do upgrades and options.  Their newest floorplans include a “Next Gen” suite which is a “home within a home” with a separate entrance for multi-generational living (if your parents or kids are potentially going to live with you.)  Click HERE for their current communities.

Some model homes are so perfect, you just want to grab your toothbrush and move in.  American West is now selling their model homes, fully furnished, in two of their communities.  Click HERE and HERE for more information.

Obviously there are lots of choices among the new home communities and we pride ourselves with being able to find you exactly what you’re looking for.  Once we find the right community, let us get you the best deal possible plus we’ll still throw you a TKG housewarming party and give you back 25% of our commission if you qualify for our TKGHeroes program.

What if you find the home of your dreams among the current inventory of resale homes but you still want the bells and whistles that today’s technology offers you?  Click HERE for a great home automation article that uses your iPad and iPhone to control just about everything in your home.

When you’re ready to start shopping for a home, new or resale, please don’t hesitate to call us beforehand.  We’re the best peace of mind that money can’t buy.

Market forecasting is always a bit like reading tea leaves, but for a change let’s take a look at three areas that could be indicators of positive economic signs for a real estate recovery:

Shrinking Inventory

Inventory is one of those real estate terms that can be misunderstood by anyone who thinks of its everyday meaning. Instead of being the total number of homes on the market, in real estate the term “inventory” is often expressed in months. It describes how long it would take to sell all the homes currently on the market if no new homes were listed.

When housing inventory shrinks, it means people are buying homes – a solid positive economic sign for real estate. While there are currently signs of shrinkage nationwide, the experts remain cautious due to what is known as the “shadow inventory.” These are homes that are in the foreclosure process but not yet on the market. It also includes those homes owned by folks who are putting off selling until prices recover. The experts at CoreLogic estimate that in the 4th quarter 2011 there was a five-month’s supply of shadow inventory. This may increase as lenders release more distressed properties onto the market.

Unemployment

Among the most important economic signs to keep your eye on are the unemployment numbers. Rampant unemployment — and the resultant concern over job security — drags down consumer confidence in Las Vegas and everywhere else. But when people begin to get back to work, confidence always builds. That is why it was an early positive sign for the real estate industry when the U.S. Labor Department came out with its January unemployment numbers. They are falling, and now sit at the lowest level in over two years. According to the Washington Post, the broader figures suggested that while this improvement may be modest it is also “widespread”.

New Housing Starts

When the economy begins to look healthy, homebuilders begin construction. Getting that right is of vital importance to them. Signs of a recovering new home market began back in September 2011 when construction increased a healthy 15%, according to RisMedia. While the experts consider this an optimistic sign, they again urge caution.

So while the economic recovery is still sluggish, there are some stirrings that the worst may be over. If so, one implication for Las Vegas homeowners and potential buyers is that keeping an eye on market trends is once again a good idea.