This is the video transcript of how to make winning offers on Las Vegas homes, condos, high rise
Please find the video blog post with embedded video here
Needless to say actions taken prior to making a good offer on Las Vegas homes, condos or high rise condominiums greatly influence how offers are written and their chances of success. In this video we assume that the buyer has followed our advice about what to do before making an offer. Especially getting close to underwritten approved if the buyer plans to finance.
In this video we will discuss:
- Should the listing Realtor or the buyer’s agent put a value on the property?
- Difference between asking price and property value, which the offer should be based on
- Factors influencing the offer price
- Our policy regarding making offers on behalf of our clients
Let’s talk about who should put a value on a Las Vegas home, condo or high rise condo
As far as buyers are concerned, we must be clear that it is the buyer’s agent and not the listing Realtor that should decide the property value and if the price is right come up with the best way to get the offer accepted. On several occasions we beat higher offers because our offer could appraise and we wrote a good clean offer with the situation and seller in mind.
Let’s talk about the asking list price:
The first issue is asking price: Putting an asking price on a property involves a strategy on the part of the seller and his listing Realtor to arrive at an acceptable sales price which is hopefully based on property value. Asking price could be unrealistically below market value in order to get an offer for an unapproved Las Vegas short sale home or condo which has no chance of getting approved at list price, or a bit higher than appraisal value in order to allow for discount or seller concessions asked by the buyer.
However this is not always followed, especially in Greater Las Vegas custom built luxury homes. We see highly unrealistic asking prices followed by hundred thousand dollar price drops. What it tells us is that the listing agent is clueless about putting a correct value on the luxury home. That is the reason that we do quick comps on all properties that we e-mail to our buyers in order to eliminate these.
In a market such as Las Vegas where prices have been going up at double digit rates due to tight inventory until 2016, when it appreciated by 7%, the majority of asking prices are higher than the property value and sellers play hardball due to continuing price appreciations.
In a depreciating Las Vegas real estate market there is obviously not going to be a lot of competition on offers made and we need to protect the buyer, thus the upper limit on the offer would be COMPS minus expected price decline and discount for a good deal. If the market is appreciating then COMPS become the lower limit for the offer.
Factors to take into account while making an offer
Let’s talk about what we take into account when preparing an offer on Las Vegas home, condo or high rise condominiums.
As the buyer’s Realtor we decide the property value based on comparable properties that have been sold recently while taking into account additional factors, such as:
1: Property condition: If the home or condo requires extensive repairs then a premium for buyer’s repair expenses and effort should be deducted. Additionally fixer uppers don’t qualify for a loan unless the buyer applies for a 203k construction loan to fix it. Fixer uppers or Las Vegas auction homes that have to sell for cash because they need repairs provide for some of the best deals to be found today.
2: Upgrades: The most important upgrade is flooring in living and wet areas, upgraded kitchen and pool. Depending on the age of the house we add about 25% to 35% of upgrade cost to the base price of the home or condo.
3: How many offers a property has: If the property has multiple offers, forget about low balling.
4: Buyer’s emotions: if a buyer falls in love with a home, condo or high rise condominium for sale in Las Vegas and tells me “Masoud, GET it for me”, then a premium has to be paid to GET the buyer the property.
5: Attributes: Could be tangible like city, mountain or Strip views or a home fronting a golf course or intangible like a private backyard and in case of condos, a pool view.
6: Who the seller is. Is the seller willing to get into protracted negotiation? This depends on how many offers the property has and whether the seller is a private individual or a bank. Banks do not negotiate much especially on recently approved short sales or newly listed foreclosures.
Calculating the correct property value is easy in a calm real estate market which we have not seen for the past 10 years in Las Vegas.
How to write a purchase contract to get an offer accepted is another issue.
Given that only accepted offers lead to deals it is important to cover all bases in writing the contract.
So here is our policy regarding making offers on behalf of our clients.
We try to make the lowest possible offer for a Las Vegas home, condo or high rise that gives the buyer a good shot at getting the offer accepted.
We decide the property value and write a good, clean offer while being fully aware that we do not have any control over other buyers and their agents. If we get an acceptance then our buyer has gotten a good deal. If someone else decides to pay more than property value and we lose, too bad. We did the right thing and it didn’t pan out, that is life, we move over to the next home or condo or high rise.
If you want to buy, sell or invest in Las Vegas condos for sale please call us at 800-762-4917 or e-mail us. You can find our contact info below the video.
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On behalf of the Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.