This is the second article in Las Vegas condo auction pricing, and if the buyers who purchased a condominium at Adagio condo auction got a good deal?
I have researched the closing prices for three condominium conversion models in Adagio condominium community that have sold last year. The models are as follows:
A: 3 bedrooms 2 full baths, 1344 square foot condo with a fireplace in the living room and a garage.
B: 2 bedrooms 2 full baths, 1204 square foot condo with a fireplace in the living room and a garage.
C: : 2 bedrooms 2 full baths, 1074 square foot condo with a fireplace in the living room and a garage.
Below are the close of escrow dates and selling prices for the above condominiums in Adagio since May 2007
| Sell date 1344 | Price 1344 | Sell date 1204 | Price 1204 | Sell date 1079 | Price 1079 |
| 5/07 | $273,000 | 5/07 | $251,000 | 8/07 | 219,500 |
| 7/07 | $250,000 | 7/07 | $252,000 | 3/08 | 147,000
3 condos |
| 3/08 | $173,000 | 9/07 | $229,000 | ||
| 3/08 | $168,000
4 condos |
9/07 | $224,000 | ||
| 3/08 | $162,000
5 condos |
1/2008** | $247,000 | ||
| 3/08 | $155,000
2 condos |
3/08 | $183,000 | ||
| 3/08 | $153,000 | 3/08 | $178,000 | ||
| 3/08 | $152,000
4 condos |
3/08 | $177,000
2 condos |
||
| 3/08 | $147,000 | 3/08 | $173,000 | ||
| 4/08* | $173,000 | 3/08 | $160,000 | ||
| 3/8 | $157,500 | ||||
| 3/8 | $155,000 | ||||
| 3/8 | $152,000
3 condos |
||||
| 3/8 | $147,000
4 condos |
||||
| 3/8 | $141,000
2 condos |
Even if we assume that the average selling price for the 1344 model condos at the auction was $160,000, this is still a 42% drop from the same time last year. Although this number is not accurate due to the small number of comparables, it is still a heck of a lot more accurate than the meaningless average, or median price of residential real estate in Las Vegas. At least I am comparing the same condos that are sold in the same community.
There is also a $27,000 discrepancy between the highest selling price at the auction which was $173,000 and the lowest price which was $147,000. As a rule, first story or ground level condos are priced $5 to 10 thousand dollars less than 2nd floor apartments and this is due to the fact that upper floor
apartments ( penthouse condos) have higher ceilings and get more light, additionally no one is walking over their ceiling. Other factors in the price difference in these conforming condos could be having a pool view or additional upgrades. Given that these condos were converted by the same company, their upgrades were almost identical, thus any price discrepancy of over $17,000 is hard to justify.
The only explanation is that most of these Las Vegas condo auction buyers chose to not be represented by a competent Realtor and ended up paying too much for their condo.
Not being represented by a competent Las Vegas Realtor cost these Las Vegas condo auction buyers tens of thousands of dollars
Especially note worthy is a buyer that paid $173,000 for a condo which he/she closed in 4/2008, I strongly suspect that the buyer purchased this after the auction as there were 25 or more condominiums that failed to sell at the auction. This buyer has managed to have more than $30,000 in instant negative equity (upside down).
I keep preaching the necessity of being represented by a competent Las Vegas Realtor or a commercial real estate agent if you plan to buy real estate in Las Vegas or surrounding communities. Failing to be represented by a real estate agent could be fatal to your finances, and here is proof positive.
Still don’t believe me?
Then check out the 1204 square foot condo that has sold in January 2008 for an incredible $247,000. The highest price that was paid for a 1204 square foot condo in this Summerlin area condo community, was $252,000. Prices had dropped to about $225,000 within 4 months and kept dropping. These buyers paid $247,000 in January, while the highest condo price for this square footage at the auction was $183,000 and the lowest was $141,000. These poor souls have managed to lose $64,000-$100,000 in less than a month (the auction was held in Feb 2008) and have nobody to blame but themselves.
I will continue Las Vegas condo auction pricing and prices in the next post.
The bus that we have purchased for Las Vegas, Henderson and North Las Vegas foreclosure bus tour is being readied and hopefully will be ready in 45 days. I appreciate any suggestions on this matter. Please chat about this post and any other Las Vegas real estate and mortgage related subjects in our Las Vegas real estate forum.
PS: Great sadness has befallen our brothers and sisters in Myanmar (Burma) and China. My heart breaks when I see so much pain and suffering in the innocent faces of children who have lost their parents and other siblings and it breaks even more when I see the stricken faces of parents who have lost all their children. Please pray for them as they need it desperately. I also pray for a just punishment for the criminal Junta that rules this grief stricken country.
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1 Las Vegas Condo auction in Summerlin area, did these Las Vegas condo auction condo buyers get a good deal? Conclusion // Jul 9, 2008 at 8:45 pm
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