Update on Meridian condominiums for sale, Meridian is Las Vegas mid rise condo community
We keep making offers for our clients in Meridian and keep losing, we can’t get one in ten offers accepted and below is the reason.
In the last 60 days eleven 692 square foot condos have sold through Las Vegas MLS, although a price spread of 10-25 Thousand dollars could be justified for differences in upgrades, location, view and furnishings, the difference in price between the most expensive and the least expensive condo unit is a whopping $37,000. The most expensive unit has sold for $92,000 with the asking price of $69,000. Same goes for the 727 square foot condos; again the least expensive unit has sold for $55,000 and the most expensive sold for $76,500.
The problem is magnified for 927 square foot condominiums. The least expensive condo sold for $70,000 and the most expensive sold for more than twice that, $150,000. Asking price for this condo was $74,900. There is no reason for this. Given that an offer should be based on comparables, that is the same square foot unit that has recently sold in the same community, how does a Realtor compute the comps?
The price difference for 1035 square foot condos is about $100,000. Evidently some buyers got a great deal and some have paid way too much. The deal with Las Vegas foreclosures is that the sale process by the banks has become a silent auction.
As we are on the subject of silent auction, banks and REO agents have leaned from the public auctions like REDC auction where the starting price is artificially low to attract bidders, so they put a low asking price to attract buyer’s agent’s and other’s attention and start getting bids.
Asking prices have nothing to do with the final accepted price and in are computed based on Comps and a lot of luck as it comes to Meridian. This may or may not change since new rental Comps have been available recently. For the long term leases, 692-727 square foot condos rent for about $1000, plus, minus, $100. Now deduct HOA fees or condo fees and taxes from this and the positive cash flow for these units become very low. For example the HOA and taxes for a one bedroom condo is about $500-$600, so say the owner is left with $400 after deduction of condo (HOA) fees and taxes. Now deduct 600-900 for the leasing agent to lease the condo and 6%-8% property manager fee and a month or two of vacancy from the $4,800 that is left for the owner and then the owner ends up with very little cash flow. Now the investor could put his/her money in the bank and make the same cash flow. But the investor has a decent condominium which is 10 minutes walking distance from Caesar Palace, Bellagio, Paris and City Center and hopes to make the profit through selling the condo in the future. At any rate, if you want a condo at Meridian, be prepared to pay $100-$125 per square foot.
Meridian is not the only game in town and I am starting to like MGM Grand Signature Towers much more than Meridian, but that is for the next blog post. Up to this point I have recommended against buying high rise condos in Las Vegas, but due to sharp price drops, there are starting to be viable real estate investment options in Las Vegas as long as the investor knows what it is he/she is doing.
I will start a series of blog posts about Las Vegas high rise condos, next.
DISCLAIMER: No one can accurately predict the future of the Las Vegas real estate, all anyone can do is to make an educated guess, and I am no different.
My name is Masoud and you can call me at 702-478-7800, find other contact info in the right side bar.
Related web-site pages: Investing in Greater Las Vegas Real Estate, Las Vegas new and mid-rise luxury condos for sale, Las homes, luxury condos and commercial properties for sale
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