Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

For previous blog posts about MGM Grand Signature Residence, high rise condos in Las Vegas click the link below.

Signature at MGM Grand condos, invest in the Las Vegas high rise condominiums, part last

The rush on the MGM Grand Signature condos in Las Vegas seem to have subsided and prices seem to have stabilized as prices have appreciated by 20% in the last six months.

A look at the sales report for the last 3 months shows one penthouse floor 1394 square foot 2 bedroom condo which is constructed through joining a one bedroom and a studio sold for $540,000 or $466 per square foot. This MGM grand condo was not a short sale or foreclosure and the seller lost hundreds of thousands of dollars on this deal.

One Bedroom Condominiums at MGM Grand Signature MLS pricing VS foreclosure auction pricing

Eight one bedroom condominiums have sold through Las Vegas MLS in the last 90 days and selling prices have been $180,000-$260,000. A one bedroom condominium at MGM Grand is 847 square foot and may or may not have a balcony and sleeps four.  Seven out of eight sales have been foreclosures and one short sale. Few short sales in MGM Grand close escrow due to the fact that many of the sellers can’t prove hardship which is essential to do short sales.

 Lower floor condos and those with the airport and mountain views are cheaper than the higher floor condominiums or those with the STRIP (Las Vegas Boulevard) views. While the highest price for a one bedroom condominium with mountain views was $210,000, sale prices for the higher floor Strip view high-rise condos start at $230,000. As you can see a difference of $50,000 for a one bedroom condo is not unreasonable. Those who only pay attention to asking prices and not Comps should know that two one bedroom condos with asking prices of $182,000 and $187,000 sold for $245,000 and $238,000. Again, asking prices mean nothing; it is the Comps that count.

One bedroom condos at the foreclosure auction which we call trustee sale in Nevada have been selling below the MLS prices and $20,000-$50,000 savings over the MLS prices is possible. Two condos on the 28^th and 30^th floors have sold for $200,000 and one Strip view one bedroom unit on the 27^th floor has sold for $188,000. As you can see the MLS counter parts are selling for $230,000-$260,000, while buying at the foreclosure auction saves the buyer the trouble of bidding on a MLS foreclosure or short sale. The deal of the year has been won by an investor who paid $132,000 for a one bedroom condo on the third floor, I do not expect to see this price again.

At this moment there are no foreclosed (bank owned) MGM Grand condominium listed in the Las Vegas MLS as these get intercepted at the foreclosure (trustee Sale auction).

Foreclosure or trustee auction comes with its own risks as the buyer cannot legally see inside of the property which he/she is buying as it belongs to the person who is getting foreclosed upon. The act of foreclosure takes place in the trustee sale (foreclosure auction). However this does not pose a great problem for the MGM grand condos since all the one bedroom and studio condos are the same inside except for the views. Lastly, the buyers at the Trustee sale auction are responsible for paying back taxes and HOA (condo) fees. We do the title search and lien search for back taxes ourselves and the buyer is responsible for our 5% commission. We can save a bundle for the buyer.

I will discuss junior suites in the next blog.

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