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

Disconnect between Las Vegas homes, condominiums and commercial properties from REALITY

There is a disconnect between the asking prices for Las Vegas homes, condominiums, land and commercial properties for sale and sold Comps, which is our current reality.

Much of Las Vegas real estate is divided into master planned communities, such as Summerlin, Anthem, Aliante, in North Las Vegas, or Desert Shores. These master planned communities contain many subdivisions which in turn contain many different home and condominium models with varying lot size and square footages. Some of the homes that are built in these Las Vegas communities are custom built homes.

I tell my customers to only look at price per square foot while looking at homes or condominiums in Las Vegas, as this is the only number that all homes and condominiums have in common.

Price per square foot tells the buyer how much bang for the buck they get. As a rule for track homes, the bigger the square footage, the lower price per square foot, however this rule doesn’t work for highly upgraded, luxurious custom homes in Las Vegas.

I am starting to see asking prices that are $50 or more than the highest price per square foot that have been sold in the whole community in the last year and these homes are NOT the best or highly upgraded homes which sold last year.

I am often bewildered about what people think. If you want to sell your Las Vegas home, why price it so unrealistically to make a deal impossible. If the seller doesn’t want to sell the home, why list it?

Any Las Vegas Realtor who is not a waste of oxygen can figure out that these homes are severely overpriced. Why list them when other fellow Las Vegas Realtors would not even show the listing. I afraid that the Realtors motivation is selfish, he wants to show other sellers how many listings he/she has in order to impress the seller so the Realtor can get other listings. At this point the Las Vegas Realtor is no longer working for the seller. He/she is serving themselves.

Pitfalls of unrealistic pricing for Las Vegas homes and condos for sale

Now let’s go a step forward and assume that an unrepresented home buyer is foolish enough to make an offer on these overpriced home. Then we have one of two cases.

1: The buyer wants to finance his Las Vegas home deal. In this case the bank would require an appraisal, and given our current trouble with low appraisals, the appraisal will come tens of thousands of dollars short of the agreed amount. In this case the deal will go down for sure and all parties involved in the deal have wasted time and money.

2: The buyer is a cash buyer. Well, no appraisal is needed now. However those who would buy a home for hundreds of thousands of dollars will comparison shop and as a result avoid these overpriced homes or if making an offer, will have an appraisal as a contingency.

The measure of Realtors is not how many listing he/she has; it is how quick they sell the listing.

I will explain this through an example in the next blog post.