Did Las Vegas real estate condo auction buyers get a good deal?

Masoud Saberzadeh Las Vegas Homes and Condos Blog, Las Vegas Real Estate auctions blog 1 Comment

Some condo auction buyers in Las Vegas didn’t get a good deal

I will discuss why some condo auction buyers in Las Vegas didn’t get a good deal.

I have researched the closing prices for two condo 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.

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
5/07 $273,000 5/07 $251,000
7/07 $250,000 7/07 $252,000
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 Las Vegas real estate auction was $160,000, this is still a 42% drop from the same time last year.

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.

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 noteworthy is a buyer that paid $173,000 for a condo for sale which he/she closed in 4/2008. I strongly suspect that the buyer purchased this after the auction as there were 25 or more condos 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 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 for sale in Las Vegas in 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 did Las Vegas condo auction buyers get a good deal part 3

Did Las Vegas real estate condo auction buyers get a good deal? was last modified: September 24th, 2017 by Masoud Saberzadeh