OfflineHello;
I was reading the real estate investment book and saw that i could purchase at 65% on REO/bank owned properties. However, I emailed a local realtor in Las Vegas who is the listing agent for Wells Fardo and this was his response;
Buying homes at 65-70% of the retail value is going to be tough in the current market. It all depends on what you calculate the retail value to be? Our market is dominated by REO's and short sales and those are the current values and comps regardless of the seller. Most bank owned homes are selling at the list price or higher because there is a low supply and the demand is strong.
On this particular home, 6167 Mythic Atlantis Las Vegas, NV 89149, we have 2 offers at this time and this will most likely sell above the list price.
What is the truth about how much of a discount is typical in this current buyers market??????????????????Please Help!!!!!!!!!!!!
Esmirna Maloon
Supply and demand is the scale that you need to be following at all times. The agent is correct. Everyone knows that Las Vegas has had an enormous problem with foreclosures - so just like the early days when California had the gold rush, thousands of investors went to seek these tall tales of untold fortunes to be made. The same thing has happened in Las Vegas! Everyone in the world has flocked there to mop up on a deal! Are there still deals available, yes. You will first have to set a marker for any current property as to fair market value. Get real sold numbers from this realtor. Ensure that the homes are truly comparable! And that they have sold in the last 90 days perferrably in Las Vegas! I also like to look at what deals are currently on the market and see where the market is trending, is it going up in list price or down.
The agent understands that anyone can paint a rosey picture as to what the properties retail value should be. Anyone can inflate numbers to justify that you are getting a great deal! Please understand you need to obtain at least 3 sold comparables within a few blocks of the subject property. And see what people in the market are paying for these deals.
I hope that this information helps!
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thnks so much, salden. i will remain pesistent. thnks for your information!
Esmirna Maloon