Buying and selling real estate in today’s tumultuous, highly demanding marketplace is not for the faint of heart.
“While tricks of the trade abound to give buyers and sellers a leg up on the competition, there are also a number of basic pitfalls buyers and sellers should be aware of lest they commence their real estate venture on shaky ground,” cautions real estate expert Robert Jenson, CEO of The Jenson Group of RE/MAX CENTRAL.
Jenson offers this advice for common, though avoidable, real estate buyer and seller blunders:
Buyer:
1. Not Getting Loan Pre-Approval — Don’t wait to find the “perfect” home before having your credit pulled, which can backfire when an offer is on the table and time is of the essence. Get loan pre-approval before you view your first home. Your credit report may contain inaccurate information that can be time consuming to rectify. Or, you may dislike the loan program you qualify for, or you may qualify for a better loan than you expected.
2. Having Unclear Goals — Create a realistic idea of the property you’d like to buy. Make two lists: one of features you can’t live without and one of those you would enjoy. Refine the lists as the house hunt progresses.
3. Forgoing Home Inspections — After your offer is accepted, set up a home inspection to uncover hidden problems, including roof deficiencies, leaky plumbing and electrical concerns. Hire a reputable inspector, and negotiate to get the most for your money once the report is final. Also ensure seller provides a home protection plans with the purchase.
4. Not Shopping Mortgages — A difference of even half a percentage point can mean a considerable savings over the life of a loan. Be a smart consumer and comparison shop for the most favorable mortgage rates and terms.
5. Not Using a Buyer’s Agent — Purchasing a home could be the most important and complex financial transaction you engage in, and going it alone is risky. A buyer’s agent can save you time, hassle and thousands of dollars.
Seller:
1. Overpricing — If a property is dismissed as being overpriced early on, it can result in later price reductions, which reflect poorly on the listing. Overpriced properties tend to sell at a lower price than they likely would have had they been priced properly at the start.
2. Limiting Showings — Have an open door policy and ensure the home is ready and able to be shown at the drop of a hat … even if you’re not there. Secure your valuables and provide an outdoor lockbox that real estate agents may access at their discretion.
3. Failing to Stage — First impressions are critical, so plant flowers, wash the windows and screens, put on a coat of new paint, lay new carpet, and eliminate clutter to the best of your ability. Clean out the closets so they look bigger.
4. Offering Repair Credits — Eliminate any need for repair credits. Hire professionals to inspect the roof, pool, and other structural elements, and for termites and other important buyer considerations. Make ALL repairs before you list the house on the market.
5. Being Ill-Informed — Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing any legally binding contract.
Credits: Market Watch
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With the credit crunch, some are finding a hard time getting loans. Banks have stricter rules when it comes to lending money, especially for folks buying real estate. News 3’s Marie Mortera takes a look at the obstacles and what you now need to overcome them.
The fall on Wall Street means more scrutiny from lenders – hurdles buyers didn’t pay attention to before the mortgage meltdown. At the Las Vegas Chamber of Commerce’s commercial real estate seminar, folks learned that, like housing, commercial real estate has hit a slump, too.
Just as banks are lending less money, there is an oversupply of property to purchase. But according to Grub and Ellis, North Las Vegas has the worst vacancy rate despite rent being among the cheapest.
Richard Luciani is part of a team of experts put together by the Las Vegas Chamber of Commerce. Their focus is to figure out how to get through this credit crunch when cash is needed for commercial real estate.
Luciani says, “The whole financial instituion is nervous about lending money, be it commercial, from the spillover of the residential situation.”
But experts say buying shouldn’t be discouraged, especially if you have proof that you can return the amount of money you receive such as a history of borrowing money, repaying borrowed money on time, and not having any bankruptices.
“Real estate has performed in the long-term, despite what blips you have in the economy,” says Luciani.
A bit of hope, despite what hurdles folks may face.
Financial experts say banks won’t loosen their lending practices until the housing market vastly improves. It’s difficult to give a legitimate time frame, but experts say things could change with a year’s time.
Creidts: KVBC
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Las Vegas is growing once again with a number of new real estate projects under way in the area. These condominiums, hotels and mixed use projects are transforming the gambling capital of the world into a more livable and, in many cases, sustainable city. The downtown area is in the midst of an unprecedented shift with its new public facilities, transportation projects, galleries, clubs, shops and more. Additionally, there are a number of new developments going up around the city that are adding to its attraction as a year round destination.
CityCenter is a new mixed use development along the Strip that is between the Monte Carlo and the Bellagio. It will cover 66 acres with a 60 floor, 4000 room hotel and casino, as well as have two boutique hotels and three residence-condo towers. It is now under construction. The East Village is meant to emulate New York City’s East Village and is taking shape on 44 acres at the corner of Tropicana Road and Paradise Road. It is planned to be a one million square foot complex with 27 buildings.
Two other developments under construction are City Crossing and McCarran Village. City Crossing is located in the foothills of Black Mountain and will offer a pedestrian oriented village on 126 acres of land and have 400,000 square feet of shops and boutiques. McCarran Village is adjacent to McCarran International Airport (LAS) and the plans call for residential living on top of retail spaces. It is next door to the proposed Trop 42, a mixed use project that is still in the planning stages.
Loft 5 Las Vegas, Nevada is one of the most exciting architectural projects for residential housing in many years. The upscale modern residences range from penthouse lofts with private sky decks, to multi-level lofts with 20 ft high ceilings and private terraces.
On top of these new, mixed use projects there are many new hotels and condos. Some of the condo development that are under way include the Allure and Boca Raton, both of which are now open, the H.U.E. Lofts, and the juhl. These are but a few of the many new real estate developments and projects under way that are transforming Las Vegas.
Credits: Homes Go Fast
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Southern Nevada’s industrial market was resilient during the second quarter with a low 5.87 percent vacancy rate, CB Richard Ellis reports. It marks the first time in 18 months that the Las Vegas valley’s industrial market vacancies decreased, it adds.
Industrial space is a consistent commercial real estate market, say industry pundits. It doesn’t experience the big vacancy swings like office and retail markets. Its steady performance is partly due to a careful balance between demand and supply.
Industrial, for instance, hasn’t seen a glut of overbuilding like the office market or seen diminished demand from a dampening economy like the retail market. The valley’s industrial market surpassed the 100-million-square-foot mark in the second quarter, yet vacancies still remained low, reports Restrepo Consulting Group and Colliers International.
Several large projects finished during the second quarter, including those in the Beltway Business Park, Arrowhead Commerce Center and Post Industrial Park. But completions stayed in check with demand. There was 700,000 square feet of net absorption in the quarter, and 1.3 million square feet year-to-date, reports Applied Analysis, a Las Vegas business advisory firm.
“Overall, it is likely the industrial real estate sector will be less impacted by current economics than other segments, including the office and retail market,” said Jeremy Aguero, principal of Applied Analysis.
Industrial leasing activity continues to outpace sales transactions due to a tightening credit market. Skittish lenders still reeling from mortgage-related writedowns have also reduced new industrial land acquisition by developers, reports Grubb & Ellis
Las Vegas.
“With the large amount of inventory under construction from recent years now complete, new projects may not start up again until early 2009 unless costs become more feasible,” said Dave Dworkin, research analyst for Grubb & Ellis
Las Vegas. “This will allow current buildings to absorb and, in effect, lower the overall vacancy rate.”
PROJECTS
Roche Constructors is performing $48 million in upgrades to Freedom Park at Mojave Road and Washington Avenue in Las Vegas. Improvements at the 36-year-old, 68-acre park include six new lighted baseball fields, two new soccer fields, and construction of a concession/restroom building. Other enhancements call for new exercise areas, jogging/walking paths, a skate park, an events platform, shade structures and an adaptive recreation space. The project, designed by Bridge Architectural, is scheduled to finish in late 2009.
Crete Construction completed a $425,000 lunchroom addition to the St. Francis de Sales School at 1111 N. Michael Way in Las Vegas. The single-story, 2,550-square-foot expansion, designed by JVC Architects, consists of three roll-up doors that open to the playground and let sunlight into the lunchroom.
MILLION DOLLAR DEALS
UNEV Pipeline LLC bought 53.2 acres of vacant land inside Mountain View Industrial Park at Grand Valley Parkway in North Las Vegas for $3.8 million, or $71,786 per acre, from Kapex LLC. Colliers International’s Pat Marsh and Mike Mixer represented the buyer.
Chapman Automotive Group bought 4.82 acres of improved land at 3175 E. Sahara Ave. in Las Vegas for $10 million, or $2 million per acre, from the Fletcher Jones Sr. Trust. Coldwell Banker Premier Realty’s Lance Hamrick represented both the buyer and seller. The site had served as a Fletcher Jones Toyota dealership since 1987. It features a 38,184-square-foot showroom and maintenance building.
Ryder Truck Rental bought 5.08 acres of land at 8010 W. Post Road in Las Vegas for $6.29 million, or $1.2 million per acre, from Southwest Acquisition LLC. CB Richard Ellis’ Ed Aragon and Leo Biedermann represented the buyer.
911 Collision Centers Nevada signed a 126-month, $4 million lease for 31,642 square feet of industrial space inside Black Mountain Industrial Center at 7700 Eastgate Road, Buildings A and D, in Henderson. Grubb & Ellis’ Richard Luciani, Jeffrey Barton and Elizabeth Moore represented the tenant; Daycor Properties’ Patricia Johnson represented the lessor, Eastgate Development LLC.
Bagel Cafe signed a 122-month, $1.8 million lease for 5,765 square feet of office space at 301 N. Buffalo Drive in Las Vegas. CB Richard Ellis’ Laurie Adair represented the lessor, Westcliff Investments. The reported average rent equals $2.65 per square foot.
Laxalt & Nomura Ltd. signed a five-year, $1.1 million lease for 5,500 square feet of office space inside Marnell Corporate Center at 6720 Via Austi Parkway, Suite 430, in Las Vegas. CB Richard Ellis’ Bret Davis and Jayne Clayton represented the lessor, Marnell Properties; Grubb & Ellis’ Barton Hyde and Aaron Goldberg represented the tenant. The reported average rent equals $3.33 per square foot.
Credits: LV Business Press
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