This morning I was vindicated. An article in our local paper, the Las Vegas Review Journal, noted that the Las Vegas is so hot, we actually closed more sales in June 2009 than we did in June 2004 which was at the height of our boom, now referred to as our gigantic bubble.
I have related to all of my buyers of late that this market is unbelievable, with over 50% of the properties available under contract, and 25% are juggling multiple offers trying to decide which offer to take. In fact, my partner placed an offer on an investment property for one of her buyer's on a property that had already received 80 offers! As it turned out, he listened to her and made an offer $20,000 over list price, and he got the property. Now I can hear you gasp "$20,000 over list price?! This is a declining market, what was he thinking?!?!?" Let me explain.
This property was listed at $35,000 but there were other properties that made it compare to properties for $60,000. So he offered $55,000 and got the property. It is in very good condition other than a little lipstick and will cash flow nicely as a rental property. Additionally, as we run comparables in this market, we have discovered that the properties have stayed the same values as last month -- no drop.
What does that mean to you the buyer? It means that when you're buying in a hot market, be prepared to make your absolute best offer, that if you lose the property for a dollar, you'll be okay with it. Lenders on both short sales and bank owned properties are getting lots of offers, and so they are not countering except for the offer they want to accept. Nor are they putting out multiple offer notices - here in Las Vegas its become a given.
So get you're financing lined up, do your homework, and make your best offer. You're only going to get one chance in this market.
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