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>>DALE: Good afternoon, this is Dale Snyder with The Snyder Group at Keller Williams Realty
here in Las Vegas Nevada.
I just want to go over how to get your offer accepted in this current market. Our inventory's
down drastically and it's very competitive.
So we're going to start by doing first time home buyers, then we're going to go into the
average owner that's not doing the "needing all the closing cost covered, FHA [Federal
Housing Administration] loan" and then we're going to go into the investors.
So that's really three different segments. Now if we're going to break it down even more,
we have to go by price range. Now, if you're looking to spend a million bucks, 2 Million
bucks that's a totally different market.
But let's just assume that the average person watching this video is looking to spend about
$70,000 to about $500,000, which is really the bulk of what's happening in our market.
So right now we have about 2 months supply of inventory. We are seeing multiple offers
on pretty much of everything that we're personally listing. I think we have about 50-60 listings.
And everyone of them, we put them on the market. If they're priced within the threshold of
the market, they're selling with multiple offers.
So I can tell you first and foremost, one of the things that my team and myself looks
at when we have 5 offers on the table is - Does the agent know how to write an offer. I mean
that's the first thing.
[Laughs]
They scribble all over it. They don't include an approval letter. They don't have proof
of funds. You know, they don't even check all the boxes. They ask for unrealistic things
that the bank isn't going to cover on a short sale.
So that's the first thing we're going to look at is the agent organized? So if you're agent's
writing an offer that looks just like a disaster. You shouldn't be working with them, first
and foremost. And unfortunately we throw aside probably 50% of our offers because they're
not even written properly.
So we have to do like a three-page counter offer just to get the proper offer put back
to the bank. So enough with that. I could go on all-day about that one.
[Laughs]
So if you're a first time homebuyer get ready for some stiff competition. 50%-60% of our
buyers right now are paying cash. So if you're FHA, needing closing cost covered... You just
have to... I don't want to say a rough road ahead of you. Because if you're working with
one of the buyer's agents on our team, you know, we know how to structure the offer,
and get in rapport with the agent to give you the highest likelihood getting your offer
accepted.
One, try to make the offer as clean as you can. Don't ask for, you know, little things.
You know, go above the last comp a little bit but be within reason. Don't submit your
offer 10% above the last comp because we know and the banks know that you're strategy is
to get your offer accepted and then you're appraisal's going to come in, and then you're
going to come back and say, "Well, this is what we're willing to pay." So everybody knows
that game.
So one of the things I would suggest for people looking as first time homebuyers or even people
looking to buy, or you're not a first time homebuyer doing a conventional loan maybe
20% down is the new construction market. The pricing is very favorable right now. In Summerlin,
there's new constructions, southwest, northwest, Henderson, you know there's a lot of new construction
product out there.
Yeah, you're going to pay about $10 per foot more but you're getting a brand new home,
you're getting to pick the upgrades that you want, you're going to get the closing cost
covered by the preferred lender, and there's not going to be the competition. So if you
are getting outbid or having some frustration in the market I would look at the construction
product.
Let's move on to investors now. This is a very tricky sector right now. You know, I
work with a lot of portfolio investors and I wrote probably 20 offers in the last week
alone and got 4 accepted. This is cash list price or above that we're offering. We're
not asking for anything. So it's very competitive.
One thing you need to know as an investor is a lot of the Fannie and Freddie, or government
backed properties have a 30-day hold where they don't even allow an investor to make
an offer on them.
The others where you can make the offer, it's like getting the cash-on-cash return to make
sense. So there's very few that are going to makes sense from an investment standpoint.
So if the list price on that property is giving you a 5%-8% cash-on-cash return... Well, let
me back it up. If it's appearing to be a 7%-8% cash-on-cash return you're going to have to
offer more than list price on that property because there's going to be investors paying
cash they're going to go above the list to factor in getting 5% return on their money.
So it's a very competitive gain.
If you're having tough times with the REOs [Real Estate Owned], which is less than a
one month's supply, REO's meaning bank-owned homes. I would strongly suggest cherry-picking
the short sale. Meaning qualifying the agent, making sure they have a good processing team
that's going to process the short sale. How many loans are on the property? Are there
HOA [Homeowners Association] liens? Are there tax liens? You know, what's the likelihood
of this short sale going through?
Because there's going to be less competition and you're going to be able to get a better
deal. The REOs or bank-owned are selling at higher price than the average short sale.
And the average short sale is in better condition. Hasn't been an abandoned home that's been
stripped. It's a home, oftentime, it's more upgraded that the homeowner had an emotional
attachment to and it's taken them longer to come to the realization that they're going
to lose their property. So oftentimes you're going to get an upgraded product.
I know I've just rattled up a lot of things here but I felt this video is very important
to go over today because there's a lot of frustration and difficulty in getting your
offers accepted, from the agents, to the first time buyers, average buyers, investors.
So if you'd like to discuss this in more detail on how to strategize, you know, please reach
out to me. Give me a call. You can find me on our website once again this is Dale Snyder
with The Snyder Group at Keller Williams Realty, talking to you about the market here in Las
Vegas.
Enjoy your weekend.