Real Estate Information

Client’s questions in today’s environment –

1.      What are you going to do to help me sell my home?

2.      Can you share any insight to help me keep my home?

3.      What do I do if my home is not worth what I owe on it?

4.      Are you very familiar with my area?  

5.      I do not know what to believe anymore!  I need to know specifically what to do.  

6.      Buyer - Should I buy now or wait?   

My answer is: 

Would I be correct in stating that your goal is to sell your home and maximize your equity?  If we are going to achieve your goal we must focus on the 4 areas that we control:

1.      The condition of your property – Stage home for sale if needed. 

2.      Access to your property – Key safe on property.

3.      How to position your property to take advantage of the millions of dollars Prudential spends to generate buyer leads – Once we begin marketing your property for sale you begin benefiting from the thousands of buyers leads we generate monthly from numerous sources: multiple websites; color brochures; advertising in Homes of Southern Nevada and Showcase of Homes; Smith and Vons Shopping carts; Green Valley Ranch Movie Theatre and Gold's Gym.

4.      How we price your property in today’s marketplace - make sure to position your client’s property in the Top 3 best priced homes in the area. This will help them:

     a.      Increase the number of showings of their home, and

     b.      Maximizing their net proceeds by staying ahead of the market curve.      

We must be priced to sell or we loose the benefits of A, B, and C.   

First we need to finalize your financing as it will give you leverage with all sellers.  Next I need to know your goals as it pertains to the home you are looking for?  We will then focus on finding the home that best fits your needs, and lastly we will focus on purchasing it at the best possible value taking into account today’s true market value. Do not be discouraged by over priced properties as we have no intention of paying an unrealistic value for any property. I have a lot of homework to do as only about 30 percent of the homes on the market today are properly priced or willing to sell at true market value. The price depends on product type, location, size, amenities, comparable sales, competition, etc. No worries, I will handle each step of the process.  

People ask me all the time if I feel the market has hit bottom or will it continue to dip. It is clear to me that when a buyer buys at today’s true market value they are in great shape. The problem comes in when buyers are comparing the value of a property to its current listed price, as most listed properties are priced much higher then their true market value.   

 Typically,creative financing, can come in the form of sellers’ ‘carrying back’.  This is not recommended!  It forces the Seller to remain a player post close of escrow.  Creative financing is not for the weak of heart and in no way is as safe as simply selling if you are the seller.  There are potential risks (discussed below) that cannot be overlooked.

First some definitions . . . don’t get too caught up in this; they are boring:

Creative Financing - Any lending that differs from standard industry practices, such as Sellers receiving part of their proceeds in the form of a note and deed of trust.

First Deed of Trust - An instrument [NRS598D Sec040]  that encumbers home property by pledging a security interest in the property for a loan which is in first position (has first priority) above and in front of all other claims against the property, excluding taxes and other government or quasi government liens (bonds, assessments).  Breach is handled by statutory foreclosure. [NRS107 Sec080]

AITD - A promissory note that is secured by a junior deed of trust.  The dollar amount of this junior deed of trust includes the underlying (senior) deeds of trust, and the cash (or equity) owed to the Seller/lender (lent by the by the Seller/AITD lender). Breach is handled by statutory foreclosure. [NRS107 Sec080].

Contract for Sale/Contract for Deed - A contract for the sale of real estate where borrower has possession of the property but the deed (title) of the property is transferred only after all the payments and obligations put forth in the contract have been made or performed by the buyer.  Breach is handled by judicial foreclosure. [NRS040Sec430]

First, if you get the chance attend Prudential®, Americana Group, REALTORS® CE# 2188000 RE -  General.  [Americana Training Catalog].  This class is an introduction to creative financing where you are instructed on the pitfalls of:  All Inclusive Trust Deeds, Assumable loans and Seller Carrybacks to secure a sale.  The foreclosure process is also discussed.

Most importantly, if your Seller position is such that they need to do creative financing, review the Greater Las Vegas Association of REALTORS® “creative financing form“.  This form walks you through the various aspects of what you need to look for such as interest, due dates, collection accounts, etc.