Current Update on the LV Real Estate Market -- Part II (Las Vegas: rent to own, option to buy)
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The average value of a small house like that in 89129 is $73 per SF. That give you about $10K to fix the place up and get it to average condition.
Note that homes this small are very rare in 89129. Out of 1060 sales in the last year 14 were in that size range.
If you can't fix it for something like $10K don't buy it or decrease your offer to compensate.
Thank you for this information, this gives me a better idea. I'm coming in at roughly $67/sf, another $10,000 brings it in to $75/sf, slightly on the high side but not too high. Still, after seeing the inspection report and doing the personal viewing, which frankly, it's not only nothing fancy, it's technically not even in move-in condition - toilets don't work, vinyl flooring peeled up and moldy, sink basins cracked and ready to leak, dirt ground into everything like cattle may have been feeding on hay inside the house, some electrical problems, missing most appliances and that's before considering doing anything fancy with it, just the basics not that good - plus strict HOA rules prohibiting outdoor patio or fenced in private areas - I get the feeling it's going to take more than $10,000 to bring it up.
Then there is this matter of so many neighborhoods going vacant and into disrepair, it is making me pause to think.
I truly have to think on this one now. I wanted so much for the search to just be over with and move and get on with things already, but even the move is long-distance, expensive and complicated.
Thanks for this information. It will help me decide what to do, which at this point means sacrificing a deposit unfortunately too.
Thanks for this information. It will help me decide what to do, which at this point means sacrificing a deposit unfortunately too.
Why would you lose your deposit? You should have a due diligence/inspection period which you can cancel the contract w/o losing your deposit. Unless that time period has passed already?
My only other thought is when you're comparing your price per sf vs average price per sf, you have to consider the condition of your home vs the average. Only if your home is worse than the average can you expect to pay less than average. Definitely don't assume homes at the average price point are move in ready.
Why would you lose your deposit? You should have a due diligence/inspection period which you can cancel the contract w/o losing your deposit. Unless that time period has passed already?
My only other thought is when you're comparing your price per sf vs average price per sf, you have to consider the condition of your home vs the average. Only if your home is worse than the average can you expect to pay less than average. Definitely don't assume homes at the average price point are move in ready.
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It's past due diligence though not all HOA docs have been received yet or on time, just the CC&Rs, which prohibit backyard patios, fencing and awnings, meaning I can't have a nice private backyard area. So I would lose the deposit, but a good lesson maybe not to buy into LV at all at this point since the market is too confusing to me and I can't understand value there, if it's not in renting it out, if it's not in owning because prices will continue downward and neighborhoods are going into blight, some to be torn down eventually or turn into ghost towns, if it's not to find a job to pay for cost of living as that's not turning around very quickly, that on top of the high heat and long distance move, as of today at least I am starting to have serious doubts of the permanent kind.
Maybe LV is only appropriate for people who already have a lot of money to begin with, but on a budget and in the lower end, then it's just not going to be anything good come out of it.
I have seen houses listed lower but appear to be in move-in condition or better condition than this one is. It looks like a house, that for not being that old, it hasn't been well maintained or taken care of and the extreme wear and tear shows. I would personally not let a house fall into that kind of condition, unless maybe it was being rented out for a while before repossession and that is why it fell into disrepair, because nobody cared about the place at all by that point. Maybe.
I'll have to reconsider the entire situation at this point. I appreciate finding articles and information on this website which gives me an insider view that isn't easy to come by, being at a distance.
Thank you for this information, this gives me a better idea. I'm coming in at roughly $67/sf, another $10,000 brings it in to $75/sf, slightly on the high side but not too high. Still, after seeing the inspection report and doing the personal viewing, which frankly, it's not only nothing fancy, it's technically not even in move-in condition - toilets don't work, vinyl flooring peeled up and moldy, sink basins cracked and ready to leak, dirt ground into everything like cattle may have been feeding on hay inside the house, some electrical problems, missing most appliances and that's before considering doing anything fancy with it, just the basics not that good - plus strict HOA rules prohibiting outdoor patio or fenced in private areas - I get the feeling it's going to take more than $10,000 to bring it up.
Then there is this matter of so many neighborhoods going vacant and into disrepair, it is making me pause to think.
I truly have to think on this one now. I wanted so much for the search to just be over with and move and get on with things already, but even the move is long-distance, expensive and complicated.
Thanks for this information. It will help me decide what to do, which at this point means sacrificing a deposit unfortunately too.
Where abouts is the development you were looking at in the 89129 zip, if you don't mind me asking, Sheryl? Was it the Sierra Crossings by Richmond American?
Why would you lose your deposit? You should have a due diligence/inspection period which you can cancel the contract w/o losing your deposit. Unless that time period has passed already?
My only other thought is when you're comparing your price per sf vs average price per sf, you have to consider the condition of your home vs the average. Only if your home is worse than the average can you expect to pay less than average. Definitely don't assume homes at the average price point are move in ready.
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It's past due diligence though not all HOA docs have been received yet or on time, just the CC&Rs, which prohibit backyard patios, fencing and awnings, meaning I can't have a nice private backyard area. So I would lose the deposit, but a good lesson maybe not to buy into LV at all at this point since the market is too confusing to me and I can't understand value there, if it's not in renting it out, if it's not in owning because prices will continue downward and neighborhoods are going into blight, some to be torn down eventually or turn into ghost towns, if it's not to find a job to pay for cost of living as that's not turning around very quickly, that on top of the high heat and long distance move, as of today at least I am starting to have serious doubts of the permanent kind.
Maybe LV is only appropriate for people who already have a lot of money to begin with, but on a budget and in the lower end, then it's just not going to be anything good come out of it.
I have seen houses listed lower but appear to be in move-in condition or better condition than this one is. It looks like a house, that for not being that old, it hasn't been well maintained or taken care of and the extreme wear and tear shows. I would personally not let a house fall into that kind of condition, unless maybe it was being rented out for a while before repossession and that is why it fell into disrepair, because nobody cared about the place at all by that point. Maybe.
I'll have to reconsider the entire situation at this point. I appreciate finding articles and information on this website which gives me an insider view that isn't easy to come by, being at a distance.
If you have not received the full documentation package you can cancel with no loss of earnest money. That is a matter of statute not contract. You have until midnight of the fifth day after receiving the documents to cancel.
Yes, I remember Sierra Crossings was one development in that area I saw, Lone Mountain Condos was another, another in 89129 I can't remember but it was also up near Hulaipi and I remember looking at a fourth up there too, on Alexander, Chateau Versaille and theirs was a construction defect issue also - and another on the west side of 215, name escapes me, but the one west of 215 was too close to high voltage lines and I didn't like the idea of it.
In 89149 I looked at both the north and south Astoria complexes and up in 89166, two complexes, one a condo complex called Grand Canyon Village and another had two names to it, Grand Canyon Terrace I think and Ashley Terrace, or Heights, I forget. I'm just going off the top of my head, would have to pull papers to get the legal names of places I've looked.
I've looked in other zip codes too, up in Alliante area 89031 and I could name several, both short sales and REOs. Since I have to "bottom shop" more or less, then it means short sales or REOs and REOs of course, the condition isn't always so good, short sales the banks take too long then raise the price at the end.
I've had some passing interest in a few in the southwest but felt those neighborhoods were too close to the airport and a little pricier.
Yes, it is true about not having received all disclosures, only partial, so technically yes, I could make it a point, if I had to back out - and yes, I saw too that it is NV RE law requires all those disclosures, even if REO, the bank can be excused from specific property disclosures as the bank didn't live in the house, but not the legal documents of the HOA.
Thanks and I will keep these things in mind. I do not want to just cancel but after reading things recently on here and in the newspaper, things that just came out, it is making me nervous today. But I so much want to move and get it over with also. I'm torn.
Yes, I remember Sierra Crossings was one development in that area I saw, Lone Mountain Condos was another, another in 89129 I can't remember but it was also up near Hulaipi and I remember looking at a fourth up there too, on Alexander, Chateau Versaille and theirs was a construction defect issue also - and another on the west side of 215, name escapes me, but the one west of 215 was too close to high voltage lines and I didn't like the idea of it.
In 89149 I looked at both the north and south Astoria complexes and up in 89166, two complexes, one a condo complex called Grand Canyon Village and another had two names to it, Grand Canyon Terrace I think and Ashley Terrace, or Heights, I forget. I'm just going off the top of my head, would have to pull papers to get the legal names of places I've looked.
I've looked in other zip codes too, up in Alliante area 89031 and I could name several, both short sales and REOs. Since I have to "bottom shop" more or less, then it means short sales or REOs and REOs of course, the condition isn't always so good, short sales the banks take too long then raise the price at the end.
I've had some passing interest in a few in the southwest but felt those neighborhoods were too close to the airport and a little pricier.
Yes, it is true about not having received all disclosures, only partial, so technically yes, I could make it a point, if I had to back out - and yes, I saw too that it is NV RE law requires all those disclosures, even if REO, the bank can be excused from specific property disclosures as the bank didn't live in the house, but not the legal documents of the HOA.
Thanks and I will keep these things in mind. I do not want to just cancel but after reading things recently on here and in the newspaper, things that just came out, it is making me nervous today. But I so much want to move and get it over with also. I'm torn.
Oh, I thought you had already put the depsit on Sierra Crossings. Then I would say you might regret it.
That development is near me, it is well kept and has the pool thing, but they are tiny homes, built EXTREMELY close together with backyards big enough to store your garbage pails and that's about it. Cars are parked all over the streets in there and it's a renters development. When it was built, every other unit in there was for rent by Terra West, and it's still the same way now. Even though it's heresay, I know people who live there and they hate it, can't wait to get out.
I'd keep away from that development Sheryl, but you'll find most of the area of 89129 zip is quite lovely with stunning views of the Spring Mountains and the 215 Beltway nearby, plus tons of shopping.
Thank you for the information on Sierra Crossing. Was Terra West the developer there and is it still mostly rentals? Does it having mostly rentals affect things for the neighborhood? I keep getting the impression that most developments are 50/50 rental/owner-occupied in much of LV, is that true? Maybe there are some bad problems going on in that particular development.
Thank you for the information on Sierra Crossing. Was Terra West the developer there and is it still mostly rentals? Does it having mostly rentals affect things for the neighborhood? I keep getting the impression that most developments are 50/50 rental/owner-occupied in much of LV, is that true? Maybe there are some bad problems going on in that particular development.
No, Richmond American was the builder and Terra West was and probably still is..the HOA in there. There's still a lot of rentals in there.
The general consensus of having a lot of renters in your development is..now this doesn't apply to everyone who rents, but having a lot of rentals in your development is less desirable than owner occupied. The renters are there, usually short term (but not always) and have "no pride of ownership" and could care less about their neighborhood and neighbors whatsoever. Again, like I said, this doesn't apply to all renters.
And no, most developments here in town are not 50/50 rental/owner at all. You'll find a lot of the rentals are in the developments in which you are looking at, smaller homes on tiny lots, no yards, etc. Also, the newer-built seems to have a lot of the rentals/foreclosures as well.
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