If I said we had a housing shortage, people would think I'd lost my sanity.

It certainly feels like a shortage. If you look at raw numbers, the fact is that we still have an oversupply of homes in the Las Vegas area. But with most of the homes on the market priced well beyond what buyers are willing to pay, most homes just aren't going to sell any time soon.

If I had a dime for every time I heard someone say, "The seller needs to get real and drop the price if he wants to sell it," I'd take all those dimes and buy every REO I could get my hands on right now. When you have a mortgage that's twice the value of your home today, you can't sell it except as a short sale or by coming out of pocket with a big chunk of money. No matter how motivated most sellers are, they can't drop the price low enough to sell their home.

So we have an oversupply of homes for sale. But with only 2100 REOs on the market and fierce competition for those homes, it feels like a shortage. The good news for some sellers is that their homes are getting shown more now. With strong demand for homes today, and fewer REOs on the market, buyers are beginning to look at some of these privately-owned homes again. I'm seeing increased activity on my listings. This may change again, at least for awhile, when the banks release more REOs.

Here at Top10RealEstateValues.com, we continue to grow. I'm proud to introduce 3 new agents. Lucy Stewart is a former Clark County zoning director, and brings a wealth of knowledge in land use and planning to our team. Linda Masciola has years of experience in real estate sales. Patricia Hernandez is bilingual, and a former restaurateur. I'm disappointed to have lost Cailin, who moved on; she is a bright young woman and future superstar.

We recently introduced a cellphone application to a limited number of our clients who agreed to be "beta testers". This application allows our clients to search for homes very easily from their own cellphones - very handy for clients who want to drive neighborhoods and view homes without being trapped in the back seat of a Realtor's car. Buyers can find the price on any house on the MLS, and this gps-based application will map other homes for sale in the neighborhood. So far the feedback is great: easy to use, fun, and very helpful in finding the best deals in any area. We'll roll this out soon to all of our clients; in the meantime, if you'd like to be a beta tester, just ask.

As an aside - my clients can't accuse me of holding them hostage, trapped in the back seat of my car until they buy! I drive a Corvette; a two-seater. As any of my clients who've been out looking at homes with me can attest to, riding with me would be a very scary experience. My driving style could best be described as Creative, Freestyle Driving; those white lines and road signs are merely suggestions. My clients prefer to follow me in their own car, quickly becoming adept in Intuitive Driving techniques. What is Robin about to do? Will she turn on that street 12 feet ahead without ever slowing down or even using her turn signal?

So I'm not the hard-sell type. I sell a lot of homes; I must be doing something right. I think people appreciate that I'm  there to advise and counsel, not to "sell". I listen well, and I show my clients just what they tell me they are looking for. When I take them to the perfect home, they make an offer. I don't ever want to influence someone's decision; I prefer to help buyers see the pros and cons in any home they view.  After all, that's how I want to be treated.

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It's times like this that make me so happy to be a Realtor.

Real estate is all about giving people the key to their new home - their new lifestyle. It's not about recognition, as your broker would have you believe. It's not just about being a community leader, as the real estate association would have you believe. It's not just about the paycheck, as your kids seem to believe.

It's about calling Kris and Sandi late on a Friday night to scream, "Congratulations!" because you know they are going to be so excited - and you get to be a part of that. It really is this simple; being a Realtor is about opening that door and standing aside while your clients walk into their empty new home, with nothing in hand but a key, their dreams and some ideas. Being a Realtor is fun, and I'm so excited that I have the best job in the world!

After 13 months of working to help this disabled vet and his wife buy a new home, I got to make that call tonight. A year of struggling to get credit issues resolved, and pleading with Kris to keep his spirits up every time he suffered another defeat. Finally, we’re home.

Four weeks ago we thought we were there, just as we have several times in the past. But after clearing every hurdle you can imagine, the appraisal came in at $135,000 on their $155,000 home.

I offered a rebuttal when the appraiser said the value would come in under $130,000. I showed why this particular model was more desireable than the comps the appraiser was using. This helped, but the appraisal still came in very low at $135,000. My clients have shopped for a year; they know full well they couldn’t get an offer accepted on this house today for $155,000. With 1862 REOs on the market today, homes are generally selling for above list price.

My clients love the home they’ve been trying to buy for 2 months. Before we start looking for another home, I suggested, let’s just see if the bank will reduce the price to appraised value. The banks don’t have to do this; the house would sell again for $155,000 to a buyer with a conventional loan who can pay the difference in cash.

Last night, I received the signed Addendum lowering the price to $135,000. And then I woke my client’s up with the good news. Hey, this is hard work…I have to find my fun somewhere.

We’re going to have one helluva housewarming party. It’s all good.

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The foreclosure tsunami continues to recede. As of this morning, there are only 1,899 REOs listed on the MLS in Las Vegas, creating the shortage that is resulting in multiple offers on everything from McMansions to doghouses. 

According to a group of Asset Managers who held a panel discussion for the Nevada Association of Hispanic Real Estate Professionals in Las Vegas yesterday, we may see the banks releasing more REOs to the market soon. This should help relieve the feeding frenzy that is making offers of $10,000 to $20,000 over list price commonplace.

Juan Martinez, NVAHREP President, did an incredible job of bringing a group of Asset Managers from various banks together to face a sea of Realtors at NVAHREP's monthly luncheon. Over 500 Realtors turned out to find out firsthand what on earth happened to the assets.

With most moratoriums having expired, we should see some of those REOs that the banks have been holding back show up on the market soon. No one yet has an accurate count of the number of empty bank-owned homes that remain unlisted. Our Top10 researcher, Ron, found at least 6,000-10,000. I've heard figures as high as 30,000, but I don't think there are anywhere near that many.

Expect to see a steady stream of REOs hitting the market as the tide rolls back in. Not a tsunami. Look to see REOs - and good deals - coming to the market over the next 3 or 4 years.

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Got $1,000,000?

Oh, why didn't I put together that investment group I've been thinking about? If I weren't so busy selling real estate, I'd sure be busy buying real estate.

I just got wind of a bank holding 3400 REOs for bulk sale at well below current market value. Minimum purchase is 60 homes. You need $1,000,000 in the bank to look at the inventory. If I had that I'd have paid cash for that 2009 ZR1 by now, and spent my change on REOs. Wow, you can buy 3-bdrm. houses here for much less than a Corvette. That's sad. Not for my investor clients, of course.

In case you haven't noticed, we are now down to a 3-4 week inventory of REOs. It's kind of eerie watching thousands of Realtors shaking their heads in unison, wondering why the banks aren't releasing REOs?

When are they going to make a real estate agent Bobblehead, anyway? I guess when we can all start shaking our heads up and down again, instead of side-to-side.

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I feel like a creep.

I've had at least half a dozen LVA readers or existing clients ask me lately why I haven't been writing my blog, House Advantage. LVA reader Judy T. hit the nail on the head, asking if I'm out contributing to the phenomenal surge in sales.

Yes, I am.

Pending sales of Las Vegas homes have risen from approximately 6,000 to nearly 10,000, laying the groundwork for another very strong selling season. Sales for May should exceed April numbers, which already compared to sales figures in the peak of the market in 2003-2005.

The number of foreclosures is now at a 5-week supply. Last summer, when the inventory of REOs dropped to only a 3-month supply, we saw homebuyers struggle to get their offers accepted in the face of stiff competition. As of late April, buyers have again found themselves competing for the nicer bank-owned homes.

In the past 4 weeks, I've seen offers well over list price rejected. Many buyers have had to make offers on 6 to 10 houses before they find a home. If you're just starting to look, expect to make several offers, and to find yourself in a multiple offer situation.

I hear rumors that the banks may release more foreclosures in June and July. I never thought I'd say I hope the banks list more REOs for sale, but I was wrong. If banks are holding back some of the REOs, as many people believe, wouldn't it make sense to list these when demand is so high and the market can absorb these?

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It only took a question from a reader to get me back to my computer. We've been showing hundreds of homes, writing dozens of offers, and literally pushing escrows through a system that's becoming bogged down as sales skyrocket here in Las Vegas (more on that later). As much as I enjoy sharing information and my thoughts, it gets tough to sit down and write sometimes. But I always have time for a reader's question, and this is one of those questions that I think other readers might share.

Jodie S asked what the entry "Exclusive Right" means in the Status field on the MLS. This is the most common status for a home that is currently for sale and available. This designation, which is an agreement between the seller and the listing broker, indicates that the listing office is entitled to a commission, regardless of who sells the home. To homebuyers, it merely indicates the home is available. (Well, it should mean that; in REO Land it does not always...more on that later, too!)

If the seller maintains the right to sell the home (a FSBO, or "for sale by owner") without paying the listing office a commission, this type of agency is "Exclusive Agency." This type of agreement is much less common; obviously, most listing brokerages want the right to earn a commission if they are marketing a seller's home.

Other common status designations are P (pending) and C (contingency). If an offer has been accepted and a sale is pending, one of these designations is used. Pending should indicate that there are no contingencies except for financing. Contingent should indicate that the sale is pending, but is contingent on something other than financing; e.g. bank approval of a short sale, sale of another home, or any of numerous contingencies that a seller has agreed to. Once the contingency has been satisfied, the status should be changed to Pending.

In REO Land, many listing agents are not updating the status in a timely manner when an offer has been accepted. This is a tremendous waste of time for both homebuyers and Realtors. This can be very frustrating for homebuyers who learn that the house they just fell in love with, which was listed in ER status, is actually in escrow, or that the bank is negotiating with another buyer and isn't looking at any more offers.

Listing agents often just don't get around to updating their listing in a timely manner. Many now blame it on the seller, saying that their asset manager won't let them update the listing until escrow closes. We at Top10RealEstateValues.com think that common courtesy dictates that these agents at least make mention in the "Agent-to-Agent" remarks that the bank has accepted an offer or is not looking at offers. So when I am crowned Queen, this will be the Rule of the Land.

Until then, my agents and I try to call in advance to find out whether there are offers on the home, and especially whether the bank has already extended a Counter Offer to another buyer. That gets a little tough to do when we are showing 10 or more homes in a day, but we especially try to do it on the homes that look great on paper.

A few more status indicators: T (Temporary) indicates that the home has been temporarily taken off the market. This is sometimes used lately when a home receives so many offers that it becomes difficult to respond to more. It's also used when an agent needs a little time to clear up some matter before putting it back on the market. W (Withdrawn) indicates that the home has been taken off the market, and the listing agent does not expect to list it again. S (Sold) indicates the home was sold recently; wheareas H (History) indicates it was sold more than 6 months ago.

And as I promised, more on sales skyrocketing. My blog is getting long, so I'll keep it short. Sales for March were further proof that sales are rising fast in this market. We are selling more homes now than we were at the peak of the market several years ago. March sales were nearly 3,000 homes, up by 30% in Februay. As my client said in the recent edition of Business Week, "Why wait for the bottom of the market when the deal is right?" (Yes, that's me in the April 13 Business Week photo with another client, who recently had an offer accepted. They just forgot to mention my name after having a camera crew follow us all day!)

With an increasing number of homebuyers competing for the attention of lenders already swamped with refi applications, it's taking 45-60 days to close an escrow lately. Every facet of the system seems to be bogged down, except the part where my agents and I show homes and write offers! Banks are taking longer to get fully-executed contracts back to us. Escrow officers are taking longer to close as sellers take longer to respond with their pieces of the puzzle. And lenders are swamped, resulting in turn times far longer than they were just 60 days ago. Even cash deals are taking 30-45 days; we can't close until the selling bank is ready.

It's still nearly impossible to predict when prices will begin to rise. Foreclosures are coming on the market at a faster pace than sales. As long as inventory rises faster than we can sell these homes, we aren't likely to see price stabilization. I believe the worst is behind us, and as my client told Business Week, the deals are right. He's buying a very clean 4-bdrm. home in a great community that will provide positive cashflow, and he's not waiting until prices start to rise to make a good investment.

More later on an interesting trend of lower-end homes coming on the market, and why that might be.

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I've been showing Roger homes for two weeks. He and his wife, Lisa, need to buy quickly; or so he told me three weeks ago when he first called me. Roger came to me through his employers, who had used my services to buy five homes in the fall. I was highly recommended, and Roger had just gotten out of a nightmare transaction with an inexperienced agent. We both agreed he needed the help of an experienced Realtor to find a home given his tight deadline.

On the first day of Weekend 1, we viewed five REO homes, all priced well because those are the only homes I show my clients. Roger didn't find anything he liked. On Day 2 of that weekend, Roger viewed four more REOs...still nothing. It's not that I wasn't showing the right homes; sometimes buyers think they want a certain type of home, but once they start looking they discover what they really want. I'm quite accustomed to this education process. While many investors will buy the first time they view homes, many first-time homebuyers and buyers of retirement or vacation homes really aren't sure what they want until they've looked a bit.

On Day 1 of the second weekend, we viewed seven homes and found three that Roger wanted to make an offer on, knowing he would be happy with any of the three. I quickly wrote up the offers, and then waited. And waited. And waited. Waited for Roger to sign everything and get it back to me. Waited for Roger to get his revised prequal letter from the bank's preferred agent. Waited for Lisa to find the time to come by my office to sign. Waited for the grass to grow.

By the time I was able to fax the offers to the bank's agents nearly 36 hours after viewing, other offers had been accepted on two of the homes, including one that Roger probably would have gotten with his $11,000-over-list price offer. His last remaining offer is about $26,000 short, and it will not be accepted. Some times clients prefer not to take my advice; almost without exception, their offers don't get accepted.

On Day 1 of Weekend 2, Roger selected six of the listings I'd sent him to view. When we met, he'd come up with another three listings that didn't meet his parameters. Now I've realized he's all over the board, and I feel like we're taking one step forward and two steps back every time we meet. But at least I've been able to impress on Roger and Lisa the need for speed. Three offers written, signed, and faxed back to me within an hour of looking at the last home. In that regard, we're making some progress.

Of the three offers we wrote last night, only one has a chance of being accepted. Two offers are for $10,000-under-list price, and in addition to that Roger is asking for 3% for closing costs. He really doesn't seem to want a home as quickly as he professes to need one. One offer is $1500 above list, but with 3% for closing costs it is about $3000 under what the bank is looking for.

I am ALL about finding the best deal for my clients. But once again, I must remind Roger - these homes are already priced well below their true value; you can't build these homes for the list price! Mortage rates remain historically low. This year, first-time homebuyers who qualify will get a tax credit of up to $8,000. This convergence of positive factors is not going to last much longer. So I'm trying hard to help him take advantage of these factors before the opportunity is gone. Roger, that.

A quick glance at the statistics shows that approximately one-third of recent sales were sold for more than 101% of list price. Another one-third were sold for 96% to 101% of list price. Only one-third were sold for less than 96% of asking price. So if you really want a bank-owned home, be prepared to pay right around asking price if you want a 50/50 chance of getting your offer accepted. Banks like cash or big down payments; if you are putting only 3.5% down and want help with closing costs, you will have a much stronger offer if you are over list price. If you are paying cash, you may be able to offer a bit under list price. If you find a clean REO in good condition in a good location, you are probably not the only one who has good taste...there will be other offers on the same home.

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We've been extremely busy again; so busy that the Top 10 hasn't been updated for a bit. I know, I know ... but everyone is looking to buy right now. Offers and open escrows come first. Today I've been showing homes all day to three buyers and writing offers for two, as well as doing some research for a few other clients. Another long day.

I'm pleased to announce that I've just hired my first agent referred by a Las Vegas Advisor reader. Cailin Nicholson's mother-in-law, an LVA reader, sent her my way. Cailin's very enthusiastic about working with buyers, and I'm confident that she's going to help take great care of our clients. Which will leave me more time for mopping up floods.

Okay, it was one of those "it was funny afterwards" kind of horrific mishaps. And one of those things that make a Realtor's life challenging. It's a good thing I love what I do. Being a Realtor is the coolest job in the world!

Hale and Tomi and their adorable little baby boy flew out from Pennsylvania to inspect their new Las Vegas second home prior to closing. They arrived early in the morning, after I'd had three hours of sleep. I'd been working for three solid days to throw a Caribbean party for 55 close friends, making the jerk pork, fried plantains, and fresh papaya dressing by myself ... all the while fielding client requests and showing homes. I was tired, but it was just a matter of opening the door to let my clients and the home inspector in. After that, I'd head for the airport to catch a flight to Suquamish to visit my family ... and sink into a much-needed nap on the plane.

Flipping a light switch as we walked in the door, I froze when I heard a loud hissing sound. Realizing it was the sound of running water, we all headed for the kitchen to see if someone had left the faucet on. My heart sank when we rounded the corner to find water gushing out from under the kitchen sink. The home inspector jumped to try to stench the flow of water that propelled 1 feet' across the kitchen and onto the carpeted dining room, as I stood there thinking, "Oh, crap." I immediately called the bank's agent; Seven days later I have yet to get a return call.

It appears the previous owners left a water main open when they removed the dishwasher and all other appliances after losing the home. We got the water shut off after 30 agonizing years (or was it seconds?), and gazed at an empty house with a flooded kitchen early on a Saturday morning. But not for long.

The home inspector grabbed the one thing he could find in his truck to mop up all those gallons of water -- a T-shirt. I threw the few paper towels I could find on the floor to try to stop water from entering the dining room, and ran to find the nearest store. Fifteen minutes later, mop in hand, I began removing the water as fast as I could, one mophead-full at a time.

While Hale opened all the windows upstairs to keep air circulating until my researcher could get there with a wet vac, I mopped furiously. By now the water had spread about six feet into the carpeted dining area, but the kitchen floor was dry. I was never so happy that Las Vegas is so dry; the dampness would be completely gone within hours. 

Off I went on the run, heading for home to pack before speeding to the airport. The way my day was going, I called my son before leaving to say my goodbyes. I was certain I'd be hudsoned; the first-ever Southwest flight to ditch in the Puget Sound.

I barely made the flight. I settled into my seat, knowing that when I touched down there would be a message from Hale and Tomi asking me to cancel their purchase. Surprisingly, there was not, and I thoroughly enjoyed my 48-hour trip.

The day after the due diligence period ended, I contacted Hale to see if he wanted me to let the escrow company know we were ready to close. I about fell over backwards when Hale asked if my assistant hadn't told me that he'd sent a certified letter canceling the purchase at the 11th hour! All I could think of was, "Gosh darn it, how can I protect his earnest money when the deadline has passed?" (I wasn't really thinking "gosh darn it", but this is a family-friendly blog.) I've never let a client lose their earnest money. I was crestfallen. I called my assistant to fire her, but couldn't reach her.

Funny, funny Hale. He was text-teasing. Had I reached my assistant, Hale said, she could have told me how happy they were with their new Vegas home. Had I reached her, Robin said, I'd have shot first and asked questions later.

According to Hale, the deal was cinched when I bought that mop and started mopping. I got a warm, fuzzy feeling all over, though it wouldn't have occurred to me to do anything less than the right thing.

I hope Hale doesn't notice that I didn't clean very well where the refrigerator had once been!

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Mortgage rates are falling fast, thanks to the Federal Open Market Committee's statement increasing support for the mortgage market. U.S. central bankers announced plans yesterday to buy as much as $300 billion of long-term Treasuries, and to more than double mortgage-debt purchases to $1.45 trillion, in an effort to lower home-loan and other interest rates. The statement from the FOMC stated that its main rate would remain at almost zero, quite possibly for an “extended” time. The rate for a 30-year fixed was just under 4.7% this morning and is likely to fall a bit further. Some newsmakers opined that rates could fall to 4.5%.

While this is good news for homebuyers who are buying right now, this poses two potential problems for homebuyers who are still stalling on their decision to purchase.

When the economy begins to rebound, the sudden influx of money is expected to lead to inflation. Anyone who remembers the double-digit interest rates in the 1980's may want to think twice about waiting in hopes that housing prices will drop further. There are already many REOs on the market that you can buy for less than the cost to build; at this point, these can be purchased with really low-cost financing.

Another problem which will likely worsen is already causing headaches for my buyers. As rates drop, the mortgage lenders are flooded with requests to refinance. Already the lenders I work with are busy with refis, including "short refis," and buyers -- who generally get preferential treatment due to escrow deadlines - are waiting an extra four or five days for loan approvals.

I've had to request extensions to the close of escrow date for three buyers this month due to lender delays. Not only will these three buyers need to pay more interest up front if these close after the last day of the month, but they may very well incur "per diem" charges of $50 to $100 per day -- the fee charged by the bank when the buyer fails to close on time due to no fault of the seller.

If you have a home in escrow, be sure that your lender is going to be able to close in a timely manner. I am e-mailing or phoning my buyers' mortgage officers every day advocating for a timely close. When yours is one mortgage application in a stack of applications, make sure your Realtor is looking out for you and is in constant contact with your lender and the title company. And if you aren't going to be able to close on time, make sure it's the seller's fault!

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With an increasing number of REOs coming on the market in the past 90 days, it’s still too soon to predict when prices will stabilize. Sales are down a bit for February, but should rise in March. Having broken the law of Supply & Demand, the Las Vegas real estate market is attracting frontier-type investors -- men and women who aren't afraid to brave the risks inherent in the new REO gold rush.

I continue to hear how bad the economy is, but my phones continue to ring off the hook. It seems some days that everyone and his cousin is looking at homes. Quite a few clients are making offers, but those who insist on trying to lowball the banks are walking away empty handed. Out of 1,731 sales of single family homes in February, the banks got less than 90% of list price on only 211 homes. Conversely, the banks got 100% or more of asking price on nearly one-third of REOs sold.

If the home is old or in disrepair, you may be more likely to pick the home up for less than asking price; the same holds true if you are paying cash. But then again, you may have to pay more than asking price; it depends on numerous factors. Since every deal is a unique transaction, I discuss these factors with my client as we structure an offer likely to be accepted.

Sales of existing homes for February were 2,187 as compared to 982 for February 2008. At this rate, I’m confident that sales will remain brisk into the fall. With all the REOs hitting the market, expect to see some more great deals through the next few months, at least.

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