It’s been an interesting week in Las Vegas real estate. I’ve seen three homes this week listed at $57 per square foot or less, which is incredible. Almost unbelievable, really. So is it too good to be true? It is for all but one of those many buyers who made offers on these homes.

Houses do not sell for $57 per square foot in Las Vegas unless they are seriously trashed; even then it’s highly unusual. One had fire damage, and may actually sell for that price. But another was in nearly move-in condition and listed at $81,500. My office alone wrote three offers on this one. With a steady stream of agents in and out, I’m sure the listing office received dozens of offers. We submitted very clean cash offers of $105,000, but our offers were rejected. I won’t know what it sold for until it closes, but this $81,500 home definitely sold for over $105,000.

I almost hate to see homes listed for this price. They generate lots of leads, but we’re not here to gather leads … we’re here to find great deals for our clients. Someone probably got a good deal on this home … but paid over $105,000 for this $81,000 listing. So dozens of people wasted their time, when they might have gotten their offer accepted on another good deal.

Listing a home that far under a realistic market price isn’t helping anyone, except the listing agent who gets additional leads to follow up on. There are some incredible deals to be had in the $70- to $80-per-square-foot range, and investors are scooping these up. Occasionally something will sell for less than $70 per square foot on the MLS. Keep in mind that you may very well need to offer full price or more on an REO that’s priced too low; however, you’ll still walk away with an incredible deal.

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