Investing in Las Vegas real estate involves the willingness to take a gamble. Just a few years ago, Vegas properties were considered prime real estate that investors dreamed of owning. To succeed in this market was a badge of honor that proclaimed investors had reached a pinnacle most can only fantasize about.
Today, the Las Vegas real estate market is a fiasco. Property values have declined by upwards of 50-percent and foreclosure rates are some of the highest in the nation. Those who own property in Sin City are finding it next to impossible to obtain fair market value due to the abundance of foreclosure homes offered for sale at deeply discounted prices.
Even the biggest gamblers are apprehensive about buying Vegas properties as an investment. Those willing to toss the dice must realize they won’t win the jackpots once available through this market.
On the flip side, home prices in Las Vegas and surrounding cities are at an all-time low. Investors can find an abundance of cheap homes for sale in Clark County by scouting out foreclosures, bank owned properties, and short sale real estate.
Industry expert, RealtyTrac recently published a report regarding home sales in Las Vegas. Presently, the median price for foreclosure homes is $123,500. These are properties that just a few years ago were selling for $300,000.
While few anticipated that property values would decline by 50-percent, this drastic reduction has made real estate much more affordable within the state of Nevada. In turn, many investors are now revisiting the idea of investing in Las Vegas properties.
DataQuick Information Systems reports that half of residential properties sold during December 2010 were purchased by real estate investors. Of that amount nearly half were purchased with cash.
The DataQuick report also claims those who bought with cash paid approximately $10,000 less than those who obtained bank financing. Buying houses with cash definitely gives investors an upper hand when it comes to negotiating purchase prices. In some instances, presenting cash offers can help investors obtain additional discounts of up to 20-percent off the asking price.
Although the real estate market is still uncertain, Las Vegas can be a lucrative market for investment purposes. It can be beneficial to scout out bank owned properties; particularly those which have been listed for several months.
When banks take possession of repo homes they become responsible for safeguarding until properties are sold. The longer houses sit on the market, the more willing banks are to enter into negotiations.
Due to the high level of foreclosure in Las Vegas, many distressed properties qualify for government grants offered through HUDs Neighborhood Stabilization Program. Every state within the U.S. receives NSP grant funding. It is reported that Nevada receives nearly $70 million.
NSP grants must be used to rehab distressed properties. The process can be cumbersome, but those who qualify can receive up to 20-percent off the purchase price. Better yet, real estate investors can receive up to five NSP grants while individual buyers are limited to one grant.
Before gambling on foreclosure houses it is wise to become familiar with the Las Vegas real estate market. It can be beneficial to work with a realtor or network with other investors to minimize risks and quickly locate potential investment properties.