It can take a considerable amount of patience coupled with an in-depth understanding of how an actual Las Vegas Short Sale process works to complete this type of specialized estate transaction. But, if you are considering making an offer via the Las Vegas Short Sale process, you can get a very good deal on home.
What’s the definition of a Las Vegas Short Sale or selling a home “short” of the balance due on the mortgage? A Las Vegas Short Sale means the seller’s lender (bank in most cases) is willing to accept a reduced payoff to release an existing mortgage held against the property.
As a first step, most lenders (banks) will request a “BPO” (Broker’s Price Opinion) from an REO experienced real estate agent to get a rough estimate of what a property is worth in the market – the lower the BPO of course, the more likely the a short sale will occur. Whenever you ask a lender to take a write down on an asset (the home) it’s a challenging situation – you are asking them to experience some financial pain. Most lenders will also take a hard look at the numbers and consider taking possession of the home and then selling it via a foreclosure process.
Right now we are seeing a lot of Las Vegas Short sale activity – we believe based on our own internal numbers and others we have pulled from credible sources that approximately 45-60% of all Las Vegas real estate transactions are either a short sale or foreclosure. Approximately 26% of all available inventory in the Las Vegas real estate market is listed as a short sale, as reported recently by Applied Analysis, a Las Vegas consulting firm.
So, the data tells us there is clearly inventory on the market and we know the vast majority of these listings are discounted significantly by the lender so where do the challenges lie for an investor or consumer? A successful short sale entails three groups of people working together – the seller and buyer have to put an offer together and then present this to the bank. Then, the loss mitigation department at the bank has to review the offer and many of these departments are handling a large number of transactions and most of the departments are under staffed, as they are losing money for the bank.
So, be prepared to spend some time going through this process – patience is again the order of the day and this process is much more art than science. You need to work with an experienced Las Vegas Realtor that understands the entire transaction, has relationships in place (this is optimum) within the departments at many of the top tier banks and understands all aspects of the negotiations with all three parties. Getting the right offer to the right person/department can make or brake a deal!
We have a dedicated Las Vegas Short Sales team that has been through extensive training – if you would like more in depth information please clickthrough Las Vegas Short Sale.
