Friday, October 23, 2015

Are New Home Sales Hurting The Vegas Resale Market?

Las Vegas, Nevada -- Everyone in Las Vegas wants a sure thing, and that’s exactly what Vegas home sellers experienced not too long ago.  The Las Vegas market was flooded with investors, mostly cash Buyers, who seemed to be purchasing everything in sight.  It was common for home sellers to receive multiple cash offers, many above list price.  Just like the casinos in Las Vegas, luck doesn’t last forever.  The Las Vegas Real Estate Market is no exception.  As prices went up, most investors left town.  The higher prices created a scenario where many were no longer able to “flip or rent” for profit.

Today’s market has shifted back to a “semi-normal” real estate market; however, some sellers are still under the impression their home is going to sell fast and receive multiple offers priced above market value.  What many home sellers (and real estate agents) fail to recognize is there is a new dynamic in Las Vegas which is gobbling up home buyers by the thousands.  Today’s sellers are facing competition from new home builders like never before.  In fact, we haven’t seen this many new homes for sale since the early 2000’s. 

New home communities are popping up everywhere, and the builders have gotten very smart.  Their pricing strategy is intended to go head to head with the resale market and the incentives they offer to buyers are hard to match.  For example, many new home builders are paying some or all of the buyers closing costs, and even buying down the buyers’ interest rate.

Additionally, as many Las Vegas homes are starting to show their age, the new home builders are offering features that resale properties may find difficult to compete with.  For example, the majority of new homes are “energy efficient.”  They offer features which can reduce summer utility bills up to 70% over resale homes.  This is a big incentive to those who live in the desert.  Summer air conditioning bills can be brutally expensive.  Especially for homes built before 2007, when some of the ENERGY STAR guidelines became mandatory.

Additionally, many of the upgrades that once cost extra for new home buyers are now considered “standard features” and included in the base price.  Features such as granite countertops, upgraded cabinetry, stainless steel appliances and energy efficient features are now typically included.  This can be quite enticing to a Buyer, when comparing a resale home to a “brand-new” builder home with all the bells and whistles.  How can you compete when selling a resale home?

Here are 5 “AFFORDABLE” tips to make your resale home more attractive to a prospective buyer.  These tips will help your home stand out from the competition and hopefully put you in a position where you are able to command top dollar. (and even compete with the new homes)

TIP ONE: IT’S ALL ABOUT THE KITCHEN:
White appliances, vinyl floors and oak cabinets can make your home look antiquated and “behind the times.”  The good news is this fixable and not terribly expensive to do.  Consider replacing your appliances with stainless steel.  There are plenty of deals out there for new appliances, especially during holiday sales, etc.  Additionally, there are always good deals on Craig’s List for gently used stainless appliances.  (Make sure your appliances match.)  Stainless appliances can help you get maximum value for your home.  Older looking kitchens might scare a buyer from making an offer or cause buyers to make “lowball offers” on your home.  Buyers typically take into consideration the amount of money they must spend to bring a home up to date, and then make offers accordingly.  You simply cannot go wrong investing in stainless steel appliances if you are expecting top dollar for your home.

TIP TWO:  MAKE YOUR CABINETS LOOK NEW
Oak cabinets might be out of style, but nothing that can’t be fixed with a little paint.  Today’s new kitchens offer a wide variety of cabinetry colors and options.  White is back in style.  So are other colors, which builders refer to as Cappuccino, Mocha, Espresso (or any other name you might hear at Starbucks.)  Most of these colors can be created with a quality paint job.  Adding some stainless steel or nickel handles or knobs might look good too. 

TIP THREE:  FRESH PAINT
Paint is one of the cheapest things to change.  If you watched too many of those home improvement shows and went a little crazy making your kitchen purple or your children’s rooms pink and red, now might be the time to choose a more neutral color. 

TIP FOUR:  NOT ALL VINYL FLOORS ARE BAD
Many older homes have vinyl flooring in the kitchen and bathrooms.  While vinyl can make your home look like you still listen to “8-Track Tapes” it’s easy and inexpensive to fix.  There are many replacement options available that look like tile or even wood (and yes, they are still vinyl.)  You always have the option of upgrading to tile, however, it’s actually quite affordable to put new vinyl flooring over old.  If you can bring your old flooring up to date, this will be noticed by potential buyers.

TIP FIVE:  HOW TO COMPETE WITH ENERGY EFFICIENT HOMES
This is one of the biggest selling points of new home builders.  In many model homes, they feature a display of some sort, showing off their quality construction and how their homes will keep your utility bills low.  How can you compete?  It’s easy.  Hiring someone to blow-in additional insulation to your attic is relatively inexpensive and can help keep power bills low.  Additionally, do you have windows that get direct sunlight and heat up a room?  Replacing windows is expensive; however, you might consider investing in some energy efficient window tinting.  This can reduce the amount of heat coming through a window by 50% or more, and is quite affordable to do.  When selling your home, providing Buyers with copies of low summer utility bills and advertising your energy efficient features can really make your home stand out from the pack.

Bill and Francoise Myers with Simply Vegas Real Estate are owners of The Myers Team.  They are “Top Las Vegas Agents” as seen in numerous magazines and publications including the cover of Las Vegas Agent Magazine and the Las Vegas Review Journal. Additionally, they have been interviewed and quoted for ABC News, CBS Evening News, and the Channel 8 I-Team. Since 2002, they have sold thousands of Las Vegas homes.

Contact The Myers Team at 702-677-4343

Las Vegas Top Agents:  http://www.LasVegasList4Less.com
Short Sale Information:  http://www.NevadaShortSaleInfo.com





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