Sin City Residential Blog 

Selling your Home in Las Vegas

So you’re finally ready to sell your home in Las Vegas? Maybe the kids have left and you’d like to downsize to a home Sun City Summerlin? Perhaps you require more space now with your new baby? Whatever the reason the idea of selling your home in Las Vegas can be overwhelming to say the least, but it doesn't have to be. Unfortunately there are a few pitfalls along the way that can leave you with an unsold home and many (and I've seen MANY) wasted months on top of it.

Let’s assume some things first:

• Your property is in good shape with minimal wear/tear.
• Your home is clutter free and shows well.
• Your home is accessible for showings.
• There are no pet odors or other offensive scents that may greet your potential buyers.
• Your neighbors are not hurting your home value due to lack upkeep. 

Pricing your property

Did you have a figure in mind? How did you arrive at that number? Did your Las Vegas estate agent provide you with a market analysis for your neighborhood specifically? 

Who came up with the final number? If you felt your home was worth more, were you able to produce evidence (recent sales inside your vicinity) to support it? (Please whatever you do….don’t say “Zillow.”)

Let me tell you a quick story about a home I recently sold. This particular neighborhood has fairly good activity. On one street there were two homes for sale. Home “A” was originally listed 13% over the median sold price for that area, over a year ago. Not surprisingly it got few showings and no offers. At the end of the six month listing agreement they lowered the price to roughly 10 % over median sold price with the same results. The listing expired (did not sell) shortly after that.

The home was then re-listed by another real estate agent, this time for 7% (give or take) over median sold price. Guess what? Same results!

FINALLY, they brought the listing price down within 3% of comparable sold homes, over the previous six months. By this time however, the months upon months on the market was working against them. Potential buyers wondered if something was wrong with the home and activity slowed. The home never sold and eventually was withdrawn from the market.

Literally two doors down (and across the street) was home “B.” Another real estate agent (in this case yours truly) looked at the market data and made an honest assessment to the valuation of the home. We listed the property a touch above the most recent sold price, which yielded numerous phone calls and a contract within 24 hours of listing! It closed escrow 45 days later for 100% of list price!

Why did this happen?

They were nearly identical homes in the same neighborhood only doors apart from one another.

Home “A” was overpriced and overpriced homes do not sell in Las Vegas, or anywhere else for that matter. In fact I would argue that overpriced homes rarely even get offers. In my experience people tend to offer within 3-5% of list price. If you’re above that, buyers won’t bother. What they WILL do is go to a comparable home nearby that is priced correctly and make them an offer instead.

Days on market (DOM)

Time too is another issue, as mentioned earlier, buyers begin to think that after 300 days (for instance) on the market, something must surely be wrong with the property. Fair or not, that’s what buyers tend to assume.

The take away

Was this a case of the owner believing their home was worth more than it really was? Did the agent simply tell the people what they wanted to hear to get the listing? Regardless, by starting out too high and refusing to adjust, the owners ended up with a home that didn’t sell. This was a shame because it could have EASILY sold QUICKLY if they had only started out right on price.

The take away from all this? Positioning your home correctly from the start greatly increases the odds of selling your home quickly and for top dollar.

What is the New Mortgage Criteria for Las Vegas in 2015?

Some big changes are taking place in the mortgage industry. Because of this, home buyers in the Las Vegas and Henderson will want to get educated before they start their loan process. The Consumer Financial Protection Bureau has put forth regulations that changes how a "qualified mortgage" is defined for buyers who apply for loans this year.

These new criteria helps ensure that consumers are protected from unreasonable loans, while adding stability to the markets. Likewise, secondary markets where mortgages are purchased by government-sponsored enterprises such as Fannie Mae and Freddie Mac, will no longer buy non-qualified mortgages. Since many lenders sell their loans off to be repackaged as securities, they will also be following the new regulations.

In order for lenders to meet the standard of a qualified mortgage, the APR (Annual Percentage Rate) must be within 1.5% of the annual prime offer rate. Secondly the loan must not exceed 30 years. In addition points and fees may not exceed three percent of the loan balance. Finally negative amortization or interest-only payments will not be allowed. By adhering to these rules, the lender becomes exempt from litigation by a borrower who is unable to repay the loan.

There will also be a new set of requirements to determine if a borrower is able to repay their loan, which would be verified by the lender. This includes a thorough analysis of both income and debt. Some consumers who were once able to easily qualify, may find it difficult due to the tighter regulations that have been put into place.

Some aspects of this new legislation may seem confusing to borrowers, especially first time home buyers. It's imperative to find a lender who can help clarify these new laws as you enter the marketplace.  Kevin Helm at Guild Mortgage here in Las Vegas does an outstanding job and offers a variety of financing options for buyers.

Debt ratios have always played a significant role in the loan qualification process. Going into 2015 it will continue to be an integral component. Under the new criteria for qualified mortgages, a borrower’s debt-to-income ratio must be 43% or less. That percentage includes the mortgage payment. Not only that, but lenders will also consider potential debt in the future. Examples of future debt would be student loans that come out of deferment or child support payments. It would be prudent for potential home owners to tackle as much debt as possible prior to starting their application process.

Not surprisingly, the ability-to-repay measures will require a little more paperwork from the borrower. A thorough analysis is necessary in order to make sure the buyer is compliant with the new standards. While this may seem like a bit of a hassle, it ultimately serves to protect the loan applicant in the long run.

It’s best to ask as many questions as possible, so you can have an acute understanding of the loan application process beforehand. Knowledge is power, but just as importantly it can put you at ease. The more educated you are, the less uncertainly you will have. Knowing your credit score is also very helpful and gives you time to address any unexpected issues that may arise. All three major credit bureaus (Experian, TransUnion and Equifax) offer consumers a free report annually. Take advantage of that.

With the new changes taking effect next year, borrowers will have more protection and lenders must comply with the new criteria. Hopefully this will create a strong foundation for the Las Vegas real estate market as we move forward.

Las Vegas Real Estate: Talking Photography

I’ve written before on the importance of professional photography, when you list your home. Today I’m going to talk to one of my photographers, Nina Bacigalupi, about different aspects of photography and how it relates to real estate.

Jason: We shot a home over the weekend, and I noticed the initial photo was very dark before you processed it. It was near sunset, but it wasn’t that dark. Why did you shoot the home in such a way?

Nina: When you’re trying to shoot something like the exterior of a house, especially when you have a great sky or sunset, you can’t expose the sky and the house at the same rate. For instance, if you expose for the house only, you’re going to lose the brilliance in the sky. If you expose for the sky, more than likely the house will be dark, like this example. Post processing will allow you to get the detail back out of the house, without losing the sky. This way you can have both parts of the image properly exposed.

Jason: So in other words, you get the whole picture, no pun intended of course.

Nina: Correct.

Jason: I see a lot of other photos, where the sky seems completely gone, or they photoshop in another sky, and it doesn’t look quite right.

Nina:  I think we have amazing skies here in Las Vegas.

To elaborate more (without giving all of my secrets up,) in post processing, I selectively adjusted the exposure on the house only. So in this case, I lightened the exposure on the property, and then independently adjusted the sky to how I wanted it. I sharpened the house just a touch, and then added contrast to both the sky and the house, to make those details really pop. The end result was a picture that captured the awesome sky near sunset and the aesthetics of beautiful home.

Jason: As far as interiors go, these are tough to shoot. Can you talk to me about these?

Nina: Shooting interiors like can actually be pretty challenging, even for professional photographers, much less an agent trying to do it on their own. Getting the angles right and having the camera aimed in the right direction is really important. But so is the light, and the exposure too. A lot of times if you’re using a wide angle lens to try and capture the interior, you’ll get something called barrel distortion. This is when your straight lines, like walls and doors, will take on a curved appearance.

Jason: Is that the same as a fish eye?

Nina: It’s not the same thing. Fish eye, you’re going to get a LOT of barrel distortion.

Jason: I’ve seen a lot of that on the MLS over the years and it looks horrible. What causes that?

Nina: I agree, it looks bad. The fish eye is actually a special lens. It is considered an ultra wide angle lens, and you can get an amazing degree of sight when you shoot with it. But the trade off is you get that distortion. You can take it out in post processing, but I don’t like to shoot with it at all to be honest.

Jason: There is something you do, that is really cool. You take a series of pictures for the interior, and then “stitch” them together later on. You capture the entire room this way and no distortions.

Nina: It’s an easy way to get the entire room, especially when it’s smaller interior. You can piece together multiple images, until you get almost a panoramic view of the room.

Jason: I see a lot of post processing, that I have to admit, doesn’t look too hot. At what point does post processing become a negative for the industry?

Nina: I think post processing is extremely important, if it’s done right. The problem is that often it is not. Just like in the first example we talked about. A photographer may get the sky, or the house, but often isn’t able to get both. You really must have a fine touch when it comes to this. When you over process an image, then they don’t look real. Or the colors will look completely unnatural. Or the sky will be swapped out, but it doesn’t look quite right, the shadows are off, or whatever.

Jason: What is High Dynamic Range, can you explain this?

Nina: HDR is when you take multiple images at different exposures of the same room. When you piece them all together, it will enable you to bring out the details in both the lighter colors (such as the scene out the window) and the darker colors, such as the grain in the wood floors. The problem with that is, a lot of times people overdo it, and it doesn’t look natural. Done correctly however, it can produce an awesome photo.  HDR is a little challenging to say the least.

Jason: Let me ask you about these public shaming sites, like Bad MLS Photos etc. How do you feel about these? I mean, they’re really funny, but at the same time, they’re really not.  As a photographer, do you just cringe seeing them?

Nina: They look so lazy. Just lazy.

Jason: Would you pay somebody six percent to sell your home if they took pictures like that?

Nina: No way. In fact I would be angry. Very angry.

Buying a Home in Las Vegas: FHA Basics

First time home buyers may look at the road ahead of them and be overwhelmed. This is understandable. I remember many years ago buying my first home with my wife. We were excited and slightly terrified. Looking back I realize were also ignorant about the entire process, especially financing. It wasn't a matter of asking the right questions, we didn't even know what the right questions were to ask. 

The loan process is often an enigma for first time home buyers in Las Vegas and Henderson. One of the most popular and prevalent mortgage options is an FHA loan. 

For nearly 80 years the Federal Housing Authority has provided home buyers with government insured loans. The key word here is "insured." FHA does not provide the loans, it only guarantees them. Buyers must apply for one of these loans through a lender that has met the FHA guidelines. 

 In essence the Federal Housing Authority helps extend loans to those who may not meet conventional lending standards. FHA is especially beneficial to those who would like to purchase a home, but may not have a substantial down payment. FHA insurance also eases the qualifications for individuals or families who previous had financial issues such as bankruptcy or foreclosure.

When compared to a conventional loan, FHA is substantially lower. Right now the down payment for an FHA loan is 3.5% of purchase price. Compare that to a conventional loan that generally requires a 20% down payment. For first time home buyers, newlyweds, younger families or those short on cash, an FHA loan is extremely beneficial. 

It should be noted that since the new owner will have less than 20% equity that mortgage insurance will be required. One of the great things about FHA loans is that this premium can be rolled into your new mortgage amount. On the contrary, private mortgage insurance (or PMI) cannot be rolled into the loan and must be paid monthly. FHA requires that borrowers keep this mortgage insurance until your loan-to-value ratio hits 78% or five years, whichever one is longer. 

Keep in mind that just because an FHA loan has lower entry qualifications, does not mean your information will not be scrutinized. FHA approved lenders here in Las Vegas will require bank statements, tax returns, recent pay stubs etc. So it's important to have these items ready. Likewise they will look at our debt to income ratio, which currently should not exceed 41% of your gross monthly income.

Despite the low costs associated with obtaining a home with an FHA loan, there are baseline expenses you should be prepared to incur. Borrowers will need to pay for a property appraisal, home inspection and credit report. While FHA does require the home meet certain criteria prior to approving the loan, it does not require a home inspection. Regardless, I strongly advocate all home buyers pay the money for a licensed home inspector to go through the property. A few hundred dollars is cheap insurance when faced with the alternative. 

An FHA loan is pretty straight forward to understand and has helped millions of Americans realize the dream of home ownership. If you need help getting started with an FHA application, give me a call and I’ll be glad to get you started. 

Las Vegas Market Report for January 2015

LAS VEGAS – The median home price in Las Vegas for January was $200,000. This is down 2% when compared to December, although it's still an 8% increase year-over-year when compared to January 2014. For condos, townhomes and high-rises, the median price remains unchanged from the month prior at $105,000. When compared to January of 2014, we're up 10.5% however.

Total sales

For 2014, Las Vegas had 36,500 total sales through the MLS. This is actually the lowest sales number over the last six years.

Inventory

The total number of single family homes, condos and townhomes sold in January was 2,239. December by comparison had 2,734 units sold. Currently we have a four month supply of inventory available for sale. A six to seven month supply is considered a balanced market. A balanced market is favorable for both buyers and sellers.

As of January there were 12,666 single family homes listed for sale on the GLVAR MLS. This is a 2.5% increase from December. Compared to January 2014, it's down 6.4%. Likewise the number of condos, townhomes and high-rises for sale is also up 4.5% from December, but down 15% when compared to last year.

Cash Sales 

In January 36 percent of all local properties sold were purchased with cash. That's up a bit from December, but down from a year ago when cash buyers took up nearly 47% of transactions here in Las Vegas. That's still well short of February 2013, when the market was nearly 60% cash buyers!

Bank Owned and short sales

The median price of bank owned homes in Las Vegas for January was $155,000. The median home price of short sales was $167,000. In January short sales took up 9.7% of market sales, while bank owned took up 9.4%.

Overview

A slight pullback during the winter months is to be expected. While 2014 had a total appreciation of 8%, the median home price in Las Vegas has essentially remained the same over the last 6 months or so. Distress sales are no longer dominating the market place, which is great news for long term stability for our real estate market. We should expect an increase in inventory and buyer activity as we move into the Spring season. That said, sellers often have less competition and more serious buyers during the winter months. Any price appreciation this year will probably be very gradual, especially when compared to the previous 24 months.

The 15 Year Mortgage-A Great Way to Buy Las Vegas Real Estate

Mortgage rates have come back down again over the last few months. Historically speaking, money is extremely cheap. Currently a 30 year mortgage rate is under 4% and a 15 year mortgage can be had for under 3%. These rates continue to be a great opportunity for millions of Americans and future home owners in Las Vegas and Henderson.

I'm a fiscally conservative guy and I advocate prudent decisions to protect you and your family's future. You never know what is around the corner. Yes we draw up blueprints, but as most of us can attest, they rarely go as planned. The reality is that we live on life's terms, not the other way around. We never know what's going to fall into our lap.

Given this reality, I strongly advocate buying a little less home and considering a 15 year mortgage as a means to pay for it.

Yes you heard me correctly: Buy less home than you can afford to.

Here's the skinny on home ownership. It's not an "investment." It's a liability. In fact it's a rather large liability, probably the largest you'll ever have, short of taking out student loans for medical school. For instance, if you bought a home in the Painted Desert community with cash and rented it out, that would be an investment. If you purchased real estate in Rhodes Ranch and it cash flowed positive, that would be an investment. Otherwise you've purchased a liability.

The point is that a home is a place to live and should be seen as such. It should fall inside your budget comfortably and you should plan on living there for at least 5 years. It's not an asset until it is paid for, or if you have substantial equity.

That brings me back to the fifteen year mortgage. Imagine actually owning your own home outright? It's a far fetched notion these days, but not so long ago people actually did this. This is why it's advisable to purchase a little less than you can afford and then put it on a fifteen year note rather than thirty.

Right now nearly 30% of those refinancing are switching to 15 year mortgages.  Combine lower monthly payments with the thousands you will save in interest and you will have saved a significant amount of money.

Imagine buying real estate in the community of Aliante at 30 years of age. You could have a home that was completely paid for by the age of 45. A home paid for free, clear and purchased comfortably within your budget.

With that asset comes financial security, a safety net for downturns (personal, economic or other) and ultimately freedom.  Isn't that what we all want?

Paranormal Activity – Would You Buy A House That’s Spooked? 

There’s a perception that homes with a ghoulish history will sit on the market, but paranormal activity doesn't seem to scare buyers off -- as long as the ghosts are friendly. 

That’s the conclusion reached by Realtor.com’s Haunted Housing Report, which reveals some surprising opinions when it comes to buying haunted houses for sale. Among the sentiments expressed, 26 percent of respondents definitely would consider purchasing a haunted house, while a further 36 percent might consider a spooky purchase -- as long as the flickering lights, ghostly footsteps and levitation aren’t too extreme.

They’d probably want a discount, though. 

Ghost Stories Can Raise Value

A haunted house would have to come with a deep discount, respondents said, before they'd consider buying one. Almost one in five would-be buyers wouldn’t even look at a haunted house unless the price was reduced by 51 percent or more. On the face of it, these sentiments are pretty bad news for sellers.

In fact, the issue’s more nuanced than the statistics suggest. The presence of spooks can boost or lower a home’s value. It all depends on the buyer and how they’re planning to use the property. Someone who wants to convert a big old house into a bed-and-breakfast, for example, might relish the possibility of a spectral encounter -- as the owners of purported ax-murderer Lizzie Borden's former home have shown. The house, where Lizzie may or may not have brutally slaughtered her parents, rents as a B&B museum for guests hoping to spot the bloody ghosts of Andrew and Abby Borden wandering the dimly-lit corridors. 

Adventurous buyers might also enjoy a property’s juicy past. In the Realtor.com survey, a full 12 percent of the respondents said they happily would pay a home's full market value or more if they believed a house was haunted. Credible hauntings --  those that are tied to a real or reputed historical event -- resonate with buyers, and may even be used as a marketing tool. 

Still, it's a fine line to tread. A fun, Victorian-era tale of murder and intrigue tied to a house of historical significance probably has little effect on value or might bring a small premium. Darker deeds that took place in living memory have quite the opposite effect.

Buyers Avoid the Truly Macabre

Real world horrors, such as a recent murder or suicide, definitely can depress a home's value. The house where Nicole Brown Simpson was infamously murdered, for example, took two-and-a-half years to sell in a neighborhood where homes were changing hands within three months. The property eventually sold at a deep discount to a buyer who gutted the place. Today, the house is barely recognizable.

A murder scene is just one type of "psychologically stigmatized" real estate. Real or perceived, psychological taint comes from any number of sources, including suicide, death, paranormal activity, serious crime and proximity to nuclear power stations, nuclear  weapons-testing sites, cemeteries and registered sex offenders. Each of these stigmas creates a risk in the minds of prospective buyers, preventing them from paying full value. Properties situated within a tenth of a mile from a convicted sex offender’s home sell for 17% less than comparable homes in the neighborhood. Anecdotally, “psychologically impacted” homes take 45% longer to sell. 

For selling agents whose primary duty is to achieve the best possible sale for their client, this presents a real and immediate problem.

Do You Have to Tell the Buyer?

Sellers may be tempted to keep quiet. After all, the standard seller disclosure form has no “haunted house” box to check off. Indeed, Nevada’s disclosure laws clearly state that the seller does not have to disclose previous deaths (unless they were caused by a condition at the property, such as faulty wiring) or crimes at the property. But what about ghosts?

Generally, sellers are obligated to disclose material facts that affect a property's marketability or desirability and, as we have seen, ghostly noises and supernatural oddities certainly could affect a buyer’s willingness to buy. 

This brings to mind the strange old tale of Mr and Mrs Stambovsky, who laid down a hefty deposit for a haunted Victorian mansion in Nyack, New York. Unbeknown to the Stambovskys, the creepy old house held pride of place in local folklore for the eerie things that happened there, and had even featured as part of a haunted walking tour in Reader's Digest. For whatever reason, the seller, Helen Ackley, ceased all promotion of the house as haunted before listing it and neither she, nor the seller's real estate agent, told the Stambovskys about the dark poltergeist activity taking place at the home.

The usual rule in these scenario is caveat emptor (buyer beware). The Stambovskys had the legal duty to ask pertinent questions and, if they didn't ask Ackley to disclose facts about the property that could affect its value, they had no grounds for backing out of the deal when the property's spooky reputation eventually came to light.

Mr Stambovsky, undeterred, took his haunted house case all the way to a New York appellate court, claiming fraudulent misrepresentation. In an extraordinarily ruling, the court found that the property was "as a matter of law" haunted. The fact that Ackley had verified the ghosts' existence by selling her story to the Reader's Digest prevented her from denying the existence of the poltergeists. As such, material information was deliberately hidden from the Stambovskys, who were allowed to back out of the deal.

As with every good supernatural tale, there's a final twist before the end. Once word got out that the house was "legally" haunted, a whole new bunch of intrigued buyers brought money to the table, including famous mentalist The Amazing Kreskin. A couple of years later, the ghosts reputedly told a couple of paranormal investigators that it wasn't as much fun haunting the house without Ackley, and public reports of haunting more or less ceased.

Everyone, it seems, has their perception of things -- even the ghosts.

Getting a Loan for a Condo in Las Vegas 

Thinking about buying a condo in Las Vegas? Here are a few things to take into consideration when you’re applying for a loan.

It's not just the Condo you are buying

Keep in mind that you're not just purchasing the unit, but a portion of the common elements as well. As an owner you will be responsible for the monthly costs of your unit and a pro-rated share of the maintenance costs for other parts of the complex.

Reserves

Just like a single family home, a reserve must be kept to address replacement costs as they arise. Likewise, monthly maintenance must be performed to keep the condo community in tip top shape. Just like anything else, the better something is maintained the less expensive it is in the long run. Potential condo purchasers should talk to board members and scrutinize financial statements to assess the fiscal strength of the association. Is there any upcoming special assessments looming on the horizon?

Special Assessments

What are special assessments? Special assessments are typically for unanticipated costs that the reserve cannot adequately cover. Usually each owner's share of a special assessment is calculated using the same formula as the monthly dues. Just like owning a single family home, it is a wise idea to have a little bit of money tucked away for repairs.

Lenders tend to be Wary

If you’re interested in financing a condo here in Las Vegas, the lender has more say than in a single family home purchase. You've got to keep in mind that some of the biggest losses that banks took during the crash were from condos. They view these loans as more risky and therefore are much stricter these days. Some of the things they will examine are the HOA reserves, owner occupant levels and monthly delinquency rates.

I had deal fall apart once because the lender didn't think the home owners association (HOA) had enough money in reserves. The reserves shown on the financial statements did not meet their minimum requirement. Because of this, the underwriter denied the loan and my disappointed buyer walked.

This part can be frustrating for the buyer. In this case my customer was a very responsible young lady (in her early 20's) who had great credit and 20% down. She was excited about her condo, which was at a steal of a price, and was absolutely qualified. The bad news? According to her lender, the HOA was not. This part of the buying process is out of the purchaser’s control obviously.

Ratio of owner occupied units

Lenders can be finicky about this too. If a disproportionate amount of units are filled with renters, the mortgage company may not approve financing.  For instance, Fannie Mae states that more than half the condo units must be owner occupied. They also don't want to see one individual or group who owns more than 10% of the units in the complex.

Is everybody paying on time?

Delinquent condo dues are also taken into consideration. Fannie Mae will also deny a loan if more than 15% of the owners are behind on their monthly maintenance dues.

Down payment

While many lenders require a much larger down payment for condos, FHA has more friendly requirements. If the building meets FHA approval, buyers can get a down payment as low as 3.5% of purchase price. Like other lenders, FHA approval is dependent on the financial health of the association, adequate insurance and the proper amount in reserves. They also want to make sure there are no special assessments or pending litigation. I had a condo listing once whose finances were decimated as the result of a lawsuit the year before. Financing was out of the question and we ended up selling the unit to a foreign cash buyer.

Finally

Remember that when you’re getting a loan to buy a condo, having great credit and money in the bank is just part of the equation. The HOA must also be up to snuff.

Ten Signs That Show You're Ready to Buy in Las Vegas

A man's home is his castle, or so the saying goes  -- but figuring out whether you're ready to buy can be pretty daunting.  Whether you're a renter taking that crucial first step towards home ownership in Aliante or a seasoned homeowner moving up in Summerlin, these ten signs show that you're financially ready to take the buying plunge.

1. You've Been Saving

Back in the early 2000s, pre-housing bust, a borrower could access loans of 100 percent of the property's value. Some lenders --  rather like athletes and American Idol contestants -- were giving 125 percent or more. The logic behind such extravagant lending was that house prices would continue to rise and, once the homeowner sold at a profit, everyone would be a winner. We all know how that turned out.

Today, most lenders require a significant down payment. Low-down loans are still available, typically through government-backed schemes, but those options will cost you as well. FHA loans generally require a 3.5 percent down payment. In addition, you may have to pay extra for private mortgage insurance or agree to a higher interest rate. 

Don’t forget to factor in closing costs, such as taxes, title insurance, points, and financing costs along with the down payment. The appraisal and home inspection is also paid for by the buyer. 

If you haven't been saving, you're not ready to buy.

2. You're Attentive

If you've been keeping an eye on the listings for the neighborhoods you're interested in and have a realistic view of how much your dream house is likely to cost, you're ahead of the game. But if you've set your sights on a three-bed 2,500 square foot condo at One Queensridge Place with no idea whether you can afford it, you may want to brush up your market knowledge. Check out my stats for more.

3. You Have Good Credit 

While you don't need perfect credit to be a homeowner, a score of around 720 to 740 generally qualifies you for the lowest mortgage rates. Missed payments, high credit balances, civil judgments, bankruptcy, evictions and foreclosure seriously damage your score. By law, you're entitled to one free credit report each year from each of the three main credit bureaus - Equifax, Experian and TransUnion. Use this to your advantage. 

4. You Have A Reliable Source of Income

Those crazy lenders, they want to know that you can pay back your mortgage loan -- and not just for now. As well as showing at least a two-year employment history, you'll need to bring in a steady income for at least the next few years. If you're planning on going back to school, going freelance, starting a new business or starting a family in the next three to five years, ask yourself -- how are you going to make your repayments when the money stops coming in? 

5. You Know How to Budget

A good salary is one thing -- watching it dribble out of your wallet to pay credit card bills, auto loans, student loans and child support is quite another. Before they'll give you a mortgage, lenders take a look at your debt-to-income ratio -- the amount you earn versus the amount you pay out to creditors. Generally, if you can add your monthly mortgage repayment, property taxes, homeowner's insurance and HOA fees to the rest of your debt, and the total debt load stays under 40 percent of your total pay, your affairs are in good shape.

6. You Can Make A Long-Term Commitment -- Financially

Even in a stable or rising market, I urge buyers to look beyond the short-term. Typically, you need to stay put for at least 3 to 5 years in order to recoup your buying expenses. Sell within the first couple of years, you likely will lose money. Even if you don't, you'll have to pay capital gains tax on the profit. 

7. And to the Community

That edgy, urban district looks great when you're single and childless, but quickly loses its appeal when there's nowhere to park and you're trying to lift a stroller on to the bus. Take a look at your three to five year plan. If your needs are going to be different, consider holding back until you're ready to buy that longer- term house with school districts, commute times and outdoor space in mind. A chic condo with Strip views sure is cool now, but what about with two dogs and a 3 year old in tow?

8. You're Handy At DIY 

Owning a place comes with a ton of new responsibilities. If something breaks, you're the one who has to fix it. There's no landlord to call when the toilet clogs up or the roof blows away in a storm. Maintenance costs run from 1 to 4 percent of the home's value each year. If that jams a wrench in your budget, you're probably better off renting. 

9. You Have An Emergency Fund

Before you devote all your savings to a down payment, take a look at the bigger picture. Buying a home is a long-term investment: you can't just leave whenever your personal situation changes. Savvy homeowners build a financial cushion in case of financial setback, like an unexpected layoff or serious illness. If you've managed to save an emergency stash, or have the financial capacity to do, you're one step closer to buying your dream home. 

10. You're Prepared to be Flexible 

I get it -- your home's a big-ticket item and you want it to be perfect. But if you're overly rigid with your selection process, you'll end up disappointed. And so what if your home doesn't have all the bells and whistles you’re looking for?  Once you own it, you can fix it up to suit your needs. In a few years, you can sell up and move on -- and you might even take a nice slice of equity with you. 

Now that's something you'll never get from renting.  

LAS VEGAS – The stats are out for last month and we're seeing a market that is holding steady in regards to pricing and inventory. The median home price bumped up a bit to $202,000, a roughly 1% increase. In October the median home price was $199,000, while in September the median home price was $202,000.

The median is the mid-point, half the homes sold for more, while the other half sold for less.

Activity

Not surprisingly sales are slowing this time of year. In November 2,483 single family homes, condos and townhomes closed escrow. This is down from 2,861 closed sales in October.   That’s a 14% month over month decrease.

Inventory

Currently we have four months of inventory for sale. A balanced market, which works well for both buyers and sellers is generally 5-6 months. I am seeing a lot of price reductions and expired listings coming up however. So it's important to pay attention to pricing trends inside your particular community if you're going to be listing your home.  

Distress sales

Distress sales as a percentage of market activity are down. Less than 10% of all sales in November were short sales. A short sale is when lenders allow borrowers to sell a home for less than what they owe on the mortgage. Likewise 8.7% of market activity were foreclosures in November. The less distress sales, the more stable our market becomes.

Cash sales

Cash sales continue to decrease. In November 31% of sales were all cash buyers. By comparison October saw 35% of real estate deals close with cash buyers.

Time on the market

In November, 67.1 percent of all existing local homes and 64.3 percent of all existing condos and townhomes sold within 60 days. 

Synopsis

Pricing and inventory remain stable, and I expect the same as we move into the new year. I would anticipate the usual pull back for sales activity over the holidays. That said, sellers should consider the winter months simply because they have less competition and buyers tend to be much more serious this time of year. Buyers can probably look forward to more inventory in 2015, but should pay attention to interest rates as they are anticipated to rise.

Related: October Market Report