Residential Real Estate

Since the collapse of the economy, Las Vegas condos have really taken a hit.  Gut punched sort of.

The problem is that I see these coming on REO property lists and wonder: Who is determining these prices?

Now, usually an appraiser or appraisers do the foot work.  But, when you have more than one for sale in a bulk offering, why are you using the appraiser's single retail price as a comparison?

If I am an investor and I want to acquire say a 50 unit condo building, why (I mean WHY?) would I pay the same retail price for a one unit that an individual unit Buyer who comes along would pay?  I shouldn't be paying the same price?

When you are able to afford to acquire multiple units, shouldn't there be a discount?  If the comparable price for a single condo is -- Example: $150,000.  Then why does the bank or the REO property receiver, put the entire complex -- which is unsold -- up for sale at $150,000 per unit?  This does NOT make any sense.

I have been working with a couple of Buyers that would have acquired property in bulk, if the appraised price for multiples reflected the usual business sense of a discount for taking ALL the units off the banks hands.

Am I naive?  Am I working with too much common sense?  Oh!  Am I NOT sleazy enough?

Should I tell the Bank that they can get 100% of retail market value when I know for sure, they won't?  Should I play "expert" and talk up the price to very knowledgeable Buyers?  They know as well as I do that there are only a few companies/people, who would actually play that game and actually over pay for units that are too much over priced to begin with. 

Yes.  There are real estate people who can "car sales' a real estate property.  And, there are "suckers born every minute." But for what ever reason, these Buyers who believe in that type of marketing with that type of real estate person, who think they are getting such a deal, befuddles me.

My apologies.  I've been a car sales person in my life.  For six months.  Couldn't hack it.  Just wanted to be honest with people.  In real estate, there is too much to loose if you are caught cheating a Buyer or Seller.

Sure.  The property looks good on a listing report.  It looks good if you have many, many listings on one of the real estate services in the Las Vegas real Estate world.  But having an over-priced listing just doesn't sell.  (I know.  I have done it too many times just to appease a seller.)

But, $80,000 per door and then calling it a deal is just what some of the auction houses are doing around this part of Southern Nevada.  "This property was at one time worth many more than it is today." (OK.  I am paraphrasing.)

Still, if you want a good deal in real estate; and/or, you want to acquire a property with passive real estate investment income; and/or you want an honest broker working for you, Call me.  I don't know how to be less than honest with clients.  Just ask anyone would has worked with me in the past.

For Information about Las Vegas Commercial or Real Estate Investment Property, contact David Howes at: david@davidhowes.net