Las Vegas Real Estate Career

This editorial opinion by Cyril Moulle-Berteaux, “The Housing Crisis is Over” appeared in the Wall Street Journal on May 6, 2008 and has been getting a lot of attention in the blogosphere.

The author quotes historical real estate cycles and claims the national housing market is approaching the bottom now based on a variety of facts and economic trends:

• Home sales peaked in July 2005
• New Home sales are down 63% from peak levels
• Housing starts have fallen more than 50%
• Affordability - prices have declined while, generally, incomes have grown

Brett Arends asserts in his article “Is Housing Slump at a Bottom” that we may be at the bottom of the housing market because housing starts dropped below the One Million mark in March.  “Every time that has happened in the last 50 years, it proved to be the bottom of a recession.”

Indications in Las Vegas are that prices may continue to fall further, yet NOW is definitely a great time to buy - here’s why:

• Over 60% of sales are REO or Short Sales - there are tremendous bargains out there right now!
• From 4/1/08 to 4/30/08, Las Vegas had 1927 closed resale single family, condos & townhome: Download the Full Report for April 2008 REO stats
  • REO - 1224 (63.5%)
  • Short Sales - 144 (7.5%)
  • Traditional resales were 19% of the market for the month
• Total number of contracts written is increasing dramatically.  GLVAR statistics show that 770 listings went into Pending or Contingent status in a one week period between April 21-28.   Notice the dramatic trend upward on written contracts since January 2008: GLVAR Under Contract Graph
  
•  Banks are pricing their REO listings to sell - sometimes below the market  - thus generating activity and multiple offers.
• Motivated sellers are finally shifting their list prices into the “Showing Zone”.  For more on this trend, check out Forrest Barbee’s Las Vegas Real Estate Market 2008 post.
• Interest rates remain at historically low rates.  Even with the tightening of the mortgage market, there are a variety of loan programs to choose from.  FHA loans are now a realistic option in Las Vegas due to the new loan limit of $400,000.
• Market Condition Report for April 2008 from Equity Title:
  • The report indicates a shift and positive change in closing numbers which, if the pattern continues, will surpass 2007 numbers in about 60 days.
  • Percent Selling and Absorption Rate demonstrated substantial increases after a series of declines and pendings indicate that trend may continue.

The bottom line … the market continues to adjust and there are great opportunities in the market now… what are you doing to adjust and take advantage of this market?

Jerry Pujals of ZhoneCoaching will be presenting a free seminar “The Winning Mindset and Masterful Negotiations” 

Thursday, May 8^th, 2008 12:00 to 1:30 pm
Equity Title Training Facility — 4035 S. Tenaya Way

• Masterful negotiators are masterful communicators.
• Avoid the number one mistake your competition is making and get back to the basics of selling.
• There are three steps to getting your client to say, yes!
• Run your business like a business and challenge yourself like never before.
• Discover effective strategies for promoting your business.
• Overcome the barriers that hold you back, and embrace a limitless future. Your business will be unstoppable!

Seating is limited to the first 50 participants.  RSVP to reserve your seat today - call 702.318.4043 or email ambers@americanagrp.com
 

ATTENTION ALL AGENTS!!  Are Short Sales taking all your time with No Return?

Sort Sale Seminar…Space is Limited
April 24th - 3:00 pm - Red Rock Casino

Educate yourself. We can help!

BRING YOUR CLIENTS Cost: FREE but you must RSVP to attend!
Please RSVP to Candace Dochtermann at 702-796-7777 x5623 or via email @ candaced@americangrp.com

Sponsored by Prudential Americana Group, Countrywide Home Loans and Equity Title of Nevada.

Prudential Americana launched it’s newest division recently to facilitate the smooth handling of Short Sales.  If you are a licensed real estate agent and want to earn a 25% referral fee, let our experienced agents and staff handle your short sale listing. 

Do You:

• Come across properties where the homeowner owes more than the property can be sold for, especially after real estate commissions and closing costs?
• Know homeowner’s that overprice their property simply to attempt to break even on the sale?
• Try to manage short sales to closing, but find them to be too time consuming?
• Walk away from listing opportunities due to them being a short sale?

Let Us:

• Help you earn more commission dollars and Save you valuable time and money!
• Submit the offer, the financial information, and other supporting documents to the homeowner’s mortgage servicer.
• Use our established contacts to negotiate on the clients’ behalf with banks and investors to consummate a sale and closing.
• Coordinate with title companies, mortgage companies, etc. to ensure a smooth transaction.

Just call our Short Sale Division at 702.318.4042 or via email: shortsales@americanagrp.com.

Forrest Barbee, our Corporate Broker, recently posted some great information and a downloadable investment analysis tool on his blog:  Real Estate as an Investment: Price Reduction Tools.

Forrest created a spreadsheet that contains two Investment Calculators.  The first let’s you put in the original purchase date, purchase price, expected sale date . . . and then calculated an anticipated sale price base on a 6% annual return.  The second one asks for original purchase date, anticipated sale date, original purchase price, and expected sale price.  In turn it calculates the actual annual return as if this property had been an investment.

The Nevada Real Estate Division decided to replace continuing education with a post-licensing requirement effective January 1, 2006.  Post Licensing courses were intended to complement Pre-licensing classes and provide a foundation for practicing real estate that is not present in pre-licensing classes. 

Most new real estate students enter pre-licensing courses “not knowing what they don’t know”.  In short they are unconsciously incompetent!  Pre-licensing courses paint a broad brush mosaic of real estate replete with all the terminology and concepts that are required to pass the national and Nevada real estate exams.  By doing so, students become aware of the many topics and issues that are relevant in their pursuit of real estate.  However, this awareness creates consciousness, but does not begin to develop competencies. This is where post-licensing classes fit in; they begin to develop the practical knowledge and experience requisite to becoming a successful licensee in the practice of real estate.

The Nevada Administrative Code NAC 645.4442 mandates of minimum of thirty (30) hours of classes covering fifteen areas of content.  This is a good start, but there are two problems or concerns that have arisen since its inception.  First, the NAC code only requires a minimum of three (3) hours of contracts related classes.  Consequently, Americana Group developed a 42-hour post licensing course in order to retain 15 hours of contracts related material.  Contracts are too complex and the numbers of required forms are too plentiful to be able to be taught in a mere 3 hours.

Secondly, most post-licensing offerings in the Greater Las Vegas Area have simply replaced the previous 30 hours of continuing education with 30 hours of post-licensing.  That is, a number of standalone course offerings are available that permit licensees to piece-meal content together without putting any of it into an overall context.  The Americana Group post licensing course is a fully integrated set of modules where many of the classes build upon previous classes.  There is a good sense of continuity that reinforces the learning process.  The vast majority of licensees that complete the Americana post licensing course leave the course with a much greater confidence in their ability to actually work with a buyer or seller.  They have already demonstrated their ability to complete a residential purchase agreement as well as the buyer’s and seller’s net sheets . . . in order to graduate from the program.

The structure and format of the Americana post licensing course is so powerful that we have even had seasoned agents sit through the course for no credit.  Why?  Because the ones who have were able to take their existing career results to new levels.  This is no mystery!  Many licensees that entered into real estate from 2004 through 2006 never really had to learn the basics of selling or closing transactions.  Rather the hot Las Vegas market carried them despite their lack of skills.  Many of these agents are currently struggling and the Americana post licensing course is one tool to help them.  Americana has many other exciting tools that will help any sales professional at any point in their career.

The post-licensing course is open to any Nevada licensee and the cost is $199.  The course is free to licensees affiliated with Prudential Americana Group.  To enroll in our post-licensing course, contact Kristy Shay at 702-796-7777.  Visit our training center to see the current schedule for post-licensing and all class offerings.

The Prudential Real Estate Affiliates (PREA) held their annual sales convention in New Orleans, March 16-18, 2008.  At the end of 2007, PREA was made up of :

• 677 Franchises (Brokerages)
• 2100 Real Estate Offices
• 64,000 Sales Associates

Prudential Americana Group, REALTORS received the following honors:

• The company ranked 11th overall in the entire network
• Our Sahara Branch received the Pinnacle Award for 9th place in closed gross commission income.
• The Shapiro/Sher Group was honored as the number 1 TEAM in the country for the Prudential network.
• Joe Iuliucci of our Southwest Office ranked 10th in the country for total closed units.

Here are some valuable resources and websites to bookmark for the latest information concerning Las Vegas and the state of Nevada economy, work force, business, housing market, tourism, etc.

 The Center for Business and Economic Research - University of Nevada, Las Vegas
http://cber.unlv.edu/snecon.html
You can obtain a myriad of data, charts, graphs and commentary on the latest Nevada business conditions, Clark County economic data, Las Vegas housing market conditions, population data, information on tourism, economic outlook (mid-year and annual)

Nevada Economy in Brief - is a monthly publication from the State of Nevada, Department of Employmnet, Training & Rehabilitation.  These publications are available for download at: http://www.nevadaworkforce.com/ along with a wealth of information on job growth, unemployment statistics and the Nevada economy.

For demographic, population and some housing information:
http://www.co.clark.nv.us/comprehensive_planning/05/Demographics.htm

Las Vegas Chamber of Commerce  (http://www.lvchamber.com/home.html) - great for business-building and networking; relocation information and more.

Official Las Vegas Tourism site - for all things Las Vegas - from the Las Vegas Convention and Visitors Authority.
http://www.visitlasvegas.com/vegas/index.jsp

The process for complaints or ethics violations through Greater Las Vegas Assoication of Realtors® (GLVAR):

• Either a member of the public or another Realtor® may file an ethics complaint.
• The complaint first goes to the Grievance Committee.
• If the Grievance Committee feels the complaint has merit, the case will then go forward to the Professional Standards Committee for a formal hearing.
• In Professional Standards, the case is handled as if in a courtroom.

1. Article 1 - Protect and promote your client; treat all parties honestly.

a) Earnest Money

• Not getting any and signing that you did
• Giving check back to buyer who changes his mind before you open escrow and not informing other agent
• Checking earnest money deposit under the default paragraph on the Residential Purchase Agreement (RPA) if you have no earnest deposit
• Letting buyer move in early without making earnest deposit hard in case the deal goes south

b) Representing both sides in a relationship - Be very careful to be equally honest with all parties

c) Representing yourself or a close friend

2. Article 9 - Put it in writing!

• Not filling in all blanks
• All parties must have copies of everything
• All amendments and documents must have signatures
• Dates and time are part of a complete document
• “Per Lender” - not appropriate for loan information
• Problems with documents particularly on lease options - be sure language is very clear
• Take notes on all contacts, phone calls and documents given with your client - be sure they are part of your file

3. Article 2 - Avoid misrepresentation, exaggeration and concealment

• Be truthful
• Do not misrepresent the amount of the earnest deposit
• Keep buyers informed of zoning changes
• Do not list as residential when zoning is being changed to commercial
• Do not lease homes that are about to be foreclosed
• If you know of anything adverse, you need to disclose

4. Article 12 - Be truthful in advertising

• Cannot use a URL Domain name that would present less than a true picture. Ex: “RockbottompricesinLV.com”
• Must be entitled to use Realtor® designations and must be current in dues to those organizations
• Cannot be misleading
• Must state that you are a Realtor®
• Must put Realtor® on business cards
• Must use name on your business card that is on your real estate license. Nicknames may be put in parenthesis
• Putting wrong photos in MLS
• Cannot advertise a home that you have not listed

5. Article 16 - Take no action inconsistent with another Realtor’s® exclusive relationship

• Must ask if a person is already represented with a brokerage agreement
• Cannot list a property before it is expired or unconditionally withdrawn
• May not change broker compensation via a RPA, addendum or counter
• If in a short sale situation, if compensation is changed by the bank, you must specifically state how commission is to be split

Any complaints filed and/or the results of any hearing by the Association are confidential. They are not a matter of public record.

The following list is a great review and reminder of the basic principles of the REALTOR Code of Ethics. 

To review or download the 2008 version of the Code of Ethics:

• NAR Code of Ethics 2008 (PDF)
• NAR Code of Ethics 2008 Online

1. Protect and promote your client’s interests, but be honest with all parties.
2. Avoid exaggeration, misrepresentation, and concealment of pertinent facts. Do not reveal facts that are confidential under the scope of your agency relationship.
3. Cooperate with other real estate professionals to advance your client’s best interests.
4. When buying or selling, make your position in the transaction or interest known.
5. Disclose present or contemplated interest in any property to all parties.
6. Avoid side deals without your client’s informed consent.
7. Accept compensation from only one party, except with full disclosure and informed consent.
8. Keep the funds of clients and customers in escrow.
9. Assure, whenever possible, that transactional details are in writing.
10. Provide equal service to all clients and customers.
11. Be knowledgeable and competent in the fields of practice in which you ordinarily engage. Obtain assistance or disclose lack of experience if necessary.
12. Present a true picture in your advertising and other public representations.
13. Do not engage in the unauthorized practice of law.
14. Be a willing participant in Code enforcement procedures.
15. Ensure that your comments about other real estate professionals are truthful, and not misleading.
16. Respect the agency relationships and other exclusive relationships recognized by law that other REALTORS have with their clients.
17. Arbitrate contractual and specific non-contractual disputes with other REALTORS and with your clients.