Should I buy an REO (bank-owned property)?
In turbulent times I always look for the bright side of things. The bright side to the housing bust is that if you’re a buyer you can find outstanding deals on homes. If you’re looking in the Henderson, Las Vegas Valley area for a home now is a great time to buy. You can purchase a home that was built and sold in 2006 for $320,000 for a cool $220,000. You can even go more extreme than this. My wife and I have always loved real estate and we have spent many a weekend looking at properties. There are several properties on the north-west side of Las Vegas that sold 2 years ago for almost $1,000,000 that are now on the market for $550,000!!
But, you may say, aren’t housing prices going to drop more? Shouldn’t I wait for housing to completely bottom out before buying anything. Sure, you just let me know when that’s going to happen and I’ll be right there with you. The problem with trying to time the market is that typically when the average home buyer realizes it’s the “perfect” time to buy they have already missed the boat. How did I reach this conclusion? Simple, look at the current mess were in. Home buyers that waited for the “perfect” time to buy and purchased a home 2-3 years ago are now really upside down on their homes. Unfortunately, many of these same home buyers listened to inexperienced loan officers who were in the market only to make a buck and opted for a short-term ARM loan. Now payments are doubling and tripling and these same home buyers are upside down, they cannot afford their new adjusted payment and are unable to refinance. Thus, we have the current mess were in.
So, the bottom line as I see it is this; if you can, right now today, purchase a home for $90-$95 per sq ft. that sold just 1-2 years ago for $195-$250 per sq ft what are you waiting for? Rates are still decent and if you’re a full income documentation borrower in Las Vegas with a 580 minimum mid-FICO score and you’re purchase price is under $400,000 you can qualify for an FHA mortgage with only 3% down and secure an excellent 30 year fixed mortgage rate. Then, when the market rebounds you will be laughing all the way to the bank…
IF YOU WOULD LIKE MORE INFORMATION ON PURCHASING AN REO IN THE LAS VEGAS, HENDERSON AREA OR MORE INFORMATION REGARDING LOAN OPTIONS THAT WILL BENEFIT YOUR OVERALL FINANCIAL SITUATION CALL ME DIRECT AT 702.526.3133 OR E-MAIL ME AT MGARNES@GARNESMORTGAGE.COM OR MATT@BUYLASVEGASRE.COM
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