Las Vegas Foreclosures, Pre-Foreclosures, Zero Down / Zero for One year

These days, there are many opportunities to purchase properties in Las Vegas to get a lot more home for less money. The primary categories are:

• Zero Down, Zero For One Year
• Foreclosures
• Pre-Foreclosures/Forced Sales
• Short Sales
• The Best Deal For You

Zero Down, Zero For One Year This builder offered program enables you to buy a home with nothing down and no payments for six months or a year. The duration of the program and other specifics vary by builder and even by subdivision. This type of this incentive is currently available for:

• Two single family home developments
• One townhouse development (they are very nice units)
• Three apartment conversions (apartments converted to condominiums)

Answers to the most frequent questions I receive about this are as follows. Please note that I am not a tax expert and I am only repeating what I have been told by the builder’s representatives:

• Tax implications – You still get the standard home/interest tax deduction even though the builder is effectively paying the mortgage for the initial 6/12  months .
• Is there a limit on the builder’s contribution? – Yes. The programs generally have a maximum amount they will pay. If you have a low credit score, resulting in a higher interest rate, it might not cover 100% of the taxes and interest but it would still cover the vast majority of it.
• What happens after the builder subsidized period? – The mortgage continues only the builder’s subsidy stops; you make the monthly payments just like any other mortgage.
• What do I need to qualify for the loan? – It’s like any other mortgage; the normal loan qualification criterion applies: FICO score, debt to income ratio, income, etc.

If you are looking for a home with the least possible expenditure for the first year, this is the deal for you.  Another alternative is for me to find the right home and negotiate a deal where the seller buys down the interest for the first year or two giving you very low inital payments.  So, the builder offered deal of zero down/zero for one year is not the only approach.  For more information on the zero down/zero for one year see this page on my website. 

Foreclosures

(Click here for a list of metro Las Vegas homes in foreclosure.)

There are hundreds of foreclosed homes available at well below market prices in all price ranges and all areas. This includes million dollar homes too. However, there are some considerations on buying a foreclosed home.

• Most of the foreclosed homes that I have seen need substantial work/investment up front to make them livable but they are priced accordingly.
• The best deals are snapped up in a day or two; you have to act fast.
• Sold “As is”: The homes are generally sold “as is”. This means you legally release the seller of all liability and it is up to you to discover any defect. If you find it later, it’s your problem. This is unlike buying from an individual who lived in the home and knows all the homes peculiarities. When they are selling the home to you, they have to provide disclosures. If they fail to disclose something, you can generally collect treble (3x) damages.
• There are not a huge number of these homes in any given area (despite what the press says) so you will need to be more flexible.

For many people, these considerations are not show-stoppers and will enable you to buy a home at rock-bottom prices. One important note – JUST BECAUSE A HOME IS IN FORECLOSURE DOES NOT MEAN IT IS A GOOD DEAL!  You need to consult with an agent (like me) that knows how to determine the market value of the home based on condition, size and location; NOT a typical MLS generated CMA – these have little value.  Not an appraisal either because the typical appraiser is keyed to delivering the price the home would sell for in its current state and the current market.  Also, while you might pay for an appraisal, appraisers really work for the mortgage company.  Mortgage companies are the real consumers of the appraiser’s reports.

If you are looking for property at rock-bottom prices and have some resources to finx-up a home, foreclosures may be for you.

Pre-Foreclosures/Forced Sales

I feel that the best deals are homes that are not in foreclosure, yet. For whatever reason, people are offering to sell their home at a bargain price. I believe that in most cases, these are effectively forced sales. People find themselves in a position where they can either sell their homes at a reduced price now or they will lose the homes in foreclosure in the near future. Some considerations:

• Just because a homes is priced well below market value does not mean it is a good buy. Location, property type, age, condition must all be taken into consideration; a below market priced home in a bad area is a bad deal – period.
• In some cases, the property may be in a short-sale. See below for more information on short-sales.

Unlike foreclosures, in most cases, I’ve found these homes in good condition and the sellers very flexible. Its “sell it or loose it” for most of them. I feel that in most cases, pre-foreclosures are the best deals. However, it is not easy for the average agent to find them; there is no routine way to search for them. I wrote software that can scan the thousands of homes for sale and identify homes that are priced well below market value meeting your specific needs. No other Realtor in Las Vegas uses technology as I do.

Short Sales

With the eroded home sales prices in Las Vegas, many people needing to sell discover that they owe more on their home than they can sell it for. In this case, they may have negotiated with their mortgage company to accept less than the total amount owed. This is called a “Short Sale.” It has no impact on the buyer other than the sale must be approved by the seller’s mortgage company. This typically takes from 10 to 15 business  days to get this approval. Once the seller has the mortgage companies’ approval, the sale goes on as normal.

The Best Deal For You

The best deal for you depends on your situation. For example, if a low purchase price is what what you need, I look for low priced properties (be they foreclosures, short-sales, etc.). If minimal payments for the first one or two years is the need, then I look at properties offering zero payments for one year or financing where the seller buys down points for a year or two. I just need you to be candid with me about your situation. I’ve had people tell me that they had no cash, debt, and low FICO score but I still got them into a nice home. I can usually deal with the situation through a combination of finding the right property, resourceful negotiation and the right mortgage product (I have a very resourceful mortgage person I reccomend for challenging situations). Howver, most times it is not one factore, it is a combination of the right property, the right negotiating and the right mortgage that makes the seemingly impossible – possible. For example, for one client I negotiated a deal with a builder that got them in with zero cash down and they were able to immediately refinance the home the next day and take out enough money (>$50,000) to pay down their debt. As long as I know what your situation is, I can usually work a deal that will meet your needs.

If an agent is not saving you money, time and risk, what value are they providing? Call me today to discuss your real estate needs. You will be glad you did.

Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
email: Eric@ISellLVHomes.com
website: www.ISellLVHomes.com
phone: 702-358-8884
fax: 702-202-2020 

Find out how I save you money, time and risk: http://www.iselllvhomes.com/servicesTimeMoneyRisk.html

Las Vegas Foreclosures

Las Vegas Metro Foreclosures

I’ve had several people ask me where they can easily find foreclosed homes in metro Las Vegas (Las Vegas, North Las Vegas, Henderson). I’ve put together a list that I will update about once a week depending on traffic. Here is the link to the list. At the time I am writing this message, there are 585 homes on the list.

Metro Las Vegas Foreclosures

A few considerations on foreclosures:

• All price ranges and all locations: There are hundreds of foreclosed homes available at well below market prices in all price ranges and all areas. This includes million dollar homes too. However, there are some considerations on buying a foreclosed home.
• May require substantial upfront investment: Most of the foreclosed homes that I have seen need substantial work/investment up front to make them livable but most are priced accordingly.
• You have to act fast: The best deals are snapped up in a day or two.
• Sold “As is”: The homes are generally sold “as is”. This means you legally release the seller of all liability and it is up to you to discover any defect. If you find it later, it’s your problem. This is unlike buying from an individual who lived in the home and knows all the homes peculiarities. When they are selling the home to you, they have to provide disclosures. If they fail to disclose something, you can generally collect treble (3x) damages.
• There are not a huge number of these homes in any given area (despite what the press says) so you will need to be more flexible.

For many people, these considerations are not show-stoppers and will enable you to buy a home at rock-bottom prices. One important note – JUST BECAUSE A HOME IS IN FORECLOSURE DOES NOT MEAN IT IS A GOOD DEAL! You need to consult with an agent (like me) that knows how to determine the market value of the home based on condition, size and location.
Eric Fernwood
702-358-8884
Eric@ISellLVHomes.com

Foreclosures – The Real Story

As a Realtor in Las Vegas, I get a lot of questions on foreclosures these days. The most common are:

• Do you sell foreclosures?
• What price ranges are available?
• How do I find foreclosures?
• Can I get great property at bargain basement prices?
• Are they a good deal?

First, the easy ones:

“Do you sell foreclosures?” Yes – any agent can sell foreclosures.

“What price ranges are available?” I just checked the MLS (1/18/2007) and there are hundreds of properties listed as “Foreclosure Commenced”. The prices span from $134,000 to $1,400,000. So, all price ranges are available. There are many more that are bank owned and not listed as “Foreclosure Commenced”.

“How do I find foreclosures?” Contact me or any other Realtor. Most are on the MLS if you know how to search.

“Can I get great property at bargain basement prices?” – Foreclosed homes are frequently offered at well below the market price for similar homes in the area. But, are they a good deal? See below.

Now the hard question. “Are they a good deal?” This is the real question. I am not an expert on foreclosures but I have shown 40 or 50 and I can make some generalizations:

• Almost all were in horrible condition; sometimes bordering on frightening. Depending on the individual home, my guess is that most would require $20,000 to over $100,000 to restore them to livable condition.
• Some are priced sufficiently low that you could restore then and come out better than purchasing a home in the same neighborhood in great condition.
• Most of the foreclosed homes are not in premium neighborhoods or areas. The logic behind this is simple: if you had a great home in a great area, you would have sold the home rather than have it foreclosed.

So, are they a good deal? That depends. If you are knowledgeable in construction, you have upfront cast to invest in restoring the home and a place to live for a month or two while the restorations are made, then yes the right foreclosed home can be a great deal. However, I think that there is a better way for most people.

There are many homes for sale at below market prices which are not in foreclosure and are in great condition. Why these homes are selling at low prices does not matter. All that really matters is that they are available. These homes are usually in good condition and you can move right in without major repairs. Are they at as good a price as foreclosed homes? In many cases, yes. For example, if the “market Price” of a specific model of home in a neighborhood is $400,000 and you have two homes you could purchase:

• Home 1: Purchase price of $360,000 but you have to spend $30,000 and live somewhere for two months while the repairs are made and go through all the contracting hassles.
• Home 2: Purchase price of $375,000 and you can move in with no major repairs.

I would choose home 2; I think most people would. Are such good deals easy to find? No. They take me time and effort to locate such deals. However, if your agent doesn’t save you money and time by finding you good deals, what is their value? You need to keep in mind that when you select anything based primarily on one criteria (for example: price) you have to be more flexible on other criteria (size of lot or number of bathrooms).

Summary: As with everything else in life, if anything looks too good to be true it usually isn’t. Foreclosures make sense if you select very carefully, have the upfront cash, skills and time to restore them. For most people, I think you are better off finding great deals on homes which are not necessarily in foreclosure.

Looking for a great deal on a new or resale home? Contact me today.

 

Eric Fernwood

RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
mail: Eric@ISellLVHomes.com
Website: www.ISellLVHomes.com
Phone: 702-358-8884
Fax: 702-202-2020

Want to anonymously search the Las Vegas MLS?

 

Zero Down & Zero for One year

Two more condos are offering the zero down, zero for one year financing. So, in total, I now know of three condos, two single family home, and one townhouse where I can get you the zero down and zero financing for one year! The program requires a 620 FICO and appropriate income. But, if you meet this requirement it’s a great deal.For general information on how the program works, see zero/zero. The program varies per builder but it is generally the same.

Also, a client purchased one of the townhouses yesterday. This was the first time I saw the townhouses and they are REALLY nice. Had not considered a townhouse before but I will take other clients there in the future. A great alternative to condos and they have a lower monthly fee than most condos.

My services are not only free to buyers, I typically contribute a portion of my commission.

Best regards,

Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Cell: 702-358-8884
Fax: 702-202-2020
Eric@ISellLVHomes.com
www.ISellLVHomes.com

Zero Down, Zero for One Year Spreads!

I previously wrote about incredible builder incentive previously on this blog (see here).  This incentive program has now spread to two subdivisions with single family homes, three different condos and a townhouse. If you want to know the details about how this program works, check this page on my website.  If you want to know specifics, contact me.  My services are not only free to you as a buyer; I typically contribute a portion of my commission towards the purchase price of your new home.  How much?  It depends on what the builder is paying me in commissions.  Typically, I contribute 1% to 2% of my commission towards your purchase.  Contact me for details. 

This is a great opportunity for people who need a year to catch up on debt or just want to get into a home with minimal upfront cash.  Keep in mind that even tough there are effectively no payments and zero down for the first year, you will still need money for an earnest deposit.  The earnest deposit is money you provide to the builder (usually $2,000 to $5,000, I may be able to negotiate less under some situations) that is held by the title company until your home closes; you submit a check for the earnest money along with the offer.  The title company DOES DEPOST your check.  Under the zero-zero program you do get this money back at closing so they have typically have your money for only 20 to 30 days. 

 What else?  You have to qualify for the loan.  You have to have sufficient income to make the monthly mortgage payments when they come due at the end of the first year.  Lastly, you will likely need at least a 620 FICO score.

 If you want a new home, zero down and zero payments for one year and you meet the other requirements, they this could be the right deal for you.   Contact me today for all the details.

 Best regards,

Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Cell: 702-358-8884
Fax: 702-202-2020
Eric@ISellLVHomes.com
www.ISellLVHomes.com

 

The Financial Advantages of Home Ownership

I am frequently asked by people who are currently renting, “What are the advantages of home ownership.” Instead of a long explanation I will provide a simple financial example that I hope will illustrate show you the advantage.

Assumptions:
	Current Rent:	$1,500
	Purchase Price of Home:	$350,000
	Down Payment:	$0
	Interest Rate:	7.50%
	Years You Stay In Home:	5
	Property Tax Rate:	1%
	Annual Home Appreciation Rate:	7%
	Annual Rent Increase Rate:	7%
	Tax Rate:	28%
Calculations		Rent	Own
	Average Monthly Payment Over 5 Years	$1,854	$2,700
	Tax Savings Per Month (28% Tax Rate)	$0	$733
	Monthly Payment After Tax Advantages	$1,854	$1,967
	Total Paid Out in 5 Years	$111,266	$118,042
	Monthly Payment at End Of 5 Years	$2,251	$1,967
	Price of Home After Appreciation		$490,893
	Loan Balance After 5 Years		$331,161
	Net Equity After 5 Years	$0.00	$159,732

Thus, at the end of 5 years, with almost no difference in the amount spent monthly for payments vs. rent, you will have a fixed payment that will be lower than the current rent price and almost $160,000 in equity.

If you would like to experiment with a rent vs. own calculator, check out this web page.

If you are looking for a new or resale home, I hope you will call upon me.

Best regards,

Eric Fernwood
Cell: 702-358-8884
Eric@ISellLVHomes.com
http://www.iselllvhomes.com/

New Homes or Resales? Which Is The Best Value?

New Homes or Resales? Which Is The Best Value?

Las Vegas is definitely in a buyer’s market state so now is the time to buy. But which offers the better value: new homes or resales? My answer is that it depends on what you needs are. Below I compare some important considerations when you are considering a new or resale home.

Factor	New Home	Resale Home
Home condition	New homes are always in good condition and everything works.	Unknown. The condition of the home is dependant on how the owner maintained the home.
Incentives	Incentives change frequently (usually on Thursdays) and are usually subdivision specific; a subdivision a ¼ mile away by the same builder will likely have totally different set of incentives. Note that the best incentives are for the builder’s standing inventory.	Generally, the only “incentive” on a resale home is the price. However, there are many homes listed at well below market value and thus you would have instant equity in a subdivision with a proven track record in a desirable location.
Location	New subdivisions tend to be built on the outer edges of the city which are remote from central Las Vegas. thus, commute times and such may be more of an issue. This can be especially true in areas where even the basic infrastructure like roads are still under development.	Since resales are available in every area of the city, you can usually select a location that is best for you and your lifestyle.
Choice	With a new home, you can generally have it your way. Colors, flooring, appliances, etc. However, the best prices are on standing inventory where all the selections have already been made.	A resale generally is as it is.
Subdivision stability	With new subdivisions, you do not know if the subdivision will be maintained or what it will look like in a few years.	With existing subdivisions you know what you are buying into.
HOA Fees (home owner association fees)	While the builder establishes the initial HOA fees, there is no track record and fees can go up.	HOA fees in existing subdivisions tend to be stable.
Home durability	All homes look great when they are new but how will they look in a year or five years? Also, the soil in some areas of Las Vegas is unstable and you could have settlement problems. These types of issues don’t show up for a few years so the builder’s track record of support and their home warrant are very important..	In established subdivisions and with Nevada’s disclosure laws plus a good home inspector, you generally know what you are getting. Plus, neighbors are an excellent source for subdivision issues. So, I feel resales tend to be lower risk since more is known.
Resaleability	If you anticipate reselling the home in just a few years, a home in a new subdivision may be harder to resell if there are new homes available at similar prices just down the street.	Established subdivisions have general patterns as to how long it will take to sell a home. I have the statistics for almost every subdivision in Las Vegas as well as the appreciation rate so resales tend to be lower risk since more is known.
Lot size	Most people are surprised by how small lots are in Las Vegas. Land is very expensive because there is very little buildable raw land remaining. Thus, to keep homes affordable, builders continue to build on smaller and smaller lots. In some cases they have even gone to three story homes.	In general, the older the subdivision the larger the lot. So, if lot size is a key factor, resales are the way to go.
Infrastructure	Infrastructure is usually lacking around new home developments. Roads, traffic signals, highway access, gas stations, grocery stores and all the rest of the infrastructure lag behind new developments by several years.	Existing subdivisions have usually been in place long enough for infrastructure to have caught up.
First year cost of ownership	A new home typically does not include a lot of things that a resale home usually includes. For example, most new homes have little no or landscaping. Depending on the lot size and your tastes, landscaping can range from $5,000 to $50,000. Window treatments, appliances (such as washer and), storage cabinets, ceiling fans and many other items will likely have to purchased during to first year. All this adds up.	Window treatments, landscaping, appliances and much more are generally included in a resale home.
Pools	The cost of a typical pool is about $30,000. And, unless the price of the pool is included in the home mortgage, the interest rate may be higher and shorter term.	The resale price of a home is usually increased by only about 30% of the cost of the pool. For example, a $30,000 pool will typically add about $10,000 to the resale price of the home. Thus, if you are looking for a home with a pool, resales may be the way to go i.
Appreciation	Many people believe that new homes appreciate faster in the first few years than existing homes. I don’t know if this is true. I feel that it is location/subdivision specific.	Existing subdivisions have track records of appreciation. So, you know what you can expect based on what has occurred in the past.
Ease of closing	Easy – if you use the builder’s lender.	Not difficult but more prone to “bumps” and surprises.

In summary, your specific situation dictates whether a new home or a resale home is a better value.

If you are looking for a home in Las Vegas, new or resale, I hope you will call upon me.

Best regards,

Eric Fernwood
RE/MAX CENTRAL
Cell: 702-358-8884
Eric@ISellLVHomes.com
www.EricFernwood.com

The Perils of Pricing

Pricing homes in 2003 and 2004 was easy – just add 5% to the price the last home sold for in your subdivision and you had it. That is not the current situation; it was a seller’s market then, it is a buyer’s market now. In this issue, I will discuss the problems of setting the price too low, too high and my recommendation on how to get the most for your home in the shortest time.

Under-Pricing
The common belief is that if you want to sell your home fast, set the price well below market value. This is generally true but depending on how low and the situation, it can cause problems. For example, if the price is too low, people will question “what’s wrong with it” and approach your home with caution. This can result in fewer buyers. Under-pricing can also attract “bargain hunters.” These are people who are looking for a “steal”, not a home.

Overpricing
The common belief is that if the home is listed well above market value, you will net more because you have more negotiating room. While it may seem counterintuitive, overpricing a home usually results in a lower net than pricing the home near market value. There are three primary reasons this occurs.

No Buyer Traffic = No Offers
Sale’s is a number game; the more people that see your home, the more likely someone will fall in love and make an offer. However, buyers and agents know what a home in a given subdivision should sell for and if they perceive that a home is overpriced, they won’t waste their time looking. They don’t need to. For example, there are currently over 4,800 homes on the market priced between $300,000 and $400,000. Overpriced homes generally get much lower buyer traffic and thus are much less likely to sell in a reasonable period of time. Also, having your home sit on the market for a long period of time can result in other problems.

Time on Market & Price Erosion
If a home sits on the market too long, buyers perceive that there must be something wrong with the home and therefore expect to pay less. As illogical as this perception may be, it’s real. The chart at right is from a national study and shows months on market vs. the final sales price. While the specific percentages differ for individual markets and subdivisions, the message is clear: the longer a home sits on the market, the lower the final sales price due to buyer perception.

Doesn’t Appraise = No Deal
Even if a buyer comes along and offers to purchase an overpriced home it is unlikely that the deal will go through. Why? Because it will fail appraisal and the buyer will not be able to get a loan. Here is the verbiage from the standard Nevada real estate purchase agreement concerning the apprised value vs. the purchase price:

“If the appraisal is less than the purchase price (1) Buyer, at Buyer’s option, may pay the difference and purchase the Property for the Purchase Price, or (2) Seller, at Seller’s option, may adjust the purchase price accordingly, such that the purchase price is equal to the appraisal, or (3) if the Parties cannot agree on option (1) or (2), either Party may cancel thus Agreement upon written notice, in which event the EMD [earnest money deposit] shall be returned to Buyer.”

Imagine, your home sat on the market for months, you finally get and accept an offer and 10 to 20 days later learn that home won’t appraise. At this point, even if you are willing to reduce the price to the appraised price, the buyer may be so disenchanted that they will find a way to terminate the deal and you are back at square one plus you will have lost a month’s sales time. Also, at this point, the home has probably been on the market so long that price erosion will force you to lower the price below market value in order to get buyer traffic again.

My Recommendation on Pricing
Set your home’s price just a little over the market value of your home. Remember, the market value of your home is not what you think it’s worth, it’s what buyer’s are willing to pay. If your home is priced near market value then potential buyers will perceive your home as a good value and you will have buyer traffic. Also, agents who see your home will remember it as a good value and will bring more clients. The question I am usually asked is something like: “But if I set the price of my home this low, how do I handle offers that are still lower?” Easy! Counter back with the price increased to just a little below the listing price or even at the listing price. Chances are they will accept it because your home was priced right. In my opinion, setting the price near market value is the best way to get the most for your home in the shortest time and overpricing usually results in a lower final price and much longer sales times.

If you would like to know the market value of your home, call me for a free, no-obligation, analysis.

Best regards,
Eric Fernwood
702-358-8884
Eric@ISellLVHomes.com
www.EricFernwood.com

Why Rent When You Can Own?

You can probably own your own home in Las vegas for what you are paying in rent. What are some of the advantages of home ownership?

• Have pets
• Turn up the stereo
• Have a garden
• More space
• A garage

What can you afford? It depends on what you are comfortable paying per month. This is important, buy what you can afford; do not become a slave to house payments. Also, you do not need a lot of cash to get into a home; 100% loans are available so all you would need are the closing costs. What can you afford? The following three steps will give you a good idea but first, a word from Albert Einstein. Einstein once said: “Everything should be made as simple as possible, but not simpler.” Einstein wouldn't be too happy with the following because what you actually pay depends on more factors than I can include in this message including credit score, interest rates, the specific loan program and other such factors. However, the following three steps are accurate enough to give you a general idea of what is possible.

Step 1: Comfortable Payment
What are you comfortable paying per month? $1,000, $1,200, $1,500, $2,000? You decide. Remember not to “stretch”: a home should be a joy; not a financial millstone about your neck. Once you have that amount in mind, on to step 2.Step 2: Equivalent Mortgage

The following formula computes an Equivalent Mortgage payment from the Comfortable Payment you choose in Step 1. First, look up your tax rate based on your income in one of the two tables below depending on whether you file taxes as single person or jointly as a married couple.

Single			Married Filing Jointly
Taxable Income Ranges	Federal Tax Rate		Taxable Income Ranges	Federal Tax Rate
$0 – $7,5,50	10%		$0 – $15,100	10%
$7,551 – $30,650	15%		$15,101 – $61,300	15%
$30,651 – $74,200	25%		$61,301 – $123,700	28%
$74,201 – $154,800	28%		$123,701 – $188,450	33%
$154,801 – $336,550	33%		$188,451 – $336,550	33%
$336,551+	35%		$336,551+	35%

Second, compute the approximate Equivalent Mortgage payment using the following formula.
Equivalent Mortgage = Comfortable Payment X (Tax Rate+1)
For example, if your Comfortable Payment was $1,200 and you are single with an annual income of $55,000, the calculation would be as follows.
Equivalent Mortgage = $1,200X(25% +1) or $1,200X(1.25) or $1,500
If you did not understand the calculation, don't worry about it. Just understand that you can afford to pay more each month due to the tax benefits of home ownership without changing your current cash flow. Also, please understand that the above calculation is only approximate. Now that we have the Equivalent Mortgage, lets look up the price of home you can afford.

Step 3: What Can You Afford?
Slide down the left column in the table below until you find the range containing your Equivalent Mortgage. Immediately to the right is the approximate price of the home you can afford. For example, if your Equivalent Mortgage is $1,500, you could afford a home priced around $190,000. Look at sample Las Vegas Homes for an idea of what you can afford.

Mortgage Payment*	Home Price
$1,120	$150,000
$1,367	$175,000
$1,607	$200,000
$1,979	$250,000
$2,343	$300,000
$2,765	$350,000
$3,170	$400,000
* Includes estimated taxes, principal, interest and insurance. Association fees (if applicable) are not included.

For many years, Las Vegas has been one of the hottest markets in the US making it very hard for first time home buyers. However, the recent slowdown in home sales has temporarily reduced prices in many areas but this won’t last long. Act now and you could be in your own home in 30 to 45 days. Call me today to get started.

Eric Fernwood
RE/MAX CENTRAL
Cell: 702-358-8884
Eric@ISellLVHomes.com
www.EricFernwood.com

Why Buy Your New Home Through Me?

Because I can save you thousands of dollars on your purchase and I usually contribute part of my commission to your closing costs depending on the situation! Also, buying a new home through me costs you nothing; my fees are paid by the builder. You might ask, “Couldn’t I get a better deal going direct to the builder since the builder wouldn’t be paying your commission?” No. The reason you can’t get a better deal is that mortgages typically have a builder contribution limit. Typically, the limit is 3% of the purchase price of the home. This is set by the mortgage company, not by the builder, so there is no way around this limit for the builder. I have always been able to get the full mortgage permissible contribution from the builder PLUS a lot more. Thus the advantage of buying through me as opposed to going direct might include:Full mortgage program builder contributionReduced home price

• Reduced earnest deposit
• Free or discounted upgrades
• Free appliances
• Lower loan interest rates (negotiated with the mortgage company for you)
• Better contract terms

The reason I can get a better deal for you than you can get yourself is that builders know if they keep me happy, I will bring them more buyers. You are buying a single home. Plus, I know what to ask for because I have likely done deals with the builder before (or I know other agents who have) and know what they have given away in the past. It’s very hard for a builder not to give something to me that they gave to someone one else.

Bottom line – Buying your new home through me saves you money. Contact me today for more information.

Eric Fernwood
702-358-8884
Eric@ISellLVHomes.com
www.ISellLVHomes.com