Las Vegas Sun

March 28, 2024

Realtors gear for busy season with record quarter in books

HOME-BUYERS take note.

A brand new home isn't the only option in Las Vegas.

"A resale is the perfect house for someone who comes into town and wants to put his money directly into the house and mortgage," said Prudential Southwest Real Estate Agent Marti Scholl.

She explained that buying a new home isn't the end of expenses for most homebuyers.

For example, a typical 2,194-square-foot house in a new community costs around $174,000.

That's without upgrades like a landscaped back yard, sprinkler system, patio, window coverings or garage-door opener.

But a resale generally comes complete with all the amenities.

"It's relatively easy for a buyer to come in to a fully done house that's a few years old and somebody else has already put in the cash and everything's finished," Scholl said.

Mark Stark, CEO of American Group, Realtors, Better Homes and Gardens, said first-quarter resales were the best ever, largely because many residents opted to move up and were able to do it when interest rates were good.

"They're selling their houses to purchase another. People are buying up, perhaps for an additional bedroom or 500 square feet more or perhaps they've found another development they like better," he said.

Statistics from the Greater Las Vegas Association of Realtors indicate that agents sold 1,975 homes in the first quarter of 1996, slightly ahead of the 1,950 sold in the first quarter of 1995.

While many Realtors have high hopes for what traditionally is the busiest time of year -- the spring buying season -- some feel the recent spike in interest rates is going to dampen enthusiasm. In the last month, local rates climbed above 8 percent. Price is the key motivation in the resale market so buyers and sellers are jockeying for position in the wake of higher borrowing costs.

Stark said that real estate agents in town are busy with resales and that homes currently are appreciating.

But he cautioned sellers to beware.

"It's not like you're going to clean up in 12 months, you could lose. In that case it's better to wait longer until the value catches up. You can rent the house in the meantime," he said. "It's not an automatic, but as long as you're selling here and buying here, you have a better chance to recoup."

Houses that are two to five years old disappear quickly from the market, but the 10- to 30-year-old homes are tougher to sell, Scholl said.

There are some advantages to vintage homes, however.

While Las Vegas' 400 existing subdivisions of new homes offer sparkling modern houses and sun-drenched neighborhoods, the homes are becoming more costly as land and lot sizes diminish.

"Older homes generally have larger lots and more space in the house. Plus the landscaping is mature. If you have a limit to what you can spend, perhaps an older house is the thing," Scholl said.

Resale homes often come equipped with thousands of dollars worth of "little things" like curtains, blinds, water softeners and water lines for refrigerator ice makers -- all of which have to be installed in new homes.

Stark said another advantage is that neighborhoods are established.

"There's always a bit of risk when you buy new. How is the area going to fill out with landscaping? Will it become a rental area?" he said.

So what's the difference in price between a new house and a resale?

Scholl recently sold two similar homes -- one built in 1995, another in 1975. Both have four bedrooms and two bathrooms. Both are landscaped and in nice neighborhoods.

The newer home is 1,902 square feet and on a 70-by-100-foot lot, the other is 1,895 square feet on a 70-by-105-foot lot.

The 1995 home sold for $166,000, the 1975 home for $114,000.

Scholl said the key to selling an older home is price.

"You just can't get greedy about it. There's lots of people and lots of houses. You don't have to give your house away, but it must be priced competitively," she said, adding that condominiums and townhouses also appreciate, but generally not as fast as houses.

Scholl also compared two condominiums she sold. Both are upscale, 1,734 square feet with three bedrooms and two baths -- one a 1994 builder closeout, the other built in 1975.

The new one sold for $155,000, the 1975 condo for $114,000. There were also $150 and $135 monthly homeowners association fees, respectively.

UNLV Professor of Finance Terrance Clauretie said that rising land prices drive the rising cost of homes.

"The cost of new homes increases and the cost of existing homes follows. Fifty percent of the housing stock in Las Vegas is not older than 10 years -- they're going to move together," he said.

Real estate agents said a variety of factors affect a house's value including the neighborhood's condition and the tidiness of the house and yard.

"Houses are like a forest full of trees," said Key Reality Realtor Andy Maline. "To sell your house it has to be higher, prettier and stand out from the rest of trees."

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