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To Buy or Not to Buy-Las Vegas? December 27, 2006

Posted by AlynnROCK Group in Auction News, Real Estate News.
1 comment so far

vegas.jpgOne of the great questions real estate investors struggle with is whether or not to buy real estate in a hot market.  One school of thought is the property value will always increase; this is likely to be true in the long run.  The idea is, even if you pay too much now, you will still make money in the long run.  The other school of thought, the one I belong to, believes that the purchase of the home is where you make the money.  The lower the price when we buy a property, the better the investment.    With that in mind, I am going to look at two real estate markets over the next two articles, Las Vegas and Florida. 

These cities were two of the hottest markets in the country; but now have slowed down.  Is now the right time to buy? Have the prices bottomed out? Will these markets recover in the near future? And ultimately, should I invest in Las Vegas real estate? That last question is a very personal question.  I hope to give you some information that will help you answer that question for yourself.   Today I am going to address Las Vegas. 

My business partner and I recently attended the American Bankruptcy Institute convention in Las Vegas.  The keynote address, and the reason they chose Las Vegas for their convention site, was they anticipate Las Vegas is in a serious down turn.  In June of 2005, according to the conference, there were 800+ homes on the market in the Las Vegas area.  In September 2006, there were more than 20,000+ homes on the market.  Las Vegas has suffered years of draught, yet they are adding 1000 people a day to their population and have several hundred thousand living units planned.  One estimate I read, there were over 600,000 living units in the planning stages.  That is a huge number for a city the size of Las Vegas.  That article also estimated that one in three of those projects would never materialize.   

One of the largest segments of home units are the high rise condo complexes and the condo/hotel high rises.  The website “Great Las Vegas Homes” identifies a project at various stages of development.  The site also identifies 9 projects that have already been cancelled or are currently suspended.  Forbes Online had an article about the current market and focused on two developers that have cancelled a 5 billion and a 3.5 billion dollar project.  The market certainly is not what it was, and many people are leaving the market.    This can mean opportunity for others. 

I recommend reviewing Las Vegas as a potential market in which to invest.  I believe that the market is going to soften even more in the coming months.  There will be a large inventory that I don’t see going away soon.  People are going to have to sell the property, and that will be the time to buy.  As always, this is just my opinion and should not be taken as investing advice.  Do your own due diligence and make your decision.   

Stay tuned for PAX Bay Area’s next article on the Florida Real Estate Market.

How to choose an Auctioneer! December 10, 2006

Posted by AlynnROCK Group in Auction FAQ, Auction News.
1 comment so far

auctioneer-cartoon.jpg  

With the change in the market, many property owners are turning to the Auction Method of Marketing to sell their real estate.  A number of experienced and inexperienced people are stepping up to offer their services.  A recent article in the Auction World newspaper caught my attention.  The focus of the article was the increase in multi-parcel auctions while at the same time lamenting the increase of inexperienced people entering the real estate auction profession.  The article revealed that many people do not know the difference between a qualified, professional auctioneer and the inexperienced real estate agent trying to get their listings sold.  More so, there are organizations out there who are just trying to make a quick buck by conducting less than professional auctions. So this begs the question, how do I choose a quality auctioneer?   

Good news, the answer is fairly simple!   First, I recommend choosing an auctioneer who is a member of several trade organizations (The National Auctioneers Association (NAA), The Califorinia Auctioneers Association (CSAA), The National Association of Realtors (NAR).   Auctioneers with memberships in these organizations most likely have the experience needed and the ethical standards that any client can count on.   Second, marketing material from the Auctioneer should be high quality and professional.  Third, the Auctioneer should have completed an auction calling school or use a bid caller who has completed an auction calling school.  There are many people out there who think that all you need is a microphone to be a bid caller at an auction.  After witnessing several of these people attempt to call an auction, trust me when I say you need training to call an auction properly!   

Another important consideration is how the auctioneer presents themselves.  When you meet the Auctioneer, they should carry themselves and handle their business professionally; these are the people who will be representing you.  Not only do you want them to know what they are doing, you want them to look like they know what they are doing.  You want the Auctioneer to be professional enough that you feel comfortable with them selling your property. The last and one of the most important considerations when selecting an Auctioneer is to make sure they have a professional designation.  In many states, California being one, there are not license requirements for auctioneers.  To sell real estate you need a salesperson license, but anyone with a real estate license can call themselves “auctioneers”.  Having a traditional real estate professional try to conduct an auction would be like having your dentist perform your open heart surgery.  Both are in the medical field, but your dentist does not have the specialized training.  That is what the professional designations do; they show you that the Auctioneer has received specialized training.  Make sure that your auctioneer has or is in the process of obtaining his or her designation.    The two main Auctioneering designations are Accrediting Auctioneer Real Estate (AARE) and Certified Auctioneers Institute (CAI).  CAI is a Master’s level course from the University of Indiana.  It is the highest designation an auctioneer can obtain.   Selling your property through the auction method of marketing is a great alternative, if you chose the right Auctioneer.  I hope this article will help you as you do your research as you make the same decision more and more sellers are making – selling property by auction is fastest, easiest real estate transaction they have ever made!