Las Vegas home buyers!  New changes are in store for FHA mortgage insurance premiums.  John Longstreet with Cornerstone Home Lending submmitted the following analysis today.

FHA is lowering their upfront MIP to 1% as of October 4^th,2010!  The bad news is that they are INCREASING the MIP renewal from .55% to .90%, which, in purchasing terms, will decrease the buying power of your buyers by approximately $7500 from their maximum purchase price.  But, in the long run, is it really bad news?  See how the new premiums will affect equity over time. 

 See below illustration:

 Up front mortgage insurance will decrease to 1.0% for all amortization terms

• Annual premiums will increase on amortization terms >15 years to:
  • .85% on LTV’s <95%
  • .90% on LTV’s >95%

Old MIP vs. New MIP illustration

Based upon a loan amount of $200,000 @ 4.5% rate @ 30-year @ 96.5% LTV:

(*The Borrower Pays $45 more per month which translates into a negative $7,500 in buying power.)

However, if home is sold at year 7:

[*FHA gets $2,102 MORE in MIP but principal balance is $2,175 less, so at year 7, it's basically a "wash". (the same calculation for 5 years, same deal.)]

Bottom line, FHA gets MORE, but the buyer builds up more equity.

As of right now, the MI is still deductible on income taxes (sunset on December 31, 2010).

Just a reminder, that the MI drops off after it reaches 78%, or approximately 10 years!

John Longstreet can be reached at 702-250-0688 cell.  He is based in Henderson, NV with Cornerstone Home Lending.

http://realestate.nj.com/?classification=real+estate&temp_type=search&tp=RE_nj&tl=42&guid=123360

A beautiful view, typical in February after a night of rain in the valley!  This place is beautiful!  Taken from Seven Hills in Henderson looking to Mt Potosi seen in the SW part of the valley.

Click here to read complete story

Cash 40.5%, FHA loan 29.8%, Conventional loan 23.4%, VA loan 4.8%, Other 1.5%

Figures may add up to more than 100% due to rounding.

Reduced Inventory Levels Result in Stabilizing Home Values.  The Las Vegas real estate market ends 2009 with median prices essentially stabilized.  Year-end numbers are within 2 to 3 percentage points of May 2009 values with little or no change month to month.  Supply of available homes are down significantly from the previous few years.  This is due to absorption of existing listings and the slow down of foreclosures hitting the marketplace due to federal and state government influences.  These results are seen in both the broad market as well as the Average Joe homes tracked in this report....

Read the rest on lasvegasrealestatewire.com - click here

What to expect looking for a home here in Las Vegas and Henderson?  Today, the under 200K price point will likely require multiple offers before getting a house unless you are open to looking at short sales – and allow for a longer closing timeframe.  The 300 to 400K price point is fairly active as well with good homes selling within 48 hours of list.  Above $400k price point and in age restricted areas the market is a little slower – you can actually think about a house for a minute of two before deciding to act. 

In any case, be prepared to work in a climate that resembles the period of hyper inflation in 2004 and 2005.  The good news is, prices are not escalating like they did back then.  Of course better news are the prices of homes today are 1/3 of what they were just 36 months ago.  There are increases in prices in micro markets around Las Vegas but overall little movement in the median price in the last 3 months.

Cash	43.2%
Conv	22.5%
FHA	28.3%
VA	4.9%
Other	1%

 Data used is from the Greater Las Vegas Assn of Realtors MLS. Single Family detached, condos, and townhomes used in the Las Vegas and Henderson metro areas only.

Click here to see some video testimonials on a real estate website.  I've chosen an Aussie site for entertainment value-love the accents.  Going beyond image and text is important to keep people on your site these day.  Video is the most searched file type on the net.  While these example testimonials are good, they could be better.

Michael Maher spoke recently in Denver about creating relationships and becoming relevant to people in this tough market. He talked about how marketing in today's challenging times requires a few key points.  To summarize; present the challenge, match the service, promote the succesful result.

Using this process, these videos may have more impact if the customers challenge was presented effectively, the agent presented the answer to this challenge, and the result was incredible.

In any case - video is big.  It is easy to incorporate into any website and an agent can either adopt this quickly and reap the benefits of early adoption or wait until the uniqueness is gone and it maintstream.  Today's digital cameras have video modes.   There are many HD video cameras under $200.00 with easy connectivity to Youttube on the market today.  YouTube offers free video channels where you can post video anywhere.  

Why is this blog not in video?  I have a cold and my voice sounds horrible.  I also have a face made for radio :-0.   Are you ready to elevate your game?

Foreclosure listings are coming to remax.com! In preparation for the new influx of leads, Affiliates using LeadStreet on the eNeighborhoods platform will need to opt-in to receive foreclosure leads. To sign-up, simply check box 1A on the Agent Options screen in your LeadStreet account. As you begin to receive these leads, you'll find that the subject line on notifications will help you distinguish the foreclosure leads from general leads.

Because the distressed property market can present numerous challenges, you're encouraged to carefully consider your level of confidence and interest in working to meet the needs of consumers interested in foreclosure properties.

Only agents who have opted in will receive foreclosure leads once foreclosures launch on remax.com in late October. If no agents in an office opt to receive foreclosure leads, then the leads will be sent to the Broker/Owner. Your decision will not affect lead assignments on non-foreclosure listings.

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers

by Susan Johnson

- August 3, 2009

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.

The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:

**=2 0If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions  However, you should never invite anyone you don’t know into your home.
** Census workers are currently only knocking on doors to verify address information.  Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census.

While the Census Bureau might ask for basic financial information, such as a salary range, the Census Bureau will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.

Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit www.bbb.org .

SHARE THIS INFO WITH FAMILY AND FRIENDS..

As a Nevada Real Estate Agent, you can sign up for FREE to check your properties for foreclosure related documents at www.rentalforeclosure.com/propertymanager . 

“AB140 represents landmark changes in the area of foreclosure and tenants rights. REALTORS, particularly those who hold a property management permit, should be familiar with the provisions of the new law.

The bill amends NRS 118A to require a landlord to disclose, in writing, to a prospective tenant if the property is subject to foreclosure proceedings. A willful violation is a deceptive trade practice punishable by a civil fine of $5,000 and/or criminal sanctions for a misdemeanor (first offense), gross misdemeanor ( second offense) or felony ( third offense) pursuant to NRS 598.0999.  

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