I have received many emails and phone calls lately with this question. “In your opinion, should I sell my Las Vegas Home or rent it out?” As much as I want to help and give my opinion, my opinion really doesn’t matter. What matters is that I provide you with all the facts and information that will help you make a decision for what’s best for you and your family. Only you know your true financial situation.
What we do with our clients that have questions like this is break down the Las Vegas Rental Market and the Las Vegas Real Estate Market.
Las Vegas Rental Market:
- Increase supply of properties for rent
- Rental Prices have fallen
- More Tenants have credit issues due to foreclosures
- If you purchased your home between 2004 – 2007 with 80% to 100% financing, the rent you collect will not cover your mortgage payment.
We are seeing an increased amount of rental inventory which has caused rental prices to drop a bit. We are also seeing an increased amount of potential tenants with foreclosures on their credit history. With Las Vegas being an epicenter in the foreclosure market, you can expect many of these previous homeowners entering the rental market.
Las Vegas Real Estate Market
- Buyer’s Market
- Most homes on the market for sale are either a REO (Bank owned home) or a short sale.
- Chances are you owe more on your Las Vegas Home than it is worth if you purchased your Las Vegas home between 2004 – 2007.
Las Vegas Home prices have fallen significantly over the last year and a half due to the amount of foreclosures. Banks and Lenders have placed these foreclosed homes back on the market and priced them well below market value which has driven down home prices.
Chances are you owe more on your home than it is worth, but you can still sell your Las Vegas Home. This is called a short sale. A short sale is where the Lender/Bank agrees to take less than you what you owe.
If you would like to keep your Las Vegas Home but can’t afford to keep making the payment, you can always try to get a Loan Modification. A loan modification is where the Lender agrees to modify your existing terms of your mortgage agreement. However, before you go and contact your Lender/Bank to look into this option, remember the person you are speaking with is an employee of the Lender/Bank. Their job is to get the best deal possible for the Lender/Bank, not you. That’s why we recommend having an Attorney represent you on a Las Vegas Loan Modification.
If you have any questions, please call us at 702.376.7379 or fill out our contact form.