I know hindsight is 20/20. Do we really need to pour salt in the wound?

VIVA LAS VEGAS!

I really expected this day to come, but I was earnestly hoped that it would at least wait until we finished paying off our first debt snowball.

I’m goal-oriented, people. I really want to tick that box. Do you add things to your to-do list after you’ve done them just so you can cross them off? Then you understand.

And yes, I said “first” snowball. Baby steps, Dave.

Our tenants moved out of the house we own in Vegas. December is the worst possible time of year to find new tenants. Vegas is the worst possible place to own a home…

Merry Christmas!

Let’s review, shall we?

• We bought the house in Vegas when we moved there in 2001, right after 9/11.
• We paid $120,500.
• In 2004, it was appraised at $240,000. $120,000 appreciation in three years.
• We PCS’d (“moved”) in 2004 from Vegas to Italy. We didn’t sell. (Here’s me banging my head on a brick wall.)
• The house has had no fewer than five tenants since then.
• We could not sell it today for what we bought it for.
• Can you say, “Oooch”?

Dave Ramsey’s Endorsed Local Providers
I have to give a shout-out to Dave Ramsey’s ELP Program. When I got the call today from our property manager in Vegas that our tenant was breaking his lease, I immediately went to Dave’s website and filled in the online ELP form for realtors in Vegas. The Hubs and I had already talked about how, the next time our tenants bailed, we should check into unloading the place to see if we could at least break even on the sale vs. what we owe.

The short answer: we can’t. And we bought before the housing bubble.

Two things impressed me about the three ELPs from Dave’s referral list:

1. the quick turnaround
2. their advice not to sell even though it means they won’t be getting a dime from us. (At least not right now.)

24-hour Turnaround? More like 24 Seconds
No sooner had I submitted the ELP form online at daveramsey.com than the phone rang. While I was talking to that realtor, another call came through. I didn’t pick up, but I could tell by the area code it was another Vegas realtor. After I finished the first call I checked my email and saw what I assumed to be a message from the realtor whose call I missed. But no, this was an email from the first realtor, who had already advised me to hold off on selling. But wait, what’s this? Another email, presumably from the second realtor who tried to call, because a short time later I received another call from the third and final realtor from the ELP list.

Phew.

All three agreed that if we are not in dire financial straits, now is not a good time to sell. All three took the time to discuss the market, even after concluding that we won’t be doing business with them right now.

The Current State of Affairs in the Vegas Housing Market…
The thing is, the Vegas market is flooded with foreclosed homes and properties listed for short sales. Another thing is — banks are slow in releasing these homes for sale. In a strange twist, Vegas property values have plummeted, but at the same time there is a shortage of homes for sale.

In other words, plenty of buyers are waiting to buy homes, but the demand is not driving up the values because it’s the banks that are taking their own sweet time in getting foreclosed homes on the market. In the case of short sales, banks are taking forever to close. In the meantime, homes are sitting empty, and the sale price of foreclosures and short sales are the driving comparables.

If you don’t need to sell, now is not the time to sell. Certainly not in Vegas.

A Snapshot of Comparable Homes
To give you an idea of the “comps” for our house — a cute (read “small”) 2 Bedroom, 2 Bathroom, 2-car garage single home…

Only two similar homes in the area are currently for sale, both are short sales. One is listed at $65,000. The other is $80,000.

Hel-lo???

The last sale price for a comparable home was $109,000…

At best, the market is unpredictable.
At worst, you’re practically giving your house away. A short sale is a last resort before foreclosure, after all. Although all three realtors were musing that the two homes currently listed as short sales were priced exceptionally low…

That does not bode well for the immediate future market value of our property. We will be looking to rent out the house, again.

Anyone interested? We’ll cut you a great deal!
Just based on my one-day experience with Dave Ramsey’s ELP’s, I know when the time does come to sell, we’ll be doing it with one of them. It’s been a very long time since I’ve experienced that high standard of service and transparent business integrity. And certainly when the time comes to sell our house here in Ohio, I’ll be checking out the ELP’s for this area as well.

Tagged as: Dave Ramsey, Rental Property