Randi Bennett Part two: Nevada's Real Estate Market, Affordability of Homes In Reno & Troubled Sellers
Read Part One of the interview with Randi here.
About: I asked Randi what she thought about the severe real estate downturn that Nevada has been presently experiencing. She also shares her thoughts on the affordability of homes in Reno & Sparks. Lastly, she gives her opinion on sellers who are struggling to keep/sell their homes.
Note: This 3-part article is not meant to encompass all the details regarding the topics mentioned.
Our hope is that through Randi's personal experiences we can all learn something new and hopefully aid us in our decision-making.
What do you think happened with Nevada and its gigantic home foreclosure rate, what do you think went wrong and how can we avoid that from ever happening again?
My personal opinion on that is the majority of the foreclosures happened in Las Vegas, Being such a big place and having an unprecedented real estate boom.
But the other thing that was going on was everybody was making such great money. The country itself was doing good and everybody was making great money but everybody was on stated income, lenders didn't have to verify what they made or their employment.
Everybody got into adjustable loans and when their two,three and four interest ballooned, rates started to adjust right up in the end of the market. The market just drops and the value of their home went way down from what they bought it for three years ago.
So now they can't even refinance to put it in a better rate because they don't have enough equity in their home, it won't appraise now.
What do you think about the disparity of the prices of homes on the market versus the seemingly lower wages the locals earn? Do you think the prices of homes would go down to the point where the average worker would be able to afford a home?
The hourly wage is still not priced for new home buyers. I think some of them will. The biggest one that I talked about was the New homes. The subdivision homes that are still building will bring their prices down even more and/or pay for the closing costs to help people get into homes, especially first time home buyers.
I see the new homes dropping even more. Though I don't see the existing homes going too much lower.
What's your opinion on sellers who are upside-down or will just break even if they decide on selling their home at the present time?
It really depends on their financial situation .The homes as you have also seen, some have been on the market for a long time, I mean there are homes that has been in the market over a year trying to sell.
Depends on how much you want to lose. You can try and sell it today for the price to break even and ride out the market for say, a month, see if it sells. If it doesn't, then start bringing the price down. Bring it down where you think its going to sell to get it turned around but you might have to come up with the money to actually close escrow.
Continue on to Randi's interview Part Three
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