Reno Real Estate Logic

People all over the nation are talking about the “boom to bust” cycle real estate has been in since 2001. From Greenspan to Wall Street, experts have cautioned us that the party has come and gone. But since the beginning of the 07, we have seen a definate U-TURN with signs of market stabilization. Business is beginning to move again and people are searching for income property, homes and commercial investments. Combine this good news with the Feds keeping interest rates low, it appears that the real estate industry in headed on the road to recovery. How fast is this going to happen, we don’t know for certain but it’s time to start moving real estate assets again. Buy or Sell, it’s a good time to proceed.

Developers across the country have experienced huge slow downs in sales. For the first time they have been forced to negotiate the selling prices of standing inventory, purchasers were able to get “Ultimate Deals” if they were savvy buyers and moved quickly. This is a mirror to the future; watch the builders and you can navigate the market. In the past, they were aggressively selling their properties by lowering their price tags, offering great incentives, free custom upgrades, zero point loans, no closing costs and exotic gifts. We are now seeing that these incentives are slowly drying up. The building industry reports that developers across the nation are taking a “build with caution” approach until 2009. This is good news for the resale market because the biggest competition for selling existing homes is with the developers new communitities.

Our region is moving and it’s time to make deals. Buyers are out there looking for opportunities. They know that prices are beginning to shift upward. They don’t want to be caught in the swing which is coming. Recently, I have seen multiple offers on properties that are priced to the curb. Contract sale prices are again within 5% of the listing prices. Last year, I was bombarded with offers that were 20%-30% below market. A lot of these contracts were perpetuated by those predetorial agents looking for a quick commission thinking that the sellers were all desperate and would cave. I think this strategy boomerranged, causing sellers put the brakes on. This ultimately contributed to the stall last year in the “real” market. I’m not talking about the “subprime” problems, those are sellers without worth or equity.

The “real” market that I’m talking about is driven by the fact that there is limited property to develop in Reno and Sparks, especially for custom homes. I am saying that water rights are skyrocketing to the tune of 50K if you want to build. I’m saying that a beautiful home site in the South West of Reno starts at 400K. I am saying that INC. Magazine just rated Reno as the number eight mid-sized city in America to do business with, again ranking in the top ten. I’m saying that living this close to one of the greatest outdoor enviroments in the nation, in a state that has no income tax, no inventory tax, no inheritance tax is pretty awesome. People from all over the country want to live here. Nationally acclaimed Cabellas Sporting Goods Store coming in October 07, will drive business to Reno from millions of visitors each year, combine that with the new baseball stadium which has been approved for Triple AAA ball. Plus a 1 billion dollar shopping and entertainment center slated for the marina in Sparks with a 250,000 square foot Scheels Sporting Good store as the anchor tenant, lake front townhouses. and a 1000 room hotel casino! We are on stellar path for opportunity. This is a gauge, read it. And check out my Statistics page for up to date information on the Washoe County sales figures, all of Reno and Sparks. You will see the trend starting, clicking up, clicking up, clicking up.

So, what does this have to do with you, me and your assets? We need to be prepared for the opportunity to buy in this market and also how to sell. If you are thinking of buying real estate you need a broker that is qualified to help you make money going into the deal, this is called front loading. If you are a seller, you want to be in a power position, knowing that your broker is not giving your valuable assets away by weak negotiations. If you are an investor, you need a broker who knows how to make deals and cut costs. I can provide all these services; just give me a call so we can discuss how I can help you. Remember, more millionaires have been made by real estate than any other type of investment. Build wealth through real estate is our goal. Call an expert, experience counts.

All the best,
Michelle Plevel
775-750-5777  Toll Free  877.922.5900
mplevel@chaseinternational.com