Foreclosures Are Bad News For Valley Sellers, Las Vegas
The recent troubles in mortgage lending mean foreclosed homes are flooding the market. They’re also making it tougher for other sellers who were hoping to make a profit selling their home.
You can usually buy foreclosed homes for less than a regular house for sale. That’s good news for the buyer, but bad news for sellers trying to compete with bank prices.
Eyewitness News looked at a five bedroom home in northwest Las Vegas that has never been lived in. It was supposed to be a big help for Kathy and Michael Lowry. In their eyes, buying the home was an opportunity they couldn’t pass up.
Michael Lowry said, “Biggest real estate boom in the history of the United States, we couldn’t go wrong. We needed to send our kids through college and we thought it was a great deal.”
But their plan to quickly re-sell for profit was shattered. A year and a half later, they’re still waiting all while continuing to pay their interest-only loan.
Kathy Lowry said, “The frustration level in our household has been through the roof. And it’s been the first time I’ve had to tell my kids that no, we can’t go to the movies because I’ve got to pay for this house that we are not living in right now that’s not selling.”
The Lowry’s and their real estate agent believe the foreclosure signs throughout the neighborhood may be a good indication why the house hasn’t sold for their asking price. Eight foreclosure homes in their subdivision — all with similar square footage — have forced the Lowry’s to drop their price.
Still, they can’t compete with bank prices of almost $100,000 less than they’re asking.
Real estate broker Cameron Yates-DeAngelo said, “If you are out looking for a home, which home are you going to select? These folks that are trying to sell their home legitimately, they are taking a hard hit.”