Who is buying these days in the West Valley?

[Darius Ogloza]

We have a SFR in the west valley (South Summerlin off Desert Inn) that we are thinking of putting up for sale this spring. We currently have a long term tenant who has done us a good turn over the past few years and has maintained the property impeccably. The property is a standard 3 bedroom of about 1,700 square feet with a nice backyard pool. The tenant is month to month but we are thinking of entering into a lease (6 to 12 months) to give him some breathing room before having to move. Given the make-up of buyers out there these days (i.e., investors who may be interested in tenanted property versus retail purchasers who presumably want to move in asap), what impact is selling a tenanted property likely to have on the price? Any thoughts, suggestions, comments, flames from the local guys much appreciated.

[Bill B.]

If you give them a 6 month lease the new buyers have to honor that. So you’ve just eliminated 80-90% of the buyers, owner occupants that need to move in within 60 days. So I would guess you’re going to lose $10-$20k on an average Las Vegas home, maybe double that? Maybe just keep them MTM and write them a check for $10k if you’re willing to pay that much to thank them. You’ll probably end up with more money in your pocket than selling with a lease.