Buyers in this current market face many different choices in homes. There are, in general, 3 different types of houses for sale in the market. The difference between them is the owner of the house.

Las Vegas Traditional Home Sale

Traditional home sale is real estate as we know it. Seller is usually an individual or a business entity. They sell the house, pay of the balance of their mortgage, taxes, agent commission, etc. and pocket the rest.

Las Vegas REO / Foreclosure

REO stands for Real Estate Owned. These homes are owned by banks or lending institutions. After a house is foreclosed, and fails to be sold at an auction, they become the property of the bank. The bank evicts the previous owner, gets control of the title, and tries to sell the property.

REO properties are usually sold AS-IS. Although they might be priced lower than a traditional sale, LA Times in an article in November 2012 has stated this is no longer the case for foreclosures in Las Vegas. Take a look at this LA Times article.

Las Vegas Short Sale

Short sale is the mix between a REO and a traditional sale. Short sale homes are own by individuals and business entities. However, the amount homeowners owe on the mortgage is greater than the value of the house itself. Thus, homeowners wish to give up the house.

The homeowner will bring a willing and able buyer to the bank. The bank then decides how much they wish to sell the house for. Thus, the homeowner has no control over the price, or the time frame the home sells at.

Due to the time it takes for the bank to respond to offers, short sale usually takes much longer time to close, and requires an experience agent to negotiate with the bank.