Legal headaches seem to be intensifying for Nevada homeowner associations and their collection agencies, with the filing Monday of another class-action lawsuit over HOA debt-collection practices.
Attorneys for Benita Jones Ebel filed suit in U.S. District Court in Las Vegas against Nevada Association Services Inc. (NAS), claiming it’s been violating the federal Fair Debt Collection Practices Act by sending "dunning letters" that are "unfair and unconscionable" and invaded her privacy.
Ebel in the lawsuit seeks to represent a class of people who received such letters over alleged debts resulting from unpaid HOA assessments.
The suit specifically charges that in a Dec. 17 collection letter regarding an alleged debt to the Rancho Viejo HOA, NAS threatened to file a lien against Ebel’s home if the debt wasn’t paid within 10 days.
This violated the law in that consumers have 30 days to dispute such debts, the lawsuit suggests.
"As a result of defendant’s threat to record a notice of delinquent assessment lien, defendant threatened to take non-judicial action to effect … disablement of plaintiff’s property without the present right to do so," charged the suit, which was filed by attorneys with Cogburn Law Offices.
David Stone, president of Nevada Association Services, said Monday his company complies with the debt collection law.
"We will file the appropriate responsive pleading, and if this is found to be a frivolous lawsuit we will be seeking attorney's fees. We expect this claim to be adjudicated in our favor, as similar claims have been. We have been sued before and I expect more lawsuits. Plaintiffs are looking for a quick payday and this is not going to happen," Stone said.
With the recession causing many homeowners to fall behind on paying HOA assessments, and vacant and foreclosed homes sometimes producing no revenue for HOAs, collection activity has picked up in recent years and controversies and lawsuits have followed.
Numerous collection lawsuits are pending in state and federal court in Las Vegas and a massive complaint was filed last month with the state Real Estate Division against more than 500 Nevada homeowner associations.
Yet another pending lawsuit, filed by a Bank of America subsidiary, claims HOAs have been trying to get the bank to pay for unauthorized attorney’s fees and collection costs related to assessments against foreclosed homes.
Showing posts with label las vegas land. Show all posts
Showing posts with label las vegas land. Show all posts
Tuesday, June 14, 2011
Real Estate in Crisis
The subprime mortgage crisis is hitting the Las Vegas metro area particularly hard. In fact, Nevada has the highest foreclosure rate in the country and the metro area is consistently one of the top five worse in the nation. The crisis jeopardizes further growth by creating an overflow of available homes, which in turn slows the construction of new homes and invariably effects property values. But at the same time it creates opportunities of more affordable housing for those who have been priced out of the market in recent years.
The crisis entails homeowners losing their houses after they are unable to afford their mortgage payment. It was brought about by lenders and banks giving risky loans, or subprime mortgages, to people with poor credit scores or finances. Low interest rates first attracted such homebuyers. However, as many loans were adjustable rate mortgages (ARMs), higher interest rates down the road made payments nearly impossible, ultimately leading to foreclosure. Furthermore, predatory lenders have been accused of perpetuating the situation by unfairly taking advantage of uninformed or new buyers. There were a large number of investors who bought homes at the height of the market and expected to flip them for a profit, only to see values decline.
www.buybankownhomes.com
The crisis entails homeowners losing their houses after they are unable to afford their mortgage payment. It was brought about by lenders and banks giving risky loans, or subprime mortgages, to people with poor credit scores or finances. Low interest rates first attracted such homebuyers. However, as many loans were adjustable rate mortgages (ARMs), higher interest rates down the road made payments nearly impossible, ultimately leading to foreclosure. Furthermore, predatory lenders have been accused of perpetuating the situation by unfairly taking advantage of uninformed or new buyers. There were a large number of investors who bought homes at the height of the market and expected to flip them for a profit, only to see values decline.
www.buybankownhomes.com
Thursday, May 26, 2011
Las Vegas valley new-home sales shrink
By Hubble Smith
LAS VEGAS REVIEW-JOURNAL
Posted: May 25, 2011 | 2:01 a.m.
New homes accounted for just 7 percent of total housing sales in April, a radical departure from past years when they were about 40 percent of the Las Vegas market, a local housing analyst said Tuesday.
Home Builders Research reported 258 new-home sales during the month, down from 293 the previous month and down from 471 in April 2010. For the first four months of the year, new-home sales declined 33 percent, to 1,020.
The new-home industry was once a huge contributor to the Las Vegas economy with as many as 30,829 closings in 2005. That number fell to 15,584 just two years later and then to 4,761 last year.
The reduction in new-home market share is an "unbelievable alteration" and sums up how the Las Vegas housing market has changed, Home Builders Research President Dennis Smith said.
"It's hard to compare to the way things used to be," he said. "This is what the market is resetting into, something it's never been before. I'm not saying it's bad. It's different."
Adapting to the changing market, homebuilders laid off most of their staffs and cut operations to the bone, Smith said. He counted 323 homebuilding permits in April, for a total of 1,130 for the year, down 45 percent from a year ago.
It's not a fair comparison because last year's numbers reflected increased demand from the government's homebuyer tax credit, he said.
"The numbers are sobering," the analyst said. "Closings are one thing, but I watch permits. I'd be really surprised if we don't see an increase (in permits) in the coming months."
Customer traffic at new-home subdivisions has slowly increased and net sales per subdivision have climbed to about 0.4 a week, about double from the beginning of the year, Smith said.
D.R. Horton pulled the most permits in April (182) followed by KB Home (157) and Lennar (133).
The median price of a new home in Las Vegas dropped 7.2 percent from a year ago, to $188,450 in April.
The resale segment continued to chug along, with 3,849 recorded closings in April, largely boosted by investor purchases. For the year, existing home sales increased 3.8 percent, to 14,375.
Median resale price was $112,000, a loss of $16,000, or 12.5 percent, from a year ago. Smith noted that 19 homes closed escrow for $1 million or more .
Smith said he's seeing signs that Las Vegas may be emerging from the recession, such as packed restaurants and an uptick in discretionary spending.
"There's some good news around the country and hopefully it'll filter down to us," Smith said.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
Free las vegas bank own listings please click the link bellow
LAS VEGAS REVIEW-JOURNAL
Posted: May 25, 2011 | 2:01 a.m.
New homes accounted for just 7 percent of total housing sales in April, a radical departure from past years when they were about 40 percent of the Las Vegas market, a local housing analyst said Tuesday.
Home Builders Research reported 258 new-home sales during the month, down from 293 the previous month and down from 471 in April 2010. For the first four months of the year, new-home sales declined 33 percent, to 1,020.
The new-home industry was once a huge contributor to the Las Vegas economy with as many as 30,829 closings in 2005. That number fell to 15,584 just two years later and then to 4,761 last year.
The reduction in new-home market share is an "unbelievable alteration" and sums up how the Las Vegas housing market has changed, Home Builders Research President Dennis Smith said.
"It's hard to compare to the way things used to be," he said. "This is what the market is resetting into, something it's never been before. I'm not saying it's bad. It's different."
Adapting to the changing market, homebuilders laid off most of their staffs and cut operations to the bone, Smith said. He counted 323 homebuilding permits in April, for a total of 1,130 for the year, down 45 percent from a year ago.
It's not a fair comparison because last year's numbers reflected increased demand from the government's homebuyer tax credit, he said.
"The numbers are sobering," the analyst said. "Closings are one thing, but I watch permits. I'd be really surprised if we don't see an increase (in permits) in the coming months."
Customer traffic at new-home subdivisions has slowly increased and net sales per subdivision have climbed to about 0.4 a week, about double from the beginning of the year, Smith said.
D.R. Horton pulled the most permits in April (182) followed by KB Home (157) and Lennar (133).
The median price of a new home in Las Vegas dropped 7.2 percent from a year ago, to $188,450 in April.
The resale segment continued to chug along, with 3,849 recorded closings in April, largely boosted by investor purchases. For the year, existing home sales increased 3.8 percent, to 14,375.
Median resale price was $112,000, a loss of $16,000, or 12.5 percent, from a year ago. Smith noted that 19 homes closed escrow for $1 million or more .
Smith said he's seeing signs that Las Vegas may be emerging from the recession, such as packed restaurants and an uptick in discretionary spending.
"There's some good news around the country and hopefully it'll filter down to us," Smith said.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
Free las vegas bank own listings please click the link bellow
Tuesday, May 24, 2011
Rent here? Who can afford it?
By Jennifer Robison
LAS VEGAS REVIEW-JOURNAL
Posted: May 12, 2011 | 12:18 a.m.
Updated: May 12, 2011 | 8:53 a.m.
Las Vegas housing, unaffordable?
It's been a while since we've heard that one.
But an affordability problem is exactly what Las Vegas has, according to a new study. The National Low Income Housing Coalition's "Out of Reach 2011" report says the city's average apartment rent outstrips the average wage earner's income by a significant amount.
Local observers quibbled with the coalition's figures, saying their numbers show a substantially better balance between rents and wages.
Regardless of whose statistics you follow, one thing's for sure: A multitude of demographic and economic trends will shape the Las Vegas apartment market -- and the rents people pay -- in coming years.
To understand the rental market's dynamics, start with those disputed figures from the National Low Income Housing Coalition. Using data from the U.S. Department of Housing and Urban Development, the coalition, an advocacy group that says it wants to guarantee decent, affordable homes for low earners, pegged the average monthly rent for a two-bedroom apartment in Las Vegas at $1,067. That means a local earning the city's average hourly wage of $14.52 would need to work 57 hours a week to swing the rent, utilities and other essentials. A renter earning the state's minimum wage of $8.25 would have to work 99 hours a week to afford the typical two-bedroom rent.
Danilo Pelletiere, research director and chief economist for the coalition, said the disparity between rents and incomes matters because pricey apartments mean unstable communities, as renters move from complex to complex looking for more affordable places. Expensive housing also drains discretionary income.
"We need to focus on these issues to keep neighborhoods alive, keep stores in business and keep that vibrancy that communities need to survive," Pelletiere said.
Housing and Urban Development officials said they obtain their rent information from a combination of sources, including 2008 Census data, 2009 phone surveys and adjustments for inflation.
But local experts said the report's average rents seem high.
Brian Gordon, a principal in Las Vegas consulting and research firm Applied Analysis, said his company's first-quarter numbers show an average local two-bedroom rental rate of $668 to $825 a month, depending on the number of bathrooms. The market's average overall monthly rent for apartments of all sizes was $761 in the period. Applied Analysis gets its statistics through landlord surveys, conducted most recently in March.
Spencer Ballif, a senior vice president with the Las Vegas office of commercial real estate brokerage CB Richard Ellis, came up with a similar result. Ballif's numbers, which also come from landlord surveys, show an average monthly rent of $867 for two-bedroom apartments in Class A communities, which consist of newer properties with more features and upgrades. A typical two-bedroom Class B unit came in at $717 a month, while two-bedroom Class C units averaged $643 a month.
What's more, average rents are down substantially. Gordon's numbers show the average asking rent on a two-bedroom, two-bath apartment in Las Vegas falling 14.5 percent in the last three years, from $959 in the first quarter of 2008 to $825 in the same period of 2011. Ballif said the average monthly lease rate for all types of units fell from $932 in the fourth quarter of 2007 to $780 in the first quarter of 2011, a 16.3 percent drop.
And that's before you count the concessions landlords offer to lure residents. A standard concession is one month's free rent -- a sweet deal that didn't exist during the market's heyday three to four years ago. Factor in those giveaways, and rents have probably dropped in the 20 percent-plus range, Ballif said.
In fact, rents continue to drop for Camden Property Trust, the Texas-based owner of 29 Las Vegas Valley apartment complexes. Camden's monthly rents range from $399 to $1,300, are still trending negative and dropped 7 percent in 2010, said Myra Rega, the company's regional manager.
"We have a few communities with rents that have turned upward, but for the majority of our communities here, we haven't hit bottom yet. We're still seeing year-over-year decreases," Rega said.
Those drops could stabilize and reverse soon, though.
For starters, apartment occupancies are increasing. Local rental communities posted an occupancy rate of 92 percent in the first quarter, up from 90.1 percent in the fourth quarter of 2009, Gordon said, and the number of concessions is dropping.
Credit the rise in occupancy to the jump in home foreclosures. As homeowners surrender their properties, they move into rental communities, Pelletiere said. The burst housing bubble has increased the number of single-family homes for rent by underwater families looking to cover mortgages on homes they can't sell. But those rental homes haven't proven major competition for apartments because homeowners borrowed at the market's apex, so they have to charge significant rents to pay the mortgage.
Ballif said it's difficult to determine how many distressed single-family homes might end up in the city's rental pool.
What is clear: Few new apartment communities are planned or under construction, and that could constrain apartment supply in coming years. Las Vegas averaged 5,100 new apartment units annually during its prerecession boom; expect 1,200 units a year in the future, Ballif said.
That flat supply could run head-on into a growing demand for rental units, depending on the economy and demographics.
Incomes are stabilizing as average hours worked per week begin to bounce back from recession-era lows, Gordon said. There's also stabilization in the job market. Job creation jumped in March and unemployment fell to 13.3 percent, down from 14.9 percent in December.
Those trends will likely mean more renters in coming years, Pelletiere said, as roommates and extended families who doubled up to survive hard times can afford to strike back out on their own.
Rega said Camden officials expect occupancies and rents to stay steady through 2011, and move upward in 2012.
Marketwide, annual rent increases of 2 percent to 3 percent could return beginning in 2012 if local employers create more jobs, Ballif added.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512
.
LAS VEGAS REVIEW-JOURNAL
Posted: May 12, 2011 | 12:18 a.m.
Updated: May 12, 2011 | 8:53 a.m.
Las Vegas housing, unaffordable?
It's been a while since we've heard that one.
But an affordability problem is exactly what Las Vegas has, according to a new study. The National Low Income Housing Coalition's "Out of Reach 2011" report says the city's average apartment rent outstrips the average wage earner's income by a significant amount.
Local observers quibbled with the coalition's figures, saying their numbers show a substantially better balance between rents and wages.
Regardless of whose statistics you follow, one thing's for sure: A multitude of demographic and economic trends will shape the Las Vegas apartment market -- and the rents people pay -- in coming years.
To understand the rental market's dynamics, start with those disputed figures from the National Low Income Housing Coalition. Using data from the U.S. Department of Housing and Urban Development, the coalition, an advocacy group that says it wants to guarantee decent, affordable homes for low earners, pegged the average monthly rent for a two-bedroom apartment in Las Vegas at $1,067. That means a local earning the city's average hourly wage of $14.52 would need to work 57 hours a week to swing the rent, utilities and other essentials. A renter earning the state's minimum wage of $8.25 would have to work 99 hours a week to afford the typical two-bedroom rent.
Danilo Pelletiere, research director and chief economist for the coalition, said the disparity between rents and incomes matters because pricey apartments mean unstable communities, as renters move from complex to complex looking for more affordable places. Expensive housing also drains discretionary income.
"We need to focus on these issues to keep neighborhoods alive, keep stores in business and keep that vibrancy that communities need to survive," Pelletiere said.
Housing and Urban Development officials said they obtain their rent information from a combination of sources, including 2008 Census data, 2009 phone surveys and adjustments for inflation.
But local experts said the report's average rents seem high.
Brian Gordon, a principal in Las Vegas consulting and research firm Applied Analysis, said his company's first-quarter numbers show an average local two-bedroom rental rate of $668 to $825 a month, depending on the number of bathrooms. The market's average overall monthly rent for apartments of all sizes was $761 in the period. Applied Analysis gets its statistics through landlord surveys, conducted most recently in March.
Spencer Ballif, a senior vice president with the Las Vegas office of commercial real estate brokerage CB Richard Ellis, came up with a similar result. Ballif's numbers, which also come from landlord surveys, show an average monthly rent of $867 for two-bedroom apartments in Class A communities, which consist of newer properties with more features and upgrades. A typical two-bedroom Class B unit came in at $717 a month, while two-bedroom Class C units averaged $643 a month.
What's more, average rents are down substantially. Gordon's numbers show the average asking rent on a two-bedroom, two-bath apartment in Las Vegas falling 14.5 percent in the last three years, from $959 in the first quarter of 2008 to $825 in the same period of 2011. Ballif said the average monthly lease rate for all types of units fell from $932 in the fourth quarter of 2007 to $780 in the first quarter of 2011, a 16.3 percent drop.
And that's before you count the concessions landlords offer to lure residents. A standard concession is one month's free rent -- a sweet deal that didn't exist during the market's heyday three to four years ago. Factor in those giveaways, and rents have probably dropped in the 20 percent-plus range, Ballif said.
In fact, rents continue to drop for Camden Property Trust, the Texas-based owner of 29 Las Vegas Valley apartment complexes. Camden's monthly rents range from $399 to $1,300, are still trending negative and dropped 7 percent in 2010, said Myra Rega, the company's regional manager.
"We have a few communities with rents that have turned upward, but for the majority of our communities here, we haven't hit bottom yet. We're still seeing year-over-year decreases," Rega said.
Those drops could stabilize and reverse soon, though.
For starters, apartment occupancies are increasing. Local rental communities posted an occupancy rate of 92 percent in the first quarter, up from 90.1 percent in the fourth quarter of 2009, Gordon said, and the number of concessions is dropping.
Credit the rise in occupancy to the jump in home foreclosures. As homeowners surrender their properties, they move into rental communities, Pelletiere said. The burst housing bubble has increased the number of single-family homes for rent by underwater families looking to cover mortgages on homes they can't sell. But those rental homes haven't proven major competition for apartments because homeowners borrowed at the market's apex, so they have to charge significant rents to pay the mortgage.
Ballif said it's difficult to determine how many distressed single-family homes might end up in the city's rental pool.
What is clear: Few new apartment communities are planned or under construction, and that could constrain apartment supply in coming years. Las Vegas averaged 5,100 new apartment units annually during its prerecession boom; expect 1,200 units a year in the future, Ballif said.
That flat supply could run head-on into a growing demand for rental units, depending on the economy and demographics.
Incomes are stabilizing as average hours worked per week begin to bounce back from recession-era lows, Gordon said. There's also stabilization in the job market. Job creation jumped in March and unemployment fell to 13.3 percent, down from 14.9 percent in December.
Those trends will likely mean more renters in coming years, Pelletiere said, as roommates and extended families who doubled up to survive hard times can afford to strike back out on their own.
Rega said Camden officials expect occupancies and rents to stay steady through 2011, and move upward in 2012.
Marketwide, annual rent increases of 2 percent to 3 percent could return beginning in 2012 if local employers create more jobs, Ballif added.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512
.
Sunday, February 6, 2011
Pardee Homes highlights Solamar in northwest
Pardee Homes' Solamar neighborhood in northwestern Las Vegas features several homes that are ready for move in, according to Pardee Homes' Regional Sales Director Rob Tuvell.
He said the market continues to favor new-home buyers in Southern Nevada, including at the builder's eight valley neighborhoods.
"In our buyer's market, there are many terrific opportunities to own a brand-new, energy-efficient home with many upgraded amenities and that includes a select number of move-in ready homes at our Solamar neighborhood," Tuvell said.
Situated on a pool-size corner home site that measures 6,430 square feet, a Solamar Plan 4A at home site No. 143 measures 3,084 square feet with four bedrooms, three baths, three-car garage, playroom and loft.
Priced at $293,500, the home includes granite countertops, stainless-steel appliances including a side-by-side refrigerator and upgraded flooring.
A Solamar Plan 2C at home site 264 measures about 3,000 square feet with three bedrooms, 2½ baths, three-car garage, den and playroom.
Priced at $290,750, the home includes a stainless-steel appliances including side-by-side refrigerator, granite countertops, upgraded flooring and rear yard landscaping.
A Solamar Plan 5B at home site No. 117 measures 3,959 square feet with six bedrooms, four baths, three-car garage, library and loft.
Priced at $336,100 the home includes stainless steel appliances, granite countertops and buyer's selection of flooring.
For additional information on these homes or others, visit the sales office; call 702-645-3666 or visit www.pardeehomes.com/solamar.
All of Pardee's newly designed homes, including those at Solamar, are part of the builder's LivingSmart brand, a program with standard and optional measures that boost energy efficiency, save water, improve indoor air quality and encourage material conservation and the use of recycled or sustainable resources in new homes.
Home prices start from $270,450 at Solamar and the one- and two-story floor plans range from 2,491 to 3,959 square feet with up to six bedrooms.
Solamar's northwestern Las Vegas location is near new retail, services, schools and major transportation links including the recently opened Centennial Hills Transit Center. Also nearby are Silver Stone Golf Club, Mountain Ridge Park, Las Vegas' Extreme Sports Park and Centennial Hills Hospital.
To visit Solamar from U.S. Highway 95 North, exit to the 215 Beltway west. Exit on Durango Drive and turn right. Turn left on Deer Springs Road, right on Grand Canyon Way, then right on Bay Ledge Street to the models.
Visitors are welcome from 10 a.m. to 5 p.m. Tuesday through Sunday, and from 11 a.m. to 5 p.m. Monday.
For the second consecutive year the Southern Nevada Division of Pardee Homes has received the highest rankings from J.D. Power and Associates for overall customer satisfaction and new home quality in the Las Vegas Market.
One of the West's largest and longest-established home builders, Pardee has built homes for more than 40,000 families in Southern Nevada since 1952.
He said the market continues to favor new-home buyers in Southern Nevada, including at the builder's eight valley neighborhoods.
"In our buyer's market, there are many terrific opportunities to own a brand-new, energy-efficient home with many upgraded amenities and that includes a select number of move-in ready homes at our Solamar neighborhood," Tuvell said.
Situated on a pool-size corner home site that measures 6,430 square feet, a Solamar Plan 4A at home site No. 143 measures 3,084 square feet with four bedrooms, three baths, three-car garage, playroom and loft.
Priced at $293,500, the home includes granite countertops, stainless-steel appliances including a side-by-side refrigerator and upgraded flooring.
A Solamar Plan 2C at home site 264 measures about 3,000 square feet with three bedrooms, 2½ baths, three-car garage, den and playroom.
Priced at $290,750, the home includes a stainless-steel appliances including side-by-side refrigerator, granite countertops, upgraded flooring and rear yard landscaping.
A Solamar Plan 5B at home site No. 117 measures 3,959 square feet with six bedrooms, four baths, three-car garage, library and loft.
Priced at $336,100 the home includes stainless steel appliances, granite countertops and buyer's selection of flooring.
For additional information on these homes or others, visit the sales office; call 702-645-3666 or visit www.pardeehomes.com/solamar.
All of Pardee's newly designed homes, including those at Solamar, are part of the builder's LivingSmart brand, a program with standard and optional measures that boost energy efficiency, save water, improve indoor air quality and encourage material conservation and the use of recycled or sustainable resources in new homes.
Home prices start from $270,450 at Solamar and the one- and two-story floor plans range from 2,491 to 3,959 square feet with up to six bedrooms.
Solamar's northwestern Las Vegas location is near new retail, services, schools and major transportation links including the recently opened Centennial Hills Transit Center. Also nearby are Silver Stone Golf Club, Mountain Ridge Park, Las Vegas' Extreme Sports Park and Centennial Hills Hospital.
To visit Solamar from U.S. Highway 95 North, exit to the 215 Beltway west. Exit on Durango Drive and turn right. Turn left on Deer Springs Road, right on Grand Canyon Way, then right on Bay Ledge Street to the models.
Visitors are welcome from 10 a.m. to 5 p.m. Tuesday through Sunday, and from 11 a.m. to 5 p.m. Monday.
For the second consecutive year the Southern Nevada Division of Pardee Homes has received the highest rankings from J.D. Power and Associates for overall customer satisfaction and new home quality in the Las Vegas Market.
One of the West's largest and longest-established home builders, Pardee has built homes for more than 40,000 families in Southern Nevada since 1952.
Median asking price for Las Vegas businesses drops
The median asking price for 313 businesses listed for sale in Las Vegas in the fourth quarter was $190,000, down from $240,000 or nearly 21 percent in the year-ago period, BizBuySell.com online listing service reported.
The businesses had median revenue of $350,000 and median cash flow -- or money that comes out of the business over the course of a year -- of $84,360, compared with $409,351 and $101,408, respectively, in the previous year.
Business owners in the Las Vegas area will typically ask for an average revenue multiple of 0.72 and a cash flow multiple of 2.91, down from 0.74 and 3.11, respectively.
The number of closed business-for-sale transactions in the United States, as reported by business brokers, rose by 3 percent in 2010. BizBuySell.com statistics include listings from local business brokers as well as "for sale by owner" listings.
"Spurred on by a strong showing in the fourth quarter, the business-for-sale market showed some promising signs of recovery heading into the New Year," said Mike Handelsman, general manager of BizBuySell.com and BizQuest.com. "In 2010, we saw more deals getting done. One of the key drivers for that growth was that business sellers were more realistic about their business valuations."
The increased business-for-sale market activity came at the expense of a decline in business valuations. The median closed-transaction sale price for 2010 dropped 6.3 percent year-over-year, from $160,000 in 2009 to $150,000 in 2010.
Key metrics used to value companies also fell slightly in 2010, with the average revenue multiple falling 2.1 percent and the average cash flow multiple falling 0.6 percent.
for more information about homes for sale is
www.buybankownhomes.com
The businesses had median revenue of $350,000 and median cash flow -- or money that comes out of the business over the course of a year -- of $84,360, compared with $409,351 and $101,408, respectively, in the previous year.
Business owners in the Las Vegas area will typically ask for an average revenue multiple of 0.72 and a cash flow multiple of 2.91, down from 0.74 and 3.11, respectively.
The number of closed business-for-sale transactions in the United States, as reported by business brokers, rose by 3 percent in 2010. BizBuySell.com statistics include listings from local business brokers as well as "for sale by owner" listings.
"Spurred on by a strong showing in the fourth quarter, the business-for-sale market showed some promising signs of recovery heading into the New Year," said Mike Handelsman, general manager of BizBuySell.com and BizQuest.com. "In 2010, we saw more deals getting done. One of the key drivers for that growth was that business sellers were more realistic about their business valuations."
The increased business-for-sale market activity came at the expense of a decline in business valuations. The median closed-transaction sale price for 2010 dropped 6.3 percent year-over-year, from $160,000 in 2009 to $150,000 in 2010.
Key metrics used to value companies also fell slightly in 2010, with the average revenue multiple falling 2.1 percent and the average cash flow multiple falling 0.6 percent.
for more information about homes for sale is
www.buybankownhomes.com
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