Home Buyer Questions and What They Mean

As any Las Vegas Real Estate Agent hosting an open house event can tell you, that is the time when many questions are asked by visitors. Although most questions are relevant some are very revealing as to the type of potential buyer this person might be.

• How long has this place been on the market? The question reveals that this person may be looking to low-ball the seller based on the idea that if the house has not sold in some unspecified period of time, the owner is probably desperate.
• What is the tax appraisal on this property? As though they can accurately formulate an offer to the seller based on that figure. The disparity in tax appraisals from one property to the next, even in the same neighborhood, can be maddening to decipher at times.
• Has the house been inspected? Apparently this person, or these people, are not aware that they would need a new inspection of their own if they plan on purchasing the property.
• Why are they moving? Not always a relevant question. If this is the house you want, and it can be purchased at a fair price, and passes inspection with flying colors, that’s all you need to know.
• Obviously the question of why the seller is moving is asked to find out how motivated the seller is. The seller may also be aware that revealing the true reason for moving might weaken the seller’s bargaining position.
• How much did they originally pay for the house? That’s a really silly and totally irrelevant question. What if the house was purchased fifteen or twenty years ago? All the potential buyer needs to know is what is the true and current fair market value of the home. The reason a person may ask this question is that some buyers really resent the idea that the seller is going to profit from the sale. Strange but true.
• I’m not sure what I am really looking for, but I’ll know when I see it. Can we just drive around and look at some properties? That question requires an educated and tactful answer.

Certainly, no one wants to discourage a potential client –who, of course is no being represented by any other agent- but this person needs to be made to understand that he/she should sit down with paper and pen and do some soul-searching. The client should be told to consult with family members as to what is important in a home versus what would be nice but not a must, budgetary limitations, time frame, current housing situation, etc.

The client should be made to understand that just driving around in the “hope” that the ideal property can be found would prove a waste of everyone’s time.

Providing a well thought out list, the client should be told, will increase the chances of finding the ideal home in Las Vegas the shortest time, since the agent will examine the list and then choose the properties to visit that are closest in line to what the client would want.

For further information about purchasing a home in Las Vegas call 702-376-0088.

If you are planning to sell your Las Vegas Home and purchase a new one, you might be tempted to look for a new residence before your current home has been sold. Don’t do it! Just think of the predicament you would be in if you find and purchase your next dream home, and are still carrying the mortgage on your current home.

Are you one of the lucky few who could comfortably manage two mortgages simultaneously? That wouldn’t seem to be the best of situations for most people. Besides, you aren’t just paying two mortgages, you are also having to maintain two homes. That means paying double utility bills, insurance premiums, lawn maintenance, repairs, etc. And another thing, how will the insurance premiums on your old house be affected during the time it is unoccupied?

Suppose you have a serious (and qualified) buyer for your present home, and you are already into serious negotiations with the seller of a home you have decided to purchase, and both deals go through, what happens then?

Unless you are extremely lucky, coordinating closing dates to everyone’s satisfaction won’t be easy. Of course, simultaneous same-day closings can be accomplished, but the chances of something going amiss could pose problems for all.

You could also approach the owner of a home you are interested in buying and offer to purchase the property contingent upon selling your home. The seller might agree to that condition, provided you already have a contract from a buyer of your home.

Whatever you do, try to avoid overlapping mortgages. It could become nightmarish. It makes much more sense to sell your old home first, and then, leisurely and without undo pressure, search for your new home.

Remember, you naturally want to sell your home quickly, and at a satisfying price, so it is important to remember that under any market conditions, the property that looks good inside and out, is priced right, marketed right, and has experienced and knowledgeable listing agent representation, is the house that will sell in a buyer or seller’s market in a reasonable length of time.

Once you sell your home and are free of mortgage payments you can rent temporarily while you are house-hunting. Even if you decide to stay in a hotel or motel while house-hunting, and your furnishings, etc. are put in storage, it’s a whole lot better (and cheaper) then carrying two mortgages.

Under current market conditions, and with an experienced real estate agent representing you, you shouldn’t have to rent for very long. The time is as ripe as it will ever get to buy a home. Selling prices are still falling, and if you have really good credit, interest rates are at mouth-watering all time lows.

If you are interested in selling your Las Vegas Home and have any questions about the process or the need to do a short sale, feel free to give us a call at 702.376.0088 or fill out the form below or to the right.

The possibilities of making big profits in distressed properties has lured many new investors into the field. Many, surprisingly enough, are willing to risk financing these kinds of properties without the knowledge and expertise, much less the experience of the successful, long-time investor.

Frequently, these newcomers rely on “instinct” rather then on the advice of knowledgeable professionals, such as real estate agents and attorneys. Their hunger for quick, profitable deals and lack of true market knowledge most often leads to investments that either do not materialize, or turn out to be money-losing propositions.

These entrepreneurs often do not know of all the options an owner of a distressed property may have before actually being foreclosed, such as:

• If the owner is in a higher than debt equity position, but has fallen behind on payments to the lender, he may opt for a quick sale to get out from under the mortgage
• Deed in lieu of foreclosure – giving the deed to the lender – may avoid foreclosure, but is not the best of all possible options
• Short Sale: The borrower must convince the lender to allow the property to be sold, even if the sale price is less than what is still owed on the loan.

The borrower must additionally ask the lender to agree that no further action against the borrower to collect any balance still due on the loan- after the sale of the property – will be taken. The possible tax ramifications of such a sale may not leave the seller free and clear of all debt.

“Jumping” into a distressed property purchase, without a complete understanding of the process, and without a skilled advisory team is often a recipe for financial disaster.

Without these advisers, how will the new investor know the true market value of a distressed property, particularly in a difficult market such as the present?

Certainly, the new investor should be aware of the outlay of funds required-other than the purchase price- such as appraisals, home inspections, title searches, financing conditions, rehab and upgrade costs, etc.

Further investigation may be needed to uncover possible second or third mortgages, contractor’s liens, judgments, and so on.

Additionally, the new investor who finds a truly profitable investment, will rarely be the only one who knows about the property, and will quickly find himself up against the old pros, savvy, long-time investors with deep pockets, who will be difficult to compete with.

At this point, all we can say to the new investor is, do not take the plunge into distressed property investment until you have thoroughly familiarized yourself with the market in which you are playing. Put together the best advisory team possible, and make sure your funding sources will enable you to make the purchases that will make you the kind of money that drew you into this investment field in the first place.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

Added value properties are properties that for one reason or another are undervalued, but with renovation, sometimes minor, sometimes extensive, investing in these properties could be profitable.

This is dangerous area for new investors, particularly those with a get rich quick mentality. Careful analysis by an experienced investor and his/her investment advisers is a requirement of good judgment and the only way to make a qualified decision as to whether the deal is worth pursuing or walking away from.

How to recognize a possibly under-valued property that with some tender love and care would add value, might make a worthwhile investment takes experience in evaluating real estate investment targets.

Some examples of a possible added-value investment property:

• A rental property in which the owner is not experiencing the expected cash flow from the investment. Possibly the current owner is unaware of how to track rental market trends or inexperienced in finding the right kinds of tenants and is experiencing high tenant turnover.
• The neglected, vacant property of an out of town owner, who doesn’t need the money, and may have not as yet gotten around to having the home fixed up and marketed.
• A for sale by owner (FSBO) home that has fallen into disrepair due the owner’s lack of funds. The owner has little knowledge of the property’s true market value, and is selling the property in “as is” condition.
• The owner was recently deceased, and the beneficiaries are out of town and anxious to sell. The property may be in some disrepair, maybe minor, possibly major.

The beneficiaries are reluctant to put any money into the property for renovation, and may be putting pressure on the listing agent for a quick sale and might be amenable to selling at an attractive under-market value price to a qualified buyer.

• The once residential home is now in an area that has been re-zoned for commercial use, and the owner is not inclined to be a landlord to a business owner tenant and would rather just sell the property.

There are many other reasons as to why a property could be targeted by the investor as an added value prospect, and as mentioned previously, it takes real know-how to identify and analyze a real estate investment of this nature.

As any experienced investor knows, it takes the knowledge, resources and experience of a real estate agent who knows how to recognize these kinds of properties to find the investments that may be worth pursuing.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-7379.

Inspections Prior To Listing

Having a Home inspected prior to purchase is an important safeguard for buyers and lenders, in order to ensure that the structure that represents thousands of dollars in investment capital is sound and the home’s vital components are in good working order.

Las Vegas home sellers would do well to have their homes inspected prior to listing, in order to be assured that the home is in good repair or that any problems found have been dealt with.

Although some states do not require licensing of home inspectors, the State of Nevada does. Inspectors are licensed and regulated by the Nevada Real Estate Division, and certified under the categories of Residential, Commercial and Master Inspector.

Home inspectors can be located through the National Association of Home Inspectors (NAHI.) Certification by the NAHI is a professional credential for home inspectors.

A home inspector check list will include the following:

• Home interior
• Home exterior
• Foundation
• Roof, flashings and gutters
• Roof support structure
• Attic
• Basement (if applicable)
• Insulation quality
• Garage
• Electrical
• Visible plumbing, interior and exterior
• Central air and heating

After inspection, a written report will be issued that will describe the home’s overall condition and will indicate any problematical issues discovered.

When interviewing an inspector, find out what type of insurance coverage or coverage’s he has. He should have liability insurance, but he may or may not be covered by an errors or omissions policy (E&O.) An E&O policy will cover an inspector who is negligent in his work, overlooks a serious defect or malfunction, or signs off on an inspection report without denoting an obviously existing problem.

It is important to note that inspectors do not examine a home in minute detail. Inspections are visual and done primarily to discover adverse conditions, and/or safety concerns, and not cosmetic items. Wiring and plumbing not visible to the naked eye, for example, would obviously not be possible to inspect.

Inspectors do not verify code compliance, and cannot inspect inaccessible areas of the home. Additionally, the inspector cannot guarantee that some structural problem or component of the home that has been inspected might fail sometime after the inspection date, if it was in apparently good condition or good working order at the time inspected.

Since long-term prospects of systems can’t be predicted, it would be a good idea to ask the inspector if any systems he has examined might need a specialists attention in the near future.

Certainly, radon and pest inspections are very important as well, and a home inspection company might offer to subcontract and get these inspections done for you, but it probably would cost less to hire these specialists yourself.

It is important for investors in rehab properties to know that as of April, 2010, the Environmental Protection Agency, (EPA) has put into effect the Renovation, Repair and Painting rule. What this means to the investor is that if you have purchased a pre-1978 fixer-upper or are planning to upgrade a multi-family housing development built prior to 1978, it is most probable that the paint covering scheduled to be removed will be lead-based. Read More

Hey, I gave my real estate agent a $5000 Earnest Money Deposit check… Where does that money go?

A basic and very obvious question that most first-time home buyers ask once their purchase contract gets accepted. An Earnest Money Deposit (EMD) is simply held by a third-party escrow company according to the terms of the executed purchase contract. For example, there may be a contingency period for appraisal, loan approval, property inspection or approval of HOA documents. In most cases, the Earnest Money held by the escrow company is credited towards the home buyer’s down payment and/or closing costs.

*It’s important to keep in mind that the EMD may actually be cashed at the time escrow is opened, so make sure your funds are from the proper sources.

The Process:

1. Earnest Money is submitted to an escrow company with the accepted purchase contract
2. At the close of escrow, the EMD is credited towards the down payment and / or closing costs
3. If there are no closing costs or down payment, the the EMD is refunded back to the buyer

Who Doesn’t Get Your Earnest Money:

• Selling Real Estate Agent – A conflict of interest
• Sellers – Too risky
• Buying Agent – They shouldn’t have your money in their account

Why Fixer-Uppers Are So Popular

Although not all investors are attracted to these kinds of Las Vegas Properties, some real estate investors look for nothing else but properties in need of repair. This can be understandable, when on the surface it may appear that a motivated seller may be willing to part with his run-down parcel of land for as much as 20% to 40% under potential market value.

Of course, the inexperienced Las Vegas Investor may look only on the bright side of the picture, such as creating equity with minimum up-front cash, using government money and low interest loans to rehab eligible properties into saleable or rentable condition, or flipping a “ fixer-upper” for big profits, with a minimum outlay of funds.

All of the above speculations are not only possible, but are frequently accomplished. However, the experienced investor doesn’t only see the bright side, but will carefully evaluate possible pitfalls and cash outlay estimates after purchase before making a commitment.

As with any property purchase, and particularly with a handy-man special, a thorough building inspection by a licensed contractor is a must. Any problematical finds, such as structural damage and the extent of that damage, must be carefully evaluated before deciding to buy or walk away.

Another important consideration when dealing with this kind of investment is the outlay of funds required to repair and refurbish the property. If you are a do-it-yourself craftsman, you will probably be able to handle cosmetic repairs such as painting, cleaning, minor plumbing and electrical repairs such as leaking faucets, or replacing a light switch, etc., but, more extensive repairs would probably involve the cost of hiring a licensed contractor, especially if the building needs to be brought up to code.

All of these factors, other than just the purchase price must be carefully evaluated before making any commitments. Future use of the property, and a realistic exit strategy are other important considerations.

At this point in time, when selling prices are down and inventories are high, many investors in rehab homes would prefer to fix up and rent, rather than compete in a “buyers market.” Favorable cash flow from monthly rentals will allow the investor to bide his/her time waiting for an up cycle in the marketplace, as inventories gradually diminish and selling prices begin to rise.

Lastly, although CPA’s and real estate attorneys are valuable members of any investors team, a good Las Vegas Real Estate Agent is the key person on your team that can help you build wealth.

A good real estate agent, one that has experience in finding the kinds of properties you are looking for, and is in tune with your goals and business practices, are your eyes and ears in the marketplace.

Above all, the smart investor knows that connecting with a reliable agent will not cost you money, but actually help you to make money.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

Regardless of your investment preferences, whether they are primarily geared toward corporate stocks and bonds or real estate based, diversification is the best road to take to insure asset protection during volatile marketplace upheavals. In other words, as the old and time-proven saying goes, “don’t put all of your eggs in one basket.”

Best advice to any investor; know the marketplace you are playing in. If you are not thoroughly familiar with the rules of the game, you are assuredly destined to lose.

Certainly, no one, no matter how skilled an investor one may be- and we have said this time and again- knows everything, and if you are playing the real estate game, incorporate a team of specialists as your guides and advisers. As any successful investor will assure you, it takes a team effort to succeed.

There are many ways to diversify a real estate portfolio, and the investor should –after careful analysis – choose the path that best suits present and future market conditions and projections.

Among the many and most common real estate diversification investments are:

• Purchasing and selling or renting high-end properties; estate homes, luxury condos, etc.
• Buying, repairing and renting or selling handy-man specials
• Apartment complexes
• Condo conversions
• Real Estate Investment Trusts (REITs)
• Real estate mutual funds
• Real estate hedge funds
• Real estate related stocks
• Raw land
• Commercial property

Diversification allows the investor to ride out a down cycle in a particular market, with asset loss minimized or even neutralized by an up cycle in other real estate investments.

Take for example, what is happening in today’s marketplace. An investor whose specialty is strictly geared toward the buying and selling of single-family homes is faced with falling property values due to a huge glut of available inventory, mostly consisting of distressed properties, and with no immediate prospects of this inventory diminishing to any great degree for some time.

However, an investor for example, who buys and sells homes and has additionally invested for the long term in rental properties, including single family residences and apartment complexes, will have the benefit of continued cash flow from rentals.

Investors who have concentrated strictly on one aspect of real estate investment are in trouble when their investments hit a severe down cycle, since these investors have no immediate options to fall back on.

The investor with a skilled real estate agent as part of his/her advisory team is in an excellent position to intelligently forecast near future  market trends in some instances, and make the kind of investments that will maximize revenues and minimize loss.

Although these examples are just simplified versions of complex issues, the wisdom of diversification is obvious.

There is no doubt that the overall quality of a school district has a definitive impact on home values. In fact, the one of the most prominent reasons for families with school-age children to choose or reject a particular Las Vegas Home is based less upon the likes and dislikes of the home, and more upon the known quality or lack thereof of the school the property is zoned.

It’s an absolute fact that the market value of residential homes located within the jurisdiction of a quality school remain consistently higher than the value of similar homes in a less desirable school zone.

Often, buyers will be willing to pay premium prices for a home within a high ranked school zone, which is a primary reason for such a home to command top dollar.

Even in a market of declining home values, such as we are experiencing today, homes within the better school zones are holding their value far better than most.

A home within a school zone recognized for its consistency in quality education is often considered more desirable than a home that is perhaps located more conveniently to shopping, entertainment and business districts, for example.

Sixth largest in the United States, the Clark County School District has a number of schools that have rated among the nation’s best. Green Valley High School has, in fact, been proudly ranked among the top ten high schools in the country.

Detailed information about schools in the Clark County School District, as well as charter schools, can be viewed by parents and guardians through required annual reports. These reports are also used by Las Vegas school teachers and administrators to help develop academic achievement programs designed to increase the learning skills of all students.

Additionally, a Magnet School Program developed by the Clark County School District provides students with the opportunity to attend schools offering unique educational programs.

Under these programs, parents and their children have the opportunity to choose which of the Magnet School’s specific offerings would best suit the child’s particular interests.

Important consideration should be given to the fact that there is always a possibility that school boundary changes could occur if, for instance, a particular school is growing rapidly and is near or over capacity.

A new subdivision located near an established neighborhood could possibly stress the capacity of the adjacent schools and cause a school boundary shift, and although homes in a good school zone can often command selling prices of twenty to thirty percent higher than similar homes in a lesser school zone, a school boundary shift which would put the home in a less desirable school zone would most certainly negatively affect market values.

What can you do? Evaluate all of the factors involved, and just try to make the most intelligent choice possible. Remember, in the real estate marketplace, as in life, nothing is guaranteed, and change is inevitable..

If you are looking to purchase a Las Vegas Home within a particular school zone and have any questions, feel free to give us a call at 702.376.0088.

As soon as a property is listed in public record as being in default, the vultures begin to circle the dying carcass. Vultures, meaning the not so legitimate companies that prey upon these unfortunate people in difficult circumstances, and are opportunists of the worst kind.

Unlike the honorable investor in distressed properties, who truly attempts to put together a win-win situation for everyone, the scam artists, posing as lawful business people, use scare tactics and confusing language to pressure the panicked  homeowner into making hurried and thoughtless decisions, decisions that will result in the immediate loss of their home, and the scam artists acquiring the property at a below bargain-basement price.

Many homeowners facing the loss of their property are vulnerable to any suggestions that might help their situation, and are too distressed and anxious to check out the credentials of these crooks, whose tactics are designed to keep the homeowner confused, worried, and pressured to sell quickly.

The scam artist depends upon the harried homeowner’s state of mind preventing logical thought. He/she knows that if a homeowner was able to think rationally, he/she would be checking with the state government attorney’s office and the Better Business Bureau, for any complaints lodged against these firms, before concluding any business with them.

There are countless scams out there, with one purpose in mind, to steal the home out from under the home owner and resell for a fat profit. It is not within the scope of this article to detail all the many ways these thieves operate, but just as an alert to the Las Vegas Homeowner who is suffering financial difficulties and a possible loss of their home and is looking for a solution.

Above all don’t panic. Logical thought will enable you to find the answers. Definitely avoid all the come-on ads in the newspapers and online that offer themselves as mortgage consultants, “save your home specialists,” or using the words “debt elimination,” and the like.

Contact your lender as soon as you see a problem in meeting your mortgage obligations, and see if you can work with them to resolve the dilemma you are in. Remember, lenders don’t really want to be in the real estate business. Foreclosing and selling properties in default are practically always a losing proposition for them. Foreclosures are “loans gone bad,” as far as the lender is concerned.

In fact, many lenders complain that homeowners often call too late to be helped, and that there are cases in which a person suffered a home loss that might have been avoided had they contacted the lender sooner.

If it is feasible to do so, hire an attorney who specializes in real estate laws and regulations, and can evaluate your situation, and perhaps find some logical solutions to your problem.

If you decide you want to sell your Las Vegas Home and you owe more than the home is worth, feel free to give us a call to discuss doing a short sale.  We can be reached at 702.376.0088.

Which Would Be The Best Choice

If you are planning to buy a Las Vegas Home, and are not sure of whether you are interested in a new home, a somewhat older resale, or a truly “older” home, it would be best to avoid confusion by researching what the differences are in older and newer homes, and how these differences would or would not be to you and your family’s liking and adaptability.

Be sure to have a family consultation after you have carefully examined these differences, in order to reach a consensus as to what kind of home would best suit everyone’s lifestyle.

Above all, try to reach some conclusions before you bring your appointed real estate agent into the picture. Once you are focused on the kind of homes you have decided you are interested in, and in what price range, your agent can go to work and locate properties of interest.

Differences in newer and older homes are many.  For example, older homes –in particular, homes  built in the 1950s thru the  1970s –  may offer less interior living space then a newer home ( a typical two or three bedroom home in those days might be about 900 to 1600 square feet, with one or one-and-one half bathrooms)  but may have been built on a larger lot since land was not quite at such a premium then.

Rooms and windows are generally smaller in these older homes, and each of the rooms are pretty much closed off from one another. The open floor plan of modern construction allows for lighter, airier surroundings, and larger windows will let in more daylight.

Rewiring might be a distinct necessity for some older homes, which may not be able to accommodate all of the high end kitchen appliances and electronic equipment that are in every day use today.

Additionally, the cost of a code upgrade or remodeling of an older home should be taken into consideration as well. On the other hand, an older homes mature landscaping, with towering trees and abundant shrubbery, are a definite plus factor, since landscaping today can be an expensive proposition, and trees and shrubs can take years to reach full size and maturity.

Due to lesser square footage, the older home lacks the equivalent storage space available in newer construction.

However, the quality construction found in many older homes is often better than on many comparable newer Las Vegas Homes. These homes were built to last, with sturdy 2×6 redwood framing and solid plaster walls in place of sheetrock.

Many vintage homes, such as those built in the 1920s and 30s, have architectural features that give these homes a “character” that is appealing to many people. Many of these vintage homes are located closer to downtown areas, which can make them quite expensive to own.

So, the conclusion seems to be that whether to buy a new or older home is pretty much a judgment call, and your decision should be based on many factors, and especially how well a particular home, old or new, fits in with your expectations of what an ideal place to call home should be.

If you are interested in purchasing a “resale”  or new home in Las Vegas and have any questions about the Las Vegas Market or would like to set up a time to view properties, feel free to give us a call at 702.376.0088 or fill out the form below or to the right.