Category Archive : Real Estate

Las Vegas developed into a prime real estate investment attraction primarily due to four things:

• Sustainable Work:  A diverse pool of work opportunities.
• Population Growth: Population growth as a by-product of sustainable work.
• Supply & Demand: Population growth increased supply and demand and fueled building activity.
• Climate.

Ample employment opportunities, and a surging population gave rise to suburban development projects such as the award-winning 39-square-mile master-planned community of Summerlin, at the edge of the Spring Mountains and only a short drive from downtown Las Vegas.

The sudden growth of high rise construction, previously unknown to Las Vegans was primarily due to the pressures of population growth, and land use restrictions.

Land-locked Las Vegas is surrounded by vast Government owned land holdings under the auspices of the Bureau of Land Management (BLM) and bordered by Native American reservations, with Lake Mead to the east, mountains to the west and Nellis Air Force Base to the northeast.

Approval for any transaction of BLM regulated land to be incorporated into the city requires formal federal government approval.

Lured by the promise of jobs, lower than average housing costs and a favorable tax structure for individuals and businesses, thousands of people were moving into Las Vegas putting continuous pressure on the need for available housing.

Of course, it would be just a waste of space to reiterate what caused the sudden cooling off of a superheated economy, and the end of the real-estate gold-rush. The reasons are due to an unfortunate combination of circumstances and well-known to everyone.

Suffice to say that despite the current less than ideal real estate environment, opportunities to build wealth will always prevail for the astute real estate investor who has the foresight and flexibility to adjust to any and all prevailing market conditions.

Though the overall condition of the Las Vegas real estate marketplace is far from ideal at the present time, there are many undervalued properties available that should prove to be excellent investments over the long term.

With interest rates at an all-time low and a huge inventory of distressed properties selling at very attractive prices, the home-buyer looking for a primary residence won’t find a better time to buy then right now.

So, there is some sunshine over the horizon to brighten a somewhat gloomy picture, and hopefully predictions for the beginnings of an upturn in the overall economy around the early or mid part of 2011 will ring true.

Let’s start off by saying that purchasing price aside; it is obvious that a new Las Vegas home will be relatively free of the aging problems that require maintenance in older homes. Kitchen and laundry room appliances will be under temporary warranty for a year or so, the a/c system may be under a manufacturers warranty for five to ten years, the hot water heater is usually under warranty for about five years, sometimes longer.

In regard to purchasing however, due to the higher costs of land today, the price per square foot of new construction will be considerably higher than in an older home. The interior design of new homes, however, makes more efficient use of space than most older homes.

A builders warranty covers structural defects, and the buyer’s homeowner insurance adds further protections. New, energy-efficient appliances, Energy Star windows and improved insulating materials make for lower utility costs than older homes.

Older homes, those that are in move-in condition, and are about five to ten years old may have added amenities that might be very expensive to add to a new home.  Older homes than that may have architectural features that are more pleasing to the eye than many of the newer “cookie cutter” designs seen in many communities.

Many older homes were made with sturdier building materials than today’s homes, and the exorbitant costs involved in building a home today has forced builders to compromise in certain expenditures affecting the home’s construction.

Older homes will unquestionably require more maintenance and a home owners warranty would be a sound investment. Well-kept older homes are usually on larger lots and have mature landscaping, that lends ambience to the property. Shrubs and trees on new property may take years to mature, and the expense of lushly landscaping a new property can be cost-prohibitive.

Some buyers look for quiet, well-kept and stable, established neighborhoods where older homes are located. Others may prefer a modern sub-division with amenities such as a clubhouse, tennis courts, and a workout room.

As it can be easily seen, age of the buyers, number of children, if any, overall family lifestyle – active or sedentary – financial resources, etc. will generally dictate the preference for housing type and neighborhood.

As with any purchase, “let the buyer beware.” What that means is if you are buying a new home, check the builder’s reputation and net worth, and make sure it is the builder and not some subsidiary you are dealing with.

An older home’s overall health should be verified by a certified home inspector before you take the plunge.

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

Seller Strategies

When a Las Vegas listing agent and a client talk strategy, there is one question the agent does not have to ask his/her client: “what are your priorities?” And the reason the agent doesn’t have to ask is because the answer is already known: “Sell my house quickly and at the highest possible price!”

In today’s market that is a tall order, even if the house is exceptional and the pricing attractive, although a property such as just described would certainly sell quicker than most.

But the more houses on the market the more hesitation enters a buyer’s mind, like somebody in a singles bar who sees an attractive girl and strikes up a conversation, but always has one eye on the door, wondering if someone better might come in.

How then do you, the seller, overcome the hesitancy of the buyer, the neighborhood competition and the prevailing buyer’s attitude that even if the home looks good and is priced right, will prices continue to fall, and will I be able to buy this home at an even lower price in a few months or less?

There is no question that selling your home at the present time represents a real challenge for you and your agent. A challenge, yes! An impossibility, NO!

There are strategies to implement and things to be done that can turn the odds in your favor. Keeping a confident mind set and a belief in your strategy is the way to set about marketing your home with determination.

In boxing, a fighter with the determination and the will to win can often overcome superior skill, by causing the less determined fighter to lose confidence. Don’t lose confidence in yourself or your agent.

The first things to do are no-brainers to anyone, either buyer or agent who has done the research, and knows the basic procedures required prior to putting the property up for sale, and that is:

• Fix the place up! Clean, straighten, neaten, organize, that’s known as “staging.” An important part of staging is making the home spotlessly clean and eliminating ALL clutter everywhere, including the garage.
• “Curb appeal” means getting the lawn mowed, shrubbery trimmed, potted flowering plants strategically placed, clean, uncluttered driveway, etc.
• Make all necessary repairs recommended by the house inspector you should definitely hire.
• Your agent knows this, but you should be aware that equally important to the above steps to take is to price the home properly in accordance with current market conditions.
• In order to arrive at a figure that will lure buyers and leave you a decent profit, your agent must do a comparative market analysis, taking into consideration many factors that influence fair market values.

If you want to sell your home in Las Vegas quickly and at the best possible price, give us a call at 702-376-0088 as we have the expertise and negotiating skills that you need in an agent.

Certainly, most people involved in the business of real estate are honest and hard-working but, as in any business, or enterprise if you will, there are “bad apples.” And, when times are tough, and economic hardships prevail, bad apples proliferate.

Fraudulent real estate practices are nothing new, of course, but in the last few years, unsuspecting people are being victimized in unprecedented numbers, directly as a result of the housing crisis we are now experiencing.

There are “vultures” in every walk of life that prey upon the misfortunes of others, and when people are in a difficult situation they will often turn to anyone who offers a ray of hope.

Famed bank robber Willie Sutton was once asked why he robbed banks, and his answer was, “because that’s where the money is!” So it is with the robbers who commit real estate and mortgage fraud.

Mortgage and real estate fraud are multi-million dollar enterprises, and since there is much less of a chance to be shot at, mortgage and real estate fraud is a lot less risky than bank robbing.

Real estate scam artists often focus on desperate people who are facing foreclosure, and don’t know where to turn for legitimate help. The scam artist will try to convince the property owner that the only way to save the home is to deed it to another person -on a temporary basis. The intent, of course, is to steal the property.

Mortgage fraud, as opposed to real estate fraud -even though there isn’t really much of a difference- involves the misrepresentation of information. For example, the use of false appraisals which are designed to fraudulently increase property values, falsifying loan applications and the like.

False documentation and identity theft are often part of a real estate scammer’s methods of operation as well. Delays in the processing of deeds and other relevant documentation often give these thieves the opportunity to actually sell a single property a number of times before the paperwork on the original sale has been recorded.

Scammer’s recruit unethical notaries who conveniently “overlook” the verification of signatures, and allow blank spaces on documents that can be filled in by the scammer at a later date.

To qualify for a mortgage loan, other types of fraudulent practices often employ such schemes as falsifying assets by disguising rental property as owned property, counterfeit pay stubs, and adding their names to the credit cards of accomplices with excellent credit in order to increase credit scores.

There are countless variations of real estate and mortgage fraud scams, and they all pose a serious threat to the functioning and integrity of the real estate industry as a whole, as well as to individuals who are honest buyers, sellers, and investors.

If you or someone you know has been victimized by a fraudulent real estate scheme, you should contact the FBI and/or the HUD Inspector General.

Although the market value of a property is largely determined by the comparison between similar properties in a given area, the value of a home is, in the long run, determined only by what a buyer is willing to pay.

This means that, if a seller asks $300,000 for his/her home, but the best offer received is for less than that, then the value of the home is actually less then $300,000, regardless of the studies that were done to establish the home’s fair market value at $300,000.

There are a number of factors that can influence a buyer to pay fair market value, location being among the most important of influencing factors.

Good school districts are a powerful influence on market value, and are most likely of greatest importance in considering location relevance.

Convenience to the workplace, shopping, major thoroughfares, public transportation, entertainment districts and recreational facilities offer other location factors that can have an impact upon a property’s desirability, and as a result, market value.

Condition of the home and property is another strong influencing factor in establishing a selling price. Size of the home and lot, as well as upgrades and amenities are still more influencing factors.

Interest rates, time of the year, high or low inventories of available homes, number of distressed properties in a given area, specific neighborhood conditions, proximity to beaches or mountain areas, proximity to industrial areas, high or low crime areas; any or all of these factors will positively or negatively affect home values

Certainly, it is unlikely that any particular area or neighborhood will meet all of a homebuyer’s criteria, so it is important that the homebuyer look at needs versus wants in location and neighborhood amenities, and consider those options along with affordability; home prices, property taxes, etc.

Real estate agents rate a good location as one with high dollar value and an excellent prospect for substantial appreciation. Buyers have a more complex formula for deciding if a home’s price is suitable and its location is what they are searching for.

A buyer’s real estate agent can be a valuable resource in not only finding the kinds of homes that meet the buyer’s criteria, but can be additionally helpful in obtaining data relative to the neighborhood’s school district, shopping and commuting information, crime statistics, etc.

Since location is so important in so many ways, when the potential buyer finds a property of interest he/she should look over the neighborhood BEFORE making an offer.

Drive around during the daytime and at night, during the week and on a weekend to get a good indication of the noise factor, and overall condition of the neighborhood homes. Look for the number of occupied stores as compared to empty, and check with your real estate agent as to rising or declining neighborhood home values.

The current real estate inventory here in Las Vegas has been steadily creeping up over the past 5 months. At present there are 15,063 homes on the market which are not yet under contract. Of those 7,400 are short sales. That is a pretty good sized inventory in itself. Foreclosures make up 3,000 and that number is expected to climb.

This has an effect on sellers who are trying to short sell as properties take longer to get an offer due to the higher competition. Short sales have increased in popularity as an alternative to foreclosure. This is a good thing, but unfortunately, the numbers of buyers in the real estate market have not.

There is good news. Short sale processing times have come down significantly as the government has encouraged short sales and lending institutions have been moving quicker on approvals. The most important information sellers should take away from these trends is not waiting to long to get their home on the market. You can’t assume it will get an offer right away. You may eat up valuable time waiting for an offer and be left with a very short time to get a short sale approval before foreclosure.

Paul Rowe is the managing agent for the short sale division with Team Sena and can be reached at 702.376.0088.

Silverstone Ranch is a master planned golf course community situated on the fairways of the Silverstone Golf Club, a 27 hole championship course.    Construction began in 2003 and has mostly been completed; however, some new homes are still being built by Pulte.  This community is located in the northwest area of Las Vegas near Grand Teton and Buffalo Drive in the foothills of the Sheep Mountain range.

Silverstone Ranch features six different collections of homes including town homes to estates with views of the mountains and city.   The amenities offered to the residents are a swimming pool, six acre family park, playgrounds, basketball and tennis courts, picnic and barbecue areas, walking trails and lush greenbelts.

As of this writing, current resale home prices for the last three months range from around $125,000 to $420,000.  Median selling price is approximately $194,000.  A number of these resales are foreclosures or short sales.

The Princeville Collection at Silverstone Ranch is comprised of single family homes ranging in size from 3,064 to 3,744 sq. ft. selling for $416,990 to $459,990.  These homes, located adjacent to the Silverstone Golf Club, offer 3 to 4 bedrooms and 2.5 to 3.5 baths.

Pinehurst is a gated community built in 2004-2006, adjacent to the Silverstone Golf Club, and offers single and two story townhomes ranging in size from 1,345 to 2,015 sq. ft. with 2 – 4 bedrooms and an attached two car garage.  Some feature an island kitchen, great room, fireplace, covered patio and golf course or mountain views.  Other options include a split floor plan and master bedroom down stairs.

The Palms is a guard gated community comprised of single story and two story homes built in 2004-2009 with some lot sizes up to one third acre.  Home sizes range from approximately 1,900 to 4,050 sq. ft. offering 3 to 5 bedrooms and 2 to 3 car garages.

Some options include golf course or mountain views, wet bar, bonus room, den, fireplace in courtyard and other features.

Silverlake is a gated community of single story homes built in 2004-2006.  Home sizes range from approximately 2,025 to 2,825 sq. ft. featuring 3 to 4 bedrooms and 2 to 3 car garages on lots approximately 7,000 sq. ft to one quarter acre.  Some home options include an island kitchen, great room, courtyard fireplace, golf course view and split floor plan.

A popular amenity is the Silverstone Golf Club which is open to the public as well as community residents, featuring a 34,000 sq. ft. club house with restaurant, valet service, golf school, pro shop and locker rooms.  The club offers a state of the art practice facility with driving range, putting green and short game areas.

The club’s Mountain Course hole #3 is the longest hole in Nevada – a par 5 for 653 yards.   The club does not close in September for overseeding as do other courses in town and is available all year round – weather permitting.

For more information on homes in the Silverstone Ranch master planned community call 702-376-0088.

There are literally zillions of pros and cons that come to mind when discussing whether it is better to be a renter or a home owner, and guess what? There is no right or wrong answer to the question, because each individual’s financial situation and lifestyle preferences are inherently different.

A basic overview of rent versus buy pros and cons can provide guidance, but not answers. The answers can only be found by analyzing these pros and cons within the context of one’s own individual circumstances.

For example, for some people, purchasing a Las Vegas home is out of the question, either temporarily or not ever likely. These persons may have poor credit, low income, have no down payment money and no way to raise money for one reason or another.

On the other hand, there are those renters who are financially stable, have good credit and a healthy bank account, but just don’t want to deal with what they feel are the “hassles” of overall expenses and long-term financial commitment that go hand in hand with home ownership.

Obviously, there are no rights and wrongs here, it just depends on individual circumstances, as well as likes and dislikes.

What are some of the pros and cons of renting or buying?

• Renters have the flexibility to freely change residences without having to sell –once the lease has expired – with moving expenses, first and/or last month’s rent, and a new security deposit constituting the major up-front expenses.
• Renters have limited responsibility for maintenance.
• Renters monthly insurance premiums are much lower than a home owner’s insurance policy.
• Renters can call the landlord to fix a plumbing leak or A/C problem.
• Homes provide a better environment for children.
• Home ownership builds equity over time (when home values are on the rise.)
• Home ownership offers tax benefits (property tax and mortgage interest deductions for example.)
• Fixed rate mortgages offer reasonably stable monthly payments  as opposed to  annual increases in rental costs.
• Many retirees have paid off their mortgages and are now only responsible for property taxes.
• Renters are never free of monthly payments to the landlord.
• Home ownership offers more privacy and the option of decorating in any way you may choose.
• A mortgage can be considered a “forced savings” in some ways due to the equity build up in the property as the mortgage is paid down. That definition is open to argument, and there is not enough space to cover that subject here.
• Home improvements can increase the value of your investment. Improvements to an apartment can only be made with the landlord’s permission, and would only benefit the renter aesthetically.

So, as you can see, owning or renting is a judgment call if you have the option to buy or not, and if you don’t qualify to buy then there are no options.

If you have any questions about buying or renting a home in Las Vegas, feel free to give us a call at 702.376.0088.

A leaseback option more commonly occurs in commercial real estate transactions than in residential real estate negotiations, however, a buyer of residential rental property will occasionally come across a situation of this nature.

In a leaseback arrangement, a seller may have the need to market the property for sale for some ready cash to clear debts or to free up capital for investment purposes or other reasons, but knowing of the need to rent after selling his/her property, may feel more comfortable staying in familiar surroundings, and would prefer to remain on the premises as a tenant.

If the rental arrangement seems reasonable to the former property owner, the new owner is satisfied that the rents received from the former owner will satisfy the landlord’s expected profit potential for the property, and the length of lease is agreeable to both then a deal can be made.

Both parties can benefit from this arrangement, since the former owner will not have to deal with the expense and hassle of moving, and the new owner will save the time and expense of interviewing and screening prospective tenants.

Expense meaning the time it takes to find a tenant during which no revenues are being collected, instead of having a reliable source of income from a tenant that is more likely to treat the former property with respect.

The benefits to both buyer and seller could be in the form of an agreement that would allow the buyer to purchase the property at a very attractive below market price, and benefit the former owner by agreeing to a long-term leasing arrangement at a premium rate.

Additionally, since the buyer would derive depreciation tax benefits from the rental property, it is important for the buyer to conference with a real estate savvy CPA in order to assure that the timing and structure of the sale are designed to derive maximum taxable credits.

There can be legal complications detrimental to buyer and seller if it is determined that the seller has disposed of the property to hide assets, so the buyer should approach this arrangement with caution and should rely on the counsel of a skilled real estate attorney before making a commitment.

Some leaseback options may include terms which would allow the former owner to buy back the property after a previously agreed-upon time has elapsed.

Attorneys usually advise against the buy back arrangement, since there can be the possibility the  former owner may  construe the original transaction as a loan, and may take court action, which can become a serious headache for the buyer, and may result in unwanted consequences.

In some cases a lease back option could be beneficial to owners of distressed properties, who want to stay where they are but have the need to get out from under oppressive mortgage payments and avoid foreclosure.

If you have any questions about rental properties or leasebacks in Las Vegas, feel free to give us a call at 702.376.0088.

“As is” properties are properties that are not warranted to be free of defects. Of course, selling a Las Vegas property “as is” does not free the seller from the legal responsibility to the prospective buyer to freely and openly disclose all defects.

However, if the buyer has been informed of these defects and still chooses to knowingly purchase the property, than the seller can no longer be held responsible nor will be legally required to undertake any repairs.

However, if a home inspection uncovers defects not disclosed by the seller, either purposely or accidentally overlooked, the seller would then be held responsible for those repairs.

In considering a property in need of repairs, repairs in which the buyer knows he will have to foot the bill, a thorough home inspection prior to purchase is an absolute necessity.

For example, the seller may say that the roof “needs some work” but a home inspection may reveal that the roof needs to be replaced. If the cost of roof replacement amounts to approximately $35,000, by how much would the seller be willing or able to lower the selling price?

“As is” properties are considered bargain properties because the seller would have to offer the residence at a considerably under market price in order to attract a buyer who would willingly undertake repairs to the property.

But, as in the case of a major repair, what would a “bargain price” to the buyer actually be? That is why “as is” property purchases should be undertaken with extreme caution.

If the “as is” property is Real Estate Owned, (an REO) and is being marketed by a government agency such as HUD or Freddie Mac, or by a nationally chartered bank, then full disclosure to the seller can be waived, as these entities are not required by law to advise the prospective buyer of any defects.

Unlike the purchase of a home in the conventional manner, these large REO sellers will not accept, and in fact will outright reject any submitted sales contract that contains a required, “subject to inspection” clause.

In other words, when buying an “as is” property from one of these large institutional entities, you are stuck with the deal, even if an after purchase inspection turns up major defects.

A prospective buyer of an “as is” property should not be so short sighted as to be blinded by a very low asking price, and willingly make the purchase without pausing to realize that the property definitely has repair problems.

A thorough home inspection could reveal major problems that would negate the low asking price and become a “money trap” for the buyer. If the house has structural or foundation problems, that would be an indication to the buyer to look elsewhere for his “bargain property.”

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

When a person buys a home, they are making what is for most people, the largest financial commitment of their lives. Unless you are buying a home that you know is in need of repair, you will want to make absolutely sure that the property you are buying has no problems –obvious or underlying – that should be taken care of by the seller prior to closing.

However, a walk-through is not a substitute for a home inspection. Home inspections are done by licensed professionals who are trained to examine a property and either give the home a clean bill of health or make note of current or possibly potential problems that would require repair or replacement.

The walk-through is a cursory inspection by the buyer that can be performed a few days or a few hours prior to closing. The buyer should not underestimate the importance of a walk-through, and it is never a good idea to forego this step in the home-buying process.

Certainly, it would be in the buyer’s best interests to arrange a final walk-through as early as conveniently possible, so that in the event some problem is uncovered, the seller would have ample time to correct the problem without delaying the closing.

To avoid any complications, the buyer and seller should have agreed in writing that any problems found during the walk- through must be corrected prior to closing, and should additionally specify who will fix the problem and a deadline for completion of repair.

The walk-through could uncover a problem that had been overlooked by the home inspector, or find a problem that arose after a professional home inspection.

The walk-through can also uncover problems that home inspectors do not concern themselves with, such as windows that won’t stay opened or closed, toilets not flushing properly, etc.

A Walk-through is also important to assure the buyer that all the items that the seller has agreed will remain in the home are still there, such as appliances, window treatments, etc.

A walk-through should include checking the following:

• Check appliances for proper functioning
• Open all sink faucets and check under sinks for leaks
• Turn on bathtub faucet and showers
• Open and close windows
• Run garbage disposal
• Turn on heating and air conditioning
• Open and close all doors
• Check garage door functionality
• Turn all lights on and off
• Check outlets by plugging in a small lamp, such as a desk lamp
• Check for exhaust fan functionality
• Scan ceilings walls and floors for any signs of damage such as cracks, water stains, etc. that could have been overlooked, or water damage that might show up if the walk-through was done right after a heavy rain, for example

If problems are uncovered during the walk-through that are more than minor in nature, the buyer should postpone the closing until all issues have been satisfactorily resolved.

When buyer and seller have agreed upon a price to purchase a property, and the financing is in place, the deal is done, right? Not quite! Rarely would a buyer and seller agree to a contract without certain contingency clauses, and for good reason.

Contingency clauses offer protections for buyer and/or seller against situations or occurrences that would make the transfer of ownership problematic.

Contingency clauses included within the purchase agreement, for example, specify the conditions under which either buyer or seller could cancel the sale, with or without penalties, depending on the specific contingency terms.

Among the contingency clauses that can be included in a contract are:

• Home Inspection: The seller could be required to correct any problems found during the inspection prior to finalization of the sale.
• Termite Inspection: The contingency clause should specify who will pay for this service, or will the cost be split between buyer and seller?
• Roof Inspection: Although this inspection is typically handled by a home inspector, most inspections are cursory due to the inspector not wanting to walk on the roof. This inspection is best handled by a roofing contractor.
• Radon, Mold and Asbestos Inspections: Best handled by specialists.
• Early Occupancy: This contingency allows the buyer to occupy the property prior to escrow upon the seller’s prior approval of this contract clause.
• Preliminary Title Search:  This clause requires the seller to provide clean title to the property.
• Contingency to Sell Existing Home: Not all sellers will agree to this clause. If this clause is agreed to by the seller, the buyer will be given a certain number of days to finalize the sale of his residence.
• Appraisal Contingency: Buyer could cancel the contract or renegotiate terms of purchase in the event of a low appraisal.
• Some contingencies can be waived and others added during the negotiations between buyer and seller; it all depends on various circumstances that may or may not affect either or both parties to the contract.
• Dependent upon contract terms, either party could cancel the sale upon violation of any contingency.
• Violation of a contract contingency by the seller could allow the buyer to walk away from the sale without penalty, and require the seller to return the buyer’s earnest money deposit in full.
• Violation of a contingency clause by the buyer could allow the seller to cancel the sale and legally retain the buyer’s earnest money deposit.

Contract contingencies keep everyone honest. The buyer is assured that everything specified in the sales contract will be strictly adhered to by the seller or the buyer can legally walk away without penalty and receive a refund of deposit monies.

Some contingencies favor the seller, such as sale subject to buyer’s obtaining funding or selling a current residence within a limited time period.

Contingencies are an important addition to any property sales contract due to the fact that the sole purpose of these additions is to eliminate risk. How can anyone disagree with that?