LAS VEGAS, NV – According to reports, Las Vegas new home construction and sales have displayed its strongest quarter of activity since 2007, with developers currently on-track this year to equal their 2018 performance.
According to reports, 2,500 net sales of newly-built homes in the Las Vegas region were reported from the start of July throughout the end of September, which represents an increase of 8.5 percent over the same period one year ago. File photo: Pixabay.
2,500 net sales of newly-built homes in the Las Vegas region were reported from the start of July throughout the end of September, which represents an increase of 8.5 percent over the same period one year ago. The previous high-water mark for sales was 2,760 in 2007, which was just prior to the burst of the housing bubble.
Factors that have been figuring into this continuing upward trend have been an influx of affordable homes into the marketplace – something which had been addressing home shortages and/or had been driving prices up until recently – not to mention assistance from lenders, who have lowered interest rates on loans to below four percent, down from five percent or more just one year ago.
With more people still moving to the Southern Nevada region due to the skyrocketing economy and the influx of new businesses – and with them, jobs – it’s not at all surprising that new homes have been selling like they have. Moreover, reports say, the lowered interest rates, combined with increasing inventory, are helping to create a more stable, sustainable marketplace; until recently, dwindling supply had been driving home prices continuously upward, raising concerns about affordability.
Sales of existing homes have also been healthy recently, with their prices approaching – but remaining well under – the prices of new homes; currently, the median sales price of an existing home has been about $299,000, as opposed to newly-built homes, which are fetching closer to $390,000 on the open market. Both of those numbers, respectively, are still well under the national average when compared to many other major marketplaces, such as New York or California.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – American Homes 4 Rent®, a California-based company that renovates and leases single-family homes (it already owns over such 1,000 homes in Las Vegas alone) has made the move to up its game in Southern Nevada, announcing recently that they would be constructing rental homes from Vegas, a move they have already pulled off in 14 other markets, according to reports.
An architectural rendering of a 4 bedroom, 3 bath home with 2255 square feet of living space in Serene Park by American Homes 4 Rent. Photo also by American Homes 4 Rent.
American Homes 4 Rent was established in 2012, and is one of the first large public companies to begin investing heavily in single-family homes, following the entry of The Blackstone Group into the field; as of 2018, it owned over 51,200 single-family homes in 21 states, many of which were acquired through the Multiple Listing Service and foreclosure homes via auction.
According to Clark County records, American Homes 4 Rent recently applied for 14 new home permits, the first time they have done so in the Las Vegas area, located in multiple plots of land that the company purchased in 2018. These permits are intended to make up a community the company is designing that will be named Serene Park in the southwest valley, according to reports. Once completed, the community will consist of a total of 21 single-family homes, all of which will be designed for long-term rentals and will range from 2,000 to 2,200 square feet in size.
The current slate of homes that American Homes 4 Rent already has on the rental market in Vegas range in price from $1,200 to $2,600 per month. The company has stated to media that the expansion into home construction – as opposed to just purchasing existing homes – came about due to an opportunity to build for approximately the same cost as acquiring structures that are already made, resulting in higher-quality rentals.
Once completed, the rent is expected be approximately $1,795 a month for a three-bedroom house and $1,950 a month for a four-bedroom house.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – According to reports, the short-term vacation rental market is booming in Las Vegas, with Nevada becoming the fourth-highest such market in the country. Vegas has always been a destination city for a variety of reasons, but after the recovery of the city’s economy, the recent influx of money, jobs, businesses and the arrival of the recently-transplanted Raiders NFL team – tourism has reached a fever pitch in Southern Nevada. Enter the rental market. Tourists have been turning increasingly to short-term home rentals when visiting Las Vegas, and investors have sat up and taken notice. Within the span of the last ten years, the vacation home rental industry in Vegas has gone up a whopping 50 percent, reports say.
Some of the most popular areas to rent vacation homes locally include Henderson, due in part to it’s proximity to the famed Las Vegas Strip; after such rentals were made legal there, reports indicate that anywhere from a 200-300 percent increase in the number of investors who have purchased homes in order to rent them out to tourists. Home rentals for tourists are often more popular then hotels and other accommodations; this holds especially true for families with children, according to reports.
Home prices in Vegas, while still climbing at record rates due to the law of supply and demand, are still nonetheless much cheaper than the national average, especially when compared to neighboring states such as California. Some investors report seeing quick returns on their investment dollars, with some Airbnb users noting that it’s possible to make as much as $8,000 a week if your play your cards right.
However, the short-term vacation rental market comes with its caveats, among them the fact that it may see an increase in rent and traditional home-buyers being pushed out. Due to this, the rental business could end up making things more difficult for both type renters and buyers alike.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – In the mid-2000’s Las Vegas housing market, prices reached their peak; in June of 2006, the median sales price of a single-family home hit an all-time high of $315,000, right before the recession hit and rendered the Southern Nevada market nearly inert for almost a decade.
With the recovery of the economy and the influx of money and jobs into the region, experts began to notice the skyrocketing growth in the housing market. Inventory was scarce and prices were rising, but did they stand a chance of hitting the highs seen before the housing bubble burst? File photo: Pixabay.
Fast-forward to 2019, and real estate in Las Vegas has finally experienced something of a boom period once again. With the recovery of the economy and the influx of money and jobs into the region, experts began to notice the skyrocketing growth in the housing market. Inventory was scarce and prices were rising, but did they stand a chance of hitting the highs seen before the housing bubble burst? Some were skeptical, but none denied the record-setting growth.
But it appears to be happening, experts say; in September 2019, the median sales price of a single-family home hit $310,000. Closing the gap significantly between what is and what once was. Clearly, home prices – while their growth has finally started to slow recently – are on the cusp of reaching, and perhaps even surpassing, their previous mid-2000 levels. However, experts say not to read too much into that milestone, as when taking inflation into consideration, the gap is not quite what it once was thought. Inflation means that, in 2019 currency, that peak 2006 home price of $315,000 would actually equate to 398,300. Also, while things have improved overall, they have yet to reach the point where lenders were practically giving loans away; from banks to developers, everyone touched by the real estate industry is playing it a little more safely these days, based on how badly they were burned last time around.
So while the symbolism of the new 2019 peak is a great way to bid farewell to the hardships that the recession forced upon Las Vegas – and indeed, the rest of the nation – it still indicates that there’s room for improvement, and illustrates just how bad things got when they were at their worst. But it also shows how far Vegas has come, and how far it’s still more than capable of going in the future.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – While the growth of home prices on the real estate market has slowed as of late after a period of massive growth, Las Vegas is still outpacing the vast majority of large cities in the county; that is, except its neighboring city of Phoenix, Arizona, according to reports.
The current growth of the Las Vegas real estate market is seen as more sustainable, according to experts, many of whom were worried that the previous rapid growth the city was experiencing would soon affect the region’s much-touted affordable cost of living. Photo: Pixabay.
In Southern Nevada as of July 2019, median home prices have been recorded as increasing 4.7 percent since the same period in 2018; this runs in direct contrast with the national average of 3.2 percent, reports say.
However, Phoenix has jumped in the rankings, showing a 5.8 percent gain year-over-year for the second month in a row. Previously, Las Vegas had occupied the top of the price growth list for a full year; for the past two months, it’s had to settle for number two on that list, a no less impressive distinction.
Currently, the median price of a single-family home in Las Vegas is $305,000 as of September, which represents a 3.4 percent increase over the same period of time in 2018. Growth is still there, although demand has decreased as developers have addressed the city’s rampant housing shortage brought on by a booming economy and an influx of out-of-state transplants looking for good jobs. The number of homes on the market is slowly increasing, which is helping to stabilize the formerly skyrocketing rate of growth for new home prices in the region.
In contrast, the median sales price of a single-family home in Las Vegas in August of 2018 represented a 13.5 percent increase over the same period in 2017, reports say; a massive jump, indeed.
The current growth of the Las Vegas real estate market is seen as more sustainable, according to experts, many of whom were worried that the previous rapid growth the city was experiencing would soon affect the region’s much-touted affordable cost of living.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – According to reports, the Rio All-Suite Hotel and Casino in Las Vegas, Nevada has been sold by Caesars Entertainment to a real estate investment company for $516.3 million.
Multiple sources are saying that Caesars Entertainment has agreed to sell the Rio All-Suite Hotel & Casino to a New York-based real estate group. Photo: Scripps TV Station Group.
The buyer, controlled by the firm Imperial Companies, has agreed to acquire the Rio Casino-Hotel, which is located on the famed Las Vegas Strip. Under the terms of the announced agreement, Caesars will still operate the hotel/casino for at least the next two years, paying the new owners $45 million a year in rent. After two years, Caesars retains a $7 million option to continue managing the property for an additional year; further years of management are also possible after the expiration of the lease as well, according to the agreement.
Caesars CEO Tony Rodio noted in a released statement that the move to sell the Rio would enable the company to concentrate on their many other holdings in the Southern Nevada region and beyond.
“This deal allows Caesars Entertainment to focus our resources on strengthening our attractive portfolio of recently renovated Strip properties and is expected to result in incremental EBITDA at those properties,” he said.
Caesars Entertainment Chief Executive, Tony Rodio
First opening its doors for business on January 15, 1990, the Rio was the first all-suite resort in the Las Vegas area. It was named after the city of Rio de Janeiro and is influenced by Brazilian culture, and is the host casino for the World Series of Poker.
The hotel towers are covered in blue and red glass. The Rio hotel’s 2,522 suites range in size from 600 to 13,000 square feet and have floor to ceiling windows. There are several private villas on the property for high-rollers. In addition, the complex includes a wine cellar that has more than 50,000 bottles. The Rio Pavilion convention center has a total of 160,000 square feet of space. A Race and Sports Book is also available.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – Many Las Vegas construction projects that are either in the planning stages or are currently in the works are facing the very real threat of skyrocketing costs in the face of trade tariffs brought on by the ongoing US/China Trade War, according to recent reports.
How this affects construction in Las Vegas – and much of the U.S., is in steel, one of China’s main exports, which is also home to six of the 10 largest steel-producing companies headquartered there, according to reports. File photo: Pixabay.
As previously announced by President Donald Trump, on October 1, 2019, new tariffs – ranging from 25 percent to 30 percent – will be placed on $250 billion worth of Chinese goods; in addition, $160 billion worth of Chinese goods will come under a new 15 percent tax due to be instituted on December 15.
How this affects construction in Las Vegas – and much of the United States, for that matter – is in steel, one of China’s main exports, which is also home to six of the 10 largest steel-producing companies headquartered there, according to reports.
And the increased steel prices that the tariffs are causing are making many developers think twice about going forward with – or scaling back – numerous planned projects in the Southern Nevada region due to the ballooning costs involved. For example, a proposed sports and entertainment complex for the Las Vegas Strip headed up by former NBA star Jackie Robinson has raised its estimated costs from $2.7 billion to nearly $3 billion as a result of increased steel costs, reports say. In addition, the developers of the MSG Sphere at The Venetian have increased their initial estimate from $1.2 billion to $1.7 billion.
However, an equal number of developers are pressing forward and taking on the extra costs as they come, while others are managing to remain on-budget as pre-existing purchase contracts with exporters have rendered them temporarily immune to the rising costs brought about by the US/Chine trade war. Projects that report no significant cost overruns due to the conflict include the Las Vegas Raiders Stadium and the Las Vegas Convention and Visitors Authority (LVCVA) convention center expansion.
According to the LVCVA, there are ongoing or currently planned projects scheduled to open through 2022 totaling in the amount of $15.2 billion within the confines of the city.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – The Las Vegas Sphere, a 400,000-square-foot, 18,000-seat, 360-foot-tall globe-shaped arena slated to be constructed on 63 acres of property located behind the Venetian Resort Hotel Casino on the Las Vegas Strip, is currently running over initial cost estimates. As a result, the ambitious project – helmed by developer Madison Square Garden Co. – may cost upwards of $500 million more than first projected, inflating its final price tag to as much as $1.7 billion, reports say.
Once completed, the interior of will feature a 180,000-square-foot ceiling with massive video screens for attendees to watch, as well as floor-based bass speaker system to appeal to concert and club-goers on evenings when electronic dance music acts take the MSG Sphere stage, giving the music venue a multi-genre and event capability.
Originally, Madison Square Garden Co. – in conjunction with partner Las Vegas Sands Corp. – had estimated the cost of the high-tech stadium at $1.2 billion, which was contrasted recently when the contractor of the project, AECOM, announced that costs are more likely in the range of $1.7 billion.
The discrepancy, according to reports, may come from the difference between initial budgeting and forecasting based on schematic designs available at the start of construction – ground was officially broken one year ago – and high costs that AECOM has noted they are encountering throughout the process of physically bringing the complex designs to life. Madison Square Garden Co. has reportedly stated that they feel this new $1.7 billion estimate is too high, and is “in the process of reviewing and challenging those assumptions.”
The Sphere will cater to musical performances and concerts, as well as potentially occasional boxing or MMA contests. Once completed, the interior of will feature a 180,000-square-foot ceiling with massive video screens for attendees to watch, as well as floor-based bass speaker system to appeal to concert and club-goers on evenings when electronic dance music acts take the MSG Sphere stage, giving the music venue a multi-genre and event capability. The Sphere is expected to be completed in 2021.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – According to reports, despite the fact that rental prices for apartments in the Las Vegas area have increased over the past 12 months more than any other major U.S. metropolitan area in the United States, the market is nonetheless still considered by experts as remaining quite healthy and affordable, especially compared to neighboring states such as California.
Experts say that Las Vegas’ prices are still considered a bargain, especially when compared to regions where rental prices have increased to points where the cost of living has become prohibitive. File photo: Pixabay.
In a recently-released Zillow report, the median rent in Las Vegas for all property types was $1,435, which represents a 10 percent jump from the same period one year prior. However, local realtors are disputing this figure, noting that the median rental price is more around $1,100; this price is made possible by the fact that developers have been working long and hard over the past year to construct more apartments and condos to satisfy the rapidly-growing demand for affordable housing options in Vegas.
However, reports note, developers have not quite met housing demands as of yet; Clark County occupancy is currently at 95 percent, which is considered the hallmark of a healthy rental market, and further stability of the market would be ensured if more building was completed.
Experts say that Las Vegas’ prices are still considered a bargain, especially when compared to regions where rental prices have increased to points where the cost of living has become prohibitive, such as Seattle, Washington or California’s Bay Area.
Recognizing Las Vegas’ need to expand its rental options in order to further lower prices, developers have been hiring in droves in order to bolster their workforces; experts note that apartments can’t be built fast enough, and that the market has yet to completely recover from the lack of construction activity that took place in Vegas during the recession, a time when numerous projects where either abandoned or outright cancelled.
Another factor that real estate experts say will be affecting the market in the near future is the impact that professional sports will have upon rentals in Las Vegas; once the Las Vegas Raiders NFL Football team begins hosting home games in the city at the start of their 2020 season, demand for rental units – which are typically cheaper than renting hotel suites for ten or more games per year – will likely increase even more as fans of the team flood the city on a regular basis.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
LAS VEGAS, NV – According to reports, Bleutech Park Properties, Inc. recently announced a truly ambitious project that is slated to break ground in the Las Vegas Valley in December 2019 – Bleutech Park, a so-called “smart mini-city” that will combine cutting-edge tech with new design principles which the developer claims will influence future construction.
Bleutech Park, a $7.5 billion project will feature renewable energy source-powered “net-zero” buildings, cutting-edge tech with new design principles which is expected to influence future construction. Photo credit: Bleutech Park.
Its description certainly makes Bleutech Park sound like something out of “Star Wars,” or “The Jetsons” with the developer noting that the $7.5 billion project will feature renewable energy source-powered “net-zero” buildings, meaning buildings with zero net energy consumption; the total amount of energy used by the buildings on an annual basis will be roughly equal to the amount of renewable energy created on the site, reports say.
In addition, Bleutech Park will have automated multi-functional designs, autonomous vehicles, artificial intelligence, augmented reality, robotics, self-healing concrete structures and more. Environmentally-friendly “green” technology will be at the forefront of design principles, including water purification, energy generation and storage, waste-heat recovery, and more. A network of “supertrees” is slated to help reduce imported water consumption by 95 percent.
With zero carbon emissions the project’s stated goals, according to reports, the outside surfaces of all buildings will utilize photo-voltaic glass, essentially turning them all into giant solar panels capable of generating significant amounts of electrical power.
The project is privately funded and is expected to take approximately six years for construction to be completed; once finished, it will offer mixed-use space combining worker housing, office and retail space, in addition to luxury hotel and entertainment options for residents and guests.
More details on the Bleutech Park project – which is expected to create more than 25,000 jobs – are expected to be announced shortly. But the degree of technology that is being talked about – much of the tech is still early in development, but progressing at a steady pace – could truly make Bleutech Park a beacon for community design for all developers in the future – if the project is successfully pulled off.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
Fed Chair Jay Powell initially did not indicate that there would be any further interest rate decreases in the near future which drew the ire of President Trump, who has been critical of the actions taken by the Federal Reserve. Photo credit: C-SPAN.
WASHINGTON – On July 31, the Federal Reserve cut interest rates by 25 points, making it the first time they have done so since the national recession in 2008. In addition, the central bank also ended quantitative tightening – a process of shrinking its balance sheet – two months ahead of schedule.
The interest rate cut changes the target benchmark rate to a range of 2 percent to 2.25 percent amid concerns of a possible slowing of the nation’s economy, citing “implications of global developments for the economic outlook as well as muted inflation pressures” .
According to a statement by the Federal Open Market Committee, business fixed investment is considered “soft” and inflationary pressures “remain low.” Job gains are considered “solid” by the Fed, with 224,000 added according to the June jobs report; unemployment currently is at 3.7 percent nationally, representing a slight increase.
The consumer market has shown continued improvement, however, with household spending increasing across the board.
Fed Chair Jay Powell initially did not indicate that there would be any further interest rate decreases in the near future, stating that the cut was simply a “midcycle adjustment” and that the economy was not in such a state of slowdown as to make necessary a longer rate-cutting cycle.
Powell’s lack of indication of future cuts drew the ire of President Donald Trump, who has been critical of the actions taken by the Federal Reserve recently as it pertains to the economy.
“As usual, Powell let us down, but at least he is ending quantitative tightening, which shouldn’t have started in the first place – no inflation,” Trump wrote on Twitter. “We are winning anyway, but I am certainly not getting much help from the Federal Reserve!”
….As usual, Powell let us down, but at least he is ending quantitative tightening, which shouldn’t have started in the first place – no inflation. We are winning anyway, but I am certainly not getting much help from the Federal Reserve!
It is perhaps this backlash from the President that caused the Fed to issue a follow-up statement, noting that it will “act as appropriate to sustain the expansion,” and that the committee will contemplate “the future path of the target range for the federal funds rate,” thus leaving the door open for potential future cuts.
Expectations were high in economic markets that the Federal Reserve would be making a 25 point cut, and some were even anticipating a potential 50 point cut.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
Plenty has changed in our local real estate market over the past several years, so we have outlined the steps involved in working with a real estate agent to find the best deal and get an offer accepted on a home. Photo credit ShutterStock.com, licensed.
We’re Here To Help Make Buying Simple
Buying a home can be a complicated at times, especially when dealing with short sales or distressed foreclosure properties. Plenty has changed in our local real estate market over the past several years, so we have outlined the steps involved in working with a real estate agent to find the best deal and get an offer accepted on a home.
At A Glance – The Steps Involved In Buying A Home:
The bullets above are obviously a simple outline of the homebuying process. There is a lot more to know about mortgages, title and escrow, appraisals, home inspections, selecting the right real estate agent, purchasing short sales or foreclosures….
Our goal with this Las Vegas home buyer section is to help prepare you with all of the information you need so that you will have the confidence you need to make an informed decision about the next home you buy in Southern Nevada.
The following tabs on this page break down the details with summaries and links to more comprehensive articles about each one of the steps above.
And please feel free to Call our real estate team at 702-376-7379 if you have any questions about changes in the Las Vegas real estate market or want to tour a few properties you find.
Preparing To Buy A Home
Do you start by contacting an agent or mortgage professional first? Or, is it easier to search for Las Vegas properties online and then contact the listing agent when you have found something you’d like to look at?
Shelter Realty recommends inventing a little time to educate yourself about the homebuying process and the local real estate market before jumping in the car with an agent or sitting down with a mortgage professional to get a pre-qualification letter.
Home Buyer Frequently Asked Questions
The more questions you know to ask about buying a home in Las Vegas, the greater level of confidence you’ll have in making the right decision.
How do I know when I’m ready to buy a home?
Buying a home is a personal decision that should not be taken lightly. Many people purchase real estate to live in when they plan on staying in the same location for more than 5 years. Your estate planner, CPA and attorney are great resources to consult about any potential benefits that you may gain from owning a home.
Factors to consider include monthly payment, down payment, savings over renting vs buying, location and lifestyle.
You should also consider the time you plan on staying in your property before either selling or renting it out and purchasing something new.
Depending on whether we’re in a “Buyer’s” or Seller’s” market may also influence your decision to purchase real estate at any given moment.
What’s the difference between a Buyer’s and Seller’s market?
Simple economics is the rule of thumb here. Everyone wants to “buy low and sell high,” but the truth of the matter is there is no way that can happen for everyone, every time.
Seller’s Market = More buyers than sellers (or available properties)
Buyers Market = More sellers (or available properties) than buyers
When there is limited inventory that multiple buyers are competing for, then sellers generally have the advantage of accepting the most favorable offer they receive. An experienced real estate agent representing a buyer knows how to present attractive offers that may be considered by a seller.
On that note, having a solid loan pre-qualification letter or even a full conditional bank approval before shopping for homes is a wise decision, unless you are paying cash and not interested in leveraging your money with a mortgage loan.
Should I rent or buy a home right now?
This can be a decision based on economics, your personal financial scenario or simply emotion. Renting tends to be a short-term solution, while purchasing real estate has longer lasting benefits or consequences.
If interest rates appear to be moving up along with the price of homes, then securing a lower rate and purchase price now might make financial sense… provided you are considering purchasing real estate in the near future.
However, if you are unsure about your future plans for living or a particular area for the next five years, then you may consider renting.
Most people get in trouble with buying real estate to live in when they let the “investment opportunity” discussion dictate the outcome of this important decision.
If you have decided to stay in one area for a while, and the cost of purchasing is less than renting, then it might be an easy choice to make.
The term “First-Time Home Buyer” is defined differently, depending on which mortgage program or state grant a borrower is applying for. There are many mortgage programs that are tailored to new buyers and endorsed or guaranteed by the government to help increase home ownership opportunities. The U.S. Department of Housing and Urban Development, of which the Federal Housing Administration is a part, defines a first-time home buyer is anyone who has not bought a primary residence in the past three years.
Also considered first-time buyers for the purposes of FHA Loans are single parents and displaced homemakers who have recently returned to the workforce; someone whose primary residence falls short of local or state building codes and cannot be brought up to code for less than the cost of a new home; someone whose home is not permanently fixed to a foundation, such as a mobile home.
How many homes should I preview before I make an offer?
As many as you need. The primary benefit of advanced technology with real estate is that buyers can literally search thousands of available properties online to get a good feel for neighborhoods, market patterns, local amenities, schools… and the list goes on. LOOK to right of this page for a quick drop down of links to pre-defined property searches to get started.
You can also contact our real estate team to customize a no obligation automated search for you that will email you daily or instantly when something hits the market that matches your criteria.
Keep in mind that the Internet cannot replace the experience and knowledge real estate professionals who know the landscape due to the fact that they spend hours and hours a day driving through communities and analyzing important data.
Find a real estate agent or loan officer first?
Both are part of your Real Estate Team, and either should have a trusted source of referral partners that they can introduce you to while you’re in the process of interviewing real estate professionals to help you with your home purchase. If you need a mortgage, then your real estate agent should require you to have a pre-qualification letter prior to scheduling an appointment to preview properties, especially in a Seller’s market.
The benefit of meeting with a mortgage professional ahead of time is that you can discuss various mortgage programs that may require specific language or property criteria that your agent needs to know about. Knowing what size mortgage you can afford will also help your agent research and recommend the right listings for you to preview.
Waiting around for a loan pre-approval letter shouldn’t prevent you from researching the market though. Our website has several options for previewing properties online, and you can also have your real estate agent email you specific homes that meet your criteria.
Yes, you will need to have a pre-qualification letter prior to submitting a purchase offer if the sale of the property relies on you obtaining mortgage financing. Experienced real estate agents (the ones you should be working with) generally require buyers to have that initial prequalification discussion with a mortgage company before getting serious about driving around to look at properties with the intent on making an offer.
However, you can start the conversation with a real estate agent about communities, properties, the market conditions… and so on prior to having that mortgage pre-qualification letter in hand.
The mortgage company plays a major role throughout the entire process and the responsibility for closing on time theoretically rests with their team of processors and underwriters. If the mortgage company has a strong working relationship with the participating real estate agents, then the transactions tend to go more smoothly.
Many home buyers actually start with a mortgage company that they like and trust first, and then ask them for a referral to a few agents that they work strongly with who would be a good fit.
A “Buyer’s” agent represents a buyer in the buyer’s best interest. A “Seller’s” agent represents the seller in the seller’s best interest.
Some buyers feel like they would get a better deal if they work directly with the agent selling the home, but that is generally not the case for the reasons mentioned above.
Since a sales price is negotiated between a buyer and seller, don’t you feel like the seller would have a competitive advantage if they had professional representation in their corner?
It is common that a seller will pay the buyer’s agent’s commission, unless specifically stated in a contract. Also keep in mind that a property should sell at fair market value, which is backed up by the professional opinion of the agent representing the buyer and validated by an appraisal.
Do I need an agent if I’m buying new construction?
It is highly recommended for the reasons mentioned above. The listing agent representing the builder is looking out for the builder’s best interests. Important – If you preview model homes without your buyer agent, then the new home builder may not pay your agent’s commission. This may put you in a situation where you have to deal directly with the builder’s representing agent alone.
Built-in appliances, such as dishwasher, microwave, oven / range, disposal… are considered part of the home. Items such as refrigerator, washer and dryer are the seller’s property, but could be negotiated as part of the sales contract.
Where does my earnest money go?
The Earnest Money Deposit is credited back towards the buyer’s closing costs and/or down payment. Any additional funds are given back to the buyer from the escrow company.
This is a topic to be discussed as part of your mortgage pre-qualification process, which is why it’s important to have the initial conversation with the lender before putting up earnest money and entering into a sales contract. If you can qualify for a new home loan with both mortgage liabilities, then the next question you need to answer for yourself is whether or not you can truly afford both payments in the case that property A doesn’t sell for a while.
Some buyers come up with the idea of buying a second home to live in and then letting the current property go into default / foreclosure. This practice is actually considered fraud and could end very badly.
However, it is an honest challenge that many buyers/sellers face, regardless of which type of market they are in.
If it is easy to sell, then finding a property and getting an offer accepted might be difficult.
On the flip side, in a buyer’s market, it might be easy to find a home and hard to sell.
Work with your real estate agent and lender to strategically plan how to make this transition without breaking the law or putting yourself in a stressful situation.
Will I get a better deal if I buy a short sale or foreclosure?
Maybe, provided your real estate agent knows what they’re doing and how to communicate the obstacles to you. Cash vs Mortgage play a key role in this scenario as well.
Ask your lender about an FHA 203k Renovation loan, which is a special program that allows a buyer to purchase an uninsurable or simply ugly property with as little as 3.5% down and roll all of the upgrades and rehab costs into a 30 year lower interest rate mortgage.
An “uninsurable” property is one that a typical lender wouldn’t finance. For example, a foreclosure where the previous owners literally took the kitchen sink when they vacated the property. Since cash-buyers are primarily the only people who these types of properties are marketed to, the selling prices tend to be lower due to market demand.
Are there benefits to buying in a Home Owners Association HOA?
Yes and No, it depends on your personal opinion based on several factors. HOA’s have several rules and regulations that all homeowners have to follow. There are also extra monthly HOA dues that you’ll need to pay in addition to your mortgage payment, property taxes and homeowner’s insurance. Las Vegas Home Owner Associations do have their advantages with extra amenities, such as gated communities, parks, landscaping…
By including title insurance when purchasing property, your title insurer takes on accountability for legal expenses to defend your property title, should it ever be challenged. Many different occurrences can come into play to warrant the need for title insurance.
The title company responsible will then take on the legal expenses to defend the property for as long as you are in possession of an interest in the property under the title.
If the defense is not successful, you will be reimbursed for any loss of value of the property.
We believe yes, because it will save you money. Some mortgage programs require a home inspection. The home inspection report should clearly identify any potential significant defects, and give the home buyer a realistic estimate of the costs of repairs so that they can be negotiated in an updated purchase contract.
An inspection should also highlight any areas or features that need to be addressed in the near future which may be reaching the end of their useful life span.
When the final closing documents are signed, funds have been delivered from your mortgage company (if getting a home loan) and the deed has been recorded. This process can take anywhere from 10 – 72 hours generally. Weekends, end of the month, acts of God and final mortgage funding conditions can stall this process.
Your lender and real estate agent will be all over everyone to make sure this final step is quick and painless.
You may hear your real estate agent or title company use the following terms throughout your homebuying experience. It is not necessary for you to know how to speak real estate in order to buy a home, but it helps to understand certain things your homebuying team are talking about when they fail to communicate effectively.
Acceptance:
Generally used when a seller accepts the terms presented in a purchase contract offer.
Contingency:
A “Subject To” provision in a purchase contract or mortgage approval that requires more work or documents to be submitted prior to a final decision to be completed.
Due-Diligence:
The period of time described in a purchase contract for the buyer and seller to perform certain duties such as appraisal, loan approval and inspections.
Deed of Trust:
In real estate, a trust deed or deed of trust, is a document wherein specific financial interest in the title to real property is transferred to a trustee, which holds it as security for a loan (debt) between two other parties.
One is referred to as the trustor the other referred to as the beneficiary. In its simplest terms the trustor would be the receiver of money and the beneficiary would be the lender of money. The trust deed document most likely would be recorded (constructive notice) with the County Recorder where the property is located as evidence of and security for the debt.
When the loan is fully paid, the monetary claim on the title is transferred to the borrower by reconveyance to release the debt obligation. If the borrower defaults on the loan, the trustee has the right to foreclose on and transfer title to the lender or sell the property to pay the lender from the proceeds.
Earnest Money:
The deposit money deposited in escrow by a buyer in good faith to secure a purchase transaction.
Escrow:
A third party that holds money or property in trust until a transaction has been complete. There are several uses for the word “Escrow” in the real estate or mortgage process. Closing Escrow describes when a purchase transaction is complete. An Escrow or Impound account involves having your annual property and hazard insurance payments handled by a third party and taken out of monthly installments in a mortgage payment.
Equity:
The difference between a loan balance and a property’s fair market value.
