LAS VEGAS, NV – Hitching themselves to a trend in Southern Nevada as a whole in recent months, North Las Vegas has begun an effort to revitalize large swaths of its real estate, especially in a northern area that had previously been plagued with drug dealing and violent crimes. The efforts will concentrate on development with a focus on senior and public housing options; in addition, major out-of-state businesses are setting up shop in the area, providing an influx of jobs and economic growth.

The North Las Vegas City Council recently approved a sweeping two-year development plan that would drastically alter the landscape of the region, with the goal being to attract retail and other businesses in order to spur the creation of jobs, kick off the local economy, and take advantage of the shortage of housing options in Las Vegas. A public 120-unit apartment building aimed at senior citizens – a project projected to cost a staggering $22 million –  is already underway on a 2.7 acre patch of land; this development will take the place of the Rose Garden, a complex slated for demolition that is situated west of North Las Vegas’ downtown area.

In addition, the Buena Vista – an apartment complex that was infamous for being the epicenter of drug dealing and violent crimes in the area – was purchased by the City of North Las Vegas approximately three years ago and subsequently razed to the ground, and plans are in the works that could see a variety of projects making use of the land, from safe, affordable housing options to retail. Assistance in North Las Vegas’ redevelopment efforts is being provided by the U.S. Department of Housing and Urban Development, which had previously bestowed a grant upon the city to aid in their outreach to the community as to how to proceed with their efforts.

Clearly, the shifting tide in North Las Vegas has companies sitting up and taking notice; chief among them being Amazon, the online retail giant, which is slated to open a fulfillment center in the area. The center – Amazon’s second in North Vegas – is already under construction; estimated to come in at 800,000 square feet and to ultimately employ over 1,000 workers and office personnel, hiring has already commenced on the initial 500 that will staff the complex while it gets ready for operation.

Other retailers are also clamoring to get a foothold in North Las Vegas due to the earnest efforts to develop it into a destination friendly to business and housing options; famed La Bonita supermarket will be opening a 55,000 square-foot establishment in Fiesta Plaza in downtown North Las Vegas. The lease, described as “long-term,” obviously signifies the confidence of La Bonita in the local economy to support a serious commitment in the community on behalf of businesses.

Offering a helping hand in an effort to expedite further business growth in the region, the City Council of North Las Vegas is taking steps to speed up the process of applying for – and receiving – building and construction permits. The plan consists of a self-certification program that architects and engineers can participate in; once certified via eight hours of classes provided at the City Hall, certified architects and engineers who submit their plans for audit will find the process greatly speeded up, reducing construction timelines and saving developers money.

These are but a few of the many initiatives in effect that are seeking to turn around the fortunes of North Las Vegas in an effort to turn it into a destination for businesses and families to live, work, and prosper, taking advantage of the real estate and economic boom that is currently taking root in Southern Nevada as whole.

LAS VEGAS, NV – With the announcement of the move of the Oakland Raiders from their current eponymous home to Las Vegas come the NFL season of 2020, a firestorm of curiosity has centered on not only where their home stadium would be built, but who would be building it and when. And, in a rash of recent announcements by the Raiders management team, those questions have finally been answered.

The Raiders organization has announced that it will be employing the services of Mortenson Construction and McCarthy Building Companies will handle the construction duties involved in bringing the Raiders’ proposed Las Vegas Stadium – currently its working name – to life. The structure, designed by Manica Architecture – the Kansas firm that supplied initial concept renderings of the stadium and property when this project was still in its proposal stage – is slated to contain 65,000 seats and boasts a price tag of $1.9 billion with an anticipated opening date of 2020, according to reports.

Mortenson Construction, based out of Henderson, NV, had a long list of sporting venue construction to its name; most recently, they completed work on U.S. Bank Stadium for the Minnesota Vikings in their hometown of Kansas City, and did so a full month-and-a-half ahead of their originally scheduled completion date. Other construction credits to Mortenson’s name include Major League Baseball team Atlanta Braves’ SunTrust Park in Georgia, and the currently in-progress work on National Basketball Association team the Milwaukee Bucks’ Wisconsin Entertainment and Sports Center.

Mortenson will serve as the on-site construction team on the Raiders project, whereas it is currently unknown as of press time what role McCarthy Building Companies – headquartered in Henderson, NV – will be serving.

Las Vegas Stadium is the working name for the domed stadium, which will not only serve as the home base for the re-christened Las Vegas Raiders, but of the UNLV Rebels football team from the University of Nevada, Las Vegas as well. It will be located about 62 acres west of Mandalay Bay at Russell Road and Hacienda Avenue, just west of Interstate 15.

While the main goal stated by the Raiders Organization is to complete their move from Oakland to Las Vegas in time for the 2020 NFL season – and with a company with the reputation that Mortenson Construction has at the helm, this seems quite the realistic goal – the Raiders must still finalize a lease agreement with the Las Vegas Stadium Authority by the end of May, 2017; if the two parties are unable to come to terms on the arrangement, the next chance to do so will not come until October of this year. If that were to occur, it would most likely push back the start of the Raiders in Las Vegas to the 2021 NFL season, something that neither party most likely wants to happen. In addition, environmental and traffic impact studies must be preformed and pass muster before local government.

The Las Vegas Stadium is anticipated to provide a boost to the local economy, including jobs (and corresponding wages), tourism, and especially the real estate market, which has already been seeing a steady and constant increase in prosperity recently since the housing bubble pop of the mid – 2000’s. Home and rental prices have been climbing on a regular basis, and with the much-anticipated arrival of the Raiders on the horizon, real estate is looking to enter a legitimate boom period for the foreseeable future.

On March 27, 2017, NFL team owners voted nearly unanimously to approve the Raiders’ application to relocate from Oakland to Las Vegas, Nevada; the Raiders will remain in Oakland through 2019; previously, the team had moved from Oakland to Los Angeles and back again.

LAS VEGAS, NV – After Las Vegas has endured the effects of a burst housing bubble in the mid-2000’s – a phenomena that occurred nationwide but was felt acutely in the Southern Nevada region more than most – the real estate market in the midst of a rebound that is equally as impressive as the previous decline was bad. The economy is rebounding and jobs are coming back; as a result, housing options are in big demand, supply is tight, and prices are steadily climbing, and, due to this, the rental market is displaying a similar surge as well, as prospective homeowners are being forced to settle, albeit temporarily, for renting one.

A three bedroom home in Las Vegas, in terms of rent, has jumped up in the first three months of 2017 three percent to an average monthly price of $1,328, according to reports. With the summer season fast approaching, prices are expected to climb further as per the norm during that time of the year. The rate of vacancy in the Vegas region – both in terms of homes for sale and rental properties – dropped  to 4.16 percent in the closing months of 2016.

But in addition to an economy on the mend and the subsequent influx of businesses and jobs that are fueling this home-selling trend – couple with a smaller-than-average supply of homes for sale to being within Southern Nevada, which is further driving up demand and subsequently prices –  another reason why the rental market is booming in Las Vegas is that, during a small swell of the real estate market that occurred a few years ago – one that unlike currently, ultimately went nowhere – investors purchased a large number of properties with the intention of renting them out to vacationers, business travelers, and so on.

This has contributed, in part, to the current housing shortage, as many homes that would normally be on the market for prospective buyers are sitting in a rental limbo of sorts. However, with dwellings in short supply, the gamble many of these investors made several years ago is starting to pay off, as residents who are unable to secure a house to buy are settling for the next best thing- renting one instead.

The so-called “Raiders Effect” is also being cited as a reason for the shortage of housing options in Las Vegas; with the area now boasting not only a professional hockey team, but the arrival within the next two years of one of the National Football League’s most well-known teams in the Oakland Raiders – who will be taking up residence in a brand-new 65,000 seat state-of-the-art stadium – industry is being attracted to the area, and with them, people relocating in hopes of a fresh start and gainful employment. And a few die-hard Raiders fans are even moving to Las Vegas to be near the home base of their favorite team, believe it or not.

It isn’t just home rentals that are steadily climbing due to the cutthroat housing market in Las Vegas; apartment rentals are in high demand as well, and like anything else that people are clamoring for, when demand goes up, prices are sure to follow. According to reports, apartment prices went up four percent in the last year, with the average one-bedroom apartment fetching $890 on the open market; if you’re looking for more space, a two bedroom abode will set you back $1050 on average.

Again, lack of supply is cited as a factor in these prices as well, with almost anything considered to be a living space going for a premium in the current Las Vegas marketplace; a trend that shows no sign whatsoever of slowing down or abating from its upwards climb anytime soon.

LAS VEGAS, NV – There’s no doubt about it- real estate in Las Vegas, Nevada, is on a slow but powerfully non-stop climb after sinking into the financial mire in the mid-2000’s. Records are being broken in terms of both prices and sales totals, and everywhere you drive, new developments are gracing the once-barren landscape. In addition, projects that had stalled or been outright abandoned are once again pushing forward in this new, more positive economic climate. While things aren’t quite at the booming levels they are right before markets crash, they are nonetheless very positive and getting better every day.

But for those who are looking to jump aboard this freight train to the top and are feeling some trepidation in regards to it all tumbling down again in the near future, experts are predicting – using the strongest of verbiage – that this isn’t a likely outcome.

Within the last year, the real estate market in Las Vegas has surged in leaps and bounds; 2,249 single-family homes were sold in the Las Vegas area in February, an increase of 6.5 percent from February 2016, and the average single-family home has gone up nearly nine percent, with the average price currently coming in at approximately $240,000.

And of course, these properties aren’t being simply given away, so there’s been a corresponding increase in the demand for mortgages Southern Nevada as well; continuing a three-year trend of growth, home purchase loans jumped up an additional 8.5 percent in 2016 over the previous year, equating to a total of 36,130 mortgages . And all that increasing demand has, of course, in turn driven up prices; in 2017, the average price of a single-family dwelling is coming in at $240,000, which represents an increase of $119,000 for the same home during the very same period in 2012.

In a recent interview, Home Builders Research founder Dennis Smith notes that the demand in Vegas for new homes is very strong, with one of the main reasons for that being fear of rising interested rates; as of now, many people are recognizing a housing boom and have decided to finally get off the pot, so to speak. After all, when interest rates go up, prices quickly follow. In addition, he said, is the limited supply of new homes in the area, which is also serving to inflate demand. However, unlike with a limited trend in the area a few years ago, Smith notes that this current drive is not investor-driven, but homeowner-driven, which suggests far more stability and optimism in the surrounding economy and job market.

It’s this stability, combined with moderate yet steady growth based on legitimate consumer need, that Smith says offsets any possibility of the Las  Vegas real estate market growing too much, too soon and creating another bubble that is sure to burst; instead, he notes, it’s ensuring a strong, profitable tomorrow for anyone getting into Southern Nevada real estate, as well as a good place for families to take a shot at the American Dream, with industry – and, along with it, jobs – quickly filtering into the region.

“Is Vegas going to grow? Yes. Do they want it to grow? I would certainly hope so. If not, then go live out in the desert. But is there a bubble or too much construction? I don’t understand why people would suggest there’s too much construction when the demand shows there isn’t,” he said. “How can anyone convince me that 8,000 sales a year is a bubble? We’ve had 30,000 – 40,000 permits a year; that was a bubble. But before that, in the 1990s and early 2000s, we were doing 20,000 permits and closings a year, and everyone was marveling how wonderful everything was in Las Vegas.”

LAS VEGAS, NV – The Gramercy – formerly known in its original incarnation as “ManhattanWest” – has sat partially finished in Las Vegas for a number of years, a mute testament to the impact of the recession upon Southern Nevada real estate. Construction originally started on the 187,000 square-foot mix of retail, office, and apartment space in 2008 by investor Alex Edelstein’s Gemstone Development, who pulled out six months after the first brick was laid – $170 million poorer – amid the crushing blows dealt by a collapsing economy and a real estate market no longer able to sustain itself as a result.

However, as a sign of Vegas’ continued revival, the mixed-use condo space on Russell Road west of the Beltway – re-dubbed The Gramercy – was recently sold to developers The Koll Company and Estein USA by WGH Partners and The Krausz Cos., who in turn originally purchased the property from Edelstein in 2013 and completed its construction. Koll/Estein paid a cool $61.75 million for The Gramercy, which is a bump-up in price from the $20 million Edelstein let it go for in 2013; part of the reason WGH Partners sold the property off this April was due to the difficulty in leasing out the retail space, although the vast majority of the office space has been rented.

Representatives of Koll/Estein have stated a number of reasons for their purchase of The Gramercy; among them the fact that they are happy with the amount of square footage that has currently been leased, and envision a continued influx of tenants – and, as a result, increased revenue – as the property sits amid a part of the southwest Las Vegas community, an area that is experiencing perhaps the largest spurt of rapid economic and population growth in Southern Nevada at the moment. As a result, investors across the board have been snapping up whatever properties in the region they can get their hands on.

The Gramercy consists of two apartment buildings with approximately 600 living units and two office buildings with retail space at ground-level; an additional condominium tower, started in 2008 but never completed, was imploded and destroyed in 2015. Plans currently exist for additional office space to possibly be built on the property.

Several high-profile retailers are currently taking up residence at The Gramercy, although precious few represent national chains, something the previous landlords purposely sought to avoid according to reports. Among the higher-profile retail tenants calling The Gramercy home are the DW Bistro, a 4,512-square-foot eatery described as “Jamaican Meets New Mexican Cuisine” and featuring a full bar; Pinches Tacos, a Mexican restaurant; The Cuppa Coffee Bar; exercise studio Raw Fitness; and, eventually, Kitchen Table Squared, the new second location of Henderson’s popular Kitchen Table upscale restaurant, slated to feature an “upscale dining room, formal pastry and coffee bar and an oyster bar.”

With the new buyers putting real money into a property that was considered almost dead and buried just a few short years ago, The Gramercy – along with record-breaking home and apartment prices and sales in the region as more and more people seeking employment opportunities move in – represents the real estate and economic boom that Southern Nevada in general, and Las Vegas in particular, is currently experiencing after several years of financial drought, and points to a bright and prosperous future as this trend is cultivated and grown.

LAS VEGAS, NV – Spring is here, and if March figures are any indication, the upcoming months leading into the summer season are sure to continue the upward trend of availability – or lack thereof – of homes in the Las Vegas real estate market.

Southern Nevada’s supply of available homes has been shrinking for months now, going hand-in-hand with a steady increase in prices as options continue to dry up for prospective homeowners in the region. According to recently-released statistics, approximately 11,000 single-family homes were available on the market at the tail-end of March 2017, which represents a decrease of 17 percent over the same point in 2016. Meanwhile, sales of available homes on the market have increased nine percent this past March compared to 12 months ago, resulting in a highly-competitive marketplace for both buyers and sellers, with homes on the average selling at the fastest rate since official tracking begun in 2010.

A community experiencing growth always represents an attractive prospect for people looking for a fresh start, hence the recent influx of transplants from other areas of the country and the subsequent reduction in the amount of housing options for them as dwellings are gobbled up. As an example of how fast homes are selling in the region, your average single-family dwelling would typically go under contract in 60 days one year ago; today, that number has gone down to 49 days and continues to shrink.

As with a growth in demand comes growth in prices; the median price of a single-family home sold in the Las Vegas area has jumped up 7.5 percent in March 2017 from one year ago, with the average price clocking in at approximately $273,000.

According to real estate professionals, there’s plenty of buyers out there, but fewer and fewer homes to accommodate them; this, reports indicate, are a result of economic improvements in Nevada as a whole and Las Vegas in particular, with new businesses, attractions and even sporting teams (in the form of the Oakland Raiders NFL team) setting up shop in the area, and with them are coming jobs for local area residents.

However, with Vegas’ growing reputation as a real estate market on the rise come complications as well, with homeowners looking to sell believing they are sitting on a gold mine and demanding top dollar for their property; experts report that if prices were lowered closer to an accurate fair-market value – as opposed to prices inflated by speculative market growth and a recent spike in demand – that sales would be even more brisk. But as a territory hit especially hard by the real estate bubble burst several years ago, sellers looking to cash in on a market that is finally booming is just a reality that cannot be denied.

Another factor that is eating into the total number of homes available to buyers in the Las Vegas area are due to investors that purchased a large number of homes, only to turn around and offer them as rental-only properties to tourists and vacationers; as of March 2017, few of those investors are looking to sell those homes, which again drives up demand for the remaining properties on the market.

Overall, however, March 2017 has continued the trend of a shrinking real estate market and demand (and, as a result, prices) for property in Southern Nevada with no signs of things slowly down.

If you are considering relocating in or around the Las Vegas area, which clearly is experiencing huge growth and a booming job market,  give us a call at 702.376.7379 so we can answer any real estate and home relocation questions you may have.

LAS VEGAS, NV – As if Las Vegas’ economy – and as a by-product, it’s real estate market – wasn’t beefing up its already impressive profile, Amazon.com, the nation’s largest online retailer, is currently in the process of constructing a massive warehouse in North Las Vegas to be used as a regional fulfillment center for the countless orders placed via their website on a daily basis.

Amazon’s warehouse, one of over 75 Amazon currently has across the country, will ring in at an impressive 800,000 square feet, and is being erected near Lamb Boulevard and Tropical Parkway. The facility is expected to open its doors for business in summer 2017, and with the opening of said doors will come a immediate boon to the local economy in the form of 1,000 new jobs, many of which will man the warehouse stocking items and packing orders that are destined for numerous locations throughout the Southwest.

As an enticement for Amazon to set up shop in North Las Vegas, Nevada Governor Brian Sandoval has offered up $1.8 million in tax savings in the form of tax abatement’s for the online retailer. According to Amazon’s latest annual report to the Securities and Exchange Commission, the company saw net income of $2.37 billion for the year ended Dec. 31, 2016.

Governor Sandoval noted in a statement that Nevada has been attracting numerous big-name companies to its corporate landscape; in addition to Amazon, The Honest Company, CML Media Corp Sutherland Global Services, TH Foods and Zazzle are expected to set up shop in the area, not to mention the impending re-location of the Oakland Raiders NFL team to Las Vegas within the next 1-2 years. With this injection of fresh blood into the region, Sandoval said, is serving to turn Nevada in general and Las Vegas in particular into a destination not only for tourism, but business as well.

“That’s what provides the jobs…a variety of companies will spur growth in Nevada, including Amazon.com, the largest internet-based retailer in the world,” he said. “North Las Vegas is transforming…Nevada’s business-friendly atmosphere is not only helping existing Nevada companies expand, but also bringing industry-leading companies to our state.”

LAS VEGAS, NEVADA – For the third time in 35 years, the Oakland Raiders have decided to pack their bags and move to greener pastures; this time, calling Las Vegas, Nevada home, possibly within the next two years or less, and the arrival of the popular National Football League team – an addition to a brand-new 65,000 seat state-of-the-art stadium for them to call home – is bound to have a distinct impact upon the Southern Nevada area.

In late January 2016, billionaire Sheldon Adelson, president and CEO of the Las Vegas Sands Corporation, proposed a new domed stadium in Las Vegas to potentially house the University of Nevada, Las Vegas football team and a possible NFL team. Adelson contacted Raiders management for a potential partnership with the team in regards to the new stadium, and in April 2016, Raiders owner Mark Davis met with the Southern Nevada Tourism Infrastructure Committee.

Adelson – along with Goldman Sachs, the project’s backup investor – later pulled out of the deal, but the gap was filled by Bank of America; Nevada’s legislature also approved a $750 million public subsidy (via a 0.88 percent increase in hotel occupancy taxes) for the stadium in October 2016, and the Raiders themselves will invest $500 million of their own money in the project. Overall, the stadium has a $1.9 billion price tag, which includes a $100-million practice facility.

The Oakland Raiders were founded on January 30, 1960, as a member of the American Football League; they are currently members of the National Football League, which merged with the AFL in 1970. Over the years, the Raiders’ fortunes on the gridiron have flip-flopped regularly, going through losing streaks but becoming dominant within the league as well, culminating in an easy 1980 victory over the Philadelphia Eagles in Super Bowl XV. At the end of the NFL’s 2015 season, the Raiders boasted a lifetime regular-season record of 444 wins, 397 losses, and 11 ties; their lifetime playoff record currently stands at 25 wins and 18 losses.

The Raiders have courted much controversy over their seemingly nomadic tendencies; in 1982 the team relocated to Los Angeles (while still retaining the ‘Oakland’ moniker), and would remain there until 1995, at which time they returned to Oakland. On March 27, 2017, NFL team owners voted nearly unanimously to approve the Raiders’ application to relocate from Oakland to Las Vegas, Nevada, in a 31-to-1 vote. The Raiders will remain in Oakland through 2018 – and possibly 2019 – and relocate to Las Vegas in either 2019 or 2020.

The stadium and the prestige of having their very own NFL team on-hand is part of state government’s goal of solidifying the very backbone of Las Vegas’ lucrative tourism industry, according to a statement released by Governor Brian Sandoval.

We have before us the opportunity to invest in Nevada’s most foundational industry, tourism, by providing for the infrastructure and public safety needs of the 21st century,” he said. “We can and must usher in a new era for tourism in the Las Vegas market, while keeping our citizens and visitors safe, and ensuring our position as the global leader in entertainment and hospitality.

The stadium is anticipated to provide a boost to the local economy, which is expected to create a ripple effect that will be felt throughout many of Las Vegas’ many industries- including real estate. Jobs and local wages are both expected to receive a boost; in addition, the amount of tourism to the area is sure to increase as not only will the stadium be host to the Raiders, but also the University of Nevada – Las Vegas football team as well, attracting professional and collegiate football fans of all ages.

All of this will translate into a significant amount of fresh revenue being pumped into the Vegas economy, and in any market experiencing employment and wage prosperity, it’s attractiveness as a place to live is sure to increase as well. This is anticipated to result in an increase in home and apartment prices in the area, where quality housing options are already shrinking and are priced at a premium. More than ever – fueled by the arrival of the Oakland Raiders and a brand-new football stadium – Las Vegas will become a seller’s market within the next few years.

However, all the details have not been set in stone yet; terms for a 30-year lease with the Las Vegas Stadium Authority still to have terms ironed out, and property upon which to actually build the stadium still needs to be secured; one proposed 63-acre site is located near McCarran International Airport. However, these are considered to be minor issues with all parties committed to making Las Vegas the new home of the Oakland Raiders a reality.

If you are considering relocating in or around the Las Vegas area, which clearly is experiencing huge growth and a booming job market,  give us a call at 702.376.7379 so we can answer any real estate and home relocation questions you may have.

Chances are very good at some point you will live in a community here in the Las Vegas area that is controlled by a homeowner association (HOA). There are about 2,300 associations here. If you live in a single family home built after 1995 there is a very good chance it belongs to an HOA.

What is the Purpose of an HOA?

HOA’s are set up as non-profit corporations in most cases and their purpose is to establish and enforce standards. These standards are meant to protect the assets and living experience of all the members of a particular community. Can you imagine someone in Sun City Anthem tearing down their home and replacing it with a double wide trailer? Obviously, the trailer would be incongruent with the standards of the community and if you were the next door neighbor imagine the effect of that homeowner’s decision on the value of your house!

HOA’ also are charged with maintaining records of the community, handling the finances, budget, and maintaining common elements, as well as their long term replacement.

How are HOA’s Organized?

As previously mentioned, HOA’s are set up as non-profit corporations and generally governed by Nevada State Statute (law) provisions named NRS116 and the accompanying code written primarily by the Nevada Common Interest Community Commission and Nevada Real Estate Division. HOA’s are also subject to relevant Federal statutes.

Once the HOA is filed with the State they have corporate documents known as “governing documents”. These include Articles of Incorporation, bylaws, rules and regulations. HOA’s also employ a representative government in the form of an elected board. This board has specific duties and powers to govern the community in accordance with the governing documents. Board members are unpaid volunteers and have legal responsibilities to uphold the duties of their office. Being the work associated with many associations is far more extensive than the time a board member can generally commit, so boards often contract with management companies to perform much of the work needed to run the HOA.

Here are Some Tips to Make Your Life Easier in an HOA

• Once a home is a part of an HOA, the occupants (including all tenants) are subject to the rules of the community. If you don’t like the rules don’t live there or try and work with the board to resolve issues. First, you will have to get educated on how an HOA works. Sometimes people who initially disagree with how a community is run come to understand why some things have to be accomplished when they come to know the totality of issues involved.

• Pay your assessments on time, even if you are in a dispute. Unlike rent where you can withhold rent in certain circumstances, not paying your HOA will only subject you to grief and fines. State laws provide avenues to address legitimate grievances. Did you know an HOA can actually foreclose on your home if you don’t pay your assessments?

• Understand assessments should increase incrementally over time. Assessments that never go up may appear on the surface to be a good thing, but as inflation makes the cost of services more expensive, assessments that don’t keep pace forces the board must scale back on the upkeep of the community’s assets in order to stay on budget. This can lead to components of the community needing replacement sooner, increased legal liabilities such as slip and fall hazards. The possibility of large special assessments to pay for unexpected costs in later years can end up costing far more in the long run than regular small increases to the assessments.

• If you get a notice of a violation don’t ignore it, deal with it directly. Most HOA’s just want compliance. Good communication is welcomed in a good HOA to get problems solved quickly, and at a minimum of inconvenience to all parties. Nobody likes paying fines, so if you receive a courtesy take action right away. Delaying will usually just end up costing you more in the end.

• Seek out a few neighbors and the board members. Having direct relationships can really help you when issues may arise.

• Do not make any architectural changes without first checking to see what the HOA’s policy is on changes. Nobody wants to pay for changes to their home only to have the HOA force them to remove the changes. Yes, they can legally do this, so be careful. Again, simple communication is the key.

• Know the basics of your HOA: parking restrictions, rules about noise, rental restrictions etc. Most of the important rules governing use are usually located in the governing docs and outlined in a table of contents. You don’t have to be a legal scholar to understand your governing documents.

Jamie Collins is co-owner of Shelter Management Group (SMG) and a licensed Supervising Community Association Manager (CAM). For questions about HOA’s and related management services you may call her at 702-818-4780 or email: info @ sheltermanagementgroup.com

There has been a lot of public discussion whether the new Homeowners Bill of Rights (Nevada Law SB 321) will open up short sale transactions that are not considered “arms-length transactions”. The term “arm’s length” means that a sale does not occur between principals who are close relatives, those with existing business relationships, straw-buyers etc. The theory is that the buyer and seller do not have other incentives influencing the transaction. An example would be sellers in a Las Vegas short sale selling to their parents in order to buy the home at a later time. Under this scenario, the parents would be incentive to get the lowest price for the children to buy back later. It is easy to see how a bank taking a loss on the mortgage would see that as not in the bank’s best interest.

The banks who hold the mortgages on upside down properties generally have the principals in a sale (buyer and seller) sign agreements stipulating the sale is an arm’s length transaction between essentially unrelated parties. Once these agreements are signed, the principals are bound by the terms and subject to breaking federal bank fraud laws if they are found to have violated the terms of the arm’s length transaction agreement. One of the most eagerly monitored items was the expectation that SB 321 was going to prohibit banks from imposing arm’s length transactions in Nevada. The following statute in the bill addresses this issue:

Sec. 16.5.

1. No provision of the laws of this State may be construed to require a sale in lieu of a foreclosure sale to be an arm’s length transaction or to prohibit a sale in lieu of a foreclosure sale that is not an arm’s length transaction.

What is missing is there is no language barring arm’s length transactions. I am not an attorney and I am not offering a legal opinion. This is simply my opinion as a real estate professional after consulting with attorneys as well as reading the bill myself. It appears the State is communicating legislative intent that a “sale in lieu of foreclosure” (short sale) that is not an arm’s length transaction is essentially welcome.

This falls considerably short saying banks cannot require the “arm’s length agreements” in Nevada.

There have been plenty of local attorneys and real estate agents putting out a narrative that under SB 321 banks cannot require an arm’s length transaction agreement to be signed. While not really true,  this tactic gets their phones ringing from potential clients, and that is always the goal when trying to get new business.

My consultation with attorneys indicated that the State of Nevada does not prohibit short sales which are not arm’s length transaction. The bottom line is that nothing has changed; signing an arm’s length transaction agreement while trying to do a short sale remains voluntary between all parties. The seller isn’t required to sign and the bank doesn’t have to require one, though they usually do. If the bank agrees to the sale without a signed “arm’s length”, and a seller has provided honest personal and financial documentation, there is nothing illegal about doing a short sale that is not an arm’s length transaction.

Here is the rub, if you want to attempt to do a Las Vegas short sale that is not an arm’s length transaction you’ll have to be up front about what you want to do and try to get your short sale approved without ever signing an arm’s length transaction agreement.  If I have a seller inquiring about what their options are, they should consult an attorney and if they need an attorney recommendation, I can recommend attorneys I have worked with in the past they can consult for free.

Disclaimer: This article is not meant to construed as legal advice and all sellers considering a short sale should consult with an attorney and seek professional tax advice as well.

There are many different reasons why people downsize – they retire, get divorced, become empty nesters or are just tired of paying for (and maintaining) a larger home. But before you move from your 5,000 square foot Las Vegas home to a bungalow, you should…

…remember location, location, location.  Even though your kids don’t live at home anymore, the proximity of your local school (and how well it’s ranked) will influence your property value. Remember, schools (with good test scores), taxes, public transportation, highways and shopping all impact the value of your home.

…keep all costs in mind.  Costs to remember when buying either a home, condo or town home (besides the down payment, closing costs and mortgage) are HOA fees, building and maintenance fees (pool, tennis courts or fitness rooms) or assessment fees (for common area renovations, for example). Try to get an idea (either through association meeting minutes or from copies of HOA invoices) to how much fees have gone up in the past and if there are any planned for the future.

…picture yourself in the future.  Visualize yourself living in your smaller home when possible health conditions may surface. You don’t want to buy a multi-level home (with many stairs) if you have hip or knee problems. You also want to think about where (and how high) you kitchen cabinets are. Is grabbing your morning coffee mug going to be a problem because you can’t reach it without using a stool? Remember, downsizing is supposed to make your life easier – not more complicated.

…size up your stuff.  Oversized furniture fits and looks great in your 5,000 square foot home, but may look cramped and stuffy in your new smaller place. See if you can sell your larger pieces of furniture, then take the sale money and buy separate pieces that fit (and can be moved around) in your new home. This is also a good time to de-clutter and streamline your possessions. There’s no point moving things that you don’t want or have room for.

There are many homes on the market in Las Vegas that are perfect for downsizing homeowners. Give one of our agents a call at (702) 376-7379.

Top Five Short Sale Deal Killers

Whether you’re a buyer, seller, agent, broker, lender, title officer, if you have an interest in a short sale transaction, you’ll want to know what the biggest threats are.

A great agent can overcome many of these obstacles, but in order to do so, one must identify where the problems are. Too many homes are foreclosed that shouldn’t and in fact could have be sold to a willing buyer who could actually afford the home.

#1 – Listing agents

Nobody has a more influence in a short sale from a seller’s perspective. They run the show. Short sales only close nationally at a little over 20% of those listed! Many agents have been forced into taking short sales because they are now common in many markets; however, most agents can’t stand doing them and are vastly unprepared both from an education/experience standpoint as well as not possessing the passion needed to properly represent their sellers. Listing agents control nearly all the information. The agent can deflect from their failures very easily by blaming others: the banks wouldn’t agree, the buyers wouldn’t cooperate, blah, blah, blah. Short sales take some very creative thinking as an agent because roadblocks from very unforgiving institutions are constantly being thrown in their faces.

Listing agents also take many files they shouldn’t: uncooperative sellers, sellers who can afford the mortgage payment and have significant assets, not screening their sellers who may file a bankruptcy because of excessive debt and abandon the short sale midstream. Many of these short sales are dead on arrival and never have a chance to successfully close.

Can the agent get the right buyer and are they able to keep the buyer interested for the extended waiting period necessary while the listing agent tries to get the short sale approved? Is the agent able to stand up to the tricks the banks will pull on them without making the bank personnel angry and risk having their client’s files “flagged” or delayed?

Does the agent do their own negotiating or do they farm out the work to third party processors to handle the bulk of the work such as lawyers and title companies? Didn’t you hire the agent to represent you and not someone else? How can the agent even know what’s going on with the file if they are not doing the work? Truth is they generally don’t want to know. How could they? Anybody can take a listing and pass it off to someone else. That is an expert?

Sellers, banks don’t put up a blue-print on their website how Johnny or Sally agent can beat them in a short sale negotiation. Believe me, they will use every nasty stunt possible to get the best possible deal ($$$) out of both the agent and seller. Most real estate training is woefully inadequate. Take an 8 hour course and they’re now a short sale “expert” with a fancy sounding designation to slap on to their email signature.

#2 – Buyers

Oh, poor, innocent buyers and their agents, just trying to get their clients a home. Buyers will frequently misrepresent themselves on offers they submit as well as misleading their agents about their ability to perform on an offer. They shroud their financial abilities and too many times, buyer agents are too timid to press them for information related to the buyer’s credit.

Buyers will make multiple offers on homes without disclosing that they are doing that. Well, generally you can’t buy more than one home at a time and an offer is an “agreement to purchase”. That would be a piece of information a seller just might want to know. After all, the seller is taking the home off the market for THEM and only them in a short sale, forgoing the ability to accept other offers that can be placed in front of the bank for approval. We get many bank approvals for our short sales and then the buyers cancel. It is a significant problem.

#3 – Mortgage Insurance Companies

What is mortgage insurance? Generally, it is used for mortgages in which the borrower did not put down at least 20% of the purchase price. In case of default, the bank could then file a claim to cover anywhere up to around 60% of the actual loss. This was the purpose of most of those purchase-money 2nd loans a few years back. Buyers could put down 100% and thus avoid the added cost of mortgage insurance to their monthly payment.

Fast forward to today when now we are now trying to negotiate a short sale. The mortgage insurer (MI) is now a player because as a payer of the claim, they have a say in the terms the bank accepts on the short sale. The bank, who most people think they have to negotiate with, may not care because they are going to get a claim payout from the MI company either way!

Although, MI companies will sometimes negotiate, they are generally quite inflexible and many times the seller won’t want to accept their terms and too often the home forecloses. Other times, the MI company will deal, but the listing agent has no idea how to negotiate with the MI company or that they are even allowed to do so…sad, but true.

#4 – Homeowner Associations

Homeowner associations (HOA’s), those lovely and virtuous institutions, set up to “protect” homeowners actually drive many a home needlessly into foreclosure. Can someone please explain how that benefits members of that association?

Here in Nevada, HOA’s are able to file liens for unpaid assessments and fines. What gives them so much power is they are able to file as a “Super-Priority” lien. Essentially, it holds the same status as a 1st mortgage lien. In a normal market they could foreclose and get their money plus any equity; however, since homes have no equity here in the Las Vegas real estate market, they don’t want the home so they just bide their time until they get paid.

This doesn’t sound too unfair, right; after all they are owed money. Here is the problem. HOA’s can hire out their collections to 3rd parties such as collection companies and attorneys who, due to Nevada’s vague collection laws, can essentially charge whatever they want, and they do. HOA delinquencies can increase from the hundreds of dollars originally owed, into five-figure numbers. The collection agencies are brutal because they know they will probably get paid and do not negotiate at all. Their business model actually depends on the collection bill increasing because the longer they wait the more money they will recover.

How does this affect short sales? Having a huge, extra lien that must be paid by someone presents a large problem. The seller themselves might well either not have the money or be unwilling to pay it out of principle since they will be losing their home. The HOA lien might conflict with the minimum net proceeds the seller’s lender would be willing to accept in approving the short sale. Once again, the HOA doesn’t care because they’ll get paid at foreclosure too.

#5 – Seller’s Mortgage Lien Holders (AKA: the bank)

One thing you’ll notice right away is why are the banks only listed as only #5? That is the big myth vs. reality about short sales. I list and sell short sales for a living. Everyone is concerned with the bank, the bank, the bank. Will they approve or won’t they? Will they release deficiency rights?… and on and on.

Here is the reality; banks in most cases here in Nevada actually prefer the short sale because it will usually net more money than a foreclosure. Once I understood this principle, the job became much easier. I just keep beating them over the head with their own criteria, make more money!

Ok, here is why they can be a deal-killer. A short sale is a voluntary agreement between a borrower who is upside down on their mortgage and a lender. Neither side is compelled to do a deal. Sometimes, depending on the situation an agreement cannot be reached that is compatible for both sides. There may actually be a good deal on the table but one side won’t budge to make it work.

The main reason banks can kill deals is simply their own lack of clear mandates on short sales that filter down to incompetent personnel. The telephone tough guys we talk to in customer service and short sale departments rarely have approval authority, despite official sounding titles like negotiators. Most agents fight with them, but it is fruitless. Short sales are simply being able to get the right information to the right person quickly enough to take advantage of the current offer on the home. That’s it. It is that simple.