Sin City Residential Blog 

Congratulations to Marilyn on her new home here in Eldorado! Marilyn had very specific criteria, and we had been looking for seven months before we found that perfect place! In fact, at one point I found several homes that did match her criteria but weren't currently on the market. I wrote a letter to every single home owner asking them if they had plans to sell their property, because I had a qualified buyer ready to go. With tight inventory, and an even tighter "must have" list, it's imperative to think outside the box. In the end, not only did we find her the perfect home, but it actually exceeded her expectations. Enjoy your new home Marilyn! 

The Venetian Entry-Photo courtesy of Pinterest

Are you thinking about buying or selling a home in Las Vegas, North Las Vegas, Henderson or Boulder City ? With so many real estate agents in the Southern Nevada where do you start? Some of the most important aspects from a customer service standpoint are below.

Communication

Are you able to easily get in touch with your agent? Are they prompt? Do they return phone calls, emails or your texts? If so, how long does it take? While I don’t understand this at all, I've had several clients tell me that they've called about homes for sale here in Vegas and never received a reply of any sort from the agent.

Understanding the Market

Does your agent understand the southern Nevada real estate market and monitor it closely? Can they provide a concise snapshot to help you understand everything before you get started?

Is the agent familiar with your price point? The basic premise of selling or buying a home is essentially the same. However if you’re looking for a high end home in Summerlin or a luxury golf course home in Spanish Trail, you may not want to work with an agent who has exclusively sold starter homes on the east side of town for instance.

Fiduciary duty

Buying or selling a home in the Las Vegas area will be one of the most important transactions in your lifetime and you need a real estate agent who is honest and devoted to your goals. They must avoid any conflicts of interest that may harm their client, while placing a heavy emphasis on loyalty and confidentiality.

Does your agent listen?

Real estate transactions can be stressful as well as complicated and you will undoubtedly have plenty of questions as you go along. Does your Las Vegas real estate agent listen carefully to your inquiries and take time to answer them concisely? An experienced agent should be able to explain something complicated in a simple, easy-to-understand fashion.

Availability

For instance, can your Realtor show you properties on days that accommodate your schedule? If they don’t work on weekends or evenings will that be an issue for you? Of course you also have to keep in mind that some Las Vegas Realtors, especially very successful ones, are quite busy and appointments are required. Not all brokers can drop what they are doing to show you a home immediately, but they still should be able to schedule a showing that is convenient for you in a timely manner.

Personality

A lot of people don’t think about this. You may easily be working together for several months before a transaction closes. It will be important that you all get along well.

Finally

To find out more about buyer representation click here.

For sellers, read how I sell homes here. 

Discerning buyers are not necessarily looking for more square footage in high end communities like Spanish Hills, The Lakes, Seven Hills, Belacere and Tournament Hills. Many customers have refocused their attention to the overall finish of these properties. Both buyers and home owners are placing an emphasis on luxury that will enrich their lifestyle and ultimately add to the value of their home.

Wet rooms

Wet rooms have come into vogue over the last few years and remain popular today. Wetrooms are a new, modern style of bathroom with no constraints or compartmentalized shower areas.  There are no steps but rather a gradually sloped floor that allows the water to drain. They are quite versatile and can be used in smaller ensuites as well as grand master baths inside luxury homes here in Las Vegas.

Ceiling finishes

I’m also seeing a trend towards high end wall, floor and ceiling finishes. In fact, most surfaces are being finished out in some shape or form. The luxury segment is seeing a lot of “raw stone” walls, which help capture the natural aesthetic of our desert environment, as well as the traditional wood and tile. I personally love interior stone walls. They bring the outside in and really make a room pop. Stone finishes can vary greatly and there is a vast array of colors, textures and sizes to choose from.

Attention to detail

A heavy emphasis on extravagance is what sets luxury homes in Las Vegas apart from others. The highly detailed millwork that goes into custom cabinetry in a Spanish Trail residence or the precise cuts and the choice materials meticulously handpicked for finishing work on a Queensridge estate, could easily cost hundreds of thousands more than another home with the same square footage. A kitchen may easily cost 150 thousand more than a spec home kitchen found in Aliante after all the details are accounted for. It’s this attention to detail where the high end homeowners are choosing to put their money these days.

All things considered

Home owners in affluent Las Vegas neighborhoods are also paying close attention to colors, LED lighting, flooring and any other common material that can help unify rooms and create a residence that flows well. Other luxury amenities that are popular right now are outdoor kitchens and custom wine cellars. High end buyers are also demanding smart homes that are fully wired for their convenience. These features allow home owners to monitor their security systems, temperature and smoke detectors (just to name a few) all through their iPad.

It’s this attention to detail and finishing work which sets Las Vegas luxury homes apart from the others. This should be taken into consideration by both buyers and sellers before they enter the luxury market.

Image courtesy of Pinterest

Are you thinking about updating your home in a more established part of town? Maybe Rancho Bel Air or Section 10? Where should you start first? Updating the kitchen will always provide the property owner with a strong return on their investment and adds value to the home. Buyers are often enticed by a modern kitchen (as they are with bathrooms) when they view properties. They know they won’t have to go through the headache of hiring a contractor or shelling out thousands of dollars to create a new kitchen, they can just move in and enjoy it.

For those thinking of undertaking a face lift for the kitchen, what are the latest trends?

Face Off

If you like the layout of your kitchen, but are on a budget, refacing the cabinets is a great alternative. Refacing is pretty straight forward; you simply swap out the cabinet doors, update hardware and then attach self-sticking veneer over the cabinets. Obviously this all takes a little bit of work (Don’t forget to measure twice, cut once) but it is quicker, cleaner and cheaper than a full on kitchen renovation. I've refaced cabinets on a flip home we refurbished and it came out great. I still prefer a total remodel though and I think it’s more fun.

Rock of Ages

Why bother with granite anymore when you can go with quartz counter-tops? Quartz is naturally durable. In fact it’s one of the strongest materials out there, virtually immune from scratches and heat. Quartz is produced from real stone but in combination with man-made products. This yields a much more resilient product which is better suited for a kitchen then a soft stone like granite. Another great feature is that there is no need to reseal or recondition it. Unlike stone it’s also non porous, which means it’s much safer in regards to spreading bacteria. I’m beginning to see quite a few homes for sale with quartz counters and anticipate more for 2016.

Deep sinks

Our family considers the kitchen the heart of our home. We cook nearly all of our meals and because of that spend a great deal of time together there. As one cooks, the other may clean. At the very least we have dishes to wash up after the meal. Because of this it’s imperative that we have plenty of room for cleanup. So it’s not a surprise that a trend I like seeing are deep bowl sinks. There is nothing worse than having a sink that will not accommodate your pots and pans for cleanup and getting water everywhere. Often times when something is stylish it’s not necessarily functional. In this case deep bowl sinks are both functional and stylish.

What other design elements are cool in Las Vegas right now?

What's your favorite color baby?

I see this in a lot of new builds all over the valley and really like it. One of my favorites is having a wood island that is darker than the corresponding cabinets. Although I’ve also seen many homes now that have different colors for upper and lower cabinets. Often these have lighter colors on top and darker colors on the bottom.  This isn’t necessarily my style, but I still appreciate the design aspect and realize its appeal. Mixing up the colors can be a fun way to incorporate your personality into a kitchen. Just remember that if you’re goal is to resell the home soon, try and stick to what is trending but leaning neutral. If it’s for your personal enjoyment, then feel free to mix it up anyway you want. Be brave and go for it.

Finally

If you’re putting up your home for sale soon, or simply remodeling the kitchen for your personal enjoyment, there are plenty of great new ideas to inspire and motivate you this year! Have fun.

Lets take a look at the latest market sales figures for July. We’ll be looking at them compared to July of 2014, as well as the month prior.

Year-over-year trends

Last month the median price of homes sold through the Las Vegas MLS during July was $218,000. This is  up 9.0 percent from $200,000 when compared to July of last year. Meanwhile, the median price of local condominiums and townhomes, including high-rise condos, sold in July was $115,000. That was up nearly percent from $106,000 one year ago.

Month-over-month trends

The Greater Las Vegas Association of Realtors (GLVAR) likes to report year-over-year trends, which can be a bit disingenuous to the casual observer or home owner thinking of selling in the near future. Month-over-month pricing can give us a more accurate view of the current real estate market.

July’s median price for single family properties, as well as condos, townhomes and high-rise condos, was within 1 percent of where it was in June. From this data, we can see that the market remains stable with a nominal appreciation. Keep in mind this percentage represents the median price for the market as a whole. Some areas in Las Vegas and Henderson may actually be seeing little to no price appreciation, while others may continue to climb. Other areas may experience a slight pullback in pricing. We have micro markets inside the city, and while we can have a broad understanding of the market as a whole, it does not necessarily represent all neighborhoods.

Sales volume is up overall, but condos are down

According to GLVAR, the total number of existing local homes, condos and townhomes sold in July was 3,815, up from 3,314 one year ago. Compared to July 2014, 20 percent more homes, but 6 percent fewer condos and townhomes, sold this July.

Distress sales are down, which is good news

As our market stabilized over the last couple of years, distress sales continue to take up less market activity. In July, 7 percent of all local sales were short sales. That’s down nearly 12 percent from last year. Bank owned properties made up about 8 percent of July sales. By comparison it was roughly 10% of all sales in July of 2014.

A little bit less inventory actually…

There were 13,616 single family homes listed for sale; this is down nearly one percent from last year. Available condos for sale were also down by nearly 4.5 percent when compared to last year.

Does this mean everything is selling immediately?

Not really.

By the end of July, 7,636 single-family homes sat unsold. That’s up 5 percent from last year. For condos and townhomes, the 2,320 properties listed without offers in July represented a half percent decrease from one year ago. Properties can sit on the market for a number of reasons. The most likely culprit is overpricing. If a residence is listed even 3-5% too high, it can languish on the market and not sell.

We still have a lot of cash buyers

While it’s nowhere near our peak (an unhealthy 60% in my humble opinion) cash sales took up 27 percent of market activity last month. Last year it was nearly 36%. When we look at the price appreciation and eventual stabilization this makes sense. Investors flocked to deals, and slowly pull back as those deals dry up. This gives some more breathing room for first time home buyers, which is an important demographic of our real estate market here in Las Vegas and Henderson.

Are you planning on buying or selling real estate in Las Vegas or Henderson? Like many services, picking a Realtor often comes down to word of mouth. Maybe somebody you work with recommended them, or perhaps it’s a family member who has a license? When undertaking one of the largest financial transactions of your life, it would behoove you to take a little extra time and find the best Realtor in Southern Nevada to fit your needs. Transactions have become more complicated over the years and you need a full time professional agent to represent you.

How many real estate agents in Las Vegas should I interview?

I’d recommend speaking to at least 3 agents that specialize in listing homes here in Las Vegas. They should be familiar with market trends, current inventory and have a network of colleagues in place such as a title company, home inspectors, mortgage lenders and attorneys. In other words, they need to have a good pulse on the community both in terms of what’s going on and who can assist in expediting your goals.

Is there a minimum level of experience that is preferred?

An agent could have worked in Las Vegas selling homes for the last ten years, but if they are only selling two a year that’s not who you want working for you. They are either working part time or they aren't very good at their job. Even in down markets people are constantly buying and selling homes. A full time Realtor in Southern Nevada should be able to carve out a steady business after a few years. In fact I've seen innovative agents get to work immediately and close millions in transactions their first year on the job.

How many transactions should an agent be closing per year?

In my opinion agents who are closing 100 transactions a year (the top percentile of Southern Nevada and national Realtors) aren't necessarily going to provide you with better service than one who closes 20 per year. In fact you may have much better access to the Realtor selling less. What you’re ultimately looking for is consistency and knowledge. While some may disagree with this, an agent who is closing a deal per month is solid in my opinion. It’s consistent and it shows the Realtor goes out and shakes the tree everyday to get business. That’s a self starter and that’s who you need. Anything more, in terms of deals closed, is even better.

The agent I spoke to said he could sell my house for much more than I think is realistic. Do they know something I don’t?

If it sounds too good to be true it probably is. Nobody can defy market trends and that includes your Las Vegas Realtor. One must analyze market data and then carefully decipher it in order to position the home. An agent who is familiar with homes in communities like Aliante, Summerlin, Painted Desert and Centennial Hills should be able to look over housing statistics and do that quite easily. Ask potential brokers to show you the data and explain it to you. Any agent who promises an unrealistic price should be avoided.

How important is technology in regards to a real estate transaction?

Considering that nearly 90% of all home searches start online it’s incredibly important. Does your agent have their own website? How does it rank with Google? Will it provide you the exposure your home needs? Does he or she advertise outside of the local MLS on other real estate websites? If so, ask them to show you their advertisements. You’ll want to see how much effort they put into marketing.

What about a buyer’s agent? Are they able to effectively provide you with the latest homes here in Las Vegas via email as they come on the market? Are they proficient with PDF files and E-signatures for timely submissions? How tech savvy are they? You won’t necessarily have to be, but a tech savvy agent can save you a lot of time and get things moving much more quickly. In a competitive market that can make all the difference in the world. Slow and steady does not always win the race. Slow can mean you weren't able to sign a document until Friday and now it’s irrelevant because somebody else snapped up the home.

The agent wants me to sign an exclusive contract to list my home, should I do it?

Once you find the Realtor in Las Vegas you feel is the best fit for you, yes you’ll sign an exclusive listing agreement. Generally contracts last for 6 months at a time. Read you contract carefully and have the broker explain everything you do not understand. A listing agreement can be as long or short as you’d like it, but be realistic. For instance asking a Realtor in Spanish Trail or The Vineyards in Summerlin to sign a listing agreement for two months isn't going to be very productive. 

Residents of Southern Nevada, who lost their property due to financial hardship during the recession, now have an opportunity to be home owners again. The Federal Housing Administration’s new "Back to Work-Extenuating Circumstances" program can expedite this process, allowing it to happen sooner rather than later. For those who qualify, FHA has shortened the waiting period for borrowers with a foreclosure, bankruptcy, deed in lieu of foreclosure or short sale on their record. Potential buyers, who meet the requirements set forth by the FHA, may be able to purchase a home again within a year. This waives the FHA's previous three-year waiting period.

In order to qualify, buyers must:

Meet the home loan requirements established by the FHA

Be able to document their financial hardships and subsequent credit issues

Show a re-established history of credit over the last year

Complete HUD-approved financial counseling

The first step in the process establishes if the potential buyer meets the general FHA loan requirements. It’s important to note that just like any other FHA loan, participants in the Las Vegas area are required to put down 3.5%, while providing documentation that proves their ability to pay. In other words, they must still adhere to the strict lending standards established by the Federal Housing Administration.

Secondly they must explain how their financial hardship was beyond their control. A life event that caused them to lose a job or cut their income by more than 20%, may qualify them for this program. A candidate must also demonstrate at least one year of timely rental payments with no delinquencies. If there are any open collection or judgment accounts, then an analysis will be performed to assess repayment options.

Those interested are required to take a “Pre-Purchase Counseling” course with a HUD approved counseling agency within 30 days of starting their application.  During this process, a certified counselor will scrutinize the borrower’s debt level, the ability to afford a home and various aspects of the mortgage. In addition they will review the loan application process and mortgage insurance with the buyer. Springboard Nonprofit Consumer Credit Management is approved by HUD to counsel borrowers and help them through this program. After completing a session, the Pre-Purchase Counseling certificate if good for 6 months.

I believe counseling is imperative for people re-entering the market as well as first time home buyers. This engages people and helps them better understand their loan options, household budgets and obligations prior to the purchase. Something I strongly advocate.

With millions of people impacted by the recession, the "Back To Work" program may have a significant impact on our real estate markets both nationally and here in Las Vegas. I certainly believe in second chances, especially when they can strengthen markets as well as families.

                                                     Photo courtesy of Mike Koojori Photography

Right now is a great time to buy real estate in Las Vegas. Prices remain stable and investors have been pulling out of the market. Buyers who are thinking about purchasing a condo as a primary residence or investment will probably have more opportunities as we move towards 2016.

One thing often overlooked by people who have not purchased a condo before, is the Home Owners Associations (HOAs) and how it will affect your ownership of the property.

What is an HOA?

HOAs or a Home Owner's Association, can exist in a neighborhood of single family homes, townhouses or condos. In general they oversee and enforce rules put forth by the community while maintaining common areas. They impose dues to cover these expenses, which can be collected monthly, quarterly and sometimes annually. These costs usually include (but are not limited to) ground maintenance, building insurance, snow removal (not so much here), pool upkeep, exercise rooms, pest control and may also include cable or water.

Is this your primary residence or an investment?

If you are considering purchasing a condo in Las Vegas as an investment, there are a few things you should take into consideration before you start your search:

What are the rental restrictions (if any) imposed by the HOA?

Is there a minimum or maximum rental requirement?

Is there mandatory owner occupancy time period before you may rent the unit?

Does the building have an onsite management company? If so, how much do they charge?

Deed Restrictions

Another issue to keep in mind are the deed restrictions. What are they and will you have an issue adhering to them? The listing agent or owner should have these available along with other property disclosures and financial statements. It’s imperative that you have a clear understanding of them before you proceed with any transaction.

Show me the money

How is the fiscal strength of the HOA you are considering? Some associations will provide these financial reports upon request. However many do not like to disclose them until a written offer is on the table. Some even require a signed contract before providing this information. You want to make sure that there are no special assessments looming on the horizon and that the HOA is of sound fiscal health.

Other financial concerns

How are their reserves? Have there been any lawsuits? Are they running a surplus each month or a deficit? Again, make sure you add a contingency into the contract that allows you to be released if you are not happy with the financial reports.

Recap

As the southern Nevada real estate market stabilized, so did many of the HOAs that also felt the hit during the downturn. That being said, it’s important for you to cover all bases prior to purchasing a condo here in Vegas. Structure your purchase agreements in such a way to protect your interests, have a full understanding of all HOA rules-especially if you’re an investor and if you are unsure of the financial records, have a CPA look at them.

I'm no Chef, but I do spend a great deal of time in our kitchen. I was fortunate enough to grow up with a Mom who served home cooked meals most evenings. (Not to dis, but Dad did and still does equate a bucket of KFC for dinner.) My wife too, came from a family that placed a heavy emphasis on fresh, authentic food cooked with lots of love (She is Italian, Cuban, with a bit of Spanish and no temper, but I digress.) Because of this, we truly consider our kitchen to be the heart of the home. We're constantly preparing, cooking and cleaning up after our meals. We tend to value innovative trends that can make a kitchen more functional. We also appreciate cool design ideas, even if they’re not our style.

Tired of granite?

Exotic wood countertops are slowly coming into vogue as are exotic cabinet veneers. These planks run the entire length of the countertop, free of butt joints. Companies generally use less than ten percent of the tree to ensure that there won't be any knots or sap wood. This process also keeps the grain consistent throughout. Luxury homeowners are using a variety of exotic and domestic wood, including African mahogany, lyptus, zebrawood and teak. I'm not too crazy about this style, but I'm curious to see if it morphs over to the mainstream over the next few years. I also wonder about the durability and maintenance with these.

Dishwasher: Enjoy the Silence

Anybody who has ever had a noisy dishwasher will relish the idea of one that is super quiet. I was visiting my brother in Texas for the holidays recently and didn't even realize his Bosch dishwasher was on. I was standing right next to it and could not hear a thing. In addition to its silent operation, it offered a built in water softener, color display and top notch energy efficiency. Impressed, I told him he had the Lexus of dishwashers. He agreed.

Wall Ovens, exciting stuff

The latest line of wall ovens coming onto the market are not only beautiful and high tech, but provide features that make it easier to assemble your meal. Wireless features now allow you to control everything while you're on the go. From your smartphone you can set the temperature, timer and even  the oven cleaning mode. A quick steam cleaning option is also available.

Built Ins FTW

Built in refrigerators have such an enormous impact on the overall look of a kitchen. These are designed for serious storage while integrating themselves seamlessly with the rest of the cabinets. These come in three main varieties, custom, counter depth and all-refrigerator. Any of these options can turn an ordinary kitchen into something much more unique. Not only will it provide you with a much more custom finish, but it can save space too.

Kitchen Backsplashes, can I get a witness? 

I'm a huge fan of backsplashes in kitchens. They can change the dynamic and overall vibe without much work at all. They are also fairly easy DIY projects if you are so inclined. What's fantastic about tile is that there is a great deal of flexibility in both price and style. Laser-cut, mirror, diagonal, large pattern, subway, herringbone and mosaic can all add character and depth to your kitchen.

El agua caliente en la demanda! 

Finally, for anybody who understands the importance of hot water on demand, pot fillers are the way to go. These devices save time and add to the overall character of your kitchen. There are deck-mount pot filler faucets, which mount on the counter top and wall-mount pot fillers (guess where they mount?) Personally I prefer the wall-mount pot fillers and find them more attractive.

Since the real estate boom and subsequent bust we've seen stricter lending standards to buy a home nationwide as well as Las Vegas and Henderson. One aspect of this has been a heavy scrutiny of appraisals. Appraisers today worker twice as hard, make less money and often their work is pulled in for review after they submit a report. The banks have remained on high alert-so to speak-with a heavy emphasis on capital preservation. They are not going to fund a transaction past a certain percentage of valuation.

Realtors in the Las Vegas sometimes see deals fall apart when the appraisal comes in light. Last year I had two properties come in with appraisals lower than contract price. The first deal fell apart and the second was renegotiated. In the first case the seller could not bring money to the table to close, while the second had plenty of equity and could lower their price to close escrow.

When an appraisal comes in below an agreed upon sales price, the parties involved must either change the contract to reflect appraised value, have the buyer/seller cover the spread or let the deal fall apart.

When I represent buyers in North Las Vegas, I like to take a pro-active approach during the appraisal process. Any comparable sale that I feel will support our contract price is provided to the appraiser beforehand. I also inform them of any updates or upgrades I feel will make a difference when computing value. I can tell you from experience that presenting this information prior to the appraisal is much easier than appealing one after the fact. It is rare that they get changed afterwards unless there are errors.

If the appraisal does come in light, it’s recommended you have your Las Vegas real estate agent inspect the report.  At this point it’s up to your broker to perform their due diligence and examine the report for possible errors.

Many larger national banks work with appraisers who are not in necessarily in tune with the subtle nuances of particular communities like Aliante, Desert Shores, Painted Desert and so on. It’s important that you also look at the neighborhoods from which the comparable homes were pulled and try and spot variations that could make a big difference in price.

If you do find any mistakes you should ask your appraiser to address these issues immediately. If no action is taken you may want to speak with their boss or even with the underwriter of the loan. If errors were glaring I’d ask for a new appraisal altogether by somebody new.

If the low appraisal is substantiated it can disappoint both parties. Sellers now realize they will net less money than they originally thought. Buyers are concerned they’ll lose the house and have to start all over again.

At this point, it’s time to revisit wants and needs. Are the sellers ready to move on with their life? Are they able to sell at the appraised price or will they be short? I’ve seen buyers willing to split the difference, but the reality is most people don’t have the money to do that. Realistically the best option is for the sellers to accept the valuation if they are able and revise the contract to reflect the changes.