I’m currently renting right now and have a few months left on my lease. When can I begin looking for a home in Summerlin?

Generally a closing will take between 30 and 45 days. This depends on your lender, inspections, negotiations and title work. I’ve seen some loans take 60 days to close although that is rare. If you’re a cash buyer then a closing can take place in less than two weeks. This is assuming the inspections and title work are trouble free. If you’ve got a few months to go you may as well start looking now. I think it’s best to get out there and see what’s available in Summerlin. I’ve also seen ugly homes online that were stunning in person and vice versa. If you happen to find your dream home you can always write a contract that will close by the end of your lease. If that’s not an option and you can not lose this home, then there are ways to terminate the lease early.

How many homes in Summerlin do you advise we look at before making an offer?

This really comes down to personal choice. When showing a home I keep my mouth shut and allow you to view it without my narrative. (I always get a laugh out of the house hunting shows on HGTV when the Realtor says “This is the kitchen.” Naw! Really??? Let me guess, is that the bathroom?)

However if a client asks me I’ll always give the same answer: “It’s not important what I think, but what you think about the home.”

I’ve shown homes for months before making an offer and most recently wrote a contract on the first condo I showed a client. It was a perfect fit for them. Everybody is different as is every scenario.

Real estate inventory is still low right now, how will this affect me when I start my search?

Less inventory generally means more competition. For buyers this can obviously limit their choices and may even be stressful. The main thing I advise my clients is to simply be prepared to make a decision. I would never advocate rushing, but if you like something, then be ready to act on it. There can be a learning curve for some people, unfortunately. I’ve worked with clients who didn't take heed of my words only to lose out because they took all week to think about it. The next property they liked, we wrote an offer on.

I’ve found a beautiful home for sale in Summerlin and I’d like to write something up. How much should I offer initially?

There are a quite few things to consider before an offer is made.  First and foremost, an accurate market assessment is paramount. Currently we are still in a seller's market with low inventory. This fact will absolutely play a role in an initial offer.

How many days has the home been on the market? If it’s been a long time, that usually puts you in a stronger position. Although we should also determine why it hasn’t sold. Was the price too high? Is there anything in the disclosures we need to be aware of?

We’ll perform a market analysis to see what has sold inside the last six months. Ideally would be the exact same floor plan, right next door that just happened to sell last week (A sarcasm font would be nice, just in case you weren’t with me on that one.)

Any other information about the sellers would also be useful. Do they need to move for a job? Or are they just testing the waters? All these factors come together to create a baseline price we may offer.

Ultimately though, a house in Summerlin is worth what the buyer is willing to pay and the seller is willing to accept.

Thankfulness, Mindfulness and Gratitude Ensure a Full Life

Despite a lifetime of marketing to convince us otherwise, there is no one size fits all for happiness. I've found that my formula is simplifying, slowing down, and observing. Talking less and listening more. Being aware. Awake. I’m also incredibly thankful I came to this conclusion so early in life (If I’m very lucky, I’m half way through.)

A hike in the mountains, skiing down a hill, spending time with the people I care about. Listening to music. Reading something brilliant. Eating good food...slowly. These are all what makes life amazing to me. The trick is turning everything else off so you don't miss these moments. Otherwise you're just going through the motions. Endlessly worrying (about the past or future) means we miss the life that is right in front us.

We can turn this attention towards others. What good is living this life, if you're sleep walking through it? Half measures never did much good.

It's a slow skill set to develop, and requires work. I didn't realize how often I'm on auto pilot until I tried to turn it off. If I wanted more of a human experience, then shouldn't I also provide that to those around me, regardless of how well I know them? Wouldn't direct eye contact, listening, and a thoughtful reply be more genuine? Or should I just resort back to the easier way? After all, it's unlikely I'm going to see this person again, right?

I had a cashier strike up a conversation with me a few months ago. I could have done what I always did, pull from my database of go-to one liners as a means to pass the minute I didn't feel like talking to anybody, or I could have listened.

Instead I went to manual override, and turned that part of myself off. I looked into her eyes, gave her my attention, and listened. By the time we were done ringing up my groceries, I had found out her husband of 35 years had died of cancer. This woman's soul hurt, she lost her companion, and now she was telling somebody, a total stranger, who was willing to listen. Ten minutes ago, I didn't know this lady, but now I was hugging her before I left. Not only was she a beautiful person, but she had taught me a couple valuable lessons.

The first lesson was that you never know what somebody else is going through. Not everybody wears it on their sleeve. Even those who do, only allow you to see what they feel like sharing. Second, was that I was able to connect with somebody who desperately needed it (as it turned out, I needed it too) simply by slowing down and being present. I can hope that she got back as much as I did from the experience.

Will there always be a connection like this with everybody you meet? Of course not. But you will only find out, if you stop for a moment, get outside of yourself, and strive to be as genuine as possible, as often as possible. For me, it’s a work in progress. But I’m thankful to have recognized its importance. Likewise I was also thankful for meeting her that day and truly humbled by my experience with her.  

There is no reason everyday can't be Thanksgiving. (No I don't mean gravy either, although tempting.) Thankfulness, mindfulness and gratitude can ensure you, and those around you, a full life. 

Happy Thanksgiving. 

First Time Home Buyers in Las Vegas: Q & A

Buying your first home in Las Vegas can appear to be an overwhelming endeavor at first glance. Loan applications, home inspections, title companies and unfamiliar jargon are often daunting to the first time home buyer. This is why it’s so important to work with a buyer’s agent who can help address the many moving parts of a transaction and expedite the process seamlessly. Let’s explore a basic overview of this process.

What type of loan is best?

A fixed rate mortgage is exactly what it sounds like, the interest rate will remain unchanged over the life of the loan. Regardless of what happens to interest rates over the years, your rate will remain the same. Obviously this is the most appealing choice for home buyers in Las Vegas, because they know what their payment will be every month. Financial planning is much easier with a fixed rate mortgage. For those looking to stay in their home for a long time, this generally makes the most sense.

Fixed rate loans are 15-30 years in length. While the 15 year rates are at a lower rate, the payments are higher. Although the flip side is the home gets paid off earlier and you pay much less interest over the life of the loan. I'm partial to the 15 year loan for these reasons. I'd rather cut back on something else each month in order to pay off my home quicker and for less cost.

Adjustable-rate mortgages, or ARMs, are also pretty straight forward. The rate you pay to borrow money, changes based on fluctuations in the market. Interest rates are usually lower for these loans because the borrower is assuming more of the risk. In terms of payments, ARMs can work both ways. In other words, if interest rates go down, then your monthly payment would drop. But the opposite is also true, which means an increase in interest rates could send your payment higher than a traditional fixed rate loan. This is not something that could happen overnight, as interest rates shift more gradually over time. But you could end up with an entirely different mortgage payment two years down the road. If you’re on a strict budget, this would not be a good option of you.

How important is a home inspection?

During the housing boom, people often waived home inspections. They felt that the less contingencies, the better chance they had of getting the home. Although that may have seemed like a good idea at the time, I certainly would never have advocated such a thing. The last time I checked, 350 dollars for an inspection was a lot less than $200,000 (our current median price for Las Vegas) for a home that was falling apart. The money spent for an inspection is worth every penny in my opinion. Have an experienced Las Vegas home inspector check out the heating, plumbing, electrical, roof and foundation before you buy your home.

What should I expect on closing day?

Generally you should expect two things: Final walk through and closing at the title company.

A final walk through is a common part of all residential real estate contracts in Las Vegas. It stipulates that on the day of close, the buyers may walk through the home to ensure the property has remained in good condition and that any requested repairs have been made. This is not a lengthy inspection; however buyers should carefully look through the home to make sure everything is the same as when they originally viewed the proeprty. In addition, be sure to bring a copy of the sales agreement and a checklist of items that are of particular interest.

In very simple terms, the settlement is when title is transferred from the seller to the buyer. This is usually performed at a title company.

The title company is a neutral third party that will order the title searches to ensure there are no liens or encumbrance on the property prior to close. The closing usually takes an hour and may include several people. The seller and buyer, with their brokers, a title agent and possibly attorneys, may all be present. This is when you'd bring your money to the table (certified check) for down payment, home owners insurance, HOA dues, closing costs and any other possible fees.

Finally

These are just some of the issues, for first time home buyers to tackle. An experienced buyer’s agent in Las Vegas can help keep things running efficiently, while protecting your interests at the same time.

I'm not a fan of Zillow for many reasons. While I highly doubt Zillow was the reason this gentleman was unable to sell his home, the online "valuations" can cause stress for homeowners. It's important to remember that Zillow only provides a rough estimate and is not a professional appraisal.

In addition to inaccurate estimates, Zillow often provides dated information to consumers which is one of my pet peeves. Homes often still appear for sale that have been off the market for months. I find this more egregious than their flimsy numbers they throw around, since they clearly state home valuations are indeed estimates. Poor or misleading information for consumers however, is much worse in my opinion. 

That's why it's important to use a site like this one, that is directly linked to the MLS and updates daily.

You can read the original story with this video here. 

Ready to sell your home here in Las Vegas? Let’s examine the basics.

Clean, clean, clean!

There is no real diplomatic way to say this: Clean your home of any and all clutter. So you never were that tidy? Now is a good time to pretend. Remove yourself from the home and try to view it in the same way a buyer might.

There are many things you may simply overlook because you reside in the home. Are those windows dirty? How about the finger prints on the bathroom door? Is that a layer of dust on top of DVR? Are you really going to read those Realtor magazines or are they going to sit there for another 12 months? Now is a great time to purge your home of all those items that have been collecting dust and you don’t need (be honest.) Counters should be cleared almost entirely. Think minimalist here, less is more! You need to get it clean and keep it clean until it is sold.

Position your home correctly from day one.  

In this world there are always people that are more than willing to tell you what you want to hear. Somebody who does this is not acting in your best interest. As we know, life is 90% “NO” and 10% “Yes.” Ask yourself this, do you want to sell your home or do you simply want to list it? Do you enjoy wasting your time and money? I know I don’t and I am not interested in wasting anybody else’s time either.

Comparable sales usually tell you everything you need to know if you intend to sell your home in Las Vegas. You can’t, nor can any Southern Nevada Realtor, defy fundamental market principles. The most important thing you could ever know about setting the list price for your home, is that the market sets the price, not us. Analyze the current data from the Greater Las Vegas MLS with your Broker, accept it and price accordingly. If no data is available, or your home is unique, then pre-qualify the property and pay for an appraisal. 

Active Vs. Passive Marketing.

What is passive marketing? Passive marketing is what 90% of real estate agents do. That is, take a few pictures, do a brief write up, place your home on the MLS and then cross their fingers.

Active marketing, is actively seeking buyers that fit the profile of your home. Examples would be placing ads online in various cities daily, aggressive blogging software, email campaigns to other agents, YouTube videos, virtual tours, professional photography and HD video. When selling real estate in Las Vegas, Henderson, or Boulder City, you need to utilize active marketing to get the job done.

Your home here in Las Vegas is now a product to be sold.

This is tough for some people, but it's imperative. When a potential buyer comes into your home, you want them to view it as theirs and not yours. This means removing all highly personalized items such as family photos. You want to make your home as neutral as possible from an ownership standpoint. If you no longer wish to reside in the property, then the time to cut the emotional cord is now, not after you move.

Finally

There are many other subtle aspects to selling a property, but those are the basics. Would you like to sell your home? Make sure it looks like a million bucks, depersonalize it, think of it as a product, position it to reflect current real estate trends and then aggressively market it until sold. You may be surprised at how fast your home sells.

Why You Shouldn't Make a Lowball Offer right now

If you’re a serious buyer then don’t learn the hard way and have your Vegas dream home slip through your fingers. One of my most recent listings received multiple offers within days of going on the market. Two of these were cash buyers, both of which were excited about the property. One had family a few doors down and felt it was the perfect opportunity for them after months of searching. The only problem was that they offered $15,000 below asking price, while the other buyer presented a full price bid and could close immediately.

Because of this they were taken out of the consideration and my client was ready to accept the other (full priced) offer. I called their agent the next day and explained we had high interest in the home and that they should submit something stronger ASAP. Our hope was that they would offer full price or a little more.

That evening I opened my email and saw a new offer which was $7,000 less than asking price. Their agent reiterated how important the home was to his clients and they looked forward to being so close to their granddaughter.

Their offer was subsequently declined.

I had wondered what their agent was advising them as I’ve certainly been on the other side of the transaction myself. Clients who, despite a seller's market, insist on making weak offers almost always lose the house. Below are a few reasons you should not make a lowball offer on homes for sale in Las Vegas.

How much do you want the home? 

Over the 24 months, neighborhoods such as Seven Hills, Anthem, and Green Valley Ranch have experienced shrinking inventory and rapid appreciation. An offer placed well below market value would probably not even be considered and may possibly insult the home seller.

I’ve received lowball offers for real estate and simply declined them. I understood their line of thinking and it didn't bother me. I also would have been receptive to another (higher) offer, or possibly presented a counter offer. Not all sellers are going to react in such a way however. Some may become angry and shut down altogether. No counter offer, no answer, nothing. Obviously if you’re sincerely interested in a particular home, you want to keep dialogue open with the seller. You’re not going to do that by making them upset.

For instance, if you’ve just found your dream home in Summerlin, then don’t go much lower than market price (To be clear, market price is not the same as list price.) In this climate, chances are that another buyer also feels the same way you do. Make your first offer close to your highest and get the seller’s attention.

Bid low and there is a high chance you’ll lose the home altogether.

Especially if it’s new on the market with high buyer activity (showings.) If you love the home and it’s a healthy market such as this one, don’t make the mistake of low-balling the owner.

If the home for sale is already priced a bit under market then don’t go any lower.

Let’s assume the house is in good condition and simply priced to sell. Chances are it’s going to move briskly and for full price. A smart buyer will recognize this deal and jump on it, not try to cut more off the price. You’ll also have increased competition because of the list price. 

If it’s an appealing neighborhood, then demand will naturally be higher.

Homes in high demand communities such as Henderson, with top rated schools and various amenities don’t last long. In fact these areas are often more resilient to market downturns. Also, inventory in these micro-markets are often lower than the cities they are found in. If you place a high value on a particular neighborhood, then don’t start with a weak offer.

Finally

Negotiating is an art and you've got to have a good starting point to keep things moving along. Unless you’re an investor, or simply like the lottery aspect of unrealistic offers, then dump the idea of “stealing” a house in this market.  

Las Vegas Market update for October 2014 

The stats are out for last month and we’re getting a little bit of statistically noise, but nothing is really changing too much right now. The median home price dipped down to $199,900, or roughly 1.5%. In September the median home price was $202,000. The median price for condos and townhomes did dip 5% when compared to September. Previously it was $104,000 (approximate) and October the median was $99,000. The median is the mid-point, half the homes sold for more, while the other half sold for less. 

Pricing

Pricing has been going sideways over the last few months, and I believe we have probably peaked out in terms of appreciation. There are many micro-markets inside every city however, where prices may buck the overall trajectory That said, the overall pricing trend right now is flat. I would not be surprised to see a pullback in pricing as inventory grows and interest rates eventually rise in 2015. 

Activity

Sales activity slowed a bit as we moved towards the winter months. Total sales for October was 2,860 units, which is down from nearly 3,000 in September. 

Inventory

Currently we’re roughly at a four month inventory. A balanced market, which works well for both buyers and sellers is generally 5-6 months.  I’ll think we’ll be there early next year.

Distress sales

Distress sales as a percentage of market activity also remain unchanged. Only 10.5% of all sales in Southern Nevada were short sales, and roughly 9% were bank owned properties. 

Cash sales and investors pulling back

October saw 35% of real estate deals close with cash buyers. Considering we peaked at nearly 60% cash buyers back in 2013, this is a welcome change for first time home buyers. Likewise it’s also a signal that investors have been pulling out of the market. 

Time on the market 

In October nearly 65% of all single family homes sold within two months. Roughly half of all condos and townhomes also sold within the same time frame. 

Synopsis

Appreciation has stopped, and valuations have settled. Despite this, homes priced correctly to reflect market conditions can still sell briskly. We are approaching a balanced market, but the sellers still have the upper hand-if only for a short while longer. Cash investors are pulling back, which should give some nice breathing room for first time home buyers, and condos. If you’re a buyer looking ahead, this is all good news. Sellers should be paying close attention to market changes as we move into 2015.  

If you need more information, you’re welcome to call, email or text me. 

Sellers in Mt. Charleston Shouldn't Discount The Winter Months

Selling your home during the winter months in Mt. Charleston probably doesn't sound too appealing. In fact, home owners may take their property off the market during the winter season or just decide to wait until the Spring. Common sense would dictate that you shouldn't even bother during these months. The holidays tend to be a very busy time and sellers may not feel like keeping their home in showroom condition. In addition, buyers are probably preoccupied with their families, shopping or traveling. I’d say that tends to be a fairly accurate assessment. Things do slow down and as a result inventory does tighten up. As a seller, this could actually work to your advantage though.

How we buy and sell real estate has morphed dramatically. Buyers are able to obtain information more easily than ever. Smartphones, laptops and tablets allow browsers to peruse the marketplace on the go. Motivated buyers not only closely monitor the market for new listings, but also price changes, comparable sales, days on market and other valuable metrics. Because of advances in technology these buyers are more in tune with market trends, more knowledgeable overall and ready to go. This is the profile of people who tend to look at homes during the winter months. Not surprisingly, serious buyers also tend to make serious offers.

Many years ago, a friend of mine who is a real estate broker in upstate New York, told me that “If someone is looking for a home during the winter, then they are serious buyers. Nobody is passively looking for a property in cold weather and snow.” I laughed, but he had a great point and I’ve found this to be true over the years. Astute buyers aren’t concerned about what time of year it is, they are only concerned about opportunity.

As stated earlier, inventory is traditionally lower during the winter months, which in turn means the seller now has less competition. Serious buyers + less competition, sounds like a pretty good formula to me.

Showing a home during the wintertime does require a little more effort and thought. It may seem obvious, but keeping driveways, walkways and patios free of snow/ice is imperative. Potential buyers should be able to enter and exit the home easily and safely.

You should accentuate the warmth and comfort of your Mt. Charleston residence to enhance its appeal. If you have a fireplace, make sure it’s lit up. Crank the furnace heat up a little higher than normal while you’re at it. When the thermostat is too low, buyers don’t tend to stick around too long. They become uncomfortable and leave. The idea here is to create a welcoming environment that’s cozy, so buyers take their time, look around, and want to stay.  Of course like any other showing, you’ll want to vacate the home before they arrive. Sure roasting marshmallows together may seem fun, but let them invite you back for that, after they buy it.

If it’s festive, then keep it festive. Keep the Christmas Tree lit, feel free to softly play holiday music in the background, maybe even leave cookies out for your temporary guests. This theme worked for many John Hughes movies after all, making us all feel warm and fuzzy when we watched them. Just be sure not to leave any of your kids behind when you step out for the showing.

Those intent on selling their home in beautiful Mt. Charleston should not discount the winter months. It may be a little more effort, but I believe it’s worth it. The take away is that lower inventory, less competition and motivated buyers can work in your favor.