Sin City Residential Blog 

Home Staging No-Nos in Las Vegas

Preparing your home to show here in Las Vegas requires a particular mindset. Primarily that your home is a product to be sold. What you may find ideal or appealing may actually turn away buyers. Many people take issue with this sentiment. It is your home after all, your little corner of the universe. The colors, layout, furniture, pictures and family memorabilia all embody who you are. Who your family is. What you’ve experienced in life. Your home represents a place of comfort, memories and safety.

It can be emotionally difficult to let go of a home, even if you're ready to move on from it. There have been several instances of sellers, who genuinely wanted to move, whom I have consoled after a closing. In one instance I hugged the wife in the parking lot as she cried. "It's where I raised my children" she said wiping away her tears. In my naiveté, I was initially startled by her response. When I first spoke to her, she had adamantly expressed her desire to get rid of this house. She certainly meant it, but the reality was that an emotional component remained regardless.

Home is where the heart is and for many people, selling the home is like giving up a little piece of themselves. So it’s understandable that sellers pushback a bit when you ask them to take their family pictures down.

We've seen enough HGTV shows to know the importance of "staging." In fact, I find the word almost annoying now. I don't know why, I just do. Believe it or not, I'm not a big fan of these shows. Primarily because they make the process look all too seamless, which I can assure you it's not, and may create unrealistic expectations for potential customers here in Vegas.

Prior to placing a home on the market here in Las Vegas or Henderson, I provide a checklist for my sellers. Primarily it’s what I suggest they tweak in order to make the home more neutral and less personalized. Most follow my advice and occasionally others will balk. Showing homes are where I see some of the most egregious staging errors however. Some of the things I ran into are below.

The home is too personalized

I walked through a house once that had a different theme painted on almost every wall. So personalized in fact, that we already had a name for each room by the time we exited stage left. The names weren't "Bedroom" or "Living Room." They were "The Spiderman Room" the "Castle Room" and the "Baseball Room." See where I'm going with this? I'm sure their kids loved the extensive detail to each theme, but buyer's weren't having it. It would have been in their best interest to buy neutral paint and cover these walls up.

The master bedroom was also a deep, dark brown. Dark colors too should be avoided. They often make the space feel much smaller and this home was no exception.

Think light, neutral colors for the win!

Too much furniture

Repeat after me: Less is more.

This is my favorite theme ever, which can be applied universally to many things. It is especially true here. Lean down the amount of furniture to create a natural balance in each room and throughout the home. Furniture should define the use of the space, not inhibit movement. If you must turn sideways to maneuver through certain areas, then it's probably too much.

Pets inside the home

I am a certified dog lover; there is no doubt about that. But not everybody is. Some people really don’t like them, the smell or the annoyance of having a dog underfoot as you show a home. I had a client once who had a deep fear of dogs because she had sustained a bite years ago. She absolutely would not enter a house if she thought a dog might be inside. Even if the dog was 8 pounds, she would stay in the car. She was absolutely terrified of them. They purchased three properties with me over the course of 12 months. None of them had dogs inside when I showed them either.

In another instance I had an out of state client who had flown in for the weekend. He had a dozen or so houses he wanted to see. Of those, he was very excited about 3-4 of them. One in particular was on a golf course and was priced well. As I approached the front door, I noticed something looking at me through the bay window. It was a pit bull that weighed about 100 pounds, staring at me, oh-so-quietly. We both agreed that it probably wasn’t the best time to take a peek inside. The owners knew we were coming to view the home, and had vacated, but left their large dog. I have no idea of what they were thinking. My client never saw the property and flew back home the next day.

Don’t forget about other areas around the home

Remember, first impressions are everything. Flowers can be had for cheap and go a long way. (I should note that flowers also look great inside the home as well.) Mulch too is a minimal investment and takes little time to spread around. I’ve found that pressure washing the driveway, walkway and patio makes a huge difference. Pick up all debris, kids toys etc around the front and back yard. It goes without saying that cleaning up behind your pet is also a wise idea, although you may be surprised to know that not everybody does this either

Finally

Staging a home is about showcasing its best qualities, not your best qualities. Potential buyers want to see themselves in a home. That isn’t going to happen if the property is inundated with your persona or your extensive Elvis plate collection covering the walls. The goal is to turn your property into a neutral model home that appeals to the broadest section of potential buyers possible here in Las Vegas.

What is The Nevada Homeowner’s Bill of Rights Law?

The Nevada Homeowner's Bill of Rights, SB321, became law after the State Senate and Assembly passed it unanimously. Originally put forth by state Senator Justin Jones, it was signed into law by Nevada Governor Brian Sandoval  back on June 3rd, 2013.

It should be noted that this blog post is a (very) brief snapshot of the law.  In essence what SB321 does is require the banks to take proper consideration for loan modifications prior to initiating foreclosure. One of the fundamental aspects of this newly enacted statute prohibits servicers from "Dual Tracking.” In other words, they are not allowed to attempt a foreclosure on a home while simultaneously working on a short sale with a property owner. By doing so, in theory, this should advocate short sales as a more constructive alternative for the distressed home owner.

Furthermore SB321 imposes additional restrictions on both borrowers and mortgage lenders. For example, SB321 provides distressed property owners "one bite at the apple" while seeking out different types of relief from the bank. If an initial request has been settled and all options exhausted, the mortgage lenders are then free to foreclose on the property. This is assuming a foreclosure is justified at that time. Likewise homeowners are required to respond to a lender's correspondence about foreclosure prevention within 14 days of receiving such a letter. If no answer is received the offer is considered rejected.

In addition, under this law banks are required to establish a primary point of contact when dealing with homeowners. This should help curb frustrations distressed property owners may have with the banks, while allowing Las Vegas real estate agents to work efficiently on their behalf. Prior to this, homeowners often had no primary contact and were shuffled around by their banks as they tried to keep their home. Not very nice.

This new law excludes financial institutions that have foreclosed on less than 100 properties in the state of Nevada. Furthermore banks that are already in compliance with the federal Consumer Financial Protection Bureau regulations are also exempt from this SB321.

Will this law slow down the rate of foreclosures in Las Vegas and elsewhere in Southern Nevada? It most certainly may and some believe it can substantially delay the foreclosure process altogether. Others are concerned that it will keep our inventory artificially low. As I write this however, inventory has grown a a bit and I anticipate it will continue to do so into 2015. Also, at this time, REOs make up a very small segment of our overall  inventory. Because of this, I doubt it would make a substantial difference.

Ultimately though, the best way to accurately quantify the effects of this new law would be to examine the data in retrospect. In other words, guess we’ll have to wait and see.

Must Fixes

Before you consider putting your home on the market, I sincerely recommend making sure basic fixes are in place first. Homes for sale in Las Vegas that have issues will receive considerably less than those without. Not only that, but they will stay on the market much longer. Yes, there are buyers such as myself who are fine with buying a home that needs work (at a discount.) My wife and I have bought and sold real estate for years and have often rebuilt homes from the studs out. But the majority of buyers can only do so many fixes themselves before having to hire help. Homes for sale in the Las Vegas area that require work will have to be heavily discounted to make up for this. Unless you are OK with selling at less than market value, address any issues prior to putting the property for sale.

Patch holes in walls or ceilings

This is a fairly easy do-it-yourself (DIY) job. Cutting sheetrock alone is extremely easy. I’d rate this as a “1” on a scale of 1-10 for difficulty. Home Depot makes repairs even easier as they sell smaller sheets specifically for these jobs. Finishing work is a bit more tedious and requires a little more skill. If you’re not that good, then you sand more. If you’re really bad like me, you have your awesome wife do it, or hire it out.

Fix your HVAC system and offer a warranty if possible

This goes without saying. New HVAC systems can be very costly and a buyer doesn’t want to get stuck with an 8 thousand dollar bill for a new AC system when the summer heats up.

I had a condo that went under contract once and the inspection showed a very loud noise coming from the AC system when it was turned on. As a result the buyers decided they wanted to walk, gave us notice and requested their escrow money back. They didn’t even want to negotiate, they just backed out. I explained to the owner that it would behoove him to address the issue (come to think of it, he also had bad sheetrock inside a closet as well) before we began to show it again. He decided he didn’t want to do that. Well as you may imagine I got the home under contract once again and guess what? The inspection revealed a very loud AC and the second set of buyers walked. I ended our listing agreement immediately after that.

Replace worn carpeting

I turned down a listing once because the owner insisted on using his filthy old carpet as a bargaining chip once he got an offer. He felt that providing a buyer’s credit would suffice. I explained that it was unlikely he was going to get a full price offer with a house in need of repairs (he also had a nice big dent in his garage door among other things.) The cost to replace a carpet will be far cheaper than the market value you will lose by selling it "as is," I can assure you of that. Another option is to lay flooring yourself. They make very affordable laminate now that locks into place easily and looks pretty darn good. It gives a nice clean look as well. DIY rating on that? A "4" at the most.

Repaint dark walls, or walls painted with highly personalized colors

People are picky. People have their own personal preferences and color palates. Dark colors make rooms look smaller. We all know these things right? (Nod your head with me-yes.) Regardless of how cheap and easy it is to paint a room, many buyers can’t get past the colors. Don’t ask me why, but they can’t.

“Oh wow, that’s ummm…interesting. Not feeling it", and on to the next house we go. Was the property right for them? We will never know because they could not get past the colors.

The good news is this one is easy and cheap to fix. Pick up some paint and brushes at the Depot and get to work. I’ve always picked a neutral color like beige. Nice and boring works great! They even make paint now that has primer in it, so you can roll right over those bright colors immediately. Not only that, but new paint helps make a home here in Las Vegas look exceptionally clean, which brings me to my final point.

Replace old linens and update your window coverings

This comes back to embracing a clean new look for the home. Paint does this cheaply and so does fresh new linens. Again, let me place a heavy emphasis on neutral colors. Same line of thought for window treatments, it doesn't have to be anything fancy, white or other neutral colors will work fine. Best of all, you won’t have to get your hands dirty! You can also take those new linens with you to your next residence. Easy.

Remember

If your home here in Vegas needs some work, take care of it before putting it on the market. Trust me, nobody is going to give you top dollar for a home that needs work. In fact, unless the property is priced aggressively, it will sit on the market for a while. This stacks the odds against you even more as time goes on. Ultimately it would be in your best interest to address all known issues before putting that “for sale” sign in the front yard.

Preface 

I wrote this blog post long before the kidnapping and murder of real estate agent Beverly Carter in Arkansas. Because of this tragedy, I thought I'd come back and type a preface to this article.

I generally don't follow crime stories, but this one in particular really bothered me. Not necessarily because I'm in the industry, but because I'll never forget her husband who sat on their couch, holding his wife's picture in his lap. The woman he was married to for 35 years was gone. The emptiness, despair and sadness in his eyes were gut wrenching to me.

I will not speculate on how she was lured to the home alone with this psychopath, I feel that would be disrespectful to her and her family after such a terrible tragedy. I will however, take a moment to point out why it's so important as agents to stick to a process of pre-qualifying prospective buyers. 

I approach this subject as diplomatically as possible; however I remain firm on the process. Obviously the intent is to make sure I'm working with a qualified buyer who wants to purchase a home. It’s also to ensure I don't waste my time, my client's time, and that I remain safe. Callers who become offended, refuse to provide information about themselves, or demand I bend the rules are welcome to find another agent to work with. I will not run out the door to show a home, and neither should you. I also will not do open houses. 

To buyers: If you'd like to buy a home, please be pre-qualified with a lender first. If you have not done this, I'm absolutely happy to help you with this step. When you come down to the office for our initial meet, please bring a photo ID as well. I can't show properties until I have a photo ID, and some sort of verification from a lender.

I've had people scoff at this, and guess what? They can hit the bricks. Perhaps I lost a client or two, but then again maybe not. Also, if a client can't respect my position on safety, then they aren't somebody I want to work for anyway. Overwhelmingly though, I've found most people are glad to accommodate me.

Realtors: We must work together as an industry to keep ourselves safe, and make sure this doesn't happen again. I know there is a lottery aspect to this business. I know at times we need money more than others. I understand the eagerness to work, close an escrow, to meet new people. It's a thrilling business. But we shouldn't allow these things to be our weakness for criminals to exploit.

I can not express how profoundly sad this story has made me. I will keep her family in my thoughts. 

Who Wants to be a Millionaire? Fake POF Letters, and other Fabrications

As Realtors I'm sure we all have many stories we can share with one another. I haven't really compared notes with too many of my colleagues, but I seem to have had my fair share of oddities over the years. I never could quite figure out the angle on this one, but it was a whopper. A pretty impressive one at that.

For those not familiar with the process on our end, I'll give a brief overview. This isn't necessarily universal, but it has been my order of operations through the years. If I have a listing that a potential client would like to view, or somebody contacts me about a home they would like to see, one of the first things I do is establish their motivation. Are they looking to buy now? Just getting started? Have they been looking for a while? In a nutshell:  Who are you, where have you been, where do you want to go, and how can I help you?

Second to that? How do they intend to purchase their new home? Are you a cash buyer? Are you already working with a lender? Have you started the loan process? If not, then this is where we should begin. There is no reason to put the cart in front of the horse. If they have already done this, they are free to email me or have their bank email me all relevant information. For some reason this can be awkward for agents, especially new ones. I've never felt this way. It’s simply the first step of the buying process for all parties involved.

Oddly, I have had some people become upset at this inquiry, regardless of how gentle my approach. I never really understood why this was anything to get upset or offended by. Either way, if you're not interested in providing me with something to validate your ability to purchase a property, I'm not going to allow you into my client's home to see it. As their Realtor, I owe them many things, and that is one of them. Other agents may jump out of their seat and drive people around all day; I’m not one of those agents.

One day I received an email from a woman. There were about half a dozen properties she wanted to view. Following my usual protocol, I asked how she would be purchasing her future home. Her answer: All cash.

In her next email she told me that she was looking for a simple home to purchase for her husband. She had terminal cancer, and wanted to make sure he was set up before she departed from the living. At this point there were no red flags. I had dealt with estates in trust, and family members who were selling properties for loved ones who had passed. To me, it just seemed like normal life stuff.

Soon we were talking on the phone and she told me her story. She had sued a former employer for discriminating against her FMLA rights after she was diagnosed with cancer. After a couple of years, it ended and she was left with a significant settlement.  Being somewhat familiar with litigation (unfortunately) I slipped in questions as we spoke to gauge her answers. She was in tune with the process, the verbiage and nailed each answer. She had either been through a lawsuit or was a terrific liar. She reiterated that she had been awarded quite a bit of money, but was interested in a modest home, no more than $200,000, so her husband could live comfortably on the balance of their settlement.

An hour or so later I received an email from her with an attached bank statement for nearly a million dollars. My initial reaction was that this was incredibly high for a settlement amount, especially for an FMLA case (although I certainly am no expert.) What threw me off though was her insistence on purchasing a modest home with the money. She wasn't asking to preview high end homes. Of course too, her cancer story helped keep the red flag from fully being raised. My compassion was working against me. Looking back, I imagined this is what she intended.  I also had no idea what her balance was prior to her settlement.

I talked to her again and asked her more questions. She had an answer for everything. She was good.

I couldn't stop thinking about the amount though. It wasn’t necessarily the amount in cash; it was how she claimed to have come into the cash. That year, nearly 25% of my buyers were all cash. Many buying your every day-garden-variety-middle class home. This was also a stark reminder to never judge a book by its cover. One previous client easily had a million in cash reserves alone, but drove a mid-level Toyota, lived in a 1700 square foot home and fought for every penny during their transaction(s.)

At this point, despite her great answers, I sent the POF letter over to my (previous) broker and asked him to take a look. See if he noticed anything unusual. Within 30 minutes or so he emailed back, "Looks great, take them out." Certainly, if there was anything odd about the statement, he would have caught it.

A few hours went by and I had this feeling in my gut. I just couldn't shake it. Something didn't feel right.

I looked carefully at the statement, examining the bank header, the dates, and the account number. It all seemed right at first glance.  I opened my calculator and began to work through the beginning and closing balances. Soon I realized the math was off by ten dollars. I went through it again a few more times and the math was always off by ten bucks.

As it turned out, there was a branch of this particular bank only two miles from my office. So I decided to print the statement and take it down to verify it. I've had bank statements sent to me in the past as a POF letter. Some were sent directly from a representative of the bank, while others were sent from the client. Prior to this, if a potential client sent me the statement themselves I had rarely followed up with the bank to confirm it. That behavior became fortified too, since these people always ended up closing escrow.

It took me a few minutes to explain the situation and soon I was sitting at a desk with the branch manager. She typed the account number into her computer. Back and forth she looked: The computer, the paper, the computer, the paper. Then she slowly began to shake her head. "No, this is completely fabricated," she said with a slight frown.

You may be surprised to know that they faced no criminal charges, since the document was not used to obtain anything. Both the branch manager and a local detective confirmed there was really no recourse.

So what was her motive? I never could figure it out. Did she want to case houses? Was she bored? Crazy?  Why did she go to all this trouble? I have no earthly idea.

After my visit to the bank, I never heard from her again though.

Should I Buy or Rent?

Here's a question I get asked all the time, and the answer isn't always easy. Common wisdom tells us to buy as soon as we can, because property is a great investment. That wisdom put a lot of people underwater over the last decade. Still, nearly eight out of 10 respondents believe buying a home is a good financial decision, according to research carried out by the National Association of Realtors. Let's take a closer look at the economics.

I'll Make Money When I Buy A Home

Well, you might. Since 1975, when good data started, houses have risen in value by an average of 4.5 percent per year. Obviously, the picture's a bit more complicated than that, as the mid-2000s boom and bust showed. Over the past thirty years, property values have gone through a series of cycles. A typical cycle consists of a price recession, followed by a period of recovery lasting, on average, four to five years, followed by a housing bubble, where values rise sharply to peak levels. When homes reach the highest values the market can sustain, the bubble bursts, and prices drop. The whole process takes about six to eight years. Whether you make money on a property depends on where in the cycle you buy and sell.

That said, the overall trend is upwards. The Case-Shiller Index, which tracks prices nationally and in various metropolitan regions across the U.S., shows that the average house bought for $75,000 in 1990 would have been worth $100,000 in 2000, and over $130,000 in 2010 -- that's after the market crash. With careful planning, a home's still one of the safest long-term investments you can make.

How Does Renting Compare?

Capital appreciation aside, both renting and buying require a significant monthly outlay. With a lease, you pay rent; with ownership, you repay a mortgage loan. But figuring out which of the two is the cheaper deal isn't as simple as comparing the rent with the monthly mortgage you'd pay if you were to buy a comparable home.

When you make a mortgage repayment, part of your money goes to the bank in interest charges, while the rest repays the principal -- the amount you borrowed for the actual bricks and mortar of your home.

To put rent on a level playing field, you only compare the rent amount with the interest element of your mortgage payment. Both rent and interest are "lost" money -- cash you pay for the simple right to live in the property. The principal aspect of your mortgage is money you get to keep -- rather like putting your savings in bank. As you gradually pay off your loan, the principal repayment converts to equity that you can use to buy a bigger home or fund a comfortable retirement if you downsize. Renting has no equivalent.

Buying Gives You More Flexibility -- Unless You Want to Move

Renters don't control their housing destiny. Landlords can raise rents, move in, sell up and throw you out. Owning a house here in Las Vegas, on the other hand, means you can do exactly what you want (within reason). 

Of course, flexibility comes with a cost.  If you’re renting a home, the landlord typically pays the taxes, insurance, maintenance and utility bills.  If you were to buy a home in Summerlin or Peccole Ranch for instance, these liabilities now belong to you. That includes fixing a burst pipe in the small hours of the morning and using your new-car savings repairing a leaky roof. And don't even think about ignoring the problem -- your mortgage obliges you to keep the property in tip top shape.

When it comes to moving, however, renters hold the flexibility cards. Getting out of a lease is free. Wait a few months to the end of the lease term, and you can go wherever you please -- handy if your job suddenly relocates or you decide to move in with your partner.

Ready to Buy?

You can't predict what will happen to home prices in the next few years here in Las Vegas or Henderson, and you certainly shouldn't buy a home in the hopes of a quick financial gain. But if you're solid financially, have a stable job, a steady income and a decent pot of cash for the down payment; you're well-placed to buy your very own home here in Southern Nevada. At the end of the day, however, buying or renting is a very personal decision. Family, personal and emotional factors come into play. If, on reflection, it makes more sense for you to keep renting for a while, well, there's really no shame in that either.

Another Real Estate Brokerage Pulls their Listings from Zillow

I read an interesting article today about a brokerage (Crye-Leike Real Estate Co.) that is pulling nearly 3,000 listings from Trulia and Zillow. Their reasons? Inaccurate data and competing broker advertisements next to their listings. This is not something new either. San Diego-based ARG Abbott Realty Group and Rochester, N.Y.-based Nothnagle Realtors did the same thing in 2012. Personally I think this is great and I commend them for what they did.

I have blogged previously about my beef with third party real estate websites. One of my chief complaints was data that was inaccurate or not updated in a timely manner. This doesn't help clients, doesn't provide the public with a good service and creates confusion for potential buyers. Countless times I have had clients who inquired about homes that were already under contract, no longer on the market, or even sold. None saw these homes from my MLS access, but rather on third party websites. While my experiences are purely anecdotal, new studies have emerged which confirmed my suspicions.

One study found that nearly 36-37% of “active” listings on sites like Trulia and Zillow were no longer for sale in the MLS. Listings on local brokerage sites, however, only had an error rate between 0-1%. The same study also found that new listings took nearly a week to appear on Zillow and Trulia. Local brokerages, on the other hand, showed up a median of 8 days earlier than Trulia and 7 days earlier than Zillow. In addition, local MLSs tend to update their listings every 15-30 minutes. The brokerages’ websites clearly provided more accurate and timely housing data to the general public.

I also share the same feeling with advertisements next to listings and I’ll tell you why. First, I should point out that I don’t have an issue with any competing broker or agent advertising alongside of me. That’s not the point. The point is that agents can pay Zillow or Trulia to be shown next to listings that are not theirs. They know nothing about the property, although the consumer may be led to believe they do.

I had a property for sale about a year ago. This was a custom built home that was listed at approximately $500,000. Like all listings uploaded to the local MLS, it was syndicated to third party real estate websites. As it turned out, a couple was visiting from out of state and just so happened to see my listing on Trulia. They didn’t call me though; they called the agent who paid money to advertise next to my listing. That agent didn’t know anything about this home, which had many different design elements and construction that was unique to the home (the owner’s brother was the contractor and the owner had a custom cabinet business.)

Worse yet, the agent had assured me they were pre-qualified prior to the showing, and I found out later he was less than honest with me about that. (It is rare that I would request a letter from the lender or proof of funds simply for a showing from another agent. I assume that they are doing their job and pre-qualifying their clients first themselves.) This is generally reserved for particularly expensive homes, or when presenting an offer. In this case however, a half million dollar home was shown to a couple who clearly weren’t in the market, weren't qualified and fell in love while browsing Trulia on vacation.

I’m certainly not claiming all agents do business like this. Although I have seen my fair share of Realtors who will run out the door after a phone call, without even a thought of pre-qualifying the buyer first. This was the case here, and it wasted all of our time. It also put a bad taste in my mouth for the process as a whole. Was my client well served by having another agent, who knew nothing about the listing, march a couple of window shoppers through his home? Why is the listing agent’s contact information not provided, rather than those willing to pay for the advertising space? I think this was the gist of Crye-Leike’s objection, who likened the process to “extortion.”

This argument has merit in my opinion. This was my listing, my work, my professional photos, which were then sold as a lead to another agent. Take that example; multiply it thousands of times, keep in mind that 37% of the data is inaccurate and you’ve got a third party real estate website.

Many Realtors argue in favor of Zillow and or Trulia. It’s a platform for ratings, reviews and a resource for them to pick up business. I can’t say that I blame them. But I still disagree with the principle of the platform itself. As Realtors we create this data, which is then picked up by these national real estate websites. They then take our information and sell it back to us at a premium. While we’re monetizing the competition, they are rising to the top of the search engines in almost every major city, burying the local brokers who actually have more accurate housing data.

From a business perspective this makes no sense to me. I’d prefer to put money into building a local resource (i.e. my business) with accurate and up-to-date information for my customers and clients.

In the end if we can’t even do that, then why bother?

Property Disclosures in Las Vegas: The Truth Is Sexy

So you’re ready to put your home on the market here in Las Vegas? As a seller, it is your legal (and moral) obligation to provide all prospective buyers with a seller’s property disclosure. Gone are the days of "caveat emptor," or "buyer beware." Sellers must fully disclose any known problems with the property and any repairs that have been performed on the property as well. Lawsuits stemming from this issue have been on the rise over the years, so it is important for sellers as well as real estate agents, to have a firm understanding of disclosure statements. This also includes repairs performed by the previous owner, assuming you are privy to this information.

I believe a lot of sellers simply don’t understand the extent of what must be disclosed to potential buyers.  For instance, a property repair, which is a common part of home ownership, must be disclosed, even if the problem has been resolved. For instance, if the roof leaked 8 years ago, and subsequently you repaired the shingles, it must be disclosed. Even if it has not leaked since the repair, and even if the ceiling drywall has been replaced.

Any prior issues with pests, in particular termites, should be included obviously. I’ve listed a home that previously had termite issues. The seller simply provided a receipt of the work performed and then a new inspection which showed the home was now termite free. If I recall, he also included a pest control plan (for a year) for the new owners. With adequate paperwork outlining the problem, and then the solution, the buyers went ahead with the purchase.

Keep in mind too that deceptive practices often come out in the wash. Sometimes before closing and sometimes after closing. Prior to close, the buyers may simply walk. They may also ask the sellers to repair the issue or give them a credit at close. After close, it may not be as easy and you may be facing litigation. For instance, I’ve had home owners be dishonest with me about delinquent HOA dues, as well as property taxes. These were uncovered during the title process, and were taken out of escrow proceeds. Like I said, it all comes out in the wash.

Much like deficiencies coming to light through a title search, a good home inspector can also spot previous repairs that may not have been disclosed. Even damage that had been painted over, can still be found during an inspection.

Water damage and mold are some of the bigger issues that come up and they are also one of the leading causes for litigation. If it is a persistent problem, it most certainly will arise again if not addressed. Hiding something, rather than fixing it, is the last thing a home owner wants to do.

Also, it’s important to note, that if something is uncovered during the inspection process that you were not aware of, and the house does not sell, you must now add that to the property disclosure. I had a seller once, whose condo inspection turned up a couple of issues. It showed an air handler in need of replacement and water damage in the closet. He knew about this, but didn’t tell me, or disclose it. While these weren’t serious issues (he pleaded ignorance, but there was no way he didn’t know, since the water damage was “fixed” with a poor repair job) the buyers decided to walk. Because of this discovery, he was now obligated to update his property disclosure form. For some reason, he decided he would not repair either issue, nor was he interested in updating the disclosure. We parted ways after that.

In addition, a note on “As Is” properties: If you are selling a home in "As Is” condition, then that does not excuse you from disclosing issues that are known. In fact, I’d say it’s the exact opposite. The home is sold “As Is” and here are the known issues, take it or leave it.

I always find it interesting when I see a property disclosure that lists zero issues and repairs. I guess it must only be my home that needed repairs over the years? How ever does Home Depot stay open? Claiming a property has been trouble free for the last ten years isn’t very realistic and it’s also a good way to set you up for a lawsuit.

These days, I really believe it pays to be as honest and upfront as possible. Being truthful is sexy. It immediately establishes trust, allowing the parties to move forward together, and also protects you from any liability later down the road.

Selling a Home In Las Vegas: Why Buyer Feedback is So Important

For those with a fragile ego, the selling process can sometimes be a tough road. If you’re messy, we may have to let you know.  Painting over those Fuchsia walls in the living room was also no easy task. Removing the Bellagio inspired water fountain from the front yard, also brought tears to your eyes. I understand, I really do. But the good news is that your home is now on the market!  

Along with the showings, comes the feedback from potential buyers. For sensitive sellers, this too can be a downright traumatic experience. Nobody wants to hear bad things about their home. There is an emotional component to where you live, raised your kids, and have years of memories. Now somebody is going to waltz through and pick it all apart? It’s important to not take feedback personally. Remember that everyone has their own tastes. Input is actually a valuable and important part of the process.

Feedback is a tool the sellers and their Realtor can use, to tweak their marketing and get the home sold. This is a good thing for those who can detach themselves emotionally and listen.

Your ultimate goal as a seller is to do one thing: Sell your home.

Right? (Nod your head, yes.)

In a sense, showing feedback is the market speaking directly to you. Those who listen, and adjust accordingly almost always sell their home.  

As a listing agent, I’ve found it’s important to ask specific questions after the showing. You want to avoid vague answers. Ask the buyers what they thought the best and worst features of the home were. Ask them about the price. Ask them about the neighborhood. If the home is getting showings, but not any offers, you’ll then get a clear idea of why.

Over the years I’ve had plenty of buyer agents tell me their clients loved the house, but not the neighborhood. Obviously there is nothing you can do about this. Those homes all eventually sold to those who loved the house and also the neighborhood.

Price too is always important. I’ve written extensively on this blog about the importance of pricing a home correctly from the start. If the showing feedback says your home is too expensive compared to others, then it probably is. Those potential buyers are going to be working with an agent, who is familiar with Las Vegas, and who undoubtedly will be providing them the same data. I’ve seen homes overpriced by only 3-5% that received no offers.

Years ago I took a custom built home as a listing. This was in a very small enclave of homes and after the housing crash, prices were all over the map. During our listing appointment, I showed him three of the best comparable properties I could find. They all had two things in common: They all were priced under 500 thousand and they all sold. The other homes I presented him were all listed over 500 and either expired or were still on the market. He was not interested in hearing what I had to say (in fact he threw the comps back across the table at me) and was not interested in getting the home appraised.

I took the listing and the feedback was great, except for one thing: Price. In fact, the feedback was almost identical for the multiple showings we had “Love the home, loved the area, price is too high.” After six months he never received an offer. I forwarded the feedback or called after every showing, but he refused to lower the price. When we listed again, I told him I would only take the listing for 3 months and at 499. He finally agreed and guess what? The house went under contract two weeks later and closed escrow 6 weeks after that! Feedback, as it turned out, was right all along.

It’s also good to ask how the home compares to others they have seen. For instance, if the other homes on the market all have new appliances, or new flooring, the seller may want to consider updating these things as well to remain competitive.

Asking what someone liked least about the home is also important. Again, tastes are subjective, but if you find that the majority of showings did not like the bathroom wall paper, then you may want to replace it. If the potential buyer didn’t like the blue carpet, or the dog smell, you should probably take note of that and adjust accordingly.

Feedback is a great way to gauge your standing in the Las Vegas real estate market. As a seller you should be looking forward to unbiased feedback, not shy away from it. Not everyone is going to like your home, but if you see a pattern developing, work quickly with your agent to address it. Realtors too should utilize this more often; return calls and emails, so we can work collectively to do what we’re hired to do: Sell homes for our clients.