WHY A LAS VEGAS HOME AUCTION CAN BE RISKY BUSINESS
Even though the housing market continues to trace an upward path, foreclosures do still occur—and Las Vegas home auctions are sometimes the result. It means that there are still some good distress bargains to be had, particularly if you are interested in buying a home at auction. Television shows like HGTV’s Flip or Flop portray the “nail-biting” drama and money-making side of buying a home at auction—sometimes inspiring home buyers to try their hand at the enterprise. But what is sometimes underplayed in such TV presentations is a fact well known to seasoned Las Vegas home auction veterans: namely, that home auctions involve significant risk. If you have never attended a Las Vegas home auction before, the process can be fairly straightforward. Homes set for auction are listed publicly or made attainable through a paid auction service. Once the auction starts, you will have the opportunity to bid on the property, competing with other buyers either online or in person. Auction properties are usually offered on a cash-only basis, which eliminates would-be bidders who would depend on a bank loan or mortgage; but where auctions do allow financing, it’s a good idea for serious buyers to get pre-qualified ahead of time. For those who do have the cash, it’s vital to understand that the property is sold as-is—and yet it’s sometimes the case that buyers are not allowed to do much more than drive past the home. In other words, any problems with the condition of the property become the winning bidder’s problems. Foundation issues, structural issues, mold issues, poorly done handiwork—any major budget-busting flaws could be present. And even if the house itself turns out to be in decent shape, the successful bidder inherits everything that goes along with the title—possible defects including outstanding mortgages, taxes, liens (for instance, child support or U.S. Government Restitution liens), or overdue HOA dues. That makes it a darned good idea to do as thorough a preliminary title search as possible before bidding…but since that will not generate a title insurance policy, at the end of the day, that research creates no assurances or guarantees. Participating in a Las Vegas home auction can be a great way to get a new home without spending as much as you would in a traditional purchase—but doing as much preliminary investigation as possible is just common sense…and if you can’t afford to buy a property in poor condition, you should certainly restrict yourself to auctions that allow inspections. While agents cannot represent you at a home auction, if you are interested in investigating further I hope you’ll feel free to contact me anytime. I’m here to answer all your Las Vegas real estate questions—and to help the buyers I do represent find the homes of their dreams!
LAS VEGAS CLOSING COSTS WHAT EVERY HOME BUYER SHOULD KNOW
Even before you are presented with the sheaf of paperwork that accompanies the signing of your first mortgage, if you are a Las Vegasfirst-time home buyer, you will have already learned about closing costs—the fees and charges that pay for various parts of creating the mortgage loan. Included in closing costs are sums that can vary from inconsequential (chump change) to head-turners (“whaaaat th-?”). You’ll want to be prepared in advance for what the line items cover. That’s where the “Good Faith Estimate” comes in. It’s a detailed document that is issued in advance; it’s a heads-up that estimates closing costs you’ll pay when you buy your new Las Vegas home. The GFE varies considerably from one lender to another although the overall costs tend to be more predictable. It’s easier to think of closing costs as falling into two general classifications—here’s a non-exhaustive listing of what each may contain: Prepaid Closing Costs • insurance • real estate taxes • prepaid interest • private mortgage insurance These charges are collected to fund payments that will become due at various times throughout the life of the mortgage. Funds are generally paid into a temporary pass-through account (the “escrow account”) that gets things going—later, you’ll find them included as part of the regular mortgage payment. Non-Recurring Closing Costs The other charges included in Las Vegas closing cost calculations are the one-timers: those that have to do with the creation of the mortgage. Among them: • Credit report – Fee paid to the lender for compiling the borrower’s credit report from the various credit bureaus. • Underwriting fees – Covering the cost of evaluating and verifying your loan application based on the financial information. • Origination fee – This is the lender’s charge for creating the loan: it can range from 1%-5%, depending on the type and size of the mortgage. • Appraisal fee – Is the amount charged to determine the value of the property. • Survey fees – The cost of verifying property lines. • Flood zone certification fee – The expense for verifying whether the property is situated in a flood zone area. • Title search fee – Pays for research into whether there are outstanding liens or unsettled mortgage payments on the property. • Lenders title insurance – Insures the lender against challenges to the ownership of the property. • Recording fees – The amount charged by a government agency for recording a real estate sale or purchase. • Discount points – An optional amount that you may choose to pay to decrease the loan’s interest rate (and substantially lower your monthly payment). By the time my clients reach closing, there aren’t any surprises: all the i’s have been dotted and t’s crossed. That’s how it should be: a closing is really the capstone to one of life’s momentous beginnings!
CAMERAREADY HOUSES MAKE FOR SPEEDY LAS VEGAS HOME SALES
When it comes to home sales, looks do matter. Once a home comes onto the market, how soon it moves can depend on its location, design, quality of construction—not to mention how well it’s been maintained, the neighborhood, school district…it’s the sum of at least a dozen contributing factors. But when it comes to Las Vegashome sales, looks now matter more than ever before. Making sure the home is camera-ready could well be the most important single thing a homeowner can do before listing a house for sale in Las Vegas this fall. It’s in the Numbers The 2013 National Association of Realtors® survey found that a decisive 92% of all home buyers used the web to search for a home. That’s more than just a coup for your computer; it also points to something vital for Las Vegashome sales—something sellers can’t afford to ignore. Unlike previous generations of home buyers, the attention span of today’s online audience is miniscule. With comps (comparable listings: the competition) just a mouse click away; the success of home sales in Las Vegas is directly influenced by how eye-catching its online presentation is…whether it has what the ad industry calls ‘pop!’ Accentuate the ‘Good Sides’ Successful film stars and fashion models leave nothing to chance when it comes to photography. They know which angles accentuate their good sides. Likewise, photos that spur home sales don’t just show the living room, bedrooms, kitchen, etc.—they highlight the most interesting features in ways designed to draw the viewer’s eye. For example, if a splendid dining room has to compete with a blazing sun during the day, it’s bound to be the better shot at night. Ditto, any room with a sparkling chandelier. As for the exterior, if the siding is unremarkable, but the new roof is gorgeous, angling the picture to emphasize the positive makes visual sense. Up Close & Impersonal Buying a home may be an intensely personal affair, but when selling one, photos are not the place to showcase a favorite collection or kids’ sports trophies. Make an effort to remove very personal objects before photography begins. One key to Las Vegas home sales is to transform your space (not too appealing to potential buyers) into a place they can easily envision being their own. Cleaning Counts In this era of high-res photography and lickety-split download times, a sparkling clean house is the mandatory starting point. Double-check that the house is devoid of dirt, stains, and even dust that might pick up the light. Although most small blemishes can be removed in editing, the less retouching that’s needed, the more natural-looking the result will be. It’s important, for sure, but there’s no need to freak out about the photography. With an experienced real estate agent as your Las Vegas home sales advisor, you’re sure to snap a series of appealing shots that makes your listing stand out from the crowd. Thinking of selling in this fall? Call me today to discuss how to come up with your home’s glamour shots—as well as the entire marketing plan! 0
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