BECOMING A LANDLORD SHOULD YOU RENT YOUR LAS VEGAS HOME
Once you’ve made the decision to move—whether headed across the country or across town—you might think the automatic next step is to prepare to sell your current house. True, that has to get underway without delay…but there should be one intervening step—one which all too frequently gets short shrift. The key decision to be made before you put your house on the market is just this: should you sell at all? The fact is, you may be in an opportune position to hang onto the property. To become a landlord. In case you have never considered the advantages and drawbacks to owning a Las Vegas rental home, you may be overlooking a worthwhile opportunity. Before you decide whether the right sign to plant outside your home should read “For Sale” or “For Rent,” pause to consider some of the major Pros and Cons—- • Pro: Long-term ownership. If you aren’t quite ready to say goodbye to your home, renting it allows you to make a decision at a later date. Managing your local rental home gives you the opportunity to watch its value appreciate before selling, or even to return to it yourself. • Pro: Potential savings. The housing market’s recent fluctuations aren’t typical, but for anyone who bought when housing prices were soaring and would now have to sell for less, the prospect would be disappointing. In those circumstances, turning your residential investment into a Las Vegas rental home can help avert a financial loss…. …AND… • Pro: Investment income. By way of taking that basket of lemons and turning it into a lemonade stand, RealtyTrac’s most recent study (July) of residential property rentals revealed a 9.97% annual return for residential property investors in the second quarter of 2014. In other words, in addition to covering your mortgage, monthly rent might bring in a profit…turning what looked for so long like a real estate loss into a money-maker. • Con: Landlord responsibility. When you don the landlord’s hat, you have to respond to any maintenance issues with your local rental home. In addition to incurring the expenses of maintaining your rental home, you also have to be on top of the problems that every homeowner knows about. If your move is to another city or state, that might require local assistance, which comes at a cost. • Con: Tenant wear and tear. If you plan to sell the home eventually, it’s probably in better shape now than it will be after your tenants move out. Some wear and tear is expected, but you can’t ensure that your tenants will leave the home in pristine condition. The security deposit doesn’t always cover all fixes. • Con: Management work. In addition to responding to maintenance issues with your rental home, you also have to attract and select appropriate tenants. You might opt to outsource this work to a property management company specializing in managing Las Vegas rental homes. Again, such a service takes a bite out of the monthly rental income. Weighing the pros and cons as you evaluate your personal and financial situations will aid your decision on whether selling or renting best meets your long-term goals. In the meantime, call me anytime for a sale vs. rental pricing evaluation!
CHOOSING THE LAS VEGAS REAL ESTATE AGENT WHO REPRESENTS YOU
When you set about buying a home for the first time, the lay of the land can be a little tricky. It’s worth recalling some familiar sayings, like All that glitters is not gold; and Don’t judge a book by its cover; and Appearances can be deceiving Likewise, just as “doubletalk” isn’t twice as reliable as “talk,” in the Las Vegas home-buying vernacular, a “dual agency” transaction doesn’t necessarily involve twice as many Las Vegas real estate agents—it can involve just one (or two who are working under the aegis of a single broker). This can become important for home buyers who sometimes make a strategic decision-based solely on what seems like common sense. They see a Las Vegas home or a listing that looks promising, and make the assumption that they will get the best deal by going directly to the property’s listing agent—you know, to get all the information Straight from the horse’s mouth! Now in fact, real estate agents are responsible for carrying out a wide array of duties, including staging homes for sale; marketing them; showing the homes to buyers; aiding in negotiations, etc. A real estate agent who listed the property (aka the seller’s agent) is obligated to represent the interests of the seller. Makes perfect sense. And when a prospective buyer chooses to enter negotiations without their own agent to represent their interests, the listing agent remains duty-bound to represent the seller—but now the buyer, also. In the event of a conflict between the interests of buyer and seller, the real estate agent has to represent both—which, as you might imagine, can be tricky. When you think about how attorneys and real estate agents are similarly duty-bound to their clients, you can see why it, usually, wouldn’t make sense for a buyer to forego separate representation. It would be like having the same attorney represent both sides in a negotiation. Also, since there is no additional commission charge for employing a buyer’s agent (commissions are customarily split between agents, with both being paid from the seller’s proceeds), most buyers decide that teaming with their own Las Vegas real estate agent will get them the best possible deal. After all, No one can serve two masters! Does that mean you as a buyer should never proceed with one Las Vegas real estate agent—in other words, make a ‘dual agency’ transaction? Not quite. Remember, Never say ‘Never’! In some cases, it does work out. For instance, if the parties are related (and have the same goals); or if every detail has already been agreed to; or if time is such an overriding factor that it trumps other considerations, then everyone can be well-served by a single real estate agent. In any case, as long as an agent is able to remain scrupulous in not violating any confidences, since each party has the chance to make their own decisions at every point in the transaction, nearly one in ten home sales does wind up as a single-agent transaction. If you were on the lookout for a new home in Las Vegas this fall, I’d be pleased to put my experience at your service to help find and negotiate a deal. Call me!
UNEXPECTED WAYS TO BOOST A LAS VEGAS SELLING PRICE
For just about everyone who will soon be preparing to list their home in Las Vegas, selling price is a principal focus. What price will this fall’s market support? How will that number affect the time it takes to attract serious buyers? Are there ways to maximize the ultimate selling price without squandering a lot of time and capital? While there certainly are broad market factors that contribute to a Las Vegas home’s final selling price, there are others that can be controlled by the seller—and which do maximize the odds of bringing in top dollar. Some of the less-frequently used low-risk ways to add to the Las Vegas home’s selling price— Additions without Adding Room additions may be certain to increase the value—but not necessarily without costing more (sometimes much more) than they add. While adding a second story or extending the ground floor of a home will add substantial value, the cost in time and budget (and frequently permitting hassles) can also be substantial. Where it’s possible, “adding without adding”— re-purposing existing space—is a far less expensive and easier way to add to that final selling price. The idea is to take an unused or underused space and transform it into something that adds appeal and utility. Common methods include renovating a basement or garage: turning it into an office, media room, or extra bedroom. The extent of such a project can go all the way from the most basic (flooring, paint, and other minor aesthetic improvements) to the most comprehensive (lighting treatments and other accents such as crown moldings and baseboard). One caution: the quality of any improvement should match that found throughout the rest of the house. Slipshod workmanship can actually diminish the value. More Bathrooms = Higher Price Adding a full bathroom often requires reconfiguring an existing home’s frame—and that’s always costly. Instead of taking on the burden of adding a full bathroom, to get a selling price boost, Las Vegashomeowners can consider dividing the space of a large room to include a half-bath. While still a time and budget expense, adding a powder room can add significant value to the listing (and real convenience to the future homeowner). Facelift (the Easy Way) Curb appeal is all-important for adding to a dynamic first impression, both on the listing page and during the first visit. One underappreciated means of adding curb appeal and boosting the ultimate selling price is through simply updating the siding. It’s a “facelift” that can be completed quickly and at a relatively low cost— especially in comparison with more drastic changes like additions and whole-house window replacements. Fall can be a great time to list a property before the holidays hit. If you’re thinking of selling your home and want to discuss the ways we can boost your Las Vegas home’s selling price, now is a good time to call me for a no-obligation consultation!
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