5 STEPS FOR FINDING AN AFFORDABLE HOUSE IN LAS VEGAS
Despite the improving economic outlook, for many families, finding a Las Vegas affordable house can still be a challenge. According to a study by the Joint Center for Housing Studies at Harvard University, more than a third of today’s families have had to devote at least 30% of their combined household income to the monthly mortgage payment—and that figure exceeds the generally accepted standard. In other words, even though mortgage interest rates remain pegged at historically low levels, landing an “affordable” house in Las Vegas (just as in the rest of the country) can take some doing. Here is one five-step approach that has rewarded house-hunters in the past: 1. Define Affordable House in dollars The first step to finding an affordable house should be to work out a target budget. The Wall Street Journal currently recommends spending no more than 28% of monthly income on your house). Make sure to include additional fees such as legal fees, repairs, maintenance, and closing costs in your calculation. The bottom line you come up with isn’t one set in stone, but it’s a reasonable goal to have in mind. 2. Set space requirements Space will be a prime consideration for the entire time you’ll be living in your home. If you are planning on expanding the family in the near future, having a spare room is close to a necessity. If it’s just something that would be nice to have, it’s not a requirement—and recognizing the distinction can be all-important. 3. Balance travel time against housing costs Often you can offset the purchase price of a home by expanding your search radius to include a reasonable commute. Get out your pencil: you’ll need to compare the savings in the house payment against the additional cost of an extended commute. 4. Include properties that need some TLC One of the best ways to zero in on an affordable house in Las Vegas to keep an eye out for otherwise-eligible “fixer-uppers.” You can avoid any serious structural problems, such as plumbing, electrical, and roof issues, yet still focus on properties that just need a little cosmetic revamp can put you across the affordability finish line. 5. Investigate home buying programs In a limited number of instances, there are some generally under publicized home buying programs that might be available. For instance, there is the Good Neighbor Next Door program. For teachers, medical professionals, firefighters, and law enforcement officers looking in revitalization areas, as much as a 50% discount from a HUD-listed property can make a house more than affordable! Most observers believe residential prices are likely to continue to rise—so it’s not outlandish to suspect that today’s Las Vegas affordable houses may become less so as time passes. Give me a call if you are thinking of taking advantage of this winter’s bargains in our area.
5 VERY GOOD REASONS FOR USING A LAS VEGAS BUYERS AGENT
They don’t teach this in high school, but maybe they should. The difference between a Las Vegas buyer’s agent and a Las Vegas seller’s agent can be pivotal, yet first-time home buyers have to figure that out on their own. You can read quotes on the web that say things like, “I looked for a buyer’s agent instead of a real estate agent” (true story!) that illustrate how little knowledge is out there. It wouldn’t take much classroom time to explain that buyer’s and seller’s agents are both real estate agents, after all. And while the subject is being explained to the class, I’d put in these five very good reasons for using a buyer’s agent in Las Vegas home purchases: 1. There for You A buyer’s agent is by definition obligated to promote the interests of you, the buyer. When you are being shown a home by a personable real estate agent, it’s tempting to go simply with that agent, which may be quite a nice person. After all, he or she knows the house and knows the seller. But the problem is that the agent is duty-bound to act on behalf of the seller—and in any business negotiation, you want somebody who is unequivocally in your corner. Especially since- 2. It’s Free! A buyer’s agent is compensated through a commission. In this case, it is paid out of the proceeds from the sale price of the house. You’re reading that right: since it issues from the sellers’ proceeds, you get the service for free! Of course, the size of commission the buyer’s agent receives can impact negotiations if the seller thinks the rate is unreasonable. Remember that you can negotiate most things, including agent compensation. 3. Advice If you rely on the listing agent, he or she can only answer certain questions that don’t transgress their duty to the seller. Issues like price, tactics, and timing can be crucial in striking a good deal—but it is precisely on those kinds of issues that a listing agent is likely to be unable to advise you. Especially if you like the agent, you might be tempted to assume silence on a point means endorsement, and that could be a costly misunderstanding. Again, a buyer’s agent in Las Vegas knows the Las Vegas market from the buyer’s perspective, and can provide a wealth of information that point you in the right direction. 4. Your Personal Traffic Cop In a typical real estate transaction, you will encounter an array of players, including lawyers, the seller or sellers, the seller’s agent, the financial institution, the home inspection team, and on and on. Buyer’s agents keep things running smoothly. They help organize the process, so it makes financial and emotional sense to choose your buyer’s agent carefully. 5. It’s Free! If ever there were something worth repeating… The point worth remembering is that buying a house, or a condominium is such a major event, securing a professional to watch out for your interests is good common sense. It’s why giving me a call even before beginning any house-hunting venture is a very good idea!
LAS VEGAS HOME BUYERS CAN LEARN FROM SUPER BOWL VICTORY
Las Vegas home buyers may not have been watching the Patriots’ squeaker victory in Sunday’s Super Bowl for the purpose of learning something about real estate, but at least one useful piece of wisdom did become evident: the enduring value of minding the fundamentals. Despite the harrowing last 20 seconds, when the power of Seattle seemed sure to win the day, New England had confidence that their team was steeped in the fundamentals. Elaborate plays or complicated strategies didn’t seem important. In the world of real estate, too, Las Vegas home buyers also benefit once some basic elements are in place. They aren’t secret or trick plays, either—they’re quite straightforward and well known. But overlooking them makes for a flawed game plan: 1. Establish the playing field. We learned from the subprime mortgage mess that it could be a mistake for home buyers to rely on anyone else—even lenders—to determine their ultimate bottom line. The amount home buyers can safely afford a matter of sitting down and adding up all the monthly expenditures, being sure to include once- or twice-a-year expenses like auto insurance. Once home buyers have determined an affordable monthly mortgage payment, they know their target home’s price range. 2. After determining how much house they can safely afford, the next fundamental is to secure pre-financing. Las Vegas home buyers who have taken the trouble to have a pre-approval in place demonstrate to lenders, sellers, and everyone involved that their game plan was one to be taken seriously. It’s an early step that sets home buyers up for success. 3. With those basics in place, it’s just about time to start the all-important search for that next home. All home buyers need now is to put one more fundamental in place by teaming with an experienced Las Vegas real estate agent. Unearthing the most suitable home is a process that should involve identifying all eligible Las Vegasproperties—and not wasting time on those that don’t measure up. Recruiting a knowledgeable local REALTOR® is the most fundamentally sound way to efficiently comb Las Vegas’s relevant properties (and sometimes even a few that might not yet be listed!). Most people haven’t had the benefit of real estate training, and yet the quality of the search for their next home will in many ways determine much of their family’s future well-being. I do my best to ensure that my clients benefit from a well-grounded game plan. I hope you’ll give me a call if you are preparing to search for your next home!
Categories
Recent Posts
