Buying a Las Vegas can seem like an overwhelming, frustrating, complicated and wonderful process all at the same time. The real estate agents and Realtors at Addicted Realty are committed to working with you to make the process as painless as possible. We are real estate professionals and have each been through the buying process personally and professionally.
Here are some frequently asked questions about buying a home in Las Vegas, North Las Vegas, Henderson, Summerlin, and other nearby areas. Some of the questions are unique to our area and some are related to real estate in general.
Frequently Asked Questions – Buying a Home
Is it a good time to buy?
While the real estate market has had some challenges over the past few years, the market keeps moving and correcting. We can’t make more land appear out of thin air, so the available dirt for new construction is quickly getting filled. Las Vegas is a unique market and even in the depths of the recession, this town served to draw in tourists. owning a home is typically the largest single financial purchase we make in our lifetime. The agents at Addicted Realty have a firm understanding of market dynamics and history in our area. We are happy to share our observations of the market in Las Vegas and where we think the market is going. Remember, there is no crystal ball and no one can predict the future.
What are closing costs?
When you buy or sell a home, the one-time costs associated with doing the actual transaction are considered closing costs. Most of the closing costs need to be paid at closing, by either the buyer or the seller, and only specific items can get financed into a loan. The specific fees involved with your transaction will vary depending on the type of transaction and if you are paying cash or getting a loan. If you are getting a loan, the loan itself will have specific fees which will vary depending on the loan program. Depending on the situation, we may be able to have the seller or lender contribute money towards your closing costs. To keep things simple, a good rule of thumb is to estimate closing costs at 1% of the purchase price when paying cash and 2-3% of the purchase price when getting a loan. Speak to an Addicted Realty agent to discuss which fees you should anticipate paying.
When you buy a home in Las Vegas, the buyer typically pays the following items:
Home Inspection
Appraisal
Escrow Fee
Lender’s Title Insurance
Recording Fees
Notary Fees
Courier Fees
Mortgage Origination Fee
Mortgage Points (each point is 1% of the loan amount)
Credit Report Fee
Mortgage Document Review Fee
Interest Rate Buydown
FHA – Upfront Mortgage Insurance Premium
VA- VA Funding Fee
Real Estate Transaction Fees
What are “Prorations?”
When you buy a house, there are a few items that are required to be collected at the time of closing. These items are paid only a few times per year, so the seller of the property may have already paid them. Anything the seller has paid for the time period following closing (when you own the house), will be reimbursed to the seller at closing from your funds. The escrow officer takes care of all the calculations. These are typically not considered “closing costs” because they are not associated with the cost of doing the transaction. These are recurring items the owner of a property is responsible for paying. They are called “prorations” because each party (buyer and seller) is responsible for paying a prorated amount for the time they own the house.
These items may include:
Real Property Taxes
HOA Dues and Assessments – Master Association and Sub-Association
Supplemental Improvement District Assessments
Limited Improvement District Assessments
Homeowner’s Hazard Insurance
Sewer Usage Fees
Trash Usage Fees
Who pays for the Homeowners Association Resale Package?
By law in Nevada, a seller is required to provide to the buyer certain documentation from the homeowners association / common interest community. This has to be done at no cost to the buyer. So, the seller pays for the resale package.
What happens if I see something in the Homeowners Association documents that I don’t like?
By law in Nevada, a buyer is given five (5) calendar days to review the homeowners association documents from the day there are delivered to the buyer or the buyer’s agent. Addicted Realty encourages all buyers to review each of the HOA documents during the 5 day review period. If there is anything that you can’t live with, this is your oppertunity to cancel the purchase at no penalty. Once escrow closes and the deed is recorded, you will own the house and are obligated to comply with the homeowners association covenants and conditions (rules). This is a “speak now or forever hold your peace” type of moment.
Check the number of pets permitted. Check if rentals are permitted? What is the shortest term rental permitted? Are roommates permitted? What are your landscaping obligations? Where can you store recreational vehicles? Boats? What are the fees and fines the HOA is permitted to charge?
Do I need a Home Inspection?
Yes. We recommend you always have a licensed home inspector review a property you want to purchase. This is done during your due diligence period. The inspector will review the condition of the home with you and alert you to any problems they discover. The inspection is limited to what they can see, touch, and test. The inspection report gives a buyer a good idea of what future repair items may be needed. The report is nothing to be scared of. When you are buying a resale house, you understand it is not brand new. There will be some evidence of wear-and-tear. The inspection is designed to bring light to potential big ticket items. If an inspection report comes back with major issues, you have the ability to negotiate with the seller or cancel the transaction and get your earnest money returned (this must be during the due diligence period specified in the contract).
