What you need to know before you buy in Las Vegas: Episode #192

Hello! Welcome to Todd Miller TV. The title of today’s video is: 5 things you need to know before you buy a house in Las Vegas. What I did is, I pick the 5 most common that sort of, that surprise people. And I think if you know these things and you’re aware, you’re gonna make better decisions, you’re gonna have a better time going through your transaction and you’re gonna have success when you buy a house. Number 1 is, The Real Estate market is Local. Now this may seem/you may be saying “Todd why is this important to buying a house in Las Vegas?” and this is why. If you’re coming from a somewhere else to buy a house, you probably heard like horrible news on how bad the market is, and pricing needs articles, giving you all these information on how to get a house. Right? And a lot of these stuff that they say is not true. And the reason is is because they’re using an information from a few years ago. Now they’re saying prices are falling, process are supposed to fall, yada, yada, yada… Well, the truth is is that the market being local means that in some price ranges they’re going up. So these 20-30 thousand dollar houses that people keep calling me about, asking for it, gone! Because that was a few years ago we have those. Those houses are now the 50-60 thousand dollar houses. Okay? In a higher price ranges, there’s some softness there and you know, the houses that are supposed to be 2 million are now a million. A who knows where they’re going. So, we just sold one easily at 1.2 million. And recently sold it for about 900,000. So, remember the market’s local. Take a look at specific type of property you’re buying and what’s going on with that. Okay. Number 2, is something called a prequalification. This is a financial prequal. Any offer you submit, any client, any seller here in Las Vegas is gonna have to be showing a proof of funds, so a bank statement showing that you have the amount to cover it, okay? Or, a Loan/a Lender letter saying that you qualify for a loan, this is the purchase amount and then if you’re putting a down payment, you have to prove you have the money. So if a lender gives you a letter saying “yeah, they put 20% down they’ve qualified for a loan, you also have to show a bank statement with that amount on there. You can white out your personal information like the account numbers and stuff. You just have your name on there and the numbers. So you’re gonna have to have that, probably an agent won’t even take you out until they get a copy of that. ‘Cause they need to make sure you’re qualified for this before showing you houses. Okay. Third thing, we have a very short time on the market here. Our properties are starting to disappear rather quickly. So if you’re 2 or 3 months short from coming out to look, don’t be all wrapped up in looking for house ’cause they’re gonna be gone. And the reason why this is all supporting note, and if you see a house, you don’t wanna spend a week to think about it or fly back to the East Coast and like, you know, whatever! Just remember that the house could probably be gone. And what this also means is that you’re probably be gonna be dealing with multiple offers on the property. So, don’t be surprise if write an offer on a property and then the next day you find out there’s 3 or 4 offers and you’re asking for the highest invest. Okay. ‘Cause that happens a lot. Alright. Forth thing is Appraisals. Okay. This is why appraisals are important. On every purchase of Real Estate with a loan, you will have to get an appraisal. Now, if the house does not appraise, for what you are under contract for, One of 2 thing has to happen, either the seller has to lower the price, or you have to come in with the difference of the funds to make the sale good. Some of the sellers, depending who it is will say “that’s the price we negotiated, it’s not my fault you’re lender doesn’t think it’s worth that, you come up with the difference.” Some of them will meet you halfway and say “Well if you’ll give up a couple thousand closing cost we’re paying you won’t reduce the price and some will just say “we’ll reduce the price and you’re fine.” It just depends on the seller, you have to take that one step of a time. The key thing to remember with appraisals is that, last we had this problem was 8 years ago. 2004 when prices are going up. So what this is an indication is of prices are going up. The reason why it doesn’t appraise is just because you’re paying a hundred thousand dollars and you look over the last 6 months they’ll say “Well this guy bought the other house for 95,000 so we’re gonna appraise it for less.” But now the houses are worth more. Sometimes appraisers really don’t take that into count. Okay. Now the 5th thing or to be honest is the most important thing. It’s be patient! Okay. You have to be patient. This is not/a lot of people have frustration with buying Real Estate. They’ll look at houses that they love and by the time they get back to write the property up, they’re gone. They’re under contract or there’s so many offers on it, it’s not worth writing an offer. Or, you write an offer and then it takes a week for the seller maybe to a bank or something to get back and tell you whether you got it or not. And you just have to be patient, This is/we have a very dynamic market. It’s very complex. There’s not a lot of Real Estate agents who aren’t familiar with this now. A lot of Real Estate agents who haven’t had a lot of experience with this or out the business ’cause haven’t been able to cope. So listen to your agent. Be very patient. Just wait it out, It’s just a house, if it doesn’t happen for you, there’s another house out there that will come on the market, you know. So be patient, listen to your agent, remember the market is very local, and most importantly,get that financial prequal form a lender or have a bank statement before you start the process so you’re not/ were not spending time waiting for that information. Anyway, I thought I would share that with you, that is my update for today and hope to see you on another video. Thanks!