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BUYING A NEW HOME IN LAS VEGAS

WHY A REALTOR?

With over 1000 possible models to view, searching for a new home can be a daunting task. Every month there are dozens of new models from which to choose. These are generally located on the outskirts of town often on new streets which don't appear on any city map.

Building progresses in phases, each phase consisting of 6 to12 adjacent homes. As each new phase is opened there is usually an increase in price. So there is often a considerable difference in price between phase 1 and a phase 10 homes. Obviously, a prudent buyer should look for a home in a newer development rather than a so-called "close-out-special". Even before the model homes have been constructed some building lots have been pre-sold.

I want to help you locate the most suitable home. Before I take clients on a new home tour I do my homework investigating all possible models to view and eliminating homes that don't suit your needs.

I base my research on the information you give me. So the more can supply, the better my research will be.

THE RIGHT QUESTIONS

Upon entering the builder's model homes you will be given a price list and a booklet of floorplans and elevations. What's an elevation you may ask? Well that is one of many questions that should arise. Others may include:

• What appliances are included?
• Is the patio that we saw on the model home included?
• What are the lot sizes?
• What is a lot premium?
• Where are the nearest schools, shopping etc.?
• When will construction be completed?
• What are the prices of upgrades?
• Is this community located in a flood zone?

Since the home that you order has probably not already been constructed, it's very unlikely that your price will be the same as on the price list (remember the previous mention of phases). As a matter of fact, the only thing that will secure a firm final price will be a signed contract. Even then there is the matter of upgrades. Depending on your tastes, these can add thousands to the purchase price. The most common three upgrades are flooring, kitchen cabinets and counters. We also want to know the builder's policy concerning cash deposits on upgrades. In this regard there may be some advantage in using the builder's lender.

YOU WILL HAVE AN AGENT WHETHER YOU KNOW IT OR NOT

Most Las Vegas builders cooperate with realtors. That is to say, they will pay a commission to a realtor who brings a buyer to them. When visiting a builders models, you will notice a sign stating that YOUR REALTOR MUST ACCOMPANY YOU ON YOUR FIRST VISIT. What the sign does not say (and should) is: "In the absence of a client's realtor, we will assume that role acting for both the builder and the client". Since the builders and clients have adverse interests, ie. the client wants the best deal and the builder wants the most profit, this sort of arrangement is not advantageous to the buyer. Having your own realtor does not cost you a penny more and may in fact save you money in the long run. At the very least, you will have a professional representing you who is looking out for your best interests. If you visit models on your own, the builder will ask you to fill out a registration card. Whether you have done this or not the builder's sales staff will claim that they have established an agency relationship directly with you and this will make it difficult (or impossible) for you to bring your own realtor on subsequent visits. And in case you're wondering, the builder will pay your realtor the same commission as he would earn resale home.

STEPS TO PURCHASE

1. Before doing anything, you should speak with a mortgage lender to ascertain a price range. Why waste time looking at homes priced above your comfort level? Actually most find that they qualify for a loan beyond what they expected.
2. If you are lucky, you will find a home that can be ready to occupy within 4 months. It's more often the case that you will place your name on a waiting list. In this case, you may have to wait six months to a year before the home will be completed. Please let me know if you have a deadline, since this will be an important factor in my research.
3. There are two categories of upgrades; structural and cosmetic. Before writing a contract, the builder will need to know about your structural upgrades, items such as fireplaces, patios and pre-wiring installs.
4. Finally we come to the contract. Your realtor should be present for this transaction. Most builder's contract work takes about three hours to complete

AFTER THE CONTRACT

1. Within days of signing the contract the builder will ask you to visit their design center. This is where you will decide on all cosmetic or non-structural upgrades. The most common upgrades are flooring, kitchen counters and cabinets but may also include appliance upgrades, garage door opener, etc.
2. Your contract is now in the hands of a) your lender, b) your realtor, c) a title company and the builder. Each are coordinating a number of tasks.
3. When the framing of your new home has been completed, the builder will ask you to do a "framing walk". This is an inspection to make sure that all the structural items have been done properly and that they didn't forget to include the fireplace. I make it a point to attend all inspections.
4. Within a few days of completion you will be asked to do a "final walk-through inspection". This is also an educational tour in which the builder's representative will explain all the features of the home. Some folks like to hire an independent inspector to attend this walk-through. In any event, I will be there.
5. Next (usually the same day), we will go to the title company to sign all the loan documents and other title company papers. This is another lengthy process usually lasting two or three hours.
6. Since you have now signed all the paperwork and inspected your new home, you would expect to get the keys... right. Sorry, not yet. The title company has to send the loan documents to the lender and the lender need to review them before "funding" the deal. This usually happens with a day but make take a few. Once the title company receives the funds they send a runner to the Clark County Recorder's office to record your deed.
7. Now the home is legally yours and the builder will give you the keys.

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