A pre-planned multi-builder development with recreation, public services, commercial sites and residential housing in a self contained community. This is part two of a multiple part series looking at various master planned projects throughout Southern Nevada. I will be focusing on Southern Highlands in this article.

Southern Highlands is located in the Southwest part of the Las Vegas Valley. Secluded up against the mountains the community is still convenient to the Las Vegas strip, the Airport (without being in the flight path) and easy access to I-15/California. The 2300 acre community has more than 50 acres of parks, walking trails and community sports facilities.

Southern Highlands is home to the Southern Highlands Golf Club. A private golf  course designed by Robert Trent Jones which is consistently ranked one of the top 30 golf courses in America. There is also a 42,000 square foot clubhouse and spa with dining and private party facilities.

There are two public elementary schools (Aldeane Comito Ries, Charles & Phyllis Frias) and a public middle school (Lois & Jerry Tarkanian). There is also a private school for grades k-8 (Southern Highlands Preparatory School). Visit these two links for more information http://www.ccsd.net/, http://southernhighlands2.reachlocal.net/page.cfm?p=12873/?utm_source=ReachLocal&utm_medium=CPC&utm_campaign=Brand

Currently there are approximately 213 resale homes for sale in Southern Highlands ranging in price from $106,000 to $10,000,000. In addition there are 12 builders currently selling new homes with prices similar to the resale range. Since this is a master planned community there are association fees to consider when buying a home here. Monthly association fees run  from as low as $39 up to$600 a month. Another cost to consider is called a SID (Special Improvement District), basically a bond that is repaid by homeowners over a period of years. The SID was initiated to pay for the initial installation of infrastructure (roads, sewers, sidewalks, streetlights etc.). The SID’s payments range from $260 to $4800 a year and not every house has a SID balance. They are transferable from old owners to new owners and sometimes you can find a house where they have been paid off.

Needless to say, I am a big fan of master planned communities and Southern Highlands is one of the standouts in Southern Nevada. Feel free to contact me if you have any real estate questions regarding Southern Nevada. I have lived here for 20 years and I have been a Realtor here since 1999. greg@senasellsvegas.com or 702-683-6913

Mountain’s Edge was the top selling master planned community in the country for 2008. An impressive feat considering the tumultuous real estate market in Southern Nevada as of late.

Mountain’s Edge sits on 3500 acres of land in the Southwest part of the Las Vegas Valley. 550 acres have been set aside for parks and future community amenities. Six schools are planned for the community, with two elementary schools already up and running. There are more than a dozen builders offering 76 different models for sale. On top of that there are roughly 272 resale homes currently for sale in the community.

Like any community there are pros and cons to living in Mountain’s Edge. Some features can be both a positive and a negative at the same time. For example Mountain’s Edge maintains strict zoning and property standards. As well as generous and well maintained common areas. These features tend to help maintain property values into the foreseeable future. The down side to this is that there is (usually) more than one association fee. One for the sub-division and one for the master planned community. In Mountain’s Edge there is also a SID (Special Improvement District). A SID is basically a bond taken out to raise money for infrastructure (roads, sidewalks, utilities, etc.). All homeowners agree to pay back the SID over a specified period of time until it is paid off or they sell the house. SID balances are transferable to the new owners when the home is sold.

Mountain’s Edge is well named as it sits tucked up against the mountains in the Southwest corner of the valley. Some would say it is a little isolated with limited shopping and minimal road access. Both factors which will be addressed over time with increased local shopping options and the extension of Rainbow Boulevard (a major north-south Boulevard in Las Vegas).

This blog was intended to give the reader a brief overview of Mountain’s Edge. In future blogs, I will address in more detail, other relevant facts and features about the community.

My name is Greg Hoffman and I have lived in Las Vegas for the past 19 years. I have been a Realtor here for the past 10 years. I welcome your comments and questions. 702-683-6913 or email me at greg @ senasellsvegas.com.

Earnest money deposit (EMD) is the amount of money the seller has REQUESTED as a deposit to agree to sell you their house. Consider it a sign of good faith that you, the buyer, will go through with the purchase once you initiate the offer. Remember, by agreeing to your offer the seller has severely limited their ability to market their house for sale during the time you requested to close the transaction.

The EMD REQUESTED is always listed on the Multiple Listing Sheet (ask your realtor to see it). I capitalized requested to highlight the fact that EMD amounts are not set in stone. Almost everything is negotiable in this transaction and EMD is no exception. Offering to small an EMD can paint you as an insincere buyer. It also may cause you to lose the purchase to a competing offer with a higher EMD. Conversely, I always advise my clients not to offer any more of an EMD then is requested from the seller. Why risk a penny more of your money then you have to? If you ever have to default (breach the contract without an acceptable reason) you could lose your EMD.

Always make sure you have the money in the bank before you submit a check with your offer. The EMD will be turned over to the title company (usually within one day of acceptance of your offer) and they will cash it shortly thereafter. They place the money in a trust account until it comes time to close the transaction or until it is requested by either the buyer/seller.  An interesting side note, even veterans (doing a dollar down VA loan) have to put down an EMD. The same rules mentioned above apply to veterans as well (though they have slightly greater protections in regards to potentially losing their EMD).

The down payment is the amount of money the LENDER requires that the buyer put into the purchase of the property. For example, on an FHA backed mortgage the lender requires that the buyer put down 3.5% of the purchase price. In return, the lender agrees to finance 96.5% of the purchase price for the buyer. The seller DOES NOT dictate what  the down payment requirement is.

If the EMD is more then the required down payment, then the extra money can be used for other things. It can be used to pay for closing costs (including buying down the interest rate) or it can be partially refunded at close of escrow. Another important difference between EMD and down payment is the time in which the two types of funds most be committed. EMD most be submitted with the offer and down payment is usually required at close of escrow (at the end of the transaction).

Always check with your local professionals as laws and procedures vary from state to state. My name is Greg Hoffman. I have lived in Las Vegas for 19 years and I have been a Realtor here for 10 years.

When I’m driving with Buyers showing them properties in Las Vegas they inevitably ask me a question I can’t answer. I am not trying to be evasive I just can’t answer them without the risk of being sued, fined and/or having my license revoked. What I am writing about here is mostly in response to Fair Housing laws and the governments attempt to eliminate discrimination in Real Estate/Lending.

The first important definition to understand is a practice called steering. Steering is “the illegal funneling of home buyers to particular areas based on a desire to keep the make up of a neighborhood the same or intentionally change it” (definition provided by ask.com). The second important definition to understand is the practice of Redlining. This term was coined when lenders actually drew a redline on a map and refused to lend money to people buying in that area.  The lenders argued that they were unacceptably risky areas to lend in. The lenders lost that argument on the grounds that they were discriminating against people based on racial and income profiles.

So please don’t ask me (or your Realtor) if there are a large percentage of one type of people (read: Race) or another in a particular neighborhood. Even if I knew (which I usually don’t) I won’t tell you anyway. There are decent demographic statistics at the US Census bureau’s website if you are interested in such things (and the new census starts in 2010). The same goes for me offering specific information about various religious buildings in the area (I can’t do it, look on the Internet). Ditto in regards to school ratings, environmental issues and crime statistics. Two good ways to get a feel for a neighborhood is to drive the area and talk to the neighbors.

A Realtor is also prohibited from disclosing confidential information about their clients to anyone other then their broker (for a certain period of time). The exceptions being unless they are ordered by a court of law or given written permission by the client. The reason why I mention this is sometimes the Realtor can be representing both the buyer and the seller. In this case, the Realtor has to walk a fine line as to what he or she can reveal to whom.

Fortunately, we live in an age of abundant information. If you know where to look you can find almost anything on the Internet. Want to know how much the seller paid for the house, look at your county recorders website for their property tax records. Want to know how many sex offenders live in the area, you can go to Family Watchdog website. School information can be had at the National Center for Education Statistics website. I often tell my mother, “don’t be afraid to try things on your computer, it will stop you before you do something stupid”. I suggest a similar thing to you, if you want to know something about a neighborhood (and I can’t tell you), ask a search engine.

My name is Greg Hoffman and I have lived in Las Vegas since 1990. I have been a Realtor here since 1999. I welcome your comments good, bad  or indifferent.

I have been getting a lot of questions from clients/friends about being upside down in their houses and what they can do about it. I always suggest that they speak to an Accountant/Attorney (and I suggest you do as well), but I will attempt to give you some basic information about the Mortgage Debt Relief Act of 2007. The IRS rules are a little confusing (like most information they put out) and in my opinion they need to simplify their pronouncements so the average taxpayer can understand them.

The act allows people to exclude debt forgiven under a mortgage restructuring and or foreclosure on a PRIMARY RESIDENCE. This means that you don’t have to include such debt as income when you are doing your tax calculations. There are several rules to the act and the more important ones are as follows:

1. The debt has to have been restructured (or the property foreclosed on) between 2007 and 2012.

2. A maximum of two million dollars may be forgiven (for those filing jointly) and one million dollars for individuals.

3. The exclusion can only be accepted due to a drop in home value or a deterioration of the taxpayers financial situation. Filing bankruptcy to wipe out debt on your primary residence is also an acceptable reason.

4. The original loan must be a NON-RECOURSE loan. A non recourse loan means the lenders only (final) action in the event of your default is to take back the house.

5. The debt most have been used to build, buy, or improve your primary residence. Home equity lines of credit (HELOCS) that were used (and later forgiven) to pay of other unsecured debt (credit cards,cars, living expenses, etc.) may not be excluded as income.

The IRS website (www.irs.gov) has a publication (No. 4681) that goes into more detail about the subject.

My name is Greg Hoffman and I have lived in Las Vegas since 1990. I have been a Realtor here sine 1999.

Your credit reports are a key factor in determining whether or not you can get a mortgage. There are three different bureaus that collect and report information regarding your overall credit situation. They are Equifax, Experian and Transunion. They all rate you by using a scoring system called F.I.C.O, which stands for Fair Issac Credit Organization. Your F.I.C.O score can range anywhere from 400 to 850 (a higher score is more desirable). Only F.I.C.O employees know exactly how they calculate their scoring system, but recent external pressure has forced them to reveal some of their secrets. I will pass what information I have learned on to you latter in this Blog.

When you are ready to buy a house, you need to shop for a mortgage first. After you have found a lender, they will pull your credit reports. They are looking for three basic things. First, they will look at your F.I.C.O scores from each of the three bureaus (if you are applying for a conventional mortgage). They usually take an average of the three scores or your mid F.I.C.O score. Most conventional mortgages have a F.I.C.O score minimum requirement, if you don’t make it up to that number, you don’t get that particular mortgage. There is generally no room for negotiation on this point. Second, they are looking for any derogatory credit. Derogatory credit are things like late payments, car repos, foreclosures, bankruptcies, tax liens, back child support, bounced checks, collection accounts, etc. Any one of these can be a deal breaker or the lender might accept a letter of explanation as to what caused the derogatory credit to occur. Third, they are looking at all your debt (as reported on your credit reports) and calculating your debt to income ratio. The amount of money you spend on bills vs. the amount of money to take in as income. They have various percentages (based on different loan products) that they deem to be acceptable. If you exceed these ratios, they may be willing to negotiate a little if you are strong in other areas (ie. if you have been at your job for a long time or if your F.I.C.O scores are high).

If you find information on your credit reports that is inaccurate, you can request that it be corrected. You need to send a letter to each credit bureau (that has incorrect information reported) and ask that it be corrected. Write one letter identifying yourself and the information you think needs to be corrected. Make sure you send any evidence you have that supports you request. Photo copy the letter/evidence and sign your original signature to each copy. The bureaus usually have 30 days to investigate your claim. If they can’t verify the information they have reported, they have to delete it from your file. This process also works well if you want something added to your credit. If you have limited credit, send in information that shows you pay your bills on time. For example, if you have a department store charge card and it doesn’t show on your credit reports (ask that it be added to your file).

Here are three other tips that may improve your F.I.C.O scores. One, don’t close open credit card accounts/liens of credit just because you paid off the balance. The fact that you have access to (but are not using) credit/money shows you have some reserves if you need them in a pinch. Two, if you do carry balances on your credit cards/liens, try to pay them down below 50% of your available credit line. There is no set reason as to why this works, it is just one of F.I.C.O’s quirky methodologies. Third, avoid allowing to many companies to pull your credit. In general, each time you have your credit pulled your F.I.C.O score drops. The logic being that a company that pulls your credit MAY extend credit to you and you could run up your debt (before it actually shows on your credit report). The exception to this rule is having companies that are designated mortgage companies pulling your credit. In a 30 day period, mortgage designated companies can pull your credit and your F.I.C.O hit will only be from the first mortgage company.

My name is Greg Hoffman. I have live in Las Vegas since 1990 and I have been a Realtor here since 1999. I also have worked in forward and Reverse Mortgages with major national banks.

This is part two of a two part blog on buying Las Vegas residential property. By now it is assumed you have a lender and I am your Realtor (if your in Southern Nevada), so it is time to start deciding your priorities. What are the most important things you want in a house?

The old joke is, what are the three most important factors in buying a house are——–location, location, location! Do you want to be close to certain schools? Do you want to be close to your work? Do you want to be far away from freeways, airports, fire stations (noise), 24 hr stores (lights), etc. How did the neighborhood look as you drove to the property? Are there cars on blocks in some drive ways nearby? Is there graffiti on the walls everywhere you look? What about having to many two story house around yours (privacy)? Do the neighbors dogs bark uncontrollably every time you go near your potential house? These are all important factors when deciding if a houses location is right for you.

What kind of amenties do you want in a house? Most people can quickly decide how many bedrooms, bathrooms and garage spaces they want. They can also determine story preference and minimum square footage they are looking for. What about minimum square footage for your yard? What direction you want the house to face (important in this climate)? Pool or no Pool? Grass or desert landscaping? Maximum age of the house? The more of an idea of what you want before you start looking, the better the Realtor can filter the choices presented to you.

The next step is to search for properties via the Multiple Listing Service (MLS). The MLS is a Realtor produced database of all properties (for sale by Realtors) in a given area. Take the time to sit down and review the pictures of prospective properties before you start driving all over town. Many times properties can be eliminated from consideration just by looking at the pictures on the computer. This is a huge time saver for everyone involved.

Now it is time to go physically look at properties. Pay attention to the condition of the neighborhood, especially everything directly around your potential house. If the neighbors are around, ask them what they think of living there. Look at the house for obvious problems like water stains, major cracks in the frame or foundation, unpermitted additions, etc. Are the problems you find structural or cosmetic? Do you want to take the time and expense to fix said problems? If the answer is no, move on, there are plenty of houses to choose from.

After you find a house you want to make an offer on, you have to go back to the computer to see what a reasonable estimation of it’s value is. Your Realtor should be able to SHOW you  (on the MLS) similar houses that have sold recently in the neighborhood. Remember to look at SOLD prices and to have your Realtor factor in Seller’s contribution to Buyer closing costs (if any) for a more accurate estimation of value.

Now that you have an estimation of value for your potential future home, it is time to write the offer. How bad do you want this house? You can start with a low offer and go up from there (but there are risks to doing so). How upset would you be if you lost the house to a higher offer? If the answer is VERY, start with a stronger offer. If you have looked at many houses and this is your dream house, is it worth losing for a few thousand dollars? Expect a counter offer and be prepared to negotiate (remember the seller wants to get as much as they can when they sell). Always make sure your offer is contingent on a professional inspection. This probably is the most expensive purchase of your life, don’t skimp on an inspection that might cost a few hundred dollars.

Now you have an accepted transaction, but the work isn’t over yet. Make sure you get every scrap of paperwork the lender asks for (in a timely manner). If you delay the closing because your lender didn’t have everything  he/she needed, it could cost you a lot of money. You could even lose your earnest money deposit and the house to another buyer. Don’t let anyone else (except your second opinion lender) pull your credit until close of escrow (COE). Your loan could be credit score driven and (most) times when your credit is pulled your score drops. Don’t buy any big ticket items on credit prior to COE  because it could effect you ability to get your mortgage (by changing your debt to income ratio). Most lenders will pull your credit right before COE to make sure nothing has changed to make you a credit risk. Don’t quit your job or change careers prior to COE, it may disqualify you for your mortgage. When in doubt, ask your lender for guidance before you do ANYTHING that may jeopardize your loan.

My name is Greg Hoffman. I have lived in Las Vegas since 1990 and I have been a Realtor here since 1999. My email is greg@senasellsvegas.com

This blog is designed to provide basic information about buying residential property. It can be applied pretty much to any part of the U.S.

Before you can start, you need to decide what it is that you’re looking for (I will go into much more detail on this later in part 2). I would also add that you need to know why you’re looking to buy a house. Are you ready to settle down and make a long-term commitment? The days of buying and rapidly flipping property for a profit are gone (at least for now). Are you ready to give up your liquidity and your mobility? Are you prepared to fix things around your house yourself (there is no landlord to call from here on out)?

For those of you still with us, I will assume that you answered yes to most of the questions above. Now it is time to go out and find a lender. You’re Realtor or the people you bank with should be able to point you in the right direction. Going over your finances with a stranger is not fun, but it is the crucial first step in buying a house. You need to know with certainty the maximum amount you qualify for BEFORE YOU GO LOOK AT ANY HOUSES. Why would you want to go and look at $300,000 houses if the maximum you qualify for his $200,000?  This will also tell you what your monthly payment will be and how much you will need for a down payment. Any good listing agent will also require at least a letter of prequalification from your lender before they accept any offer you put forward. It also doesn’t hurt to get a second opinion from a different lender. Competition is a good way to get the best interest rate you possibly can when it comes time to lock or close your transaction.

If you don’t have a Realtor yet, now is the time to find one. Ask your friends and/or business acquaintances who they used. Where they happy with the work he or she did for them? You’re lender will undoubtedly know at least one Realtor they feel comfortable working with. Remember, if the Realtor can’t find you a house, the lender doesn’t get paid either.  Look for someone who takes the time to listen to what it is that you are looking for. A good Realtor will show you what YOU want to buy, not what they think you should buy. Do they only show you properties they themselves have listed to sell (if so, run, they are not looking after your best interests)? It is also important to remember that a Realtor can help you with both new and resale homes. If you want to go look at new homes, make sure your Realtor takes you on your first visit to the property. If you don’t, you may waive your right to have someone representing you at the negotiating table. If your a buying in Southern Nevada, I hope you would allow me the chance to represent you.

In part 2 of this Blog, I will go into more details about what to look for when buying a house. I will also go into what to do after you have found the house you want to make an offer on.

My name is Greg Hoffman. I have lived in Las Vegas since 1990 and I have been a Realtor here since 1999.

Buyers Beware! The disturbing trend of low ball listings in Las Vegas!

A disturbing practice I am seeing more and more of lately is the low ball listing of Las Vegas short sale/foreclosed properties. A low ball listing is a listing that is priced, by the Listing Agent, SUBSTANCIALLY below what a common sense comparative market analysis says the property is really worth.

I have spoke to many Las Vegas Listing Agents and asked them why they priced their listings so artificially low. They tell me they were not getting any offers at a higher (more realistic) price. OK, I understand that logic but are they really helping to sell the listing any faster with an unrealistic price.

I would argue that low balling the listing doesn’t help sell the property any quicker and in fact hurts the chances of a sale for the following reasons:

1. Buyer expectations–The Buyer sees the artificially low price and thinks they can get the house for that amount. Even after it is explained that the Seller’s Bank has the final say on what they will or will not accept, this is a difficult psychological hurdle to latter overcome.
2. Wasted Time–So the low offer is in and the waiting begins. Banks are not known for quick decisions and several weeks could go by before they respond to the offer. During this time the Listing Agent is required to place the property as Contingent in the Multiple Listing Service (MLS). This could lessen the chance of the property being shown since other potential Buyers could see the property as possibly being sold already. It is also against Nevada law for the Listing Agent to submit other offers while the first offer is pending review by the Bank. Many times the offer will come back from the bank 10% or more higher than what the Listing Agent had it listed for. This tends to anger the Buyer and often causes a complete breakdown of negotiations.

The best way to mitigate against this practice is to educate the Buyer in advance. Las Vegas Buyer’s Agents need to prepare their clients for the possibility of a counter offer above the listing price. If the comparative market analysis shows that the property is worth more than the asking price, share this with your client, it might be what saves the deal in the end.