The process for determining the value of your home involves several simple but critical steps. Seller’s also need to understand that maintaining your home and your systems does not necessarily mean you have added value.
Las Vegas Valley New home sales nearing 2006 levels.
Through the first four months of the year, new home closings have reached 3,264; a 22% increase over the same period last year. If new home closings continue at this rate, we will have seen nearly 10,000 new homes closed in 2018; less than 2006 but nearing those levels. Building permits pulled in April were 1,047, a 28% increase from April of 2017. This brings the total number of building permits through April of 2018 to 4,059, 33% higher than last year. If this pace continues we will have over 12,000 permits pulled in 2018. This increase in permits pulled will pave the way for strong new home sales in 2018 and 2019.
With the increase in new construction sales, construction worker talent is in high demand. There is currently a shortage of construction workers which has slowed down the build time from four months to build a new home to six months.
The current median new home closing price in April was $374,440. This is an increase of 11 percent over prior year. Many factors are causing this increase including; labor shortage, material costs, land costs, high demand for new construction and supply shortage.
In California, all new homes will be required to install solar panels for whole house solar systems in an effort to save energy beginning January 1, 2020. It will be interesting to see if Nevada follows in the same path.
If you describe Real Estate as Luxury enough times, it starts to lose its meaning. Luxury is entirely overused in the Real Estate market to describe properties that do not meet the general definition of a Luxury Real Estate Property. In fact, the term Luxury has been used to describe Ultra Luxury Real Estate; homes of the world’s wealthiest 1% to a small kitchen re-model.
The Institute for Luxury Home Marketing, which specializes in training real estate professionals in high-end home sales, defines luxury as the top 10% of the Real Estate Market in any metropolitan market. You may be surprised to know that 90% of the resale homes that sell in our market are under $630,000.
In addition, there is no official checklist for labeling a property as luxury. Noteworthy, there are some general features that are common in upscale properties:
- Gated communities or buildings with a high level of security
- Prime Location
- Professional Quality Kitchen Appliances
- High End Interior Finishes
- Customized Closets
- Hotel like facilities if the property is located in a luxury building
In the Las Vegas Market in the preceding six months:
The top 10% of the market that sold was $630,000 or above that price point. There were 593 homes that sold with an average days on market of 89 days.
The top 5% of the market that sold was $925,000 or above. 222 homes sold and were on the market an average of 105 days.
The top 1% of the market that sold was $3,000,000 and over. 25 properties sold with an average days on market of 164 days.
Finally, if you are questioning whether your home would be considered in the top 10% of the market, talk with your Windermere Prestige Properties Agent. To preview our Luxury listings go to: www.finevegashomes.com
Begin – The home buying process
Organization is the key to finding the home you want while spending the least amount of time and energy.
Step One – Find out how much house you can afford before you go house hunting. A loan officer is a critical partner in helping you understand your budget options as well as the process of obtaining a home loan.
Step Two – Make a list of everything you want in a home. If there are two or more of you making the final decision, make separate lists to begin with. Then discuss the lists and agree on your top three priorities. Everything else becomes a secondary priority.
Step Three – Search on line and share your results with your selected Real Estate Agent. Look at homes with your Real Estate Agent. Keep good notes as after a while it can become difficult to determine which features belonged to which house.
Step Four – Once you have identified the house your want, work with your agent to review comparable sold properties to determine your offer price and terms. Write the offer!
Now you have found your home, but there is much more ahead before you can move in.
Preparing for a showing
There is some preparation for your showing that will set you up for a more successful showing. Here are a few tips:
- Open all the shades and curtains to let in light.
- Turn on enough lights so the home is well-lit. Yes, even in the middle of the day.
- Remove clutter from tables and bookshelves. Neatness makes rooms seem larger.
- Remove pets. Take them with your or keep them penned in the yard or garage.
- Put away items in the yard such as garden tools, bicycles and toys.
- Turn on gas fireplaces to create a cozy atmosphere.
- Grind up part of a lemon in the disposal to add a fresh smell to the kitchen.
- Turn on soft music on your home sound system to create a relaxed, pleasant atmosphere.
Remember, you only have one chance to make a first impression.
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What is Due Diligence?
When purchasing Residential Real Estate or land, the agreement between the buyer and seller will outline a time frame in which the buyer can conduct their due diligence. This time period is the buyer’s opportunity to bring in professionals to conduct inspections of the structure and systems. In cases where the property may need remodeling after close of escrow, the buyer will bring in contractor’s and other professionals to get bids on the work the buyer wants to do after they take possession of the property.
During the due diligence period the buyer is taking an in-depth look into everything about the property and deciding whether to ask the seller for additional concessions like repairs or a credit towards closing costs in lieu of repairs, or to just move forward as is. In some cases, the buyer may decide not to move forward, in which case, the buyer would be eligible to receive their earnest money back.
For seller’s, proper maintenance of all systems and structures during the life of the property is a good investment in maximizing a potential buyer’s satisfaction with the home.
If you have questions about anything Real Estate, we can help! Just ask.