AmazingVegasHomes

Friday, November 22, 2013

Tight Lending Standards Create More Seller Financing

November's Mortgage Credit Availability Index shows a slight relaxation in lending standards — but as most Las Vegas home buyers and sellers will agree, getting a mortgage is still difficult. With mortgage availability benchmarked at 100, although it’s currently at 111 ½, compared with the 800 it stood at in 2007, today’s is still a tough environment.

That’s why Las Vegas seller financing is being considered by more homeowners. When a home is owned outright, seller financing can draw a higher selling price (with future interest payments as a bonus). But before making such an offer, Las Vegas homeowners need to consider all of the ramifications: there is more involved than just the assumption of added risk.

Of course, ordering and examining a buyer’s credit report is the starting point. If the story it tells needs too many explanations, it’s time to walk away. Foreclosing on a seller-financed home can be more difficult than through a traditional foreclosure —particularly if the financing documents are substandard.

At first blush, seller financing might seem to simplify the whole transaction, but in fact some details usually handled by a bank must be hammered out:

• Who will pay for the appraisal; who for the inspection?
• Who is going to be responsible for property taxes and upkeep?
• Will the deed be transferred to the buyer right away, or only after the home is paid off?

Those issues point out why a “handshake deal” can’t be recommended for a Las Vegas seller financing arrangement. Just consider the last two points: if the deed hasn’t been transferred and taxes are in arrears, whose credit is harmed?

A good attorney will draft an agreement that nails down responsibilities and penalties for a buyer default as well as a detailed payment structure. A well-drafted seller financing agreement protects both parties by preventing misunderstandings and providing an unambiguous inducement for good behavior.

Given the right buyer, clear communicating and a framework cemented by the proper paperwork, Las Vegas seller financing can provide the missing element that makes a sale possible. If you will be listing your own Las Vegas home this fall, when you give me a call, we can discuss many of the different paths to success.

Marcelo V. Mayol

The Mayol Realty Group

Realty One Group

702-812-9990

Wednesday, November 20, 2013

Inspection Can Prevent Drug-Growing Nightmare

This could be any new Las Vegas homeowner’s worst nightmare: shortly after closing on their new house, a family in Canada discovers over $100,000 in hidden damages — the kind of damages that have to be fixed before the house can be deemed safe for occupancy. The cause? HGTV’s Mike Holmes made the discovery after doing a proper inspection on the property: the dream home they’d just bought had previously been used as an indoor marijuana-growing operation!

Believe it or not, it’s an increasingly familiar scenario. Last year alone, our own U.S. DEA busted more than 2500 “grow-ops.”

The damage such operations wreak on homes can be staggering. Increased humidity leads to warped wood, crumbling walls, and health-endangering black mold outbreaks. Holes are punched in walls and floors to run ducting. Electrical panels are circumvented to disguise high energy use, resulting in illicit wiring schemes that create true fire hazards.

Drug operations may be a rising current problem, but the issue is an older one: when housing modifications are hastily covered up, the next unsuspecting owner pays the price.

So, as a buyer in Las Vegas, how do you avoid purchasing a home with the grow-op kinds of damages?

A thorough inspection is a must — but there are also some telltale signs you can be aware of yourself. You’ll want to be aware of mold, especially in corners of walls and ceilings. Look for patterns of screw-holes in the walls (where reflective sheeting would have been put up) or on the ceiling (where grow-lights would be hung). Ventilation is a huge issue for growers, so look for patched-up holes in walls and ceilings, modifications to fireplaces, and unusual numbers of roof vents.

Outside the house, your own inspection should include signs of electrical meter tampering or clumsy outside wiring. And look for evidence of hasty masonry patches (especially in the garage).

Fortunately, any of our reputable Las Vegas inspection companies should be able to spot more obscure signs. If you will be buying this fall or winter, I’ll be able to recommend some of the best. The first step, however, is to start your search!

Marcelo V. Mayol

The Mayol Realty Group

Realty One Group

702-812-9990

Monday, November 18, 2013

Mistakes to Avoid As a First-Time Home Buyer

When a Las Vegas first-time home buyer begins hunting for the prize that has to serve both as a satisfactory home base and a solid investment, most feel a mixture of excitement (a home is a landmark achievement!) and maybe just a touch of apprehension. Like any expense you’ve never encountered before, it’s appropriate to take extra care the first time out — and to pay attention to what experience teaches. Along those lines, here are some mistakes that are easy for a first-time home buyer to make. Fortunately, they’re also easy to sidestep:

1. Waiting for a better rate

Adjustable rates may well be about as low as they’re going to get right now – and some signs point to an increase in the coming months. For a Las Vegas first-time home owner who will be taking out a loan, if the property is right, hesitating to make a commitment based on a loan rate gamble is seldom a good idea.

2. Thinking short term

Consider thinking of a home as a lifetime investment. Even for those who are single or newly-wedded, it’s possible that being open to a house with extra rooms could end up saving considerably on moving, transaction and agent fees, taxes, etc. It’s equally important to look at neighborhoods and how they are changing and developing. If you do resell your home, location can make a big difference in how.

3. Underestimating hidden costs

The monthly mortgage payment isn’t the ultimate bottom line. When a first-time home buyer comes across a property that fills (or exceeds) everything he or she has been looking for, if the mortgage payment looks to be right, it’s easy to overlook other homeowner expenses. Experienced buyers make hardheaded estimates of maintenance fees and property taxes — they will be every bit as consequential as the mortgage bill.

For a first-time home buyer in Las Vegas, when thoughtful perspective goes into your final decision, it’s that much more likely to be a decision that pays off in the long run. If you are preparing to buy this fall, I’ll be standing by to help get you started!

Marcelo V. Mayol

The Mayol Realty Group

Realty One Group

702-812-9990

Short Sale Approval Letter attached in Equator...

#LasVegasShortSales

Received another Short Sale Approval this morning. At least this negotiator and bank were bright enough to attach the Approval Letter in Equator and not send it to the seller in the mail. We need to work smarter, not harder.

Marcelo V. Mayol

The Mayol Realty Group

Realty One Group

702-812-9990

Saturday, November 16, 2013

Short Sale Approval Letter being sent in the mail...

#LasVegasShortSales

So I received a message via Equator yesterday afternoon, letting me know that one of my Short Sales has been approved and that we will receive the Approval Letter in the mail. The mail? Really? Everyone is waiting for this Approval Letter and they couldn't send it via Equator or simply email it to me. These banks never cease to amaze me!

Marcelo V. Mayol

The Mayol Realty Group

Realty One Group

702-812-9990