Selling A Home In Nevada
When selling a home in Nevada, there are steps that you want to know about. Hiring a Realtor- Do I Interview? Yes. Should I pay less than 6% Commission? Yes. Should I list with a Realtor than says they’ll sell my house for 1%? Probably not. Let’s start with the first step — the Realtor.
You’ll want a Realtor in Nevada. We are similar to California these days – very litigious with many hungry attorneys. You’ll want a Realtor with knowledge who works full-time as a Realtor. Get an agent who knows the out-clauses in the standard board contract – ASK what they are.
Ultimately, you are looking for a Realtor who will protect you during the entire selling process. Interview. Advertising- make sure your home will be advertised and have professional photographs.
Interview Realtors! There is a HUGE Difference!
1. Deciding on a Realtor- Make a list of questions and ask each Realtor the same ones. You can google questions to ask or make up your own. Please don’t use the questions any Realtor you’re interviewing has posted online because they know the answers. Decide what type of Realtor you want.
- Do you want a Realtor who is an experienced top-producing knowledgeable Realtor? Do you want a Realtor who is extremely knowledgeable and considered a top-producing Realtor? One who will market each home they list as if it’s a $5 million property?
- Staying informed of out-clause expiration is very important. Insist on a schedule for updates and a calendar of contract dates. Be protected and informed.
- Do you want your calls answered when you need answers AND by a person who knows you and your house?
- Having a Realtor who is actually in a large team is another option these days. Often with a team, you get passed from one assistant to another. Their side is that each teammate specializes in one part of the transaction. We stopped being a large team in 2005 because we wanted to provide personal service and not be a Walmart.
- Newer agents with no marketing budget are not a good choice. However, they might have all the time in the world for their ONE client.
Getting The Most Money When Selling A Home In Nevada
Think about it – When selling a home in Nevada, do you want a negotiator, a professional, a friend or a new agent? Do you want a giant team that passes you off to the next person weekly? Do you want an agent that looks out for you? Because of liability – that is rare. We are unique because we protect our clients, but lets start with the basics.
- Do you want a Realtor that cuts their commission before they meet you, to negotiate for you?
- Beware of Realtors who advertise, “We will sell your home for 1%-2%.” They start off misleading you. In Nevada, there is buyer representation and seller representation. A buyer’s Realtor will not sell your home for 1/2 of 1% when the neighbor is paying 2.5-3%. There is NO WAY you will sell your home for 1%.
- Selling your home quickly is very possible. Before lockdown, many companies started offering to buy homes. Then they faded away because they expect the market to crash. But in 2021, they are the people driving prices up. OfferPad flips homes without doing anything to them. They need cash buyers but after 3-4 months they find a cash buyer who won’t get an appraisal.
- Know that companies who offer to buy your home and still pay all of your closing costs, still make a lot of money. This is America. They are in a big-dollar cash business for a reason. They will often make 25% or more from any purchase. Know that they are flipping the home, so of course, you are not getting fair market value.
- We often sell homes for $10’s of thousands of dollars MORE for people who talked with a “home buying company.” Keep your equity- don’t give it away- you deserve top-dollar in your pocket!
Loopholes for a Nevada Home Buyer
Trust me when I say you need to be protected when selling a home in Nevada. California attorneys relocated to Las Vegas too and they’re hungry. The standard “Board of Realtors Purchase Agreement” is a pile of loopholes and typos!
2. Add This Question To Your Interview List
There are things you should know about selling a home in Southern Nevada. Many Realtors don’t know- so please interview and ask them! The most important thing in your home sale will be the mandatory Las Vegas Board of Realtors “Residential Purchase Agreement” form.
- This form is used for every offer made by a Realtor. What you need to know is that in this 3-YEAR-OLD contract, there are over 20 “Out Clauses” for the buyer and a few VERY IMPORTANT typos. Some “out clauses” are ok, but having 20 is not ok if you are the seller. Ask every Las Vegas Valley Realtor that you interview: “What items do you counter-offer out on every offer presented to their sellers?” Question their knowledge and absolutely do not hire them if they do not have an answer.
Then ask what they do for a buyer and a seller for Clause #7. If they don’t know what that clause is, don’t hire them- period. Clause #7 on the standard LVR (Las Vegas Realtors) contract is 100% in the buyer’s favor and does nothing to protect the seller. If not addressed, you can more and have a vacant house and the buyer can use it to cancel.
Home Buyer and Seller Out Clauses in Las Vegas
3. Las Vegas Realtors Purchase Agreement. At the end of my blog, I’ve attached the typo (cut and pasted) clause that is the largest problem child. (See the complete section at the bottom of this page.) It says that “if initialed clauses A-C shall apply.” The problem with this is that there are clauses A-F in that section, and if D, E, and F don’t count, that’s a big problem- for both buyers and sellers. Those are the clauses about home inspections and remedies. This affects you because these clauses can hurt a home buyer VERY badly. Having a bad experience and a buyer possibly walking away at the 11th hour is not how we will do business. Ask every agent you interview about this because you may want to know if they are looking out for you.
Do they protect their buyers? Have they read their own contract during the past 3 years? If they don’t protect their buyers, do they protect their sellers? What if you’ve moved or took your home off the market for a month or more, and everything blows up because this clause wasn’t clarified? Who is harmed? Both parties.
2. Get advice! You are spending your valuable time interviewing agents so pump every one of them for information. Getting points of view from professionals can come in handy. As you show a Realtor your home, ask them to make suggestions about what you can do to increase your home’s value or if they have any staging suggestions.
When a Realtor is honest and helpful with you, they’ll be honest and helpful with you in the future. If a Realtor is in a hurry and acts like a jerk, they’ll be in a hurry and will be a jerk in the future. Is this agent overly aggressive or bashful? Are they afraid to speak up, or do they try to help you before they’re even hired?
This is a great way to form an opinion of the agent you are interviewing. Who you choose will be talking to you frequently in the coming months, so you should get along.
Pricing Your Home Correctly
3. Price- After walking through the house, the next step is to talk about Price. Your “asking price” is not the “value.” Value is whatever price that the buyer and seller agree to. Beware! No one can predict what your home will sell for, so don’t choose a Realtor according to the price they suggest. Some Realtors will suggest a higher list price- and that’ll sound great to you. IT’S NOT!
They’ll get you to sign on the dotted line and proceed to beat you up for price reductions until the home sells. I consider these agents to be “snake-like” and “not honest.” The bottom line is YOU choose the price. A Realtor works for you. If you like one Realtor and the other one seems rather snake-like, choose the Realtor you like. After all, you don’t want a Realtor that lies to you, do you? You choose list price, so “test the market” at the higher price if that’s what you want to list for.
Our pricing theory is to price your home correctly and fairly. The value of your home is not what the neighbor sold for or what you paid for it. If a buyer wants to close in a week and wants the seller out, they’ll pay more. If the seller has someone sick in the home, they’ll take less to get showings over with quickly. “The value” of a home is not black and white. Testing the market may or may not get it sold in your desired time frame. Let’s strategize.
How Does A Real Estate Agent Work?
4. Plan of Action- See a Realtor’s Plan Of Action. Is it in writing? Do they talk about their company or themselves? Decide if they are different and unique and if they actually “work.” You are paying someone a lot of money to market and sell your home. Are they proactive or reactive agents? Do they list your home and wait for an offer or do they actually market it and look for a buyer?
EVERY company gets hundreds of website listings free. The Board of Realtors sells their information so your home ends up on the same number of websites (within 20 to every other company. Do they claim that “they put your listing on X number of websites?” Everyone in the Las Vegas Area does this through the Board Of Realtors.
Do they have a large informative website? What is their Domain Rating? (If they are under 20, no one will see your home on their website.) Will they come to your house or send you offers on the computer? Do they make a website for your home? Are professional pictures and a video tour used? Where do they advertise? These things are important to get you the most exposure for your home.
How Are Offers Treated?
5. Offers- When an offer comes in on your house, your real estate agent will get it by email. Most agents use online programs like Docusign to send it over for you to read and sign. Do they call you and walk you through the contract and signing? We believe that you need to know and understand the contract – especially with a “first offer.” Offers 2-10 use the same form so it becomes less important. Accommodating you is important. We let you choose a communication method – in-person, video chat, or phone calls to go over all offers.
Multiple offers can get confusing because every offer is different. There may be things that are as important to you as the offer price. Meeting in person or on video chat becomes especially important with multiple offers. When interviewing, ask how an agent handles offers, and again, know that you are the boss. Ask if they are vaccinated or not, that may affect your choice.
6. Once an offer is accepted, the buyer’s agent will deliver the offer and earnest money check to a neutral third-party escrow company to handle paperwork and money. In Nevada, escrow and title are commonly the same company. We do not believe they can be neutral when they are selling a title insurance policy for possibly thousands of dollars.
Our company has opened its own escrow company to keep costs down and to have a separation between title and escrow. Their rates are the lowest so we like to counter that whoever the buyer chooses to use is fine as long as your costs are equal to or less than ROC Title.
7. Inspections– Due Diligence is usually 10 days. This is when the buyer gets inspections and either accepts the findings, negotiates with the seller for repairs or cancels the transaction. You do not have to be there. Know that the buyer may sit there for 2-3 hours while the inspection is done. We recommend that you minimize talking with the buyer or inspector. We only go if there might be a problem and request that you be there with a custom home or unusual features within your home.
8. Homeowner’s Association Documents– Nevada Law says that the SELLER needs to provide the buyer with Homeowner Association Documents. We order them but the seller pays for them. Contract verbiage is that the package is to be ordered within 2 days of acceptance.
After sellers were being gouged, the 2019 Nevada Legislature limited the cost for these documents to $180. The associations have separate companies that handle these papers so now these companies charge a “Convenience Fee” of whatever they want- typically under $100. The problem with this is that most companies won’t quote a price without you ordering the documents.
Standard Out-Clauses When Selling A Home
9. Appraisal- Appraisals are paid for by the buyer. There is an appraisal contingency period specified in the contract. If the appraised value comes in lower than the agreed-upon price, the agreed-upon price becomes negotiable again.
10. Loan Approval– After the appraisal, inspections, and acceptance of association docs and CCR’s, we wait for the completion of the buyer’s loan documents and signing. We try to limit the “full loan approval” time period to around 14 days so that they can no longer get their earnest money back based on loan approval.
We make our counter-offers complicated in regards to loan approval but basically, we want full-loan approval at the same time as the contingency period ends. We do this because you should get their earnest money if they get fired or gamble away their down-payment. Does your agent give you a calendar with each contingency date noted?
Closing In Nevada
11. Signing of Documents– When selling a home in Nevada, we use escrow companies. They are neutral 3rd party companies who figure out the money, liens, title, and do the signings.
After Escrow figures the money out, we review them, and then you sign them. We go to escrow with you in case something comes up or you have questions.
12. Walk-thru- Before the loan is funded and the title records the deed into the buyer’s name, they do a walk-thru to verify that the property is in the same condition as it was when they offered to buy it. Hopefully, you will be ready to complete your move or are moved when this happens. They will not get keys until the property legally belongs to them.
13. Wiring of Funds- Congratulations! Your funds will be wired to your bank account and will arrive with no hold on the funds within 1 business day of closing. If you are doing a concurrent closing on another property, the escrow company can fund your purchase instead of wiring the monies.
Am I The Right Realtor For You
Of course, I am the Realtor you’ll want. My wife and partner Terri and I have been working together since 1996. She started in Las Vegas Real Estate in 1993, and we teamed up together in 1996. We became top-producing Realtors because we operate differently due to my building expertise. Our goal is to protect our clients. Most people are concerned about legalities.
I have a standard of care caveat with every home I sell. Besides being a Realtor, I am a retired Nevada building engineer (PE, CE) and an Ex- Appraiser Apprentice (2008-2011). We are both Certified Home Retention Counselors helping people save their homes when needed. Utilizing Terri’s marketing expertise and my skills and knowledge, we work hard for you and protect you in every way we know.
The Best Buyer’s Agent in Las Vegas
We have a website that is over 200 pages and we are on page one of Google for many keywords. This means that we have buyers who might want your house. We write many buyer contracts and know every loophole. That is why we can protect you so well. When selling a home in Nevada, choose a Realtor that earns their paycheck with their knowledge.
Because of my building knowledge, our buyer clients receive free construction monitoring as their new construction home is built. With resale homes, we also work differently than most Realtors. We look for signs of defects and future issues in a home so you can enjoy looking to see if a home fits your family. Because of what we do for buyers, we see more homes than most Realtors and we may have the buyer for your home just waiting for you to list it.
This website and information are made available for you to explore by Kurt Grosse with Realty One Group. Kurt is a Las Vegas Top-Producing Realtor since 1996 and a Retired Building Engineer (P.E., C.E.). His goal with his buyers and sellers is to use his skills and knowledge to protect them in this ever-changing Las Vegas Real Estate Market. With how quickly homes are built in Southern Nevada, his skills are invaluable.
We Sell Las Vegas, Henderson, and North Las Vegas
Call or text us today with any questions or for an appointment to see some of these great homes- 702-750-7599
This is an excerpt from the Residential Purchase Agreement from the Las Vegas Board of Realtors dated January 2019.
Note: Only sections A through C apply. Sections D, E, F are completely left off. These are the clauses about inspections, certifications, and repairs. The fights occurring due to these 3 clauses being left out are ongoing issues.
7. BUYER’S DUE DILIGENCE: Buyer’s obligation is ____ is not ____ conditioned on the Buyer’s Due Diligence as defined in this section 7(A) below. This condition is referred to as the “Due Diligence Condition” if checked in the affirmative Sections 7 (A) through (C) shall apply; otherwise, they do not. Buyer shall have _______ calendar days following the date of Acceptance of the RPA (as defined in Section 23 herein) to complete Buyer’s Due Diligence.
Seller agrees to cooperate with Buyer’s Due Diligence. Seller shall ensure that all necessary utilities (gas, power, and water) and all operable pilot lights are on for Buyer’s investigations and through the close of escrow.
A.PROPERTY INSPECTION/CONDITION: During the Due Diligence Period, Buyer shall take such action as Buyer deems necessary to determine whether the Property is satisfactory to Buyer including, but not limited to, whether the Property is insurable to Buyer’s satisfaction, whether there are unsatisfactory conditions surrounding or otherwise affecting the Property (such as location of flood zones, airport noise, noxious fumes or odors, environmental substances or hazards, whether the Property is properly zoned, locality to freeways, railroads, places of worship, schools, golf courses, etc.) or any other concerns Buyer may have related to the Property. During such period, Buyer shall have the right to conduct, non-invasive/ non-destructive inspections of all structural, roofing, mechanical, electrical, plumbing, heating/air conditioning, water/well/septic, pool/spa, survey, square footage, and any other property or systems, through licensed and bonded contractors or other qualified professionals.
Seller agrees to provide reasonable access to the Property to Buyer and Buyer’s inspectors. Buyer agrees to indemnify and hold Seller harmless with respect to any injuries suffered by Buyer or third parties present at Buyer’s request while on Seller’s Property conducting such inspections, tests or walk-throughs. Buyer’s indemnity shall not apply to any injuries suffered by Buyer or third parties present at Buyer’s request that are the result of an intentional tort, gross negligence or any misconduct or omission by Seller, Seller’s Agent or other third parties on the Property.
Buyer is advised to consult with appropriate professionals regarding neighborhood or Property conditions, including but not limited to: schools; proximity and adequacy of law enforcement; proximity to commercial, industrial, or agricultural activities; crime statistics; fire protection; other governmental services; existing and proposed transportation; construction and development; noise or odor from any source; and other nuisances, hazards or circumstances. If Buyer cancels this Agreement due to a specific inspection report, Buyer shall provide Seller at the time of cancellation with a copy of the report containing the name, address, and telephone number of the inspector.
B. BUYER’S RIGHT TO CANCEL OR RESOLVE OBJECTIONS: If Buyer determines, in Buyer’s sole discretion, that the results of the Due Diligence are unacceptable, Buyer may either: (i) no later than the Due Diligence Deadline referenced in Section 7, cancel the Residential Purchase Agreement by providing written notice to the Seller, whereupon the Earnest Money Deposit referenced in Section 1(A) shall be released to the Buyer without the requirement of further written authorization from Seller; or (ii) no later than the Due Diligence Deadline referenced in Section 7, resolve in writing with Seller any objections Buyer has arising from Buyer’s Due Diligence.
C. FAILURE TO CANCEL OR RESOLVE OBJECTIONS: If Buyer fails to cancel the Residential Purchase Agreement or fails to resolve in writing with Seller any objections Buyer has arising from Buyer’s Due Diligence, as provide in Section 7, Buyer shall be deemed to have waived the Due Diligence Condition.
___________________ Buyer’s Initials _ _____________ Buyer’s Initials
D. INSPECTIONS: Acceptance of this offer is subject to the following reserved right. Buyer may have the Property inspected and select the licensed contractors, certified building inspectors and/or other qualified professionals who will inspect the Property. Seller will ensure that necessary utilities (gas, power and water and all operable pilot lights) are turned on. Each party acknowledges that he/she has read, understood, and agrees to each and every provision of this page unless a particular paragraph is otherwise modified by addendum or counteroffer.
Buyer’s Name: ____________________________________________________________________ Property Address:__________________________________________________________________
Rev. 01/19 ©2019 Greater Las Vegas Association of REALTORS®
BUYER(S) INITIALS: ________/________ SELLER(S) INITIALS: ________/________ Page 3 of 10
and supplied to the Property within two (2) business days after Acceptance of this Agreement, to remain on until COE. It is strongly recommended that Buyer retain licensed Nevada professionals to conduct inspections. If any inspection is not completed and requested repairs are not delivered to Seller within the Due Diligence Period, Buyer is deemed to have waived the right to that inspection and Seller’s liability for the cost of all repairs that inspection would have reasonably identified had it been conducted, except as otherwise provided by law. The foregoing expenses for inspections will be paid outside of Escrow unless the Parties present instructions to the contrary prior to COE, along with the applicable invoice. (Identify which party shall pay for the inspection noted below either: SELLER, BUYER, 50/50, WAIVED or N/A.)
E. CERTIFICATIONS: In the event an inspection reveals areas of concern with the roof, septic system, well, wood burning device/chimney or the possible presence of a fungal contaminant, Buyer reserves the right to require a certification. The expenses for certifications will be paid outside of Escrow unless the Parties present instructions to the contrary prior to COE. (along with the applicable invoice). A certification is not a warranty.
F. BUYER’S REQUEST FOR REPAIRS: It is Buyer’s responsibility to inspect the Property sufficiently as to satisfy Buyer’s use. Buyer reserves the right to request repairs, based upon the Seller’s Real Property Disclosure or items which materially affect value or use of the Property revealed by an inspection, certification or appraisal. Items of a general maintenance or cosmetic nature which do not materially affect value or use of the Property, which existed at the time of Acceptance and which are not expressly addressed in this Agreement are deemed accepted by the Buyer, except as otherwise provided in this Agreement. The Brokers herein have no responsibility to assist in the payment of any repair, correction or deferred maintenance on the Property which may have been revealed by the above inspections, agreed upon by the Buyer and Seller or requested by one party.
A clause needs to be added to every counteroffer to include sections D-F. 99 out of 100 agents do not point this out. Hire an agent that knows what they are asking you to sign.