The Las Vegas Real Estate Agent Who Went Too Far

As Realtors we are programmed to go the extra mile for our customers. It’s all about providing superior service, right? And Las Vegas real estate is super competitive, so you really have to step up your game. Over the years I have scrubbed toilets, cleaned ovens, babysat for pets, helped clients find jobs, and in a couple of instances even let them move into my own home for up to a month when an escrow was delayed.

But sometimes you just have to say “no” to a client, as one Realtor found out the hard way. Below is a true story of the Las Vegas real estate agent who went too far trying to please a client.

“Poindexter” had cash buyers in town that were on a mission to purchase several Las Vegas investment properties. They had already predefined a certain neighborhood they wanted to purchase in – one where the crime index was a bit high - but the prices were cheap and the return on investment was exceptionally good.

“Poindexter” had done his research on the MLS, and had a list of eleven homes for sale in Las Vegas with good cash flow potential ready to show. He and his clients headed out late in the afternoon just as the sun was beginning to set.

About halfway through the list, “Poindexter” and his clients came to a property with no lock box, though the MLS listing indicated that one should be there. This was a brand new listing and the sign wasn’t even in the front yard yet. But the house was supposed to be vacant and the clients were REALLY insistent about seeing it RIGHT NOW, so “Poindexter” circled the home looking for a door that had been left unlocked. (This happens more times than we like to think!) “Poindexter” didn’t find an open door, but he did find a window that was unlocked, so he proceeded to climb through the window and let his clients in through the front door.

Unfortunately for “Poindexter,” one of the neighbors saw his unorthodox method of entry and called the police, who responded quickly. Faster than you can say “commission check,” “Poindexter” and his client were sitting on the curb in front of the home, hands shackled behind their backs while the police tried to contact the listing agent, who, of course, was nowhere to be found.

Overzealous “Poindexter” and his clients were then treated to a tour of local police headquarters. In the meantime, his lovely almost new Lexus was left in front of the home. A few hours later the misunderstanding was cleared up (though “Poindexter” was ultimately charged with illegal entry). Upon returning to the neighborhood via cab, “Poindexter” discovered much to his dismay that not only had the car been broken into and all his “stuff” stolen, but it had also been professionally been redecorated by a graffiti artist. (The all-too-observant neighbor lived behind the subject property where the entry window was located, but couldn’t see the front of the house.)

Needless to say, even though “Poindexter” was trying to please his clients by acceding to their request to view the house NOW, the clients weren’t too pleased with the unplanned field trip to police headquarters. So the ungrateful clients took off in a cloud of dust, never to be heard from again, and “Poindexter” was left with no sale, no car and a police record. There does come a time in every agent’s life when going the extra mile is just going too far, and poor “Poindexter” crossed that line.

Las Vegas Real Estate Agents Fire Buyers!

It doesn’t happen every day, but every once in a while Las Vegas real estate agents fire buyers! Real estate agents as a whole work harder than the average person in a 9 to 5 job. They are on call 24/7, and, especially in today’s market, often work for minimum wage when you count up all the hours and expenses that go into a transaction. That is why it is especially important for real estate agents to realize the value they bring to the table and when they should fire buyers that are just not worth their time.

Sometimes the agent doesn’t know the buyer’s mindset going into a transaction, but sometimes the buyer tips their hand in advance, like this actual letter we received on Valentine’s Day. Tim writes:

“I am seriously considering buying Las Vegas homes, BUT ONLY on a KILLER DEAL. I am not interested in a good, great or market price deal. I can pay cash, so there won't be any financing. So, probably a Las Vegas foreclosure, but open to all. I know that there are killer deals out there because I know of them all around me here. So, please, only a straightshooter reply to me.
My criteria: $50-100K. House, new or newer preferably, but not mandatory, 2> beds, 1>bath, a real fireplace is a must, garage, yard or acreage, good area/part of town. I have more likes/dislikes, but these are the standard facts.

I am retired. I want to be near or in relatively close driving distance to golf courses, casinos that have concerts, places to walk and hike, and take my dog. You get the picture?

I don't have a timeframe. As I said, if it is the killer deal for me then I am ready to buy today, or willing to wait until tomorrow, in a week, month or year or more until that deal transpires.
I want an agent that knows Vegas extremely well, is not pushy, is not in desperate need of a sale, will work with me on what I want and not what they want, and obviously knows real estate. Don't laugh. There are way too many people that received their licenses during the big boom years ago that don't know a thing about real estate, and many of them are still out there with their license. Please don't reply because I will know.

If you have someone qualified and interested, let me know, and we can talk.
Tim”

Since we received this letter on Valentine’s Day, we decided to have a little fun with it and instituted our First Inaugural “Kiss Off the Client” Contest. Agents contributed entries to let Tim know (politely) why they were firing him in advance. Below are a few of the entries submitted:

“Dear Tim, You’ll be excited to know that every home for sale in Las Vegas is by definition “a killer deal”. Knowing that should take a lot of the pressure off of both of us.

The remainder of your criteria you’ll find out in Pahrump, Nevada. Are you interested in looking at a few properties there? If so, I’ll be happy to recommend an agent. Make sure to pack your snake and scorpion repellant. Judy”

“Dear Tim, I would love to help you, but sadly my dog ate your listings. As he is on an all starch diet and will probably continue to eat your Las Vegas MLS listings for the foreseeable future, you will need to find another agent to assist you. As a dog owner yourself, I am sure you understand. Good luck! Dave”

“Dear Tim, Since killer deals seem to be falling off the trees right where you are now, why would you want to come to Las Vegas? Please let me know where you are so I can get my real estate license there! Gina”

“Dear Tim, The Good News: Our Las Vegas real estate agents are all HIGHLY experienced, with pit bull negotiating skills, impeccable integrity and incredible work ethics. The Bad News: They are all so successful and already have so many wonderful, motivated clients, none of them are “available” to help you. Management”

Please feel free to use these excuses the next time you are approached by a buyer that needs to be fired!

How will the Foreclosure Moratorium affect Las Vegas?

Bank of America, Chase and GMAC, among others, have announced that they will be temporarily suspending new foreclosures in 23 states that use the judicial foreclosure process pending internal review of their paperwork. (Nevada uses non judicial foreclosure procedures.) In addition, Bank of America announced that they will extend their temporary moratorium to all 50 states. How will that affect Las Vegas foreclosures? The Las Vegas real estate market has been one of the hardest hit by foreclosures in the past few years, though things have seemed to stabilize over the past six months.

At first the rumors were flying that any bank owned foreclosures currently in escrow would be canceled and that many of the title companies would refuse to insure such transactions. Las Vegas real estate agents and their buyers were in a panic. Many buyers had already spent hundreds of dollars on inspections, appraisals and HOA documents that they feared would be lost, not to mention the trauma of not being able to move into their new homes.

I am delighted to report that these rumors are unfounded! While some deals may be canceled after review in the 23 states that use the judicial foreclosure process, it does not appear that transactions currently in escrow in Las Vegas will be affected. And though there are some title companies that have announced they will not be issuing title insurance on bank owned properties in the 23 states, it is not anticipated that this will occur in Las Vegas.

It does look like Bank of America will not be taking back any more Las Vegas homes through foreclosure during the next few months, however, at least until after the first of the year. Yet typically most banks suspend foreclosure proceedings during the holiday months anyway, so this is not expected to have much impact on the normal market. “Take your kids, your Christmas tree and get out,” is not considered good PR in the best of times. So even though a foreclosure moratorium SOUNDS like an earth shattering economic event, the current moratorium really shouldn’t affect the market all that much.

So if you are a homeowner that has been fearfully awaiting that final foreclosure notice - put up the decorations, bake your holiday pies and invite the family over. The chances are pretty good that you will able to stay in your home a few more months, at least until after January 1st of 2011.

Real Estate in Las Vegas - The Buying Process

Every country, state and city has different procedures when it comes how a real estate transaction is handled. Below is an overview of how the Las Vegas real estate purchase process is handled.

1. Obtain a loan preapproval from a major bank or provide proof of funds (bank statements) for an all cash sale to your Las Vegas real estate agent. This is required before submitting any offers on properties, and some sellers will not allow you to view their property without one.
   
2. Identify potential Las Vegas homes for sale that meet your needs and view them with your agent. Remember to give your agent as much advance notice as possible. Many properties require appointments to view, and if you can give at least a week's notice it is easier to make sure you get to see all properties on your list.
   
3. Select property that you would like to make an offer on. Because there are multiple offers on many properties, especially those under $400k, it is wise to select several properties and not just one.
   
4. Have your agent run comparable sales to determine an approximate value. If you are getting a loan, your lender will also require an official appraisal to be done on the property. If this is a cash sale, an appraisal is not required, but the buyer may pay for one and that can be a condition of the contract. We use the standard Greater Las Vegas Board of Realtors purchase contract which contains many provisions for the protection of both the buyers and the sellers. The only exception to using a standard GLVAR contract would be when purchasing a brand new Las Vegas homes from a developer. In that case the purchase contract is supplied by the developer.
   
5. The agent will write up a purchase contract including all terms of the sale. The buyer will sign the contract and the agent will submit it to the listing broker along with a copy of the earnest money deposit check or a notation that these funds will be wired directly to the escrow company within one business day.
   
6. The seller then has three choices: they can accept the contract as written, they can reject the contract, or they can make a counter offer to the buyer.
   
7. If the seller makes a counter offer, the buyer can accept it, reject it or make another counter offer to the seller. All offers and counter offers must be in writing. Verbal offers are not acceptable.
   
8. Once all parties have reached agreement in writing, the contract is considered accepted. The buyer's agent will submit all documents and the earnest deposit check to the escrow company and escrow will be opened. Once again, the earnest deposit will be cashed at this time and the funds will remain at the escrow company until the closing occurs.
   
9. The buyer's Las Vegas mortgage lender will also immediately receive an executed copy of the contract so that they may start processing the loan.
   
10. The lender should be instructed to order the appraisal immediately and collect funds for the appraisal from whoever is paying for it.
    
11. The property inspection should also be set up immediately so that the results can be reviewed and accepted or rejected by the buyer during the due diligence period. Should there be items on the inspection list that the buyer wishes to have fixed by the seller, a separate form will be prepared itemizing those items. Keep in mind that Las Vegas foreclosures and short sales are mostly sold "as is, where is" with no repairs to be made. Short sale sellers have no money, and Banks will very seldom pay for any inspection items unless a major issue is found like mold or a structural defect.
    
12. HOA docs should be ordered immediately so that the buyer can review them in a timely fashion within the due diligence period.
    
13. The buyer should also immediately contact their preferred homeowner's insurance company and order a homeowner's policy. The buyer will need to supply the property address, the property square footage and both the lender' and escrow company's contact information so that the insurance company can provide them with the necessary paperwork for closing.
    
14. Once the items of the due diligence period have been covered and the due diligence period ends, the buyer's earnest deposit is considered non refundable unless the seller is unable to provide clear title to the property or the property is materially damaged in some way prior to the closing.
    
15. About three days prior to the closing, the buyer will have an opportunity to "walk through" the home once more to make sure that the property is still in the same condition as it was when the offer was tendered. Also if there were repairs that were to be made by the seller, the buyer would check to make sure that those repairs have been done. If the buyer is unable to be at the property for the walk through, the buyer may nominate someone else in writing to perform this walk through on the buyer's behalf. The real estate agent may be present during the walk through, but CANNOT do the walk through for the buyer. If the buyer or a buyer's nominee cannot do the walk through, the buyer will need to waive his rights to the walk through in writing.
    
16. About three days before closing, the buyer will sign all the closing documents and lender documents, if applicable. The escrow company will have prepared an estimated HUD settlement statement outlining all fees being charged and this will be reviewed for accuracy by the buyer and the buyer's agent. The lender documents will be returned to the lender for review, and then the lender will wire mortgage funds to the escrow company. The buyer will deposit the remaining funds needed to close by WIRE TRANSFER only. Escrow companies will not accept cashier's checks as "good" funds. If a cashier's check is used, the escrow company will wait five to ten days for the check to clear. This will delay closing and may result in fees and penalties to the buyer.
    
17. About three days before closing the buyer will call the utility companies to have the utilities turned on in their name at the close of escrow date.
    
18. Once the property is officially recorded in the buyer's name at the Clark County Recorder's office, the buyer is obtains access to the property and keys from the seller. Prior to recording, no work may be done on the property by the buyer and no furnishings may be installed without prior written permission from the seller. (Bank owned properties never allow any kind of access prior to recording.)
    
19. Recording a property on the specified closing date is not an exact science, though we do everything we can to accomplish this goal. Some of the most common delays are: the HOA does not return the demands to escrow on time, the seller does not sign off on the final HUD statement, the loan documents need to be resigned because of a clerical error, escrow is waiting on the lender funds, final repairs have not been made, or title needs to clear a lien. These are all items outside of the control of the buyer or the buyer's agent, and a sense of humor helps to get through the process.

For non US Citizens: the above process for purchasing Las Vegas homes is the same for US and non US Citizens. One other item that foreign nationals need to be aware of when purchasing property in the United States: when you eventually sell the property, a certain percentage of any profit over the original sales price will be withheld at the closing to pay US federal taxes.

Taking title to property as an LLC or Corporation: it is possible to take title to a property in the name of a US registered Corporation or LLC if you are paying cash for a property, but the purchase contract must contain this information when it is presented to the seller. Most sellers will not sign a contract that allows an assignee to take over the contract. You must also provide your real estate agent with the appropriate documentation proving you are authorized to sign for that entity. Otherwise you will have to wait until after the transaction is closed and then transfer the property into the entity's name, at which time you would be subject to the applicable Nevada transfer tax for that change of title. If you are transferring title to a trust containing the names of the principals, transfer tax is not required.

Financing Las Vegas Real Estate for Foreign Nationals

With the dollar expected to rise against foreign currencies later this year (that trend has already started), foreign investors are hurrying to purchase real estate in the US while their dollar goes further. Most of these investors are targeting the Las Vegas real estate market in particular, where the sharp decline in prices (due to the high amount of Las Vegas foreclosures) and the world class amenities have made it an attractive get-away destination. In particular, Canadian buyers are looking to Las Vegas homes as a vacation retreat from their harsh winter climate.

Most banks will not loan on real estate outside of their own country. With all the recent shifts in the credit markets, the qualifying criteria has changed for mortgage loans in the United States across the board, including those to foreign purchasers. Prior to this year, a foreign national could obtain financing from US banks as long as they had 35% to put down with no or limited documentation. Now US mortgage lenders are requiring full documentation of income and assets on all mortgage loans without exception, though the down payment requirements have dropped.

A citizen of a country other than the US can obtain a loan for property in the US based on what classification they fall under. A permanent resident alien is a foreign national who has been granted the right to work in the US permanently and who has been given a US social security number. A permanent resident alien can purchase property under the same guidelines as a US citizen. They can get a loan with as little as 5% down payment for a primary residence, either on a fixed rate or adjustable rate mortgage at the current interest rates available to US citizens.

All other foreign nationals, including those with temporary work visas, are required to put down a minimum of 25% for properties under $650,000 or 35% for properties over $650,000, whether the property is a primary residence or a rental property. Lenders will also require the equivalent of a US TRW rating as well as full documentation of their employment income and assets. In addition, the down payment money must be “seasoned” in a US bank for at least 60 days prior to the close of escrow.

These loans to foreign nationals are only currently available as adjustable rate mortgages or ARMS. The fixed rate terms can be for 3, 5, 7 or 10 years and interest rates are currently running between 7.5% and 8.5% with approximately 5 loan discount points prepaid for the amount of the loan (points can vary on a day to day basis just like interest rates). Each point is the equivalent of 1% of the loan amount, so on a $100,000 loan 5 points would be $5,000.

Another alternative is for the foreign national to obtain an equity credit line on their property in their home country and come to the US with cash in hand. Cash offers are very strong, and enable the buyer’s agent to negotiate the best possible price on behalf of their client.

For more information on getting qualified for a Las Vegas mortgage and to receive the latest listings on great deals in Las Vegas new homes, high rise condos or MLS listings, please contact our office at 702-985-7654 or email us at sold@greatlasvegashomes.com.

Good News for Cosmopolitan Condo Owners

To the right, the Las Vegas Cosmopolitan Condos and the
Bellagio Hotel and Casino, to the left the MGM CityCenter project.
Phot0 taken September 5th, 2008.

Many proposed high rise condo projects around the country have had the plug pulled in the past two years due to cost overruns and tightening credit. Since Deutsche Bank announced they were beginning foreclosure proceedings on the Las Vegas Cosmopolitan condo hotel project at the beginning of 2008 on their $760 million dollar loan, over 1800 contract owners have been holding their breath, wondering if the development would be completed. Or if they would get their money back in full if the development was canceled.

There were many "interested parties" making bids to purchase the project, but as of this week Deutsche Bank has taken over full ownership of the Cosmopolitan under an affiliate, Nevada Property I. Deutsche Bank was the high bidder, paying $1 billion at a recent foreclosure sale to acquire ownership of the project.

And Deutsche Bank isn't letting any grass grow under its feet to make sure the project goes forward. It has already inked contracts with Related Companies to take over as the resort's new developer. In addition Perini Corp. signed a new contract to complete construction work on the project. Perini has been working on the project from the beginning, and was being paid under an interim agreement since March when Deutsche Bank began foreclosing after the original developer, Bruce Eichner, failed to complete a deal to secure more financing. Increased construction costs helped drive the Cosmopolitan's construction budget from its original $2 billion price in early 2006 to its current $3.9 billion price, and Eichner was unable to find a new partner with enough capital to infuse into the project.

A letter has already been drafted to contract owners by the resort's new developer, Related Companies, letting them know of the management changes and informing them of progress to date. This letter will go out on Monday to almost 1825 contract holders, assuring them of the project's completion. To date over 50% of the Cosmopolitan's exterior construction has been completed, and it is anticipated that by December of 2008 owners will be celebrating the "topping off" of both towers, including the penthouse units. The new proposed completion date for the entire project is estimated for the second quarter of 2010.

Along with a rebounding resale housing market, this is great news for the local Las Vegas real estate market. For four months straight statistics have shown a significant rise in Las Vegas homes sales, with multiple offers on lower end properties, especially Las Vegas foreclosures. The buyers are back!

Las Vegas Home Warranty Plans Can Be Customized!

Partnering with Las Vegas real estate agents to deliver the service and products that home buyers and sellers want, American Home Shield® developed the FlexPlan®, an innovative product that provides an unprecedented level of coverage and price options. Homeowners can customize the plan to fit their specific coverage needs and budget requirements, choosing from a wide range of packages and options. The AHS Home Warranty FlexPlan also offers coverage for items and services never before available in the industry.

Homeowners can choose coverage starting with the Core Coverage Plan®, the basic coverage that every AHS customer receives. This plan provides repair or replacement of many frequently occurring breakdowns associated with heating and air conditioning systems, duct work, plumbing and whirlpool motors and pumps, plumbing stoppages, electrical systems, water heaters, built-in microwaves, dishwashers, garbage disposals, ranges, ovens and cook tops, exhaust, vents, and attic fans and trash compactors. The Core Coverage Plan also includes new coverages such as 13 SEER, rust, corrosion or sediment and insufficiently maintained equipment.

Beyond the Core Coverage Plan, purchasers of Las Vegas homes may decide to customize their coverage with one or more of the ServicePlus Package® and CoveragePlus Package®. The ServicePlus Package was created for customers who wish to add a level of service coverage and includes repair or replacements associated with mismatched systems, undetectable pre-existing conditions, code violations, permits, removal of defective equipment, refrigerant recapture, reclaim and disposal and improper installations, repairs or modifications.

The CoveragePlus Package was designed as an option for AHS customers who desire enhanced coverage on previously uncovered items like garage door openers, doorbells, ceiling fans, telephone wiring, central vacuums, smoke detectors, food processors, and instant hot and cold water dispensers. This option also extends coverage on breakdowns associated with plumbing (faucets, showerheads and toilets) heating and air conditioning (geothermal and/or water source heat pump units, registers, grills and heat lamps), built-in microwaves (door glass and racks), ranges, ovens, and cook tops (rotisseries, racks, handles, knobs and dials) and trash compactors (removable buckets).

For a warranty specifically tailored to additional needs, customers may choose from the impressive list of additional FlexPlan options, including coverage for breakdowns associated with septic system pumping and septic sewage ejector pumps, swimming pool or spa equipment, kitchen refrigerator with ice maker and water dispenser, second refrigerator with ice maker, washer and dryer, free standing ice maker, water softener and well pump.

This gamut of options through the FlexPlan is available only through real estate transactions.
About two weeks after closing, each participating homeowner receives a contract package with contact information, wallet reference cards, specific coverages and exclusions, system and appliance maintenance tips and much more. Homeowners will also receive periodic customer relationship mailings and e-mails containing valuable home and maintenance information.

Since 1971, AHS has focused on providing the most innovative products and best customer service delivery in the business. The FlexPlan is another example of the company’s commitment of partnering with real estate professionals to serve home buyers and sellers with excellence. Designed in direct response to feedback from customers and the real estate community, the FlexPlan can help agents market properties and increase client satisfaction. And don't forget, you can also purchase warranties for Las Vegas new homes as well as resales. Many sellers offer home warranties through the Las Vegas MLS listing service.

For more information or to purchase an AHS Home Warranty FlexPlan, visit www.ahsflexplan.com, call 1-800-735-4663, or contact your local AHS Account Executive.

High End Buyers "Dissed" by Las Vegas Realtor

With the current market for Las Vegas foreclosures, we are getting a lot of out of state enquiries on bank repossessions, auctions and short sales. Many of these requests are actually for high end Las Vegas homes where the foreclosures are not quite as prevalent, but where the buyer can really pick up some equity on distressed properties.

We received an enquiry last month from a Canadian couple who were looking to purchase Lake Las Vegas real estate. They were looking for a high end Las Vegas luxury property that they could use as a vacation home and they were planning on paying cash. One of our agents, Janet, was assigned to take them on a tour of potential homes.

Janet emailed the clients while they were still in Canada and sent them some listings to look over. They were able to narrow down their search and on the scheduled day Janet met with the buyers, who were very nice and very adamant about getting a real "deal." Since these are high end homes, Janet had arranged appointments with the listing agents on the ones they were interested in.

At the very first home Janet took the buyers to see, Mrs. Buyer got a funny look on her face when she saw the listing agent. She pulled Janet aside and asked for the agent's name. Janet told her, and as soon as she got the chance, Mrs. Buyer said to the agent, "Oh so YOU'RE Agent N." Of course the way she said it caused the listing agent to reply, "Yes, I am. Have we met before?"

"No," replied Mrs. Buyer. But you spoke to my husband on the phone the other day. I'd like to introduce you to Mr. Bottomfeeder." Agent N had to leave the room to compose himself when he realized what he had done.

As it turns out, like most Internet buyers these clients had been surfing the web and had talked to quite a few agents before deciding who they wanted to represent them. Evidently Mr. Buyer had talked to Agent N about a particular property and had asked if the sellers would consider a sales price quite a bit less than what the property was listed for. Unfortunately Agent N took umbrage and called Mr. Buyer a "bottomfeeder" and hung up on him.

Needless to say, the buyers were not interested in putting in an offer on Agent N's listing. But they are going to put an offer in on another home Janet showed them listed at over $6 million.

Who can blame a buyer for trying to get the best deal possible in today's market? And who are we as Las Vegas real estate agents to say that they should not give it a shot? We love it when we know we have gotten a smoking deal for one of our clients, and we are certainly not going to discourage them from doing so. Because Janet took their concerns seriously, she now has some loyal clients who know she truly has their best interests at heart. But Agent N, who insulted these same clients, lost out on a huge sale. Hopefully he learned a lesson, but at what a cost!