The Las Vegas real estate market can be complicated. If you’re buying or investing in a residential or commercial property in the city, it’s important to be prepared. Start by familiarizing yourself with the process.
Buying a home in Las Vegas is similar in many ways to buying a commercial property, but there are also very important differences. We created this step-by-step buying guide for both property types to help you prepare for the process.
For Homes/Residential Properties
- Determine your budget
Before going property shopping, you first need to know how much home you can truly afford. A good way to find out is by getting mortgage pre-approval. Look closely into your present and future financial situation, as well, to come up with a realistic budget.
- Find a Realtor to work with
Whether you’re a first-time or repeat buyer, you can benefit greatly from the guidance of experienced Las Vegas real estate agents. With our network and knowledge of the market, Leading Vegas Realty (LVR) agents can help you find the right home faster and provide professional support in every step.
- Know the features you want in your new home
List down the features you simply must have, including the size of the home, the number of bedrooms, the location, and the type of neighborhood. Determine the type of property you want to buy, such as a single-family home or condo.
Create another list for the features you want but might not necessarily need, including amenities like an entertainment room or a swimming pool.
- Go home shopping
Look at homes that match your budget and preferences. Your experienced LVR Realtor will recommend potential properties and schedule home viewings. In searching for a home, fulfill your “must-have” list first, then move on to the “extras” list and consider how various features affect the selling price.
- Make an offer and negotiate
Once you’ve found a home you like, your LVR Realtor will help you draft an offer letter with a competitive offer price and the contingencies you want to include. You might also consider adding terms that can make your bid more appealing to the seller.
The seller can accept or reject your offer, or make a counter-offer, which then signals the start of the negotiation process.
- Go to escrow and perform due diligence
Once you and the seller agree on the price and terms, you enter into a sales contract and the process goes to escrow. Your earnest money payment is deposited to the escrow and will be released to the seller only upon closing.
This period gives you the opportunity to arrange for a professional inspection of the property. At the same time, you need to work on finalizing financing with the lender.
- Close the sale
With everything in order, the lender releases the funds for the purchase, escrow is closed and the title is transferred to your name. After the needed documents are signed, the keys to the home are turned over to you.
For commercial properties
- Determine the type of property to invest in
In Las Vegas, your options for commercial investments include:
- An apartment complex
- A strip mall or retail center
- A mixed-use property
- A commercial building, warehouse, or office
Learn the nuances of each property type and their profitability potentials. Lay down your investment goals and look into your financing options to help you decide what type of property to invest in.
- Find a real estate agent to work with
Buying real estate in Las Vegas can be daunting, especially when you buy one for profit. Our experienced real estate agents will help you make the right decisions and guide you through the complex buying process. Many commercial properties for sale are not advertised in public listing sites, and the only way you can learn about them is through real estate agents. We know how and where to find a property that matches your investment goals.
- Review each potential property
Several industry standards can help you determine a property’s profitability, such as Loan-to-Value, Capitalization Rate, Vacancy Rate, and more. Get familiar with these standards and evaluate potential properties using these.
It’s highly advisable to personally inspect a property and check its condition and desirability. Make sure you buy in a location that’s attractive to renters. Our experienced agents can also recommend ways to make a property more profitable.
- Make an offer
If you’re buying a building or commercial property, we will work with your attorney, if you choose, to draft a Letter of Intent (LOI). The LOI signifies your interest to buy the property, your offer price, and all the terms and conditions you wish to include. The Letter of Intent is not binding so you have the option to get out of the deal if needed. It’s highly recommended that your real estate attorney reviews your contract before signing.
- Go to escrow and perform due diligence
Due diligence is very important in buying commercial real estate as there are fewer laws covering sales of this property type compared to residential properties. It can start even before the opening of escrow, depending on your agreement with the seller. You need to look into several documents and arrange for a professional inspection to confirm that all the information given to you about the property is true.
In Nevada, the title officer also serves as the escrow officer in most transactions.
- Close the sale
If everything is in order, the funds for the sale are released by the lender, the title is transferred to your name, and escrow is closed.
We at Leading Vegas Realty are experts in residential and commercial real estate. We will be happy to guide and assist you in buying or investing in real estate in the Las Vegas area. Call us at 702.545.6050 or email Emily@LeadingVegas.com.