Buying a home is more than finding a property you love. It is a series of financial, contractual and practical decisions that can affect you long after you receive the keys.
Whether you are a first-time buyer, relocating to Southern Nevada, moving into a larger home, downsizing, or purchasing an investment property, understanding the process before you begin can help you make better decisions and avoid unnecessary surprises.
I have worked in the real estate industry for 40 years, including as an escrow officer, and I have been a licensed Nevada REALTOR® since 2001. One of the most important things I have learned is that successful home buying starts well before you write an offer.
Here are some of the tips I share with my Las Vegas and Henderson home buyers.
1. Start With Your Financing — Not the Home Search
It can be tempting to start looking at homes immediately, but your first step should usually be understanding your financing options and comfortable monthly housing budget.
A lender can help you evaluate your income, credit, available funds, estimated closing costs and loan programs. Depending on your circumstances, you may also qualify for programs that provide down payment or closing-cost assistance.
Just as important, determine what payment feels comfortable to you. The maximum amount you qualify to borrow does not necessarily have to be the amount you spend.
Need a trusted mortgage professional? Contact me and I can introduce you to lenders who can discuss conventional, FHA, VA and available home buyer assistance programs.
2. Know the Difference Between Your Needs and Wants
Before searching for homes, create two lists.
Your needs might include location, number of bedrooms, accessibility, commute time, school considerations, a home office, single-story living, or proximity to family.
Your wants might include a swimming pool, upgraded kitchen, oversized backyard, mountain views or a particular architectural style.
Knowing the difference makes it easier to recognize the right property when it appears — especially when market conditions require buyers to make decisions quickly.
3. Look Beyond the House
You are not simply purchasing a house. You are purchasing its location and becoming part of a neighborhood and community.
Consider factors such as commute patterns, nearby shopping and services, parks and recreation, traffic, future development and homeowners association requirements.
If the property is located within an HOA or common-interest community, understanding the association is an important part of your due diligence. Fees, rules, reserves and restrictions can affect both your lifestyle and the long-term cost of ownership.
4. Don't Let Cosmetic Features Distract You
Beautiful staging, fresh paint and new flooring can make a strong first impression, but buyers should also pay attention to the less glamorous components of a home.
Consider the approximate age and condition of major systems such as the:
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Roof
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HVAC system
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Water heater
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Plumbing
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Electrical system
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Windows and doors
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Pool equipment, if applicable
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Appliances included with the sale
This can be particularly important when purchasing an older Las Vegas or Henderson home. A beautifully remodeled kitchen does not necessarily tell you the condition of the home's major systems.
5. Think About the Cost of Owning the Home After Closing
Your mortgage payment is only part of the cost of homeownership.
Depending on the property, your ongoing expenses may include property taxes, homeowners insurance, HOA assessments, utilities, landscaping, pool maintenance and routine repairs.
Las Vegas homeowners should also think about the cost and age of air-conditioning equipment. Preventative maintenance and planning for future replacement of major systems are part of responsible homeownership.
Buying within a comfortable budget can give you room for these expenses without making your home feel like a financial burden.
6. Understand the Offer Before You Sign It
Price matters, but it is only one part of a real estate offer.
Your purchase agreement may address earnest money, financing, appraisal, inspections, seller concessions, personal property, closing dates, possession and other important terms.
These provisions can affect your money and your ability to move forward with—or, when permitted by the contract, cancel—a transaction.
I believe buyers should understand what they are agreeing to before they sign, rather than simply being told where to initial.
7. Protect Your Earnest Money
Earnest money is one of the areas where my escrow background becomes especially valuable.
Understand when your deposit is due, where it will be held, what contractual deadlines apply and the circumstances under which your earnest money may be refundable or placed at risk.
Never assume that cancelling a purchase automatically means the deposit will be returned. The purchase agreement and the facts surrounding the cancellation matter.
8. Take Your Due Diligence Period Seriously
Once your offer is accepted, your work is not finished.
Depending on your contract and property, your due diligence may include a professional home inspection and additional evaluations of items such as the roof, HVAC, plumbing, sewer, pool or other systems.
You may also need to review seller disclosures, HOA documents, title information and other property-specific information.
An inspection is not simply a list of items you can ask the seller to repair. It is an opportunity to better understand the property you are considering purchasing.
9. Don't Skip Your HOA Review
Many Southern Nevada homes are located within homeowners associations.
Take the time to review the documents provided to you. Pay attention to assessments, rules, restrictions and other information that may affect how you intend to use the property.
For example, if you are considering renting the property in the future, do not assume rentals are permitted simply because other homes in the neighborhood are rentals.
The same applies to parking, pets, exterior modifications, landscaping and other restrictions that may be important to you.
10. Keep Your Finances Stable Until Closing
Loan approval is not necessarily the end of the lender's review.
Before closing, avoid making significant financial changes without first discussing them with your lender. Buying a car, opening new credit, financing furniture, changing jobs or moving large amounts of money between accounts could create questions during underwriting.
Even if you have already received loan approval, check with your lender before making a significant financial move.
11. Complete Your Final Walk-Through
The final walk-through is your opportunity to see the property shortly before closing and confirm its general condition.
This is not a replacement for your home inspection. Instead, it allows you to verify that the property is substantially in the expected condition and, when applicable, that agreed-upon items or repairs have been addressed.
12. Choose an Agent Who Helps You Understand the Process
A buyer's agent should do more than open doors and send property listings.
Your agent should help you evaluate properties, understand market conditions, prepare and negotiate your offer, monitor contractual deadlines, coordinate with the lender and escrow company, and help you navigate issues that may arise before closing.
My background includes nearly four decades in the real estate industry, beginning in escrow and later including 1031 tax-deferred exchanges, real estate sales and Nevada real estate education. That experience gives me a broader perspective when helping buyers understand not only what is happening during a transaction, but why it matters.
Ready to Take the Next Step?
These tips are a great place to start, but there is much more to know between deciding to purchase a home and receiving your keys.
Want the complete step-by-step process?
Download my Las Vegas Home Buyer's Guide for a more detailed look at preparing to buy, financing, searching for homes, making an offer, inspections, due diligence, escrow and closing.
[Download My Las Vegas Home Buyer's Guide]
Or, if you are ready to begin your home search, contact Teresa to schedule a buyer consultation and let's talk about your goals, timeline and next steps.
Teresa Story-Turner, REALTOR®
Platinum Real Estate Professionals
Nevada Real Estate License #S.50501
Serving Las Vegas, Henderson, North Las Vegas & Boulder City
Your story is my story.