What Sellers Are Doing To Home Buyers In Las Vegas NV
If you were to go through the home buying process right now in Las Vegas, what could you be expecting as a buyer from sellers?
Offering a Credit Toward Buyer Closing Costs
Sellers have been willing to contribute toward buyer closing costs as an incentive to attract buyers. Buyer closing costs typically include loan origination fees, appraisal fees, title insurance, escrow fees, and prepaid expenses such as property taxes and homeowners’ insurance. Closing costs can add up to several thousand dollars and are typically around 3% of the sale price for a buyer. Most lenders allow the Seller to contribute toward the buyer closing costs but not the down payment. I see this often when Buyers are obtaining a VA or FHA loan. By reducing the amount of money, the buyer needs to bring in at close of escrow, seller credits help buyers get into a home with less amount out of pocket. As interest rates have gone up, Buyers are asking for a credit toward points to buy down the interest rate. This can be helpful in reducing the monthly payment for a buyer.
The amount the seller credits toward closing costs is negotiable and can vary depending on market conditions, the seller’s motivation, and the terms of the purchase agreement. A Seller that is willing to offer a credit toward closing costs may factor these concessions into the overall negotiation of the purchase price. For example, if a seller agrees to provide a $10,000 credit toward closing costs, they may be less willing to negotiate on the sale price itself. Buyers should carefully consider how seller credits impact the total cost of the transaction and weigh them against other terms of the offer. I recommend working closely with a lender and a real estate agent that understands the market to ensure that seller credits are properly accounted for in the closing process. Overall, a Seller credit to the buyer closing costs can be a valuable incentive for the buyer and win/win to the Seller, to get the home sold!
Completing Repairs or Renovations
Sellers have been agreeable to completing needed repairs or renovations identified during the home inspection process. Within our Las Vegas purchase agreement is a due diligence period. This is the time the buyer can have a home inspection and negotiate repairs. I typically see this time frame as 7 to 14 days from acceptance. Normally, the buyer hires a professional home inspection company to check systems such as the heating, cooling, appliances and electrical. The inspection report outlines the findings, categorizing them as either major concerns requiring immediate attention or minor issues that may need addressing over time. Then the Buyer reviews and submits a Request for Repairs. The seller can accept the request, reject or counter. I recommend to Seller clients to agree to items that are reasonable such as plumbing, HVAC and electrical. The Seller can agree to repair the items or offer a credit at close of escrow to the buyer. If the Seller chooses to make repairs, Nevada requires that certain repairs must be completed by qualified contractors or service providers. Overall, sellers have been more agreeable to complete necessary repairs to facilitate a smoother transaction and provide reassurance to buyers about the condition of the property.
Accepting a contingent offer
Yes, we are seeing Sellers accept offers with a contingency for the sale of the buyer’s home. In Las Vegas, if a Seller accepts an offer with this contingency, then the home must be placed in Contingent status in the MLS. This drastically reduces the activity and showings. This makes it difficult for a seller to remove their property from available status if the Buyers home is not currently under contract. Some sellers have been willing to accept offers even without the buyer’s home under contract. I recommend negotiating terms including a deadline by which the buyer must secure a contract for the sale of their home. Our contingent upon Sale Addendum does have a clause that allows the seller to continue marketing the property, accept backup offers, or terminate the contract if certain conditions are not met. However, once the Seller removes the status from available in our MLS, the likelihood of receiving another offer is reduced.
Sellers are much more likely to accept the contingency if the buyer’s home is in escrow with an accepted offer. Overall, accepting an offer contingent upon the buyer’s home selling requires careful consideration and negotiation to ensure that the interests of both parties are protected.
Providing Home Warranty Plans
Sellers have been willing to provide a home warranty plan for the buyer. A home warranty provides coverage for the repair or replacement of major home systems and appliances that may fail due to normal wear and tear. The seller pays for the warranty from their proceeds at close of escrow. It takes effect after the close of escrow and the coverage is generally for 1 year but can be renewed. The buyer pays a small deductible of around $75 for the repair. It covers items such as heating, plumbing and electrical. Plans pricing is around $500 to $1,000. With the more expensive plans including additional coverage for pools and other items. Home warranties are designed to offer peace of mind to homeowners by protecting them from unexpected repair costs. The cost is negotiable, I see around 70% of the time where a buyer asks the seller to pay for the fee. I prepare my sellers in advance by completing a net sheet with the home warranty coverage included. Although, the Seller pays for the warranty, the buyer should be the one to choose the company and what coverage is included.
For buyers, a seller-paid home warranty can provide added peace of mind and financial protection during the first year of homeownership.
Flexible Closing Timelines
Sellers have been agreeable to flexible closing timelines for the buyer’s needs. This includes allowing for a delayed closing date to accommodate the buyer’s moving schedule or expedited closing for buyers in a time-sensitive situation. Sometimes, buyers may encounter delays in securing financing for the purchase of the home. Sellers who agree understand that a short extension to closing is the best option to keep the deal together.
On the other hand, sellers have been willing to expedite the closing process for buyers who are in a time-sensitive situation. This includes buyers relocating for a job, or that have a lease expiration date approaching, or cash buyers that want a quick closing to move into their new home as soon as possible. Sellers who accommodate an expedited closing demonstrate their flexibility and willingness to accommodate the buyer’s needs.
Including Personal Property
Sellers have been including certain personal property items, such as appliances, furniture, or window treatments, in the sale of the home. This adds value to the transaction for the buyer and makes the property more move-in ready. It is very common for the Seller to include the Refrigerator, washer and dryer. These items are specifically addressed in the MLS as included or not. Additional personal property can be negotiated between the buyer and seller as part of the purchase agreement. Buyers may express interest in specific items and request additional items to be included. Sellers have been finding it challenging to sell some of their personal property so this can be a win / win for the Buyer and Seller. Personal property can be negotiated in the offer. However, if the buyer is obtaining financing, check with the lender first to ensure that it will not cause a problem. Generally, it is better to keep personal property separate and use a bill of sale.
Overall, sellers offering to include certain personal property items in the sale of the home can enhance the attractiveness of the property to potential buyers and contribute to a smoother and more satisfying transaction for all parties involved.
By understanding these potential offerings from sellers, buyers can better navigate the home buying process in Las Vegas and negotiate terms that align with their needs and preferences.
