With the glut of residential home inventory on the Las Vegas Real Estate market one would wonder if the sky is falling in Southern Nevada and the bubble is bursting.   I am writing this guide to provide a little insider information for buyers, sellers and renters in the Las Vegas area.

Reality is different:  booming & diverse economy, plenty of jobs, no income tax, low property tax, decent wages (oodles of tipped income not showing on paper), baby boomers retiring, US dollar deflation converting into sales from foreigners, land issues, upward rental price pressures, etc.

The entry level market (under $250K) is still hot.  Believe it or not but the over $500K market is hot also.  It is what lies between is where all the inventory is:  $250-500K.

Important Real Estate Jargon:

• CMA - Comparative Market Analysis - Closed Comparables in the area to justify a home price
• GFE - Good Faith Estimate - an estimate of closing costs and your monthly payment usually including:  HOA, Insurance, Taxes, Principle and Interest
• CC's - Closing Costs including but not limited to:  title insurance, escrow fees, lender fees, document preparation, taxes, insurance, transfer taxes, home warranties, broker administration fees, etc.
• Contingencies - conditions that must be met such as an appraisal, financing, home sale, repairs, home inspection, etc
• Due Diligence - the time you have to perform with your contingencies
• HOA - Home Owner's Association
• CCR's - Laws created by and governed by the HOA

If you are considering buying:

• Get pre approved for a mortgage prior to contacting a Realtor and DO NOT settle on your mortgage broker/banker's preferred Realtor.  Get a GFE.  You can interview their preferred Realtor but only pick them if you feel they are right for the job!  This way there are no conflicts of interest in pressuring you to go beyond your means.
• Research mortgage products and interview over three mortgage brokers and bankers - if you like a particular lender over another and are not impressed with their fees and/or interest rates, give them another GFE from another lender and see if they can be competitive.
Interview over three Realtors - ask about:  education, experience, references, Las Vegas market conditions, cost to you (most are free or very low cost), knowledge of mortgage products and the escrow process - do not bow to high pressure sales - this is a HUGE investment. 
You have choices - especially in the $250-500K range - DO NOT SETTLE on viewing three properties and being pushed into a contract!
Be prepared to put an earnest money deposit down in between 1-3% (average) of purchase price.
When you are ready to write a contract make sure you have your contract contingencies in place.  Also make sure that your due diligence period allows enough time to get it all done so you won't have to forfeit your earnest money deposit provided something falls through.
Be very careful entering new home construction contracts and ask lots of questions.  Builder's sales agents represent the builders.  Many builders will "coop" with your own Realtor.  That means they pay your Realtor and you are still represented by your Realtor.  Often they do not allow contingencies and their incentives (closing costs paid, upgrades, etc) are tied to using THEIR lender.  You still need to shop outside lenders as sometimes the price you pay in a higher interest rate will more than pay for those "freebies" you get.  Sometimes they will meet or beat other lender's GFE's so shopping around is important!
Have your Realtor do an area "CMA" - to make sure you are paying the right price.
Go ahead and ask for all cc's (closing costs) paid but don't get too crazy asking for too much money off the price of the home and cc's paid.  If you are REALLY in love with the property this could cause the sellers to cease negotiations entirely because they are offended.  They mostly likely will flat out reject the contract rather than send you a counter offer.
Once you have an accepted contract:  keep in constant contact with your lender, Realtor, & escrow officer.  Make sure you get on the stick and get everything in order so contingencies & underwriter conditions can be met.  If applicable, make sure you receive Resale Package (CCR's, bylaws, financials) from the HOA (ordered by seller and usually delivered by your Realtor) and READ them!  Nevada law allows you to rescind a contract within a certain amount of time if you do not agree with something in the CCR's. Also make sure you read your preliminary title report from the escrow company to make sure there are no title defects.
Once your loan goes through the lender will send loan documents to title & escrow, you will be called to make an appointment to sign your loan documents and house papers, the sellers will have to sign their documents, your loan docs will be sent back to the lender to get final approval, once it is approved the loan will fund, after the loan funds your property will record and then you can pick up your keys.  This process can take several days to a week AFTER you sign your papers so be prepared to wait to get posession of your property.

If you are considering renting:

• Las Vegas rental occupancy rate for apartments is high
• High Demand/Low Inventory is pressuring rental prices up sharply - many apartments were converted to condos during our 2004-2006 real estate boom.  Many single family, townhome and condo rentals were put on a the sale market by investors also causing an inventory problem
• Consider asking a Realtor (many provide low cost or free services) to help find a non apartment rental.  The MLS also has residential rental inventory available to Realtors.
• Be prepared for rapidly rising rents in the foreseeable future in this market

If you are considering selling:

• Interview more than three Realtors:  (ask about) marketing, education, experience, references, Las Vegas market conditions, cost for their services, knowledge of contracts, mortgage products and the escrow process 
• Consider higher than market bonuses and coops for the buyer's agent
• Price your home at the low end of the pricing spectrum - Pricing at the high end can lead to frustration, longer than normal market times and you can miss out on the right buyers for your home.  Sometimes pricing it on the low end can only be a couple of thousand dollars difference.  Decide if your main motivation to sell is time or money.  If it is money, be prepared to wait!
• Make sure your Realtor's marketing plan is diverse.  The current market demands EXPOSURE for your home.  Make sure you get the exposure you deserve and that you are paying for.
• Be prepared to be patient and wait.  This isn't an easy market.  Average market time is around 6 months.  When you narrow down some price ranges the market time can jump to 10,12,14 months.  Ask for a city wide CMA so you can see for yourself!
• Good luck!

I am also a real estate agent/Realtor in Las Vegas, Nevada.  If you are already working with a Realtor this is not to solicit  your business but to use as a guide to help further understand market conditions.  This advise is NOT a substitute for a Real Estate Attorney and is just my humble opinion.  I hope you found it helpful and if you did, please vote at the bottom of this page!  If you have anything you would like me to add, please contact me and I will be happy to edit the information as it applies to the Las Vegas market or buyer's markets in general.