Vegas Realty Check
Join hosts Trish Williams and Tiana Carroll every week as they provide comprehensive coverage of the Las Vegas real estate market. From market updates and current inventory to real estate news and expert opinions, this podcast brings you the latest information straight from the professionals in the industry. Unlike national news data, which can often be weeks or even months behind, Trish and Tiana provide real-time updates on what's happening in the local market each week. They also interview different professionals in the industry to provide a well-rounded perspective on a variety of real estate topics. Additionally, the podcast features bonus episodes, including "Community Spotlight," where a locally owned business is featured, and "Coaching Corner with Sharon Swanton," where listeners can learn how to improve their mindset to advance their career and personal life. Whether you're a buyer, seller, or investor, this podcast is a must-listen if you want to stay informed on the Las Vegas housing market.Trish Williams 702-308-2878 S.0175530 Tiana Carroll 702-379-9948 S.0178943Keller Williams the MarketplacesEach Office Is Independently Owned and Operated
Vegas Realty Check
Uncovering HOA Neglect, Appraisal Conditions, and the Importance of Real Estate Agents in Las Vegas
Why are homeowners in the Somerset Park community facing a crisis with sinkholes and water damage? On this episode of Vegas Realty Check, we tackle the pressing issues stemming from HOA negligence in Henderson. Learn how a lack of proper management has led to significant infrastructure problems and what the city is doing to enforce corrective measures. We stress the critical importance of homeowners and potential buyers carefully reviewing HOA reserves and budgets to prevent falling into similar traps. This segment is an eye-opener for anyone involved in HOA-managed communities.
Are you unsure about your obligations when it comes to appraisal conditions during a real estate transaction? We clarify the often-misunderstood requirements surrounding repairs identified by appraisers, emphasizing their impact on financing. Through listener concerns, we dissect the nuances of post-closing occupancy arrangements, including the ever-complicated rent-back scenarios. Flexibility and negotiation are your best allies in these situations, and we offer practical advice to help you navigate these waters smoothly.
Thinking of buying a home without an agent? Think again. We explore the evolving landscape of real estate regulations and why having an experienced agent remains invaluable. From understanding mortgage interest and closing costs to negotiating tricky repairs, we share real stories that highlight the risks of going it alone. Wrapping up, we provide essential contact information to stay engaged with our podcast and the Las Vegas real estate community. Don't miss out on the crucial insights and professional guidance that can make your next real estate transaction a success.
Welcome to Vegas Realty Check, the informative podcast that dives deep into the world of Las Vegas real estate.
Our expert hosts break down the complexities of the ever-changing Las Vegas property market, analyze market trends, economic indicators, and unique property features to provide you with valuable insights on timing your home sale or purchase.
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Hey Las Vegas. Thanks for joining us back here at Vegas Realty. Check local Las Vegas real estate news. I am Trish Williams.
Speaker 2:And I am Tiana Carroll.
Speaker 1:Thank you for joining us again and, like always, if you are not part of the community yet, make sure you like share and subscribe and download, so that way you are up to date on everything happening in Vegas real estate and you can follow us at wwwrealtycheckvegas. That's our link tree. You will find everything about us there, so make sure that you check us out. So Labor Day weekend is over, it's in the books.
Speaker 1:We're going down to the end of the year. Winter is approaching. This year is coming to a wrap. It is insane. Yeah, this big.
Speaker 2:September month is finally here.
Speaker 1:So we're waiting for the Fed to do what they're going to do or not do what they're going to do, or see what they're going to do.
Speaker 2:See how fast it's going to happen. Yeah, and then lenders are already sort of jumping the gun because we have seen adjustments in that interest rate for mortgages, just in the anticipation that money will be cheaper for them to borrow. Yes, absolutely. So there is yeah, there's some stuff, because we're getting a whole point from last year.
Speaker 1:Yeah, yeah we are. We're all on the sidelines waiting to see what's going to happen.
Speaker 2:Yep, yep, yep.
Speaker 1:Drop them, Yep. So here in the Valley we have some news. Wow, it was pretty interesting, I think.
Speaker 2:Okay, well, the first episode I've ever did on this show was on HOAs and how people feel about them. Yeah, so I'm not a huge fan of HOAs because it does take a little bit of control out of the homeowner, and one of the major stories that's happening in Vegas right now has to do with an HOA.
Speaker 1:Yeah, somerset Park is a community that is in Henderson. It is, it appears just from the videos I've seen some type of townhome condo community. So there's some issues in the community. They've had some unaddressed water issues.
Speaker 2:So their water distribution system is a mess and they are leaking just thousands of gallons, yeah, underground, causing sinkholes, and there's been damage to building and parking lots, and just what a waste of water. Oh yeah, I mean I when they. So what happened was that the city of Henderson has given them a deadline. You have until September 10th to get this under control right, or the residents are going to have to be vacated.
Speaker 2:Vacate because they said it's not suitable for human health and safety. Well, if it's causing sinkholes, you don't want your kid outside riding a bike and the ground give way yeah or if you park in the parking lot and your car is gone. That could be a bad day.
Speaker 1:Yeah, wow, I mean huge issue, um, and I've, I've got. So this was brought up to me in the context of a concerned buyer that says, well, I don't want to move to Henderson cause there's sinkholes. And I was like, wait, what? Wait, sinkholes, what are you talking about? I mean, yeah, sinkholes can happen everywhere, and she was referencing this article Right the Somerset Park. Correct and so, looking more into it, I'm like I don't think that's particularly a Henderson issue.
Speaker 2:No, no, no, no. This is neglect.
Speaker 1:That's a maintenance issue and a neglect issue within this HOA, because they're letting water anytime, when water will continuously leak underground. Yeah, look at the Grand Canyon. Water is a nightmare. It causes destruction. So this isn't, you know, like hold your horses. They're not a Henderson issue that I'm aware of, with sinkholes in particular, but this is definitely an issue that could have been preventable, which is why the city stepped in. Right, they had to. Yeah, so there was a special meeting already, or there was a city meeting that was held, which all of the homeowners from the Somerset Park basically showed up to this meeting and turned it into a Somerset Park meeting.
Speaker 1:Yeah, so whatever was on the agenda was just okay, that's out the window. We need to discuss this because this is an issue. Everybody showed up and spoke out City of Henderson as 14 hours ago I seen it in article that City of Henderson has agreed or committed to working with the homeowners to try to find a way to resolution.
Speaker 2:Right, they might have to come up with the cash to fix it, get it done, and then the homeowners and the association will then be responsible for paying that back.
Speaker 1:Yeah, basically an assessment to the city. Yep, yeah. So their HOA right now is currently somewhere in the area of $300 per month, and their water bill, though, has been around $20,000 per month. Well, because it's just gushing water, yeah, yeah.
Speaker 2:So, um, I believe what their assessments and stuff that they collect, they're only collecting about 25 grand a month, so there's only about five grand a month that can go towards any kind of repairs. And, um, the HOA that's in charge of it now says that this is a leftover financial problem from a negligent HOA.
Speaker 1:That was managing prior. Yeah, and apparently they were just barely breaking even every month on their finances. And this is a message to homeowners.
Speaker 2:And homebuyers right that CIC package is more important than you think.
Speaker 1:Well look at your reserves, look at the budget. Definitely that's something to review, because an HOA that has very poor week reserves or zero or negative, definitely a concern. Yeah, definitely a concern?
Speaker 2:Yeah, because something like this could happen. Yeah, something like this, if they can't take care or uphold their end of the bargain, then the homeowner's, the one that is at the deficit.
Speaker 1:Yeah, and the issue we have with HOAs. If you live in an HOA, we all know and I've served on the board of an HOA before for a couple of years it's exhausting.
Speaker 2:It is not so much more into your work.
Speaker 1:There is nothing fulfilling about it. I didn't think so. You're not a better person because of it. Some people are wired that way, right. But you know, the important thing is, while it's exhausting, while it's unfulfilling, while it's whatever, you really need to show up to these meetings. Look at the budget, give your input. As a homeowner, you have a stake in the community. You have a stake in. You have a say and you've got to speak up when things are not right. There has been so many times that I've heard of and I heard of an instance recently from a homeowner that they had an HOA for a management company for years and I'm not sure if it was the management company or the board. Somebody was embezzling money and their dues kept on going up and everything kept on happening. Nobody caught it for years, because the homeowners in the community basically complain. You know they complain to each other, to each other and to the thief.
Speaker 2:And what's the thief going to do?
Speaker 1:Right, but nobody took that initiative to get in there, to get in the books, to see where the problem was. And when someone did, they found out that there was some dishonest practices that were in play and this is why it's happening Terrible.
Speaker 1:So people don't bury your head in the sand. Don't just go towards, like you know, complaining about it or whatever you see an issue, you need to be proactive. That's your community, that's your investment. You are a state owner in that community. You have to do something about it. So serve on your HOA board, open up those books, go through everything with a fine tooth cone and demand answers.
Speaker 2:Right and you have the right to the answers. It's not like they can withhold it and be like we're not going to tell you.
Speaker 1:It's a secret, you don't get to know. You have a right and if you can't get resolution or the HOA is not being transparent with you, we have something in the city called an ombudsman's office that handles these issues.
Speaker 2:File a complaint, do something about it. The real estate division has the ombudsman there for these purposes, to dispute anything with the HOA.
Speaker 1:Yeah, so it's really important for homeowners to take action against this stuff, because I am seeing it more and more and more. It's predatory. It's predatory, it's a disservice to the community, the homeowners I mean. I feel like it's a homeowner issue because if your HOA is going up $500 a month, for some people $500 a month makes it to where they can't afford their home anymore.
Speaker 2:Right, yeah, yeah. And if you don't pay that HOA, then that house can be taken over, which is a nightmare they can foreclose on you, and it's even more of a shame if that happened because somebody was being dishonest and stealing funds.
Speaker 1:So take ownership, get involved, look at those books. If you see something or you feel like something is not right, you need to be proactive and investigate.
Speaker 2:Yeah, and be very, very aware of it. So, and if people do want, they're doing another session for summer special meeting and they're doing that from like one to five on. When is that the 10th? Oh, is it today? Yeah.
Speaker 1:Okay, today Thursday. Yeah, is it this Thursday or was it next Thursday?
Speaker 2:I just seen Thursday and I assumed that was today. You're like it's today, everything happens today. Yeah, it's this Thursday, yeah, today.
Speaker 1:Okay, so 1 to 530, 225 East Sunset, if you're in that Somerset Park community and you want to attend this special meeting or even if you're in the area and you just want to know what's going on.
Speaker 2:Yeah right, the neighborhood around it too should be concerned, because if there's water leaking, underground water will go everywhere.
Speaker 1:Well, yeah, there's got to be main streets slinging into the community and things around it. So, yeah, I think this is a concern for everybody in the area. That's at 225 East Sunset. That's the North Community Police Station today, 1 pm to 5.30. They're having a special meeting addressing this subject.
Speaker 2:Yeah, and we have community leaders in there, like the city of Henderson and Camco Cox, all willing to kind of come in and help with this, and then of course, they'll have to be paid back.
Speaker 1:Yeah, of course. So I assume this community is going to be seeing some special assessments Totally Also, I mean in real estate life. This is going to be a term of disclosure. You know that people are going to have to disclose on that SRPD.
Speaker 1:Yeah, the litigation, I mean it's all documented. So make sure you're doing the right thing. If you are in the community and you want to discuss further what this means for you in selling or in your home you know value, selling process or whatever feel free to reach out. What are we doing for numbers?
Speaker 2:right now Our numbers. Okay, so usually in our MLS system it allows you to. If it's over 5,000, I'll say 5,000 plus and then I'd have to break up the boxes into areas of the city and add them all together and today we are right at that 5,000 homes that are available on the market in Las Vegas 4,965. I shaved off a few homes in the outskirts of town, like going up to Mount Charleston and stuff to get under that 5,000 mark, but we're right there.
Speaker 1:We are right there. We are right there, Next week.
Speaker 2:I'll probably have to have a couple boxes to get an accurate number.
Speaker 1:Yeah, so let's see if these rates make a difference.
Speaker 2:Yeah Well, they're going to have to make a difference because we have the 4,965 active on the market and right now I have to say sellers are pretty generous. Oh yeah, they're sitting on the market. They're not getting the showings that they want. They're pretty, pretty generous on what they're willing to do right now, but if the market gets flooded with a bunch of buyers and those interest rates come down, then they're not going to be as generous.
Speaker 1:Yeah, yeah, definitely there's opportunity out there for you and sold numbers. They're not looking so strong?
Speaker 2:No, they're not looking so strong, they're at 444 this week yeah, 537 decrease.
Speaker 1:Those are a little bit less than we've seen last week.
Speaker 2:But still higher than we've seen on the average for the past year.
Speaker 1:Yeah, and are under contracts. They also dropped yeah, but they're still over 500.
Speaker 2:They were at 537. So I'm happy about that. Yeah, for sure.
Speaker 1:For sure, yeah, so we have some listener questions that we will go into today. Let's start with Susie.
Speaker 2:Susie, my screen locked on me, sorry. Oh, no problem, I'm here now. An appraiser came to my house and is making some items conditional on the appraisal, but the buyers didn't request any repairs. Do I have to do that now?
Speaker 1:Yeah, so have to is a very interesting word when it comes to a real estate contract, because, susie, you don't have to do anything.
Speaker 2:Yep, you are not automatically required to complete any of those repairs. Now there is a caveat If you're going to have financing, that your buyers are going to finance, then you have to go ahead with those appraisal contingencies.
Speaker 1:Yeah, so if the appraiser came in and made conditions, obviously the buyers are doing financing, so that means that this is conditional, even though the buyers didn't request it in the repairs request for repairs or after the home inspection. The issue with conditions is that just means that the appraiser is saying like this is the value of the home, but we're not closing on it until these items are fixed.
Speaker 2:Right, because those items that usually are safety or impact safety or structural integrity or any significant concerns or code. Right right code, and so those are things that they the house isn't going to be financed unless those things are fixed. If you're paying cash and you don't have an appraiser, then that's a whole other story yeah, yeah, buy what you want.
Speaker 1:There's some loan programs that are more flexible than others and that's, you know, that's a whole. That's a whole other uh, can of worms there. But um, we, I mean there's also the option of the buyers paying for it and having the work done, if the seller authorizes the work done, not commonly done.
Speaker 2:Not commonly done. That's a little bit of a liability because the house still technically were owned by the seller. So a buyer coming in and paying for repairs, then the seller doesn't sell the house to them, they're out that money. It's possible, rarely happens.
Speaker 1:Rarely happens, but possible. Everything in every real estate contract is negotiable, so it depends on the terms, depends on what you're up against, depends on what you're happening. We have an instance right now. House needs a new roof. A whole new roof, getting a whole new roof on the house and that's great, but that's expensive and the appraiser called a small little issue because there was a doggy door in the garage in the garage door.
Speaker 2:And that's a fire door.
Speaker 1:Yeah.
Speaker 2:So it's got to be solid. No holes in a fire door.
Speaker 1:Yeah, the door leading from the inside of your house to the garage is fire rated, so when you cut a hole in it you compromise the fire rating. So in that situation seller says you know what? We're going to put a whole new roof on the house, but we're not replacing that door. That damn door is out, that door is out. But I mean, really we're fighting over crumbs at this moment. So the buyers were like you know what? We'll pay to have that door replaced because we're happy that we're getting a new roof. Right, yeah, and new roof is definitely tremendously more expensive than that door.
Speaker 2:Absolutely Right. They're getting the better deal there.
Speaker 1:Yeah, so I mean things can happen. Seller has to authorize because buyers don't own that home right now. There is a little bit of risk for the buyers there because of you know they don't own the home yet either. But if you're at a certain point in a transaction you feel like everything's going to work out and again, everything's negotiable. Your decision, you got to decide what you're going to do there.
Speaker 2:Except for the appraisal. You have to meet appraisal conditions. If you're selling to somebody who has an appraisal whether it's you or somebody else they have to be met. Yeah, and the appraiser does come back and verify it, because that loan can't get signed off on until those conditions are met. Right, and usually loan contingencies are pretty simple fixes. Right, they're like smoke detectors or painted eaves or straps on a water heater. They're not usually huge deals.
Speaker 2:Yeah, yeah, it depends on the home Right it depends upon the home and the care and maintenance that's been taken to it.
Speaker 1:Empty pools is a big thing. Yeah, that's definitely not safe. Yeah, those are definitely not safe. So, yeah, you just got to keep health and safety in mind and code you know what is code for the area, because that makes a difference, right?
Speaker 2:So the next one is Glenn, glenn, and Glenn says how much do I have to pay the buyer to rent my house back for the month after closing?
Speaker 1:Well, Glenn, we're going to give you the same answer that we gave Susie Everything's negotiable.
Speaker 2:Everything is negotiable I should just have that on a little button. It's all negotiable. It's all negotiable.
Speaker 1:So I mean it could be something you know. Hey, maybe you're giving the buyers a lot of closing costs already, or maybe they got you know a good deal or bargain on this purchase agreement and part of that you could counter back and say you got to let me rent the house back for free for a month.
Speaker 2:Yeah, I've had lots of rent backs for free, and especially in 2022, because everybody was just wanting a house, so they were throwing anything they could at the sellers cash over appraised value, two months free, rent back, whatever to get those to secure homes. That's when the buyers were in the frenzy.
Speaker 1:Yeah, and in some cases so, mortgage interest is front loaded. So if you are purchasing a home like, say that you're closing September 30th, for instance, your first payment is not going to be until October, november, so November 1st, so you're not going to have a payment that month. But that doesn't mean that that month was free. There's still interest that was charged for that month because interest is front loaded, so that interest is in your closing cost. Sellers paying all the closing costs well, they kind of already paid for that.
Speaker 1:And there's also the case where the buyers are like hey, I want you to cover that payment, cover that interest. Sometimes the sellers will say I'll give you the amount that I'm paying for my mortgage right now, for the month you know, or whatever. So there is options and everything's negotiable, so you are not obligated to pay the buyer a certain amount. It has to be a term that you and the buyers come to agreement on. However, as a realtor and for protection of both parties, I think it's very important, extremely important, that you make sure that there's a security deposit at the end of them, yeah, and we have a form here in the Valley that we use for rent backs and it ensures that there is.
Speaker 2:The current seller will maintain insurance on the property so if anything happens while they're acting as a renter, the property is covered. We also keep monies back in escrow in case so there's a final walkthrough, sort of after the closing, just to make sure that the house is in the same condition that the buyers are anticipating purchase it in Not that they're going to get there and the seller's been there for two months rent-free and then leaves with the refrigerator and the copper pipes and the toilet and the bay window, whatever they want to take. So there's money held back in escrow for that to happen and, like we said, it's all negotiable You'll take some standards for different parts of the country, including Vegas would be like what standard market rents are, or taking the buyer's new mortgage into consideration on how much that is, or just to make sure that it's a short term, and then you can charge a little bit more because it's a short-term rental instead of a long-term.
Speaker 1:Yeah, yeah. So yeah, definitely something that work with the buyers, work with buyer's agent. Try to come to terms, see what's going to make everybody happy, all right. Next one is Alexis.
Speaker 2:What happens if I agree to offer commission for the buyers and the buyers purchase without an agent?
Speaker 1:Yeah, so we are seeing things like this probably more and more these days and are going to be seeing an influx in it because of the new regulations and things that are happening and people kind of misunderstanding what's going on.
Speaker 2:Yeah, so you're very versed in all of the new information. Matter of fact, yesterday you were on a whole panel about it.
Speaker 1:Yeah, yeah, there's. I mean I was so surprised at the turnout, like over 100 people. Yeah, the room was packed. There's a lot of people. It was all agents. Yeah, they have questions about these new regulations. How are we navigating through this? What do you do? What's the ins and outs? And some of us just took the. When these things changed, I didn't pull back on business because I was like nervous or scared about it. I'm like whatever, just going to dive into it, work it out.
Speaker 2:We just have to work through it get as much.
Speaker 1:you know, training I did. I mean, I started going to training on this um at the beginning of the year, before everything ever happened.
Speaker 2:Same same same. As soon as there was talks about it, I went to every forum, every think tank. I went to every classes. When new forms were coming out, I was at the association for all of the revisions.
Speaker 1:Yeah, on top of it, every line of the forms.
Speaker 2:Yeah, right, well, because it's better to face this head on than do what the HOA for Somerset Park did and just bury your head in the muddy sand. Yeah, you know it's like, come on, man, like we just we're going to look at it, we're going to figure it out and we're going to move forward, because the fact of the matter is we're still going to buy, sell and move.
Speaker 1:It's the way of the world. We just got to navigate it, and our jobs as realtors is to help the consumers get into homes and get their homes sold, so we've got to know and learn how to do that legally within the new guidelines that we have, exactly. And so, yes, so we are expecting to see buyers that are approaching realtors and agents that are unrepresented, that want to remain unrepresented yeah, and they want to remain unrepresented to save the cost of commissions, maybe to work out a better deal with the seller, save funds, do whatever. It's not that it's never happened in the past, because it has.
Speaker 2:It has. It has.
Speaker 1:And so here's the deal Alexis for one. Under new regulations you can agree to offer compensation to the buyer's agent, but that's a verbal. That's a verbal agreement. The listing agents are no longer taking that commission or any apples to offer towards the buyer's agents. You're working. Your listing agreement is between you and the listing agent.
Speaker 1:Right For representation of the sale of your house, yeah, and anything that is discussion. Hopefully your listing agent is going to provide you net sheets and scenarios of what buyer's offers may entail. Right, because it's not. It is going to be like you're likely going to see those them asking you to compensate their realtor on those offers.
Speaker 2:Right, especially because our new forms do have a space for it.
Speaker 1:Yeah, so definitely you want to have that diligence of reviewing what those scenarios would look like. But if a buyer were to come to you that doesn't have an agent, well, you have no agreement stating you have to pay a buyer a buyer agent anybody anything.
Speaker 1:So the other thing, to be very, I guess, firm on and I said this yesterday when we were in the panel, just like as a notice to realtors realtors have really got to be careful and uphold our standards for the industry, Because if a buyer wants to come and they are refusing representation, they say I do not want any agent representation, I don't want any agent representing me, we can't write your offers.
Speaker 2:We can't do anything for you why? Because we're not representing you.
Speaker 1:We're not representing you.
Speaker 2:We're not there to guide you. We're not there to help you. We're not there to manage your timelines. We're not there to guide you. We're not there to help you. We're not there to manage your timelines. We're not there to recommend a home inspector or make sure that you talk to your lender and have all your ducks in a row, make sure you go through your CIC package.
Speaker 1:We're not going to help you, explain to you what's on the SRPD?
Speaker 2:We're not going to tell you anything about closing or transferring.
Speaker 1:Provide comps, values nothing.
Speaker 2:Unfortunately, if you're unrepresented, you're unrepresented.
Speaker 1:Absolutely, and in the past and this is something where realtors have really got to be very careful because it draws a fine line In the past many realtors have said like, oh, it's just easier to just prepare all their paperwork for them, because they're going to screw it up and not do it right, right, and you know but most of the time that's what happens.
Speaker 2:Yeah, but then you have the liability issue.
Speaker 1:It's called implied representation Right. Even though you don't have a signed agreement with the buyer, you're doing all this stuff for them, so they're feeling like you're representing them and that's a that's an issue. That's an issue. So be aware of that. And yeah, buyers, if they want to come and purchase property and represent it, by all means you can do whatever you want to do. Nothing restricts you from doing so. But you're going to have to navigate all of that process on your own and you cannot rely on that listing agent to walk you through that.
Speaker 2:Yeah, and if you are feeling generous and you had the funds set aside to pay a buyer's agent and you didn't have to pay a buyer's agent and you wanted to give that money to the buyer, there's forms that you could do it in closing costs and repairs or reducing the price of the home.
Speaker 1:Yeah, and by all means you can still go and find a buyer's agent representation and request in the offer that that agent get compensated. And you know the seller has to make the decision of whether they will do that or not. Yep, so I mean there's, there's options, but yeah, it's, it's. It's just one thing and, alexis, you know you do have to understand there's a lot Buying a house isn't like buying a car.
Speaker 2:No well, it's not like buying a car. There's so many people who are playing in the sandbox just to get the deal done that there's so many little pitfalls that you could run into. I mean even title. If you go and you're just buying a house unrepresented and title sends you all of the forms, do you really even know in that package what to look for? If there are clouds on the title encumbrances, do you know who to find out who's responsible for them? Those are all things that an agent's invaluable in. But working with your lender, working with title, making sure that we can come to agreements and managing emotions inside of a real estate deal because everybody is highly emotional and saying, within your timelines and your timeframes, understanding what if you're buying a POS house.
Speaker 2:You don't want to be stuck with that. You want to be able to get out of that during your due diligence and get your earnest money back if there's a problem.
Speaker 1:Yeah. And the agent, of course, the listing agent. Their job is to negotiate on the seller's best interest and they're professionals in negotiation in the contract, in understanding the industry. Done this before came across. Even as an experienced realtor, I come across things sometimes that I've never come across before. It happens, it happens all the time. It happens all the time, yeah.
Speaker 2:Because every transaction is its own life force. Every home is maintained differently. Everything changes in a real estate transaction and the longer you're in the business, the more stuff that you see. And it's just really, I don't know, mind blowing to me to think that somebody would be like, oh, I'm going to buy my first house and not have representation. Even people who have purchased houses like five, six, seven times would be considered seasoned home buyer. Still, those transactions will have new things come up that they've never even seen before, and little hiccups and stuff. Yeah.
Speaker 1:Well, for instance, I'm just going to tell a story, because I love telling stories. But that house that we're talking about with the roof, okay, okay, initially. Now, initially, home inspector, home inspector is not a roofing contractor, nope, okay. He goes in he says there's a lot of broken tiles, lots of broken tiles on the roof. Um, and you know, tiles need to be replaced. Because that's, that's all he sees. He's like taking them apart. He's not investigating the roof, right, just lots of broken tiles.
Speaker 1:And buyer says to the home inspector how much do you think that's going to cost? And he's like I don't know, it could be a couple thousand dollars. It's a big deal, right? So, okay. So buyer says, um, let's ask the seller for a credit. So I'm like, oh, maybe we should get some roofing contractors to take a look. So sellers first response back you know they have their own agent, their listing agent responds back and says we'll give the buyers a $1,500 credit for the roof. Oh, so generous, so generous, right? So maybe you know in some cases that you know buyers or people that don't know anybody is like, yeah, that sounds great, go ahead. You know cause the? The inspector said it could be around 2000,. But the inspector don't know.
Speaker 2:Right now he's just throwing numbers out. Yeah.
Speaker 1:Broken tiles. Yeah, we're just talking about broken tiles. How bad could it be?
Speaker 2:Well, so we had three.
Speaker 1:Oh yeah. So we called some roofing contractors out there. We were like hey got three estimates from certified roofing contracting companies, all three of them they don't know each other and they don't know what the last one said, but all three of them came back with the same answer that the roofing tiles are defective and failing and the entire roof needs replacement.
Speaker 2:And that's not $1,500.
Speaker 1:That is not $1,500. No, not even close. So that is a big deal.
Speaker 1:That is a huge deal and that is three qualified roofing inspectors, confirming that All in the same ballpark the issue we had we're in a 10-day due diligence, so buyers only have 10 days to get this worked out and whatever. So, knowing what I know, first thing I did was say we need to extend our due diligence, we need to extend this timeline, give us more time, because we need time to get the professionals to come look at this. Somebody who don't know any better might just be like oh, we don't have enough time to work this out, we'll just take the credit and be done with it.
Speaker 2:Right, our 10 days is up. We'll just take the credit. Thank you, mr Seller. No, no, no, no, no. If you have a buyer's agent representing you, they should very well be guiding you through it and do exactly what you did and say listen, we're going to extend our timeline, we're going to have pros come out, we're going to find out exactly what the problem is, exactly how much it's going to cost to repair, and then we'll decide if we're moving forward or not.
Speaker 1:And do you think the seller or the listing agent on this transaction was like oh yeah, sure, go ahead, do whatever, extend all the time or whatever. It's fine, Do what you have to do.
Speaker 2:I would assume no, because she's representing the seller. She just wants to pass off $1,500 and be out of the picture.
Speaker 1:Right. So there was pushback, there was negotiation as there should be. She was doing right by her client. Of course, there was some hardball conversations that had to happen during this to make it happen, but we got it to happen. That's right. So that is really the importance of a professional negotiating in your best interest.
Speaker 2:Absolutely, absolutely and again not burying the head in the sand and actually facing the problem and working it out to professionals negotiating on behalf of their clients, making sure that their clients are educated in what's happening, what the options are, because it's not like this seller could just cancel the contract and then put it on the market and have another seller come in. He is now aware of it. It is against the law for him to not put that on the SRPD.
Speaker 1:And that was a conversation that we had. That's right, as a matter of fact. No, it has to be, Because I was like there is three roofing professionals that have confirmed that there is, you know so. So this is something that is not going to go away with this buyer Right.
Speaker 2:You can't just be like, oh well, we're not going to talk to that buyer, We'll just give it to the next person. No, there's standards in this community and that real estate professional will have to let their seller know like, listen, you're going to have to fix the roof. Now it is known it's going to have to go on the SRPD. If you want to quick sell it cash or something, then you can Drop the price You're going to have to.
Speaker 1:But it's unfortunate, but there's not much you can do about it. At this point it's fully disclosed. Yeah, so again, professionals in the industry understand the rules and the terms of the contract are going to save you more money than they will cost you.
Speaker 2:Yeah, and I'm up here spouting out like your agent will protect you. Your agent will do this. The fact of the matter is not all agents are created equally. So whether you are a buyer or a seller, make sure that you do your personal due diligence and have conversations and talk to people and make sure that the people you're working with are knowledgeable and can represent you in a fashion that you need in this market. So if they want to talk to a professional like you, how do they get ahold of you?
Speaker 1:So you can call me 702-308-2878. Call text. You can even go to our link tree and find out all the ways to contact us at realteachupvegas.
Speaker 2:And.
Speaker 1:Tiana, how do people get ahold of you?
Speaker 2:My info is on the link tree as well, or you can just send me a text or give me a call at 702-379-9948. We'd be glad to help you out with anything that you need. And if you haven't yet, make sure you like, share and subscribe to our podcast or to our YouTube channel. Become part of the community and stay updated on everything that's happening in real estate here in Las Vegas. Until next week, you guys have a great week. Bye, Bye.
