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
Avoiding Pitfalls and Seizing Opportunities in Vegas Housing
How can the vibrant Las Vegas real estate market transform your financial future? Join us as we uncover the latest trends and opportunities in this dynamic landscape. With single-family home inventories, sales dynamics, and FHA mortgage rates all shifting, there's much to explore, especially as new programs make homeownership more accessible. Embrace the spirit of the season with our Wizard of Oz-themed Trunk or Treat event, where fun meets valuable insights.
Ever wondered how swiftly you can pocket funds after selling your home? We demystify the home sale disbursement process, guiding you through the crucial roles of title companies and recorder's offices. Learn how to expedite your payouts with wire transfers, ensuring a seamless experience. Our listener inquiries provide a window into real-world scenarios and practical solutions, making the real estate journey a little less daunting.
Discover the potential of investing in Vegas real estate while sidestepping common pitfalls. From navigating short-term rental challenges to leveraging the ease of condo-tels, we delve into strategic investment routes. The episode wraps up with a cautionary tale on real estate contract defaults, emphasizing the importance of professionalism and readiness. Share your thoughts and questions, and let's continue the conversation in future episodes.
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.
Don't miss out on the fun! New episodes drop every Thursday! Stay in the know about Las Vegas real estate with insights straight from the pros . Thanks for watching, listening, and sharing!
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Hey, good morning Las Vegas. Welcome back here to Vegas Realty. Check your local Las Vegas real estate news show, and I am Trish Williams.
Speaker 2:And I'm Tiana Carroll. Welcome back Vegas. And if you haven't yet, make sure you like, share and subscribe and join us on this journey of everything real estate every Thursday morning. If you hit that notification bell, you will be alerted when we go live. So make sure you join the tribe, yes, and welcome to October.
Speaker 1:Spooky season. Spooky season, yeah. So last week we had a community spotlight, and that's where we interview someone local in the community on what they're doing, what's going on. So if you tuned into that show and you've seen something a little different, that is why.
Speaker 2:But this week we are back to real estate talk, all the real estate, and next week will be a big real estate talk because it'll be the market update where we go over everything numbers with real estate in Las Vegas for the previous month. Things like days on market, but as always, we begin each episode with our market numbers for Las Vegas. Just a little insight into what's going on with our single families, our under contracts, our price decreases and our solds.
Speaker 1:Yep, and next week you're going to be here with a guest. I am, and not me. Trish will be off, trish you get a vacation.
Speaker 2:I'll be on a beach somewhere, that's a good place to be, yeah, Even though it feels like it's still summer. You know, down by the high nineties, low one hundreds by this time of year, even if we make it into the hundreds. But this is hotter than normal, which is good. I like an extended summer, yeah, but um another another month of pool.
Speaker 1:My favorite tag for the summer this year is what's not hot is our real estate numbers.
Speaker 2:Oh, harsh harsh, harsh harsh. I guess that's dependent upon what you think is hot.
Speaker 1:Yeah, so we are lots of fives today. Huh, lots of fives today Indeed. Yeah, so let's start with single family inventory. How many single family homes do we have on the market?
Speaker 2:We have 5,323 homes on the market available, and that's across all price points in the Valley.
Speaker 1:Yes, that's a lot and that's single family homes only and then under contract we're at 538.
Speaker 2:Yes, yes, yes, that's a pretty good number for under contract.
Speaker 1:I think we were in the 300s last week. Yeah, yeah considering.
Speaker 2:So it's bumped up a bit, which is nice. You know the solds are also a five. How much are those?
Speaker 1:552. A little bit up from last week. So, that's doing a little bit better than last week.
Speaker 2:Yeah, you know what is also up from last week.
Speaker 1:The price decreases, so no fives there no fives there, right?
Speaker 2:About 741 price decreases this week. Yes, and that number is going up each and every week. And you know what's also in?
Speaker 1:the fives this week. I do, and this is the big news. Yeah, so FHA, fha mortgage loans are hovering around those fives. So this morning it looks like around 5.78. Those numbers can change, definitely. Talk to the lender for confirmation Depends on the day you lock your rate, all of that good stuff. The conventionals are still in the sixes, but 15-year fixed is 5.63 this morning.
Speaker 2:Nice, I know it's so good. That's a little bit better.
Speaker 1:It is so good. So I like seeing those rates in the fives. I'm hopeful that we're going to see them in the fours, but we'll see.
Speaker 2:Yeah, we'll see what happens. Just coming down to the fives feels a lot more normal and it changes the monthly payment so much that it's giving people affordability. So if you thought you couldn't buy a house before or you tried and it was just going to be too high of a payment with that interest rates in those sixes and sevens, then it might be time to reconnect with your lender and see where you are now. Just do a soft pull and see kind of what they can do for you.
Speaker 1:Yeah, and there's alternative like there's these, like other loan programs out there that are special programs and some of them have lower rates than what the regular rate is. So I got someone in on. It's called the Affordable Home Mortgage Program, which I just found out about. It wasn't something that was on my radar at all before but apparently it's out there, zip code specific, but it's not even zip code. You have to type in the address and this little tool and it's based off the numbers, the population, the census, everything like that of what qualifies or what doesn't. But a lot of homes in the Valley qualify and that has a lower rate and no MIP, pmi, that private mortgage insurance and that's gone and it's a 3% conventional program. So you put only 3% down and it's not.
Speaker 1:There's no income qualifications, not your income that qualifies. So it's the, it's the address of the home and the census um, the census numbers that make it qualified. And that's owner occupied without a um owner occupied no PMI, no MIP. None of that nonsense. And um 3% down with no PMI. 3% down, no PMI.
Speaker 2:And the rates are great dang good product man.
Speaker 1:Yeah, our buyers just locked in a 5.2% rate on that program and that is phenomenal. I was like, wow, best rate I've seen. And I just I can't believe there's no income restrictions on it. So, and the area that the buyers purchased in here was Centennial here in Las Vegas.
Speaker 2:So pretty popular area.
Speaker 1:But it did qualify by a hair under these census um, the census qualifications that it had. So definitely check out that program. Um does have to be owner occupied. Um does have to. You know you can't buy it as an investment property, second home or anything like that with the program. So um, yeah, definitely If you want more information on that. I was super excited to see that program.
Speaker 2:Yeah, that's really exciting. One of the lenders that I work a lot with just changed companies and they've opened so many more products and I was like how am I in the business this long and there's still surprises in the lender world for me.
Speaker 1:Yeah, I think I've heard that like total there's over a hundred different loan products out there but, lenders usually will just talk about the you know, the ones that everybody uses, the basics, yeah, but I definitely encourage people to talk to a lender that has options, or talk about what your options are with them, because usually they have access to a lot more than they just tell you off the bat.
Speaker 2:Right, yeah, that's one of the things when the lender moved over to the new company. I just keep getting all of these texts and emails and she's like, oh no, now I've got this program that does this and check this out, and do you have anybody that works with these? And we've been able to get some really interesting I want to say creative, because they're new to me but some different types of loans that are working out, but I really like this one.
Speaker 1:Yeah, yeah, and I guess it's like a national program, because it's the lender that provided that got our buyers, and he's not even in Las Vegas, but he's licensed in all 50 states. Good for him. So, yeah, yeah, that was super interesting. Yep, good for him. So, um, yeah, yeah, that was a super interesting.
Speaker 2:Um, so let's get into our sharing.
Speaker 1:Yes, I was excited about it.
Speaker 2:I'm excited for it yeah.
Speaker 1:So, um, let's get into our listener questions out there. So our listener questions. If you've been tuning in to our show for a little while, you've been seeing that all this year we've been talking listener questions and we are running short on these questions, so please send yours in and we still have some topics coming up, like Keith, one of our longtime listeners out there loyal, loyal, longtime listeners.
Speaker 1:He had requested that we do a show on the history of commissions and where they started and what you know how the, the, the whole system got kind of created, which we are definitely doing some research to dive in, to put a show together for you on that. So that is upcoming. We didn't forget about your question. We didn't forget about it. It looks like it's probably going to be november. Yeah, it's probably just not a one-liner answer the question on the show we're gonna have to have to do a whole show around that We'll be like.
Speaker 2:In 1816, Jebediah came up with this idea to sell the ranch. No, we'll see, We'll see.
Speaker 1:Yeah, we'll see what we come up with and what we can find on that. So yeah, we're looking at doing that sometime in November. So yeah, just so you know we're hearing you, we're listening. Yeah, just so you know, we're hearing you, we're listening, we're talking about what you're sending us in and we will get to it.
Speaker 2:Yep, we will get to it and there's a lot of things coming up Like we have the Trunk or Treat oh Trunk or Treat October 18th.
Speaker 1:That's going to be in our Green Valley office at 2230.
Speaker 2:Corporate Circle Suite 250.
Speaker 1:You won't need the suite number. You'll go, you'll see everything Food trucks, bounce houses, haunted houses, lots of candy, lots of people that participate. Candy for the kids, people usually go all out, lots of fun we usually have lots of kids, lots of people attending, it's great. I myself will be in the Wizard of Oz section. Shocking, shocking. Yeah, you know, I do the same thing every year, so not fun.
Speaker 2:She's got a standard Halloween costume like a uniform. I'm Glinda.
Speaker 1:Yeah, I am Glinda, that's just it, that's my alternative personality, just the good witch.
Speaker 2:I don't know what to tell you.
Speaker 1:So you might not recognize me because I'll be blonde. But stop by, say hi, love to see you, love to give you candy, because I may be giving out candy. Oh, sugar, sugar, maybe green elixir. I'm still considering that option, but we'll see how that goes.
Speaker 2:Oh, you know, if you did a green elixir like that, what do they do? The seven up and the lime sherbert. Well, they have green Fanta, oh yeah. Oh, that's smart. There's no mixing or anything, you could just get bottled.
Speaker 1:Yeah, I just get bottles of green Fanta and set up a bunch of shot glasses. Kids will have fun with it.
Speaker 2:So maybe, maybe, maybe we don't teach kids how to do shots. I don't know. We haven't decided yet.
Speaker 1:Yeah, we'll see. We'll see how set up goes that day, cause there's going to be a lot going on that week and I'm getting back just a few days before it, so it'll be a. It'll be a mad rush, but it'll be so much fun. Yeah, but I'm excited we're going to have a cowardly lion and a scarecrow joining us.
Speaker 2:I didn't know that we recruited other people.
Speaker 1:We recruited some people. I'm so excited.
Speaker 2:I'd be willing to do like my metal donate my metal chin strap from last year, Cause I was the tin woman.
Speaker 1:Tin woman, yeah no, I um I, so I I've got. I got two volunteers um looking for more. Hey, if you guys are interested, I'd love to have the help. So maybe we could put together the green elixir Right. You'd be like you're in charge of shots, yeah, but it's a free event. Come out, say hi. We'd love to meet you in person. Our listeners, you want to see us say hi. We'd love to see you meet you in person. So come out, that'd be great.
Speaker 2:Yep, come out. Yeah, so it's a complimentary event. Everything's taken care of. You just show up and have a good time, but you have to pay for the food truck. That's the disclaimer.
Speaker 1:Yeah, the food trucks do charge, but very few. A lot of people you know most. Most of the things there are free and nothing, nothing that you have to pay for. But yeah, if you're ordering from the food trucks, they do charge for that. Yep, but let's get into these questions.
Speaker 2:No, we already did the numbers Lots of fives today. We're done with the fives, yeah.
Speaker 1:So let's start with Josie.
Speaker 2:Josie. Josie wants to know how soon after a home closes do I get the money from the sale of my house. That's a good question because everybody loves money. Yeah, Home sold.
Speaker 1:I want to get paid. Well, it depends on the title company. Yep want to get paid. Well, it depends on the title company. So the day that the home closes and closing is not the time that you sign your paperwork. You'll sign your closing docs. That doesn't mean that it's closed at that time. It closes when the recorder's office records the documents and switches the title.
Speaker 2:Right On the new deed.
Speaker 1:Yeah, sometimes that's later on the same day, sometimes it's a couple of days later. Based off our contract, what the closing date is, that is official closing.
Speaker 2:And how busy the recorder's office is.
Speaker 1:Yeah yeah, recorder's office is a they're, they're not us, so we have no control over it. We send it over to them. They do. If things are received by 3 30 PM pm, they will guarantee that it will record that day sometime, sometime that day, usually by 5 pm. I've seen it go over, but they do, they stay, they lock the doors, they stay till everything that's been yeah, I had a closing at 6 15 once and I was shocked.
Speaker 2:I was like, oh, they really do stay open. Yep, they, they stay over time. It's not just a rumor.
Speaker 1:It's real. Yeah, so once that recording is official and happens, title company us everybody gets recording notification that this is official, it's recorded, finalized and closed. Once that happens, title company does disbursements yes they do.
Speaker 1:Disbursements is preparing the wires and sending them out to who needs to get paid. Mortgage company gets paid off any liens. Hoa payments are involved. There's sometimes other stuff, but whatever outgoing payments needs to be done, including the seller's payment. Yes, and the fastest way to get that's a wire? Yeah, fastest way it depends on how you choose to get paid. So if you choose a check, if you still want a paper check in your hand with your money, you could do that. You don't get cash.
Speaker 2:You can't, can't, can't, can't get cash, but they will do a check that you can usually pick up in your closing package or you can get it wired when disbursements happen.
Speaker 1:Yeah, you can pick it up the next day, you can have it overnighted to you or if you do the wire, sometimes depending on like the federal razor wire people, you know whatever.
Speaker 2:And then their time right. They're on East Coast time, so they close earlier than we do in Vegas.
Speaker 1:Yeah. So if your recording's at five o'clock, you could expect your wire would come, likely before 12 pm the following day. Sometimes if there's delays it'll go up to five o'clock the next day. Every now and then the Fed will flag on large amounts of money. Sometimes the Fed will flag them for quality control, compliance or whatever. So if that happens it's kind of random. You never know when it's going to happen.
Speaker 2:Just a little bit of a delay.
Speaker 1:But there'll be a slight delay on that, but in most cases you have it the next business day. If you close on a Friday, you're not going to get it till Monday. If Monday's a holiday, then you're delayed there. So that's always dependent on your closing date.
Speaker 2:Yeah, and usually there's a little bit of wiggle room for sellers. The only time it's really a nightmare for them not to get their money instantly or that same day is when they have a concurrent sale of a house and they're buying another house and they're using those funds. So that's one of the uh sort of tight rope walks that you have to do with the concurrent. Um two escrows, yeah.
Speaker 1:I had a seller one time um time recently, tell me he wants to sell his home for all gold bars. He's not taking cash, he's like no cash Title company does not comply with that.
Speaker 2:They do not, they do not. So that always wigs me out a bit right, like when people are like oh, I'm just selling for gold or silver or crypto or whatever I'm like.
Speaker 1:Well, in the Valley we use money and that's what and you can exchange money for whatever you want to exchange it for as soon as you get that money.
Speaker 2:You can turn it into gold, you can turn it into silver, you can turn it into crypto, whatever you want. They're just not going to do it for you. Yeah, they just-. They're like here's your money.
Speaker 1:Or do what you want with your own money. Perception that the buyers are going to show up with their bag of gold. I don't know how that works, but no, it doesn't work like that. So, no, you can do a check or a wire.
Speaker 2:Now you can put things like money I mean like gold or cars or anything in the contract as part of the compensation.
Speaker 1:Yes, yes, anything can be added as compensation. Yep, that personal property.
Speaker 2:But as for how you're going to get your funds, that's going to be a wire or a check?
Speaker 1:Yes, it is, and then let's go into John.
Speaker 2:John. All right, John. I wanted to buy a home and use it as a short-term rental in Las Vegas. Is this a good investment?
Speaker 2:Well, good investment, yes, yes, However buying real estate in Vegas seems to be a very good investment because we always have appreciation, even on our slow years with those high interest rates.
Speaker 2:This year we still saw growth in our Valley. Now, buying a house in Vegas is a good investment. Using it as a short-term rental well, there's some I's you got to dot and some T's you got to cross in order to make that happen. But one of the main things that I will say is you can't buy a home in Vegas under the assumption that you're going to use it as a short-term rental, because in our Valley we have well, we're a hospitality state, right, so we're all about competing with those hotels and that hospitality is a big chunk of our income here in the Valley. So there's all kinds of red tapes and restrictions, hoops you got to jump through, and one of those restrictions is you have to have a permit to run that, let's say, airbnb, short-term rental, whatever you want to call it, and you can't actually get that permit prior to owning the property, because the property has to be dedicated on the property address, has to be dedicated on the application.
Speaker 1:Yeah, and there's a lot of criteria that's involved in that. Yeah.
Speaker 2:Like you can't be 660 feet to another Airbnb. You can't be on a septic. It has to comply with HOA and we got a ton of HOAs in the Valley, yeah.
Speaker 1:And most of the HOAs have restrictions against short-term rentals. Totally, there are options for condo tells.
Speaker 2:Yes, which is the best option in my opinion.
Speaker 1:Yeah, so we have a lot of condo tells in Vegas. Love them. They're basically it's kind of like you can own your own little hotel room.
Speaker 2:Not kind of like some places like Palms it is your own little hotel room. Yeah, so you can own this hotel room. Not kind of like some places like Palms, it is your own little hotel room.
Speaker 1:Yeah, so you can own this hotel room, and there's options. Some of them have options like Palms is one of them that has an option where you can either market and rent it yourself through Airbnb platform or they have a complete service that does it for you.
Speaker 2:Right On, usually the hotel websites.
Speaker 1:Yeah, they do the marketing, they do the booking, they do everything. You get your P and L and your payments at the end of the month and everything's kind of headache free and you don't have to go through all of the hoops and hurdles of getting that license for short-term rental because the projects, which is the condo tells, are already approved, yep, so those are options. If you're just looking for an investment property in Vegas that you can use as a vacation property, because you're also able to use, even if you're renting through the hotel, through anything, and you're using it as your rental. You just reserve the days you want to stay and you have your spot to go to whenever you want to come, totally, which.
Speaker 2:I love you. Just block out times you're going to use it and the rest of the time the hotel takes care of it and housekeeping and everything is done for you. If you're not using the hotel as a service, then you do have to have your own housekeeping service. Come in and service the rooms and do everything yourself.
Speaker 1:Yeah and a lot of the hotels will offer, and some of them even require you to use their in-house housekeeping service you just have to pay them directly and there's different fee structures of going through the hotel, whether going through Airbnb, and lots of stuff to review there pros and cons.
Speaker 2:Yeah, one of the cons is you can't personalize it. It has to stay in the continuity of the hotel. So all of the stock photos show can't personalize it. It has to stay in the continuity of the hotel, so all of the stock photos show what the room looks like. So let's say you have a headboard that's damaged or whatever and you're in this program. Then you go through the hotel and get a new headboard that matches that hotel aesthetic.
Speaker 1:Yeah, and also one of the. I think it's a great thing. I always, you know, and I own an Airbnb in another state, you know, and rental properties, stuff like that, and maintenance is always a headache, right, maintenance is a headache.
Speaker 1:So if you go through, if you're purchasing a condo tell and you go through the hotel for the management of it, managing this rental for you and a lot of the projects, they handle all the maintenance for you. So something comes up, it's part of your contract with them and they take care of that. If it's general wear and tear maintenance. If there's an issue that's like insurance claim issue or related, then that's a different story. But a lot of them will cover the maintenance within this whole agreement that you have with them, which is like you don't you know, you're never bothered by anything, it's just uh right.
Speaker 2:It's just like a plug and play. It just works. You get the appreciation, they take care of everything, and it's great because we do have this hospitality and this um convention community, so those rooms usually are pretty full all year round.
Speaker 1:Yeah, and then another option short-term rentals. While there's a lot of restrictions on those, some people are moving to the midterm rental platform.
Speaker 2:Midterm rentals are a great option.
Speaker 1:Yeah, so there's not really much restrictions on the midterm rental option as far as getting approval and everything like that. They don't fall under the same short-term rental guidelines and a midterm rental is anything 31 days or more, so each rental cycle has to be at least 31 days. You still have your HOA approval. That's recommended. Most HOAs still do not allow that. Most HOAs will do three-month minimum cycles again unless you're in an approved project.
Speaker 2:So you have options? Yeah, and if you're going for that midterm rental, you can connect with insurance companies. So if people's homes got flooded and they're being redone, then they can move into these midterm rentals.
Speaker 1:Yeah, and there are sometimes people that have to come work in the city for temporary parts of time and they don't want to go into a year lease, so midterm is an option, sometimes when people sell their homes.
Speaker 2:I was just going to say new construction. Waiting for one home to be built after selling another one midterm rentals usually are a thing.
Speaker 1:Yeah, so there definitely is a market for it. Definitely is something out there for everybody, so we can always discuss options with you, john, if this is something that you want to look into any further.
Speaker 2:Yeah, but if we go back to the investment part of the question, yes, Always a good investment.
Speaker 1:Real estate is always a good investment, so let's get into Lacey.
Speaker 2:Lacey, if a buyer defaults on their contract and refuses to sign the cancellation letter to release their deposit, can I still sell my home to somebody else? Yeah, Well that's the answer.
Speaker 1:Yeah, so we have to open this with. We are not attorneys, we are not giving legal advice, cannot give legal advice. If you're in a situation, we highly advise you to consult an attorney about your rights and the legal rights and everything like that.
Speaker 1:Real estate attorney, of course, contract attorney even. However, there is one we see often where a buyer will and not I mean not every day, but it happens a lot A buyer refuses to sign the cancellation. Buyer refuses to sign the cancellation A lot of times because they're out of all contingencies that earnest money. Deposit is due per contract to be released to the seller. It is, and unfortunately the title companies need to have that cancellation signed by all parties, including the buyer that doesn't want that to happen in order to release it in any way.
Speaker 2:Yeah, I always have a little beef with that because it's in the contract. It's in the contract. The title companies are doing it to release themselves of liability. But if they're going to be a third party who is just executing the contract, then they need to execute the contract and not just release the earnest money. But if they don't, they want to make sure they release themselves liability. So it does need to be signed, and there is that weird limbo period like, wow, what do I do now? I'm held up with this contract. Can I move on to another contract? It happens all the time, though People do move on to other contracts.
Speaker 1:Yes, but, technically, what you can do to protect yourself in a situation like that, at the time that the buyer has a contract, they're not performing, they haven't done anything and they refuse to sign the cancellation Well, that current contract has a contract closing date, right, okay? So if the buyer is refusing to perform, to sign anything, to do anything, yes, you can put the property back on the market, but in order to protect yourself from getting caught up in a situation which you could, well, because then it all gets sticky right, Because now there's two contracts on one property, yeah, and you can't have two contracts on one property, right?
Speaker 1:So I always advise my clients that we wait for that contract closing date from the previous contract to expire before executing a new contract for the home, because there's always that very rarely it happens, but still a chance that buyer has a contract until this date to close on that property. Even if they're non-responsive, even if they're not closing, they can come in the last hour and close, yep.
Speaker 2:That could be their house.
Speaker 1:If you're already in contract with a new buyer, at that time you have an issue a big issue.
Speaker 2:A big issue because then you're a default for the other contracts.
Speaker 1:Yeah, so then you really need an attorney. So highly advise to wait until that contract date expires before entering into a new contract, just to protect yourself. And then, as far as the earnest money deposit goes and where it goes and how it goes and whatever, if the buyer is non-responsive, unfortunately you have to go through. But it is fortunate that there is an option and that's going through the mediation. Our Association of Realttor has a mediation packet that you can obtain and complete and they will call you and the buyer into mediation. I've had a case where that happened, where the buyer and the seller were called into mediation. I was representing the seller During the mediation. Buyer didn't show up, buyer still no, showed, wasn't just complete non-performance, wasn't planning on performing anything. Title company still cannot release that earnest money deposit until there's an agreement and someone says who it needs to go to. Well, in this current situation, buyer didn't show up, so obviously they were awarded in favor of the mediation right To the seller.
Speaker 1:To the seller. It was like, okay, well, it appears it would go to the seller, but still, that wasn't the end. All be all, that's just mediation.
Speaker 2:That's just mediation, that's just mediation.
Speaker 1:So the sellers had to then go to small claims court to prove to the court that they are awarded the EMD, which they did Well, because it was blatant default. Blatant default, yes. And buyers did not show up to small claims court even though they were summoned. Still no show. Still nothing happened. And gosh, I printed out every page of every documentation email contract.
Speaker 2:Yeah, yeah, yeah, I was going to say you were super diligent. Yeah, it was like a stack of this big you had banker boxes full of paperwork.
Speaker 1:There was all kinds of stuff, but none of it was necessary because the judges, like buyers, even come to tell their side of the story. That says it all right there. Yeah, it's awarded to you. Then they had a court order that said the EMD was a word to them that was submitted to title Sellers got the EMD. So definitely a long process and it doesn't happen overnight.
Speaker 2:I was going to say and that's pretty rare Usually if a buyer is going to default, we are so buyer-friendly in our contracts. You are protected in so many spaces in the contract. As the buyer, you have your due diligence, you have your CIC package, you have your appraisal, you have your loan contingency, so there's lots of places in that contract. Should you not be able to perform that, your EMD is in fact protected and as the buyer, you would get it back. Once all of those are expired, then it should go to the seller.
Speaker 1:Yeah, the contracts are so flexible, I guess, towards the buyers in this state.
Speaker 2:You have to completely just default. Like this guy disappear, Don't show up, don't do anything, fall off the face of the earth, and then you'll get your money.
Speaker 1:Well, in this case, I did some stalking.
Speaker 2:I'm so surprised, maybe not.
Speaker 1:Yeah, if you know me, that's a thing. So I had found out that the buyers had entered into and it was the day of the walkthrough. I mean how crappy. Right, yeah, that they decided to default, you know, but no reason. They were trying to find things wrong with the walkthrough, but there was nothing. There was nothing that there was. No, there was no issue where the seller had defaulted or not performed. There was nothing that the seller did wrong in this. They were just trying to find a way out. And I happened to be there that day that that happened and I was like something's fishy about this whole situation. Something doesn't seem right. So you know their realtor. I looked up their realtor's transaction history and the realtor went into a contract on a very similar home, like similar in every aspect. Um, that happened to be just priced a little bit lower, um, at the same day as this all happened and I was like, huh, I wonder who the new buyers of this property are going to be. Just wait for that closing?
Speaker 2:Yeah, I had to wait 30 days to find out, but as soon as it closes.
Speaker 1:Just wait for that closing. Yeah, had to wait 30 days to find out, but as soon as it closes, the new buyer's name is logged on tax record which is public information and I was like, hey, that's weird, these are our buyers and they went into contract on the new property before they canceled our contract, so they were 100% at default.
Speaker 2:I think maybe that's why they didn't show up, because they knew that money was lost anyway. What the hell, why are we?
Speaker 1:going to fight it. They should have released it. I mean, they should have released it.
Speaker 2:That was rude right.
Speaker 1:Why are?
Speaker 2:you holding up other people.
Speaker 1:Yeah, you got a house at a better price. Markets change. Sometimes things like that happen, but that doesn't mean that you don't perform on your contract. There was nothing left and even the agent.
Speaker 2:I mean, that's the phone call I would have had. I did. Oh, I was going to say I'm not going to really fault buyers and sellers. You're out here just doing something. You hire a professional to help guide you through it and that agent should have canceled that contract, should have had that buyer sign the release, do the right thing? Yeah, absolutely.
Speaker 1:Because it was a terrible. You know like sometimes buyers are like, oh my gosh, how horrible of a seller to take a buyer's earnest money deposit. But you know, we were at the day of the final walkthrough. Sellers are moving to another state packed up, u-haul ready, everything ready to go two days before closing and then the whole thing falls apart. I mean, that is an awful situation to be in.
Speaker 2:It is an awful situation. It's unprofessional and nobody needs. There's so much junk that happens in the real estate process. It is so highly emotional. That is one less thing that people should be worrying about. And you're moving on to another house. You're doing your life the way you want to do it. Great Sign the paperwork Takes two seconds on a docusign and then you're done with it but just dragging it out rude, but the silver lining is the sellers ended up.
Speaker 1:We ended up with another buyer close two weeks, so a little bit of a delay still, but was a quick close and they paid a higher price than the previous contract. So sellers won essentially in the end, which?
Speaker 2:is great, yeah, good for them, because they got the earnest money bonus too.
Speaker 1:Yeah well, that was a lot later. It took, I think, about a year for that whole process. Yeah well, it doesn't matter.
Speaker 2:A year later, you still use money. I'm going to use money next year and the year after it money. I'm going to use money next year.
Speaker 1:Yeah, it was a year after it was the principle of the matter. You know, the principle of the matter was that the buyers did something that was, um, just, you know, just just not the right thing to do and, uh, the sellers were very adamant about, about making. You know, get it, making it right on there. Yep, Making it right. So, um, yes, that is our show, Just go on and you guys are watching, like share subscribe, join us every week.
Speaker 1:We're here. Be part of our tribe. Please send us your questions. We're running short, so we have enough to make it through the year, yeah.
Speaker 2:If you want, you can go to realtycheckvegas. That has our link tree. You can put comments there. You can get our social medias. You know how to get a hold of us If they just want to send a call or a text. If that's easier for you, you can reach both of us by phone. You can reach Trish at 702-308-2838.
Speaker 1:2878. 702-308-2878. That's my cell phone number. You can reach me there so close so close.
Speaker 2:And.
Speaker 1:Tiana people can reach you at 702-379-9948. All right, thanks for tuning in. We'll see you guys. Well, I won't see you next week. No, no, trish, next week Tiana, we'll see you next week, I'll see you guys, next week have a good one, all right, bye.
