The most important, or at least the most basic, decision a person makes when arriving in any new city or town is where to live. When I first conceptualized this blog, I wasn’t planning on addressing house-hunting in the first few months — due to its complexity. But after already receiving a few questions about it, I decided to at least touch on it with the promise that I (and hopefully others) will address it in more depth down the road.
My background on the subject? When I first moved to Las Vegas in 1994, I came as a Realtor, and though I didn’t remain one for very long, that experience, as well as living in multiple homes throughout the valley during my combined 14+ years here, has given me a few tips to pass along.
One caveat before I begin. My understanding is that of a single self-employed individual. Someone with a family moving here on a job transfer may have a dissimilar agenda and thus will want to approach this situation very differently.
Having lived in two homes that I owned and four places that I rented (including my current apartment, which I love), I strongly advocate that new Las Vegas residents consider initially renting over buying. This blog is a reminder that living in Las Vegas isn’t to everyone’s taste and life in different neighborhoods (Summerlin, Anthem, downtown, Spring Valley, etc.) has its pros and cons depending on your lifestyle or situation. Live in Las Vegas for at least a year before making a major real-estate decision.
When I moved back to Las Vegas three years ago (from Cleveland), I chose an apartment sight unseen. It was in a neighborhood I’m familiar with and where my closest friends live, and I looked at apartment.com and the specific complex’s website. I handled all the paperwork before driving across the country. As I said, it was a good choice.
Most apartments require that your rent equals no more than 33% of your income. I feel that calculation is too high, especially considering other expenses you may incur upon arrival (including Nevada car-registration fees, increased car insurance, and utility deposits that can run over $1,000). Better to aim for 25%-28% of your monthly gross income.
If you’re considering renting a home or condo from a private individual, please get a written statement regarding the status of the mortgage and property taxes, then double check the information with the mortgage holder and Clark County Treasurer’s office (or a title company or Realtor). Though the number of Clark County residential real-estate foreclosures have dropped considerably from their 2008-2010 heights, they still happen more often than other parts of the country — and innocent renters sometimes find themselves literally out on the street sans any pre-paid rent or security deposit.
If and when you do decide to purchase a home, use a Realtor. Las Vegas real estate can be difficult to navigate, so it’s best to be backed by some experience, and the seller almost always pays the commission. Be careful about For Sale by Owner listings. Most homes offered by owners are sellers wanting to save the commission and/or feel that their home is worth more than the Realtor community does. A greater percentage of by-owner sales don’t make it to final closing and a higher percentage of those that do end up in litigation within a year.
How do you find a Realtor? Look on the Internet (Realtor.com, Zillow, Trulia, etc.) or in the Las Vegas Review-Journal for home listings that appeal to you (and fit your budget) and evaluate the listing Realtor as well as the property. You might not like that property, but you could discover a real-estate professional who can help you find your next home.
Although Las Vegas is no longer in the mad-dash home-building days of 20 years ago, many new-construction communities are being marketed throughout the valley. And my advice is to avoid them all. Buying a brand-new house is more expensive than a “pre-owned” property. After the sale, the buyer frequently has to obtain window treatments and other home décor, plus install landscaping, and many new homes come with a few flaws. An exception: If the development is selling the initial model homes, these are usually well-priced and have met the test of time over the last two or three years.
Finally, run your credit report before you look for a rental or purchase. There may be negative items on it that you’re totally unaware of (I once found a collection action from a cellphone company I never heard of). Better to deal with these issues before someone else needs to look at the report.
Next Post: Why Many People Don’t Like Living in Las Vegas?
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I made a statement in the first post in this blog that this is no place for political commentary, and accordingly, have bombed the beginning of a political discussion. I will ask once more that political commentary be left off this blog unless a discussion is initiated by the blog’s writer. I don’t have time for this, so repeat offenders will be banned.
Thank you, too good a Forum to be ruined.
And what about gratuitous comments such as the one Bob made? Oh, never mind, obviously they;re OK.
Anthony, discussing the state of tax policy and how it may affect home ownership is not a political discussion. The simple fact of the matter is that the stripping away of the deduction for state income taxes by Trump is driving people from California to Nevada. That was done as purely a political stunt by Trump because he hates California and liberals–he has said so repeatedly–so you can’t separate that from politics.
I wish that living in Vegas and life in general could be separated from politics, but the two things are hopelessly intertwined. I also fell that the political climate of a city can greatly affect its livability, whether you’re liberal or conservative, and I think that people thinking about moving to Vegas would want to know how its machine operates–as they would for any other city. Heller’s ads last month decried the “fact” that “the Dems” wanted to turn Nevada into California. Maybe they have! Maybe they will! Either way, a salient point for discussion.
Mr. Compton, thank you for your blog. I have found it to be informative and enjoy the next post. Please don’t let some of the inappropriate comments discourage your writing. Your next post is a subject I’m really looking forward to reading about. I’m not sure I could like in Las Vegas but will enjoy hearing other people’s constructive criticism or comments.