Home seller’s guide to negotiating success in Las Vegas

Home seller's guide to negotiating success in Las Vegas

Whether you’re a first-time home seller or a seasoned one, your goal is to sell your home fast, stress-free, and at the best possible price. It may sound simple but the road to home-selling success lies in you and your real estate agent’s skill at negotiating offers, contingencies in the purchase agreement, and the like.

But, first things first. As a seller, you need to thoroughly plan and prepare your home to make it as attractive as possible to potential buyers.

Next, contact an experienced local real estate agent with proven negotiating skills to market the home. A professional real estate agent who has the expertise in setting the best possible price and generating competitive offers, can save you time, unnecessary cost, and stress.

Third, home sellers need to fully understand the current market situation in order to manage their expectations. According to a Las Vegas real estate expert, the market in April 2022 was “white hot”; a month later, it cooled to “red hot.”

To help you sell your home in Las Vegas, having a handy home seller’s guide will go a long way in ensuring the successful outcome of your home-selling journey.

The current state of the real estate market in Las Vegas

The current state of the real estate market in Las-Vegas

Home to 2.7 million people, Las Vegas is the commercial, financial, and tourist center of the state of Nevada. The city that never sleeps lures millions of tourists every year. Despite the setbacks of the pandemic, Las Vegas has emerged as one of the hottest real estate markets in the United States.

In 2021, Las Vegas experienced a frenzied housing market. Buyers flooded the market and the median price for single-family homes sold climbed to $425,00.
With the presence of other thriving industries like defense, information technology, agriculture, healthcare, and local government initiatives supporting new business projects, housing demand soared and continues to be red-hot in 2022.

The median home price for single-family homes sold reached a record-breaking of $482,000 in May. The number is approximately 25.2% higher compared with the median home price of $385,000 in May 2021.

Population influx from California

Even as Las Vegas home prices rocketed, they were nothing compared to houses in Los Angeles, where the median price was over $1 million, or more than double that of Las Vegas’s. With the cost of living in Vegas 32% lower compared to California and with no state income tax in Nevada (while California gears up to double its taxes in 2022), the lure of the state next door remains irresistible.. In 2019 alone, 47,322 Californians moved to Nevada, making it the top state sending the most people to Nevada.

Tight inventory

Although the housing supply increased to 0.8 months, inventory in Vegas is still tight. A balanced market needs to have at least six months of inventory. Thus, if you’re thinking of selling your house, Las Vegas continues to be a seller’s market with the supply of homes depleting quickly, which is 15 days on average compared to 19 days in 2021.

Boom in luxury homes

The glamorous lifestyle in Las Vegas dazzles affluent homebuyers. Luxury real estate in Las Vegas consists of multi-million dollar homes and grand estates with posh amenities located on exquisite, master-planned communities.

With wealthy homebuyers on the move to Las Vegas to acquire a primary or vacation home, luxury listings are on the rise. The global pandemic has put additional value on luxury homes with extravagant features like spa bathrooms, home gyms, walk-in closets, infinity pools, palatial grounds, and prized mountain views.

Therefore, sellers of luxury or high-end homes in Las Vegas will find a good number of interested buyers.

The increased popularity of suburbs

Beyond the neon lights, homebuyers are drawn to Vegas for its family-friendly and beautiful suburban neighborhoods. The overall affordability matched with a rich suburban lifestyle makes Las Vegas these communities a popular choice among homebuyers.

Each Las Vegas suburb offers first-class master-planned communities, more living space, great community amenities, excellent schools, and proximity to outdoor recreation and attractions.

A home seller promising the perks of suburban living in Las Vegas, will be able to price their home competitively based on neighborhood comps.

If you want to sell your home in Las Vegas and it happens to be located within the following communities, expect increased interest in your listing.

  • Centennial Hills

    Buyers will love this community nestled in the foothills northwest of Las Vegas. They’ll delight in the master-planned community’s spacious condos, townhomes, luxury apartments, and newly constructed single-family homes. The proximity to scenic fishing ponds, hiking and walking trails, picnic areas, the Mount Charleston Ski Resort, the Floyd Lamb State Park, as well as downtown Las Vegas is an added draw.
  • Green Valley South

    Nicknamed the Emerald of the Desert, this suburb in Henderson suits buyers looking for a family-friendly neighborhood. The variety of property types such as single-family homes, apartments, condos, and townhomes is sure to attract a wide range of buyers. This community blends a desert landscape with suburban amenities and easy access to dining and shopping hubs, excellent schools, parks, and walking paths.
  • Summerlin

    Situated on the west side of the Valley, Summerlin is a top-selling master-planned community close to Las Vegas staples like the Red Rock Canyon. It’s a popular choice among homebuyers who prefer a self-sustaining neighborhood packed with amenities. The villages of Summerlin offer diverse housing styles, luring buyers who put a premium on architectural aesthetics. On offer are traditional single-family homes, stunning modern designs, and Mediterranean styles.

Home seller’s guide to negotiating a sale

Home sellers guide to negotiating a sale

It’s important to know that some of the costly mistakes in real estate transactions happen during negotiations. When you sell your home, negotiations can be challenging, whether it’s setting a competitive price, handling counteroffers, dealing with repairs and contingencies, and more.

And while the housing market still favors sellers, the recent hike in mortgage rates will alter the dynamics of the housing market.

However, playing your cards well and mastering skillful negotiation will continue to yield good offers to enable you to successfully sell your house.

Here’s our home seller’s guide to helping you negotiate the best terms:

  1. Stay abreast of the real estate market

    Stay up-to-date about prevailing market trends. When negotiating offers, you have to know what your competition is offering buyers. Being on top of trends will help price your home competitively and allow you to negotiate confidently.
  2. Set a realistic asking price

    Pricing correctly is one of the negotiation strategies that makes it easier to sell your home. Overpricing makes the home linger on the market and lose its fresh appeal. Underpricing, on the other hand, means you’re leaving money on the table. Look at neighborhood comps to price your house competitively. An experienced real estate agent can pull out comparative market analysis to determine a realistic asking price.
  3. Get a home inspection

    Knowing the condition of the home you’re selling pushes the negotiation process in your favor. Make sure you have a good understanding of your property, including its flaws. Buyers usually bring up property defects to ask for a lower price. To stay one step ahead, get your home inspected. A good home inspection can reveal issues you may not be aware of such as a compromised foundation, the state of your HVAC systems, and other problems that a buyer’s own inspection will eventually reveal. Therefore, ordering an inspection ahead of time allows you to repair your home or disclose such issues to the buyer.
  4. Agree to pay the closing costs

    Offering to pay closing costs is a good negotiation strategy for sellers to attract the buyers for a quicker sale. According to the real estate data company, ClosingCorp, the average closing cost in Nevada is $3,871, excluding taxes. Closing costs are shouldered by the buyer because they involve fees associated with the services the lender undertakes (home appraisal, title searches) in exchange for securing a buyer’s loan. However, the buyer’s lender must first approve your asking price.
  5. Make a smart trade -off

    When a buyer asks the seller to pay the closing costs for whatever reason, you as a seller can opt to exchange property items as a way to negotiate the closing costs. You can offer a personal item you no longer need but of equal value such as a pool table, hot tub, or recreational toys, etc. If your buyer is in a rush to move, and you want to maximize your selling price, offer some of your furniture or appliances to make their move easier.
  6. Put an expiration date on counter offers

    During the negotiation, a potential buyer can put an offer on the table that may not meet your expectations. In a seller’s market with a scarcity of suitable homes for sale, the buyer might have to go through two or three rounds of counteroffers. If you’re responding to a buyer’s offer with your own counteroffer, include an expiration date. Inform your buyer through your agent the due date by which the potential buyer must respond. In a competitive market, this can help negotiations to advance quickly, move to other offers with less waiting time, or get your home sold. However, do not give a very short deadline that can turn off the prospective buyer.
  7. Offer a home warranty

    If a home for sale has obvious damages but you do not have the time for upgrades or repairs, consider extending a home warranty plan to the buyer. Offering a home warranty could be the better deal than lowering your price or losing the interest of a potential buyer.
  8. Be ready to walk away

    Some buyers can be oblivious to the current market value of your property and will insist on just getting their demands met. As a seller, do not be scared to turn away from an offer that’s not based on the reality of the situation. Sometimes rejecting an offer pays off during a negotiation. You can ask the buyer to submit an entirely new offer instead of just a counter offer. This signals that you know the value of your property and can compel buyers to submit a higher offer.
  9. Collaborate with a Realtor

    Even if you try to be objective, emotions are likely to run high when you negotiate directly with a buyer. Sellers who are especially attached to their homes may play hardball or prove inflexible during negotiations. Enlisting a top Realtor is a proven strategy for a smooth negotiation devoid of any emotions that can derail selling your home. In the recent report by the National Association of Realtors, 90% of home sellers worked with a real estate agent to sell their home. Other than their skill at marketing and selling homes, a Realtor is a trained negotiator, who can objectively reach an agreement that is fair to both parties. They can get the best price for your home, by evaluating, say, appraisal gaps and escalation clauses that can accelerate the sale. A real estate agent is crucial as a guide to home sellers.

FSBO vs. Using an agent

FSBO vs. Using an agent

But what if you insist on selling your own home? You are certainly free to do so, which means that your property becomes a FSBO home (pronounced “fizz bo”) or “for sale by owner “ without the help of a real estate agent.

Here are the pros and cons of FSBO versus hiring an agent:

ROI: FSBO vs. real estate agent

The most common reason for sellers who opt for FSBO is money. FSBO sellers want to avoid paying the 6% commission to real estate agents – 3% to the listing agent and 3% to the buyer’s agent. FSBO sellers are only responsible for the buyer’s agent commission.

However, FSBO sales accounted only for 7% of all home sales in 2021. The median FSBO home brings in $58,000 less than agent-assisted sales. FSBO homes sold for less with a median of $260,000, which is significantly lower than the median of agent-assisted homes at $318,000.

Marketing: FSBO vs. Real estate agent

Selling an FSBO home does not give you the access to Multiple Listing Service or MLS. The MLS® is a local database of properties for sale, which is shared among real estate agents only. Without access to MLS, you’ll have a harder time marketing your home and you’ll be paying for your own marketing, which is a service that comes with hiring an agent.

As skilled marketing professionals, agents know exactly what the market is looking for. Therefore, they can advise you on what to play up or improve when you sell your home. Agents have exclusive access to MLS, thereby expanding the reach of your property to hundreds or thousands more buyer’s agents.

Real estate professionals also have an extensive professional network, social media presence, and ties to the community and local businesses. All are brought to bear when you sell your house, which results in getting a lot more potential buyers knocking on your door.

Pricing strategy: FSBO vs. Real estate agent

While FSBO sellers have the sole decision on the price of their home, they are liable to miss out on conducting a market analysis and coming up with a pricing strategy.

Real estate agents can determine the price the minute they walk through your home. They are experienced in making a comparative market analysis to evaluate the prices of other homes in the neighborhood that are comparable to yours. Real estate agents will craft a pricing strategy that will help make your home stand out.

Negotiation: FSBO vs. Real estate agent

Having a good Realtor with expert negotiating skills is a key factor in selling your home in Las Vegas. An experienced real estate agent can identify serious buyers, the strongest offers, and recommend the suitable counteroffers. A real estate agent can also negotiate home inspection, repairs, contingencies, and closing costs on your behalf.

FSBO sellers may not have the skill to successfully handle real estate negotiations, especially if they’re dealing with a savvy buyer’s agent. A seller may also not have a true and up-to-date picture of market conditions, which may result in decisions based on mistaken assumptions. Trying to sell a home filled with good memories makes FSBO sellers more likely to be emotional in negotiation.

Legal help and paperwork: FSBO vs. real estate agent

Selling a home is not merely a financial transaction, it is also a legally binding agreement between a seller and a buyer. FSBO sellers may not have the expertise to deal with state laws, escrows and contracts, and disclosures that come with selling a home.

Hiring an agent saves you the burden of handling legal requirements related to titles, deeds, and more.

Is now a good time to sell your home in Las Vegas?

Is now a good time to sell your home in L.A?

The Las Vegas market is on fire. With the influx of new residents from other states like California, there are not enough houses in the market to satisfy the demand. Although builders are constructing new homes, the rate to meet the demand is not sufficient.

Despite the hike in mortgage rates and the scarcity of inventory, about 80% of homes in the Las Vegas real estate market are being sold within 30 days. And with the volume of buyers needing listings, it’s a good time for sellers to consider putting their homes on the market.

Work with a top Las Vegas Realtor

Work with a top Las Vegas Realtor

Working with a top Las Vegas Realtor is the key in selling your home. A real estate professional who has the local knowledge of the area is a valuable ally in selling your home at the least possible time.

Even if a seller’s market sparks bidding wars, higher offers, and faster closings, home sellers still need a strategic approach. With home prices and mortgage rates soaring, an experienced Realtor can advise sellers on how to negotiate for the top dollar.

If you’re thinking of selling your home in Las Vegas, work with Loralee Wood, the preferred Realtor and Military Relocation Specialist whose highly specialized knowledge of Las Vegas real estate can help you make the right selling decisions. You can depend on her proven negotiating skills to get the optimal price for your home.

Loralee is also a relocation expert when it comes to the Permanent Change of Station (PCS) of military personnel. Her 20-year experience in the military market has seen her assisting scores of buyers looking for military housing when they’re assigned in Las Vegas.

To find how Loralee Wood can help you sell your home in Las Vegas, call 702.419.3212 or contact her here.