Here is a list of specific detailed questions to ask any Real Estate Agency that you are thinking of hiring to assist you with purchasing a home in the greater Las Vegas area.

1. How long have your real estate agency been in business and what specialized services to you offer buyers?
2. What differentiates your agency from your competitors in terms of unique services and experience? I’d like to have at least 3-5 examples or references to other clients that would be similar to me in terms of their real estate needs.
   
3. What is your best market analysis plan for me to give me some sense of the inventory of homes that fit my needs and how will your agency stay on top of changes in the market?
   
4. Will you provide client references?
   
5. May I review any documents or contracts that I would agree to sign with your agency prior to the actual signing process?
   
6. How will you help me find other vendors? And/or do you have a list of mortgage brokers, appraisers, home inspectors, title companies and others that you work with on a regular basis?
   
7. How much do you charge and are your fees negotiable?
   
8. How are your real estate agents trained to assist buyers and how long have they been with your firm on average?
   
9. What is the actual percentage of buyers versus sellets that you work with typically?
   
10. If I want to stay in constant contact with my agent so that I don’t miss out on any communications. How technically savvy is your agency?
    
11. Do your recommend my hiring an attorney that specializes in real estate transactions to review the contracts and process?
    
12. Does your agency give me any significant competitive edge when I am negotiating with the seller and/or relating to any aspect of my real estate transaction?
    
13. How much of your business is from referred clients?
    
14. What haven’t I reviewed with you today that we should discuss or map out that would impact my working with your firm in a material way.

Here is a list of common questions that we typically get from buyers, coupled with our answers:

1. How is a home’s value determined?
There are a number of ways that a home’s value is determined, with an appraisal being the most common method. An appraisal is done typically by an accepted specialist or firm that does nothing but appraisals on homes or property; the formal appraisal price is usually based on recent sales of comparable properties in the area, location of the home or property, square footage and/or construction costs. The actual appraisal service varies in formal costs and is typically based on the price of the home; but, on average, an appraisal usually costs $300-750. for house in the Las Vegas area.

A comparative market analysis is an informal estimate of market value that is performed by Re/MAX Central that is based solely on similar sales of comparable homes and attributes of the house.

2. How many homes should I plan on viewing and how should I make my final decision?
You should typically view some number of homes so you can familiarize yourself with what you can expect to get for the amount of money that you want to spend – this gives you some perspective on the local market.

3. Should I check my credit rating prior to applying for a mortgage?
You should have some tangible idea of what your credit rating is as your start your purchasing process. Your credit score is based on a combined score generated in most cases via three major credit bureaus who look at your credit history, amount of credit available and recent inquiries, to determine what is labeled as your FICO score. You can typically get your credit score by contacting the bank that you have a relationship with or one of our strategic partners will help you to ascertain this as we start your real estate transaction process.

4. What are “points” and should I consider paying them?
Real estate buyers may frequently elect to pay a one time charge called “mortgage points” in exchange for a lower interest rate that is applied to your loan. This is typically paid at closing; each point has a “cost factor” typically of 1% of the mortgage amount or say $5K on a $500K loan. The lower rate that is generated as a result of paying points reduces your monthly mortgage payment and points paid in conjunction with the purchase of the home are in most cases tax deductible in the year that they are paid; but, check with you’re tax advisor to ensure that this is the case. In most cases, monthly savings on payments will often exceed what was paid in points in just a few years time.

5. What is title insurance and why do I need it?
Title insurance assures that you have clear title (no liens or other restrictions) to the home or property that you purchase. A title search is one of the most important parts of the due diligence process of your real estate transaction; the title search determines whether the seller actually owns the property and if there are any claims or liens against it that would prevent clear (no restrictions or liabilities) title to the real estate that you are purchasing.

6. What happens if the home or piece of property that I am purchasing does not appraise at the amount that is anticipated?
Other alternatives may be pursued by all parties; i.e. a second appraisal may be needed, the seller may adjust the price of the house or both sides may opt to negotiate to split the difference in pricing between them.

7. What are closing costs?
Closing costs are all costs other than the purchase price that a buyer pays to complete a real estate transaction. For a seller, closing costs are all the fees, except for any liens or encumbrances that are typically deducted from the purchase price. Fees typically encompass those paid to title, escrow or lawyers, documentary transfer tax, city or count transfer or property taxes, credit reports, appraisal fees, any recording or notary fees, real estate commissions, inspections, loan fees such as points and/or prepaid interest.

8. Is a lease option a viable alternative?
A lease option is an arrangement with you and a seller that enables you to exercise the option to buy a house after you have rented it for a specific amount of time. A portion of your rent typically would be applied toward the purchase if the option is exercised. This type of an arrangement is typically referred to as a rent credit which many local Las Vegas institutional lenders will accept as part of the down payment, if rental payments exceed the market rent and if a valid lease purchase agreement is in effect – in most cases a copy of this must be attached to the loan application. Finally we would recommend that your carefully read and study the lease option contract carefully for details that relate to transferring the option and other important issues.