Welcome to my real estate questions and answers page.This will give you a better understanding of the real estate process and terminology used by real estate professionals.It’s vital to know what to expect and what to not expect when buying or selling real estate.
How Much Is Clark County Property Taxes?
Owner Occupied is a 3% cap and non-owner occupied is 8% cap. View Here
Does Nevada Have A Real Estate Property Tax Transfer Fee?
Yes! When selling a home in the state of Nevada there is a transfer fee.As of right now,the transfer fee is $5.10 per thousand. Example : $200,000 (200×5.10) = $1,020
Who Pays The Real Estate Commissions?
The seller pays the real estate commissions.
Can A Buyer Be Charged For Real Estate Commissions?
Yes! In some situations,real estate agents could charge the buyer to pay commissions.If the agent seeks a specific commission and the seller does not cover the whole amount,then the agent could seek the buyer to pay the difference.Remember though,that does need to be in writing between you and the agent in a Buyers Brokerage agreement.That means you have to give consent to pay any difference in commission on the home you want to buy.It can not just be charged at the end of the transaction without your written consent.
Are Commissions Negotiable?
Yes! There are no set commissions set with the state nor real estate brokerages.
Does Nevada Have State Tax?
Does Nevada Have A Death Tax?
No As of 2005 Nevada does not have a state death tax nor inheritance tax.There are also no Federal Taxes on real estate under $5M.
What Is The First Thing I Should Do When Buying A Home?
Get Financing! Most home buyers like to do this last because they want to see what homes are available on the market first.That is fine if you just do a home search online,but when it comes time to go and view the inside of homes,you need to know how much you can afford.You need to get your financing squared away so you have an idea of your monthly payments,all fees being charged and most important,get an approval letter from your lender so you can show the seller that you are serious when you make an offer on their home.
Is A Home Inspection Required?
No! It is however always recommended.Buying a home is a huge investment and you should learn as much as possible about the home you are purchasing.
What Is An Escrow?
A title company is a third party that is unbias to the other parties involved in the real estate transaction.They open an escrow account and obide to how the real estate contract was written.The buyers earnest money will be held in this escrow account until closing.The escrow process will be administered by the escrow officer making sure all title reports are done and to deliver clear title to the new owner.The title company will also work along with the lender and coordinate the final closing statement to the buyer.At closing,the title company will disburse all funds to the necessary entities and then record the deed.
How Long Does It Take To Close Escrow?
It depends. If you are a cash buyer you can close within a matter of days.If you are getting financing it is typically a 30 to 45 day close.Also depends on how closing was negotiated in the contract.
What Are Closing Costs?
Closing costs are all fee incurred through the real estate transaction.A buyer will have different charges than the seller.Buyers will have lender fees and title fees along with any down payments.Sellers will have title fees and real estate commission fees.This could vary depending on how the contract was negotiated.
How Much Do I Need To Have As A Down Payment On A Home?
It depends. If you are wanting a specific monthly payment,then depending on the price of the home and the monthly payment you desire your down payment will be the difference.
What Is Earnest Money Deposit?
Earnest Money is good faith compensation when writing an offer on a home.Your earnest money deposit can be used as part of your down payment.
How Much Earnest Money Do I Need To Have?
It Depends. The seller will set an amount that they feel worthy of accepting with an offer.
What Is The Difference Between A Home Warranty and Homeowners Insurance?
Homeowners insurance will cover claims such as water damage and fire.It covers the dewelling of the home in case of storms or other circumstances cause by mother nature.Every state has different coverages in which you will have the right to review and choose.A home warranty covers electrical,plumbing,roof,pools,appliances etc.Each home warranty provider has specific home warranty coverages based on your needs.
How Much Is A Home Warranty?
$350 and up. It depends on what kind of coverage you need on your home.
How Much Is Homeowners Insurance?
Depends on type of coverage you choose. In Nevada,homeowners insurance is relatively inexpensive and paid annually.
What Is Title Insurance?
Title insurance protects homeowners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions.
What Is A Preliminary Title Report?
Is a summary report of the title search. It shows the ownership of a specific parcel of land, together with the liens and encumbrances thereon which will not be covered under a subsequent title insurance policy.The preliminary title report is reviewed before issuing title insurance on the property.
What Is A Title Search?
To verify the seller’s right to transfer ownership,discover any claims,liens,errors,assessments, debts or other restrictions on the property.
What Is An Appraisal?
An appraisal is an estimated value of a home at the current real estate market conditions.
Is An Appraisal Required?
Yes,if you are getting financing.The lender will send out an appraiser to value the home and make sure it compares fair to the purchase price of the home.If you are a cash buyer,then no appraisal is required,but can still be done.
What Happens When A Home Doesn’t Appraise?
If a home doesn’t appraise at market value,then a few things could happen.The buyer can pay the difference and proceed with the purchase,the seller can can bring the list price of home down to the appraised value and then proceed or the buyer and seller can renegotiate the price and come to other terms like split the difference then proceed.If none of these things happen,then the buyer can cancel the contract and get their earnest money deposit back.
What Types Of Financing Are There?
There are several types of financing and hundreds of loan programs.The main types of financing is Conventional loans,FHA loans,VA loans and Jumbo loans.They all fluctuate with different interest rates and down payment requirements.
What Is APR?
APR is Annual Percentage Rate. This is very important to you when you are financing the purchase of your home.Everyone is concerned about the interest rate,but the APR is the overall annual rate that is charged from your impound account.If you have an escrow account,which in Nevada you will,it combines everything including taxes,insurance,principal and interest.Any reoccurring charges will be in this account.Remember,you can request to pay your property taxes and insurance separately and not through an escrow account.Depends on your lender.
What Is PMI?
PMI is Private Mortgage Insurance. It protects the lenders equity investment of the home.It is required if you do not put 20% down payment on the purchase of your home.PMI is charged as a monthly premium on your loan until the twenty percent has been reached.It will automatically drop off of your loan when it has been reached.If you want to pay it off faster,then add extra payments to your principal balance,not towards the interest.There is no upfront mortgage premium required.
What Is MIP?
MIP is Mortgage Insurance Premium. This is when you get FHA financing and put less than 20% down payment on the purchase of your home.There is an upfront charge and the MIP is for the life of the loan.This Government administered program charges MIP to offset the risk of a borrower defaulting because FHA offers low down payment programs.
What Is A VA Funding Fee?
Since the VA offers no down payment programs,they charge a funding fee in which reduces the loans cost to taxpayers.The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category.Funding fee exemption would be a veteran receiving VA compensation for a service-connected disability.
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