Las Vegas New Homes

The new home circuit in the Las Vegas area is unstoppable and there's a whole different approach from the traditional way of purchasing an existing home.

Since homes are in such great demand in Las Vegas, home sales have soared and dozens of homebuilders continue to purchase land and plan communities throughout the Las Vegas Valley. New home sales are continuously rising and construction is at full-speed.

If interested in purchasing a newly constructed Las Vegas home, the buyer should be aware of how the system works in the entire area. While there is no set method, there are specifics that the homebuyer needs to be aware of in order to be prepared. This is probably the most challenging part of buying a new home in Las Vegas since each builder has different requirements, incentives, and build-out time.

There are basically two types of developer programs for new Las Vegas home purchases:

1. No Wait List
2. Wait List

A "No Wait List" means that the builder of the new Las Vegas homes will make available a certain amount of lots that are for immediate sale. The developer will advise homebuyers of new phases and invite potential buyers when new phases will open up. They may or may not know what the increase will be or the exact date of opening, but will do their best to keep your interest and give you an approximate time of opening phases and pricing. If there are new Las Vegas homes available for sale at the time you tour the models, you will be able to complete a purchase agreement at that time and lock in the price that day!

An estimate of the build-out time will also be given at that time. This is usually 4-8 months, depending on the builder and availability.

Since a Las Vegas Buyer's Agent may represent a buyer for Las Vegas New Home Sales, it's advisable that you consult with someone who understands the procedure and is aware of which homebuilders do not have wait lists. The good thing is that the builder pays the Buyer's Agent so it is advantageous for a homebuyer to work with an agent who is knowledgeable with the Las Vegas New Home buying process.
Advice is especially beneficial for those living out of state who aren't familiar with the Las Vegas area nor with the Las Vegas housing market.

Las Vegas developers that require a "Wait List" do not guarantee when you will be called. It may also be called a "lottery" where names are picked out of a hat to decide who will be chosen to purchase.

Since there are over 1500 Las Vegas new home projects at any one time, new homes being constructed in Las Vegas have attracted thousands of people to take advantage of purchasing beautiful models. The wait list may be long…anywhere from 70-250 people on a list and it could also go by series. It could take anywhere from 2 months to 2 years to sign a purchase agreement.

Some Las Vegas new home buyers will drop out because they have either found another Las Vegas home or have decided to purchase an existing home instead for an earlier move-in. Other homebuyers may be disappointed to discover that the home they fell in love with 4 months ago has gone up in price from $3,000 to $10,000 per month.

For some, this delay in the process of purchasing a new Las Vegas home works to their advantage due to the time they may need to relocate, repair their credit, establish employment, or obtain more money for a down payment.

In any case, the following is typical for both types of developers:

1. The sales price is locked in when the Purchase Agreement is signed.
2. An earnest money deposit is sometimes required at the time of putting your name on the list to purchase your new Las Vegas home, but is not cashed until you are called to sign a Purchase Agreement.
3. The "Earnest Money Deposit" required ranges from $2,000-$10,000. Investors, or homebuyers who would like to purchase a second home may be required to pay as much as $10,000.
4. All earnest money deposits go towards closing costs for the purchase or the down payment. However, if the buyer cancels the purchase agreement, the buyer may risk loosing his earnest money deposit that he put down for his new Las Vegas home.
5. Some developers offer homebuyers attractive incentives to purchase upgrades. Allowances for incentives may range anywhere from $5,000-$10,000. Additional incentives to homebuyers using the developer's lender may also be an option. A 50% deposit on upgrades may be waived if you choose to use their lender. A Design Center showcases the various upgrades and provides a price list. All options are usually chosen soon after the purchase agreement is signed.
6. In many cases, it is common to have a "lot premium" added to the price of the new Las Vegas home. In some cases, it is standard procedure to include the lot in the price of the home. Some builders may only charge a premium for a larger lot, a corner lot, a golf course view, a lake front lot, etc. Golf and water lot premiums could cost as much as $150,000 in addition to the listed price.
7. Many Las Vegas real estate builders offer a variety of homes ranging from single-story, 2-story, town homes, condos, tri-level, triplex, and basement homes. Plans given on the tour may show ways to customize a home by adding or replacing rooms such as replacing a den in lieu of a bedroom, adding a bonus room or a loft, or creating an additional master bedroom in lieu of two bedrooms.
8. Credit reports are usually done at the time you submit a purchase agreement, but some homebuilders even require a credit check when being placed on a "wait list".
9. A credit check will be done prior to opening a 30-day escrow and then your lender will lock in the rates with the loan plan you have chosen at that time.

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