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Frequently Asked Questions
What is real estate?
Real estate is the term that is used to describe any property that someone owns that contains land or actual buildings. There are two types of real estate in Las Vegas: commercial and residential. Commercial Las Vegas real estate is a piece of land or a building that is to be used for commercial use (warehouses, factories, and properties where business is conducted are all examples of commercial real estate. Residential Las Vegas real estate is a piece of land or building that is used as a residence. Apartments, houses, and other types of living quarters are considered residential real estate in Las Vegas.
What is a real estate broker?
A Las Vegas real estate broker is someone who participates in forming a deal between a seller and a buyer of a piece of Las Vegas real estate. A real estate broker is required to have an extended education beyond that of a real estate agent. Las Vegas real estate brokers are required to pass a real estate broker exam before acquiring this title and the responsibilities/privileges that accompany the title. Las Vegas real estate brokers will help with finding properties that match requested features from a client and help with the negotiation process if they’re working for the buyer. If they’re working for a seller of a piece of Las Vegas real estate, they’ll help with valuing and showing the property, and help with the general facilitation of making the sale with an interested buyer.
What is the 2% rule in real estate?
The 2% rule in real estate in Las Vegas is that, when looking for a property that you plan on renting, the rent you should reasonably expect to be able to charge should be 2% of the total cost of purchasing the piece of Las Vegas real estate. The reason this rule of thumb exists in the Las Vegas real estate community is because it helps you calculate the minimum rent you’ll need to charge to get a reasonable return, especially when you’re paying interest on a mortgage and considering taxes and maintenance costs. However, 2% isn’t necessarily a concrete number; there are people who argue that 1% is more reasonable and more realistic, but shooting higher doesn’t hurt unless you fail to fill a vacancy long term as a result of high rent.
What does pending mean in real estate?
When a piece of Las Vegas real estate has entered a state of “pending,” it means that the seller has accepted the offer and the property is now going to the closing process. However, an accepted offer at this stage is not necessarily concrete; there’s still the chance for either party to back out of the deal for various reasons. Interested parties can still make an offer on a Las Vegas property that’s pending, but most deals in this stage go through.
What is redlining in real estate?
“Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighborhood even though the applicant may otherwise be eligible for the loan. The term refers to the presumed practice of mortgage lenders of drawing red lines around portions of a map to indicate areas or neighborhoods in which they do not want to make loans. Redlining on a racial basis has been held by the courts to be an illegal practice. It is unlawful under the FHAct only when done on a prohibited basis. Redlining an area on the basis of such considerations as the fact that the area lies on a fault line or a flood plain is not prohibited.” - Fair Housing Act