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07/12/2019

Now is not the time to sell.

Park Towers Las Vegas (6)

Now is not the time to sell and if you are told otherwise, it may be that a Realtor is more concerned with earning a commission than maximizing your sales price.

Here are the factors affecting our market.

The Bad

-Chinese buyers are pulling out of US real estate. (Largely due to the trade dispute.)
-Inventory has more than doubled in every high-rise project as sellers rush to list to avoid a downturn.
-Sentiment regarding the real estate market is mostly negative.

The Good

-The trade dispute will eventually be settled with China.
-The exodus of high-net-worth residents of California appears to increase 30% of the driver’s licenses turned in to the Nevada DMV are from former CA residents.
-Lending is becoming more attainable, which opens the condominium market up to new buyers.

Projects to be completed in 2020 (information via the LVCVA totalingan estimated $8.5B)

-Caesars Forum Conference Center
-NFL-Raiders corporate headquarters and practice facility (Henderson)
-Las Vegas Raiders Stadium
-Resorts World Las Vegas

We believe each of these projects will add value and they range from south strip to north strip, so these projects will positively affect real estate values in the Strip corridor, luxury condo segment.

There is uncertainty in the investment property segment regarding the services offered by leasing agents vs. full-service property management firms. 

Leasing vs Full Service Property Management

Water Flood in Condo Building

To assist in differentiating between the two, we have compiled a list of nine questions you should ask a leasing agent when evaluating which company you want to represent your investments:

1. Does your website display rental listings and what is your marketing budget allocated specifically to the rentals?

2. What are the necessary steps and timelines for lease approvals in my building?

3. Are tenants required to obtain renters insurance policy? If so, what are the policy limits?

4. What, if any, additional language is added to lease agreements that limit my risk and deters litigation?

5. In the event of a lawsuit, which law firms have you worked with when resolving legal disputes between landlords and tenants? 

6. What sections in NRS 118a are most important? Are there any specific rules and regulations relating to retaining tenant deposits? 

7. How do I avoid $16,000 fines from HUD?Do you have a point person that specifically handles work orders? If so, could you walk me through the process? 

8. Could you provide an example of a time you worked with not only your client’s insurance company but also the insurance companies for the adjacent residences to remedy multi-residence damage event?

9. In the event, there is damage to my residence, as well as residences adjacent to mine, which contractors do you recommend?
If there is a water event, which remediation company(s) can respond immediately to limit the damage?

It is important for every owner to be aware of insurance company’s policies, as they can deny claims due to owners not following a very specific protocol when a leak originates in their residence costing the owners significant amounts of money.

For example, we are aware of a situation in which a leak occurred and damaged as many as ten floors below. The owner did not follow the insurance company’s protocol, and the insurance company denied the claim. Ultimately, this water event resulted in the HOA filing a lien on the residence for $70,000.
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