Las Vegas Luxury Condo FAQ
Q - How does the sales and escrow process differ from a single family home?
High-rise is a specialty market: Non-refundable deposit requirements, phase pricing, parking spots, storage units, HOA issues, lender challenges, title insurance intangibles, leasing rules, pets, and balcony policies are just some of the items that differ from a single family home transaction. Read the Las Vegas High-Rise Condo Tips page.
Q - What are the differences between condotel and residential condominiums?
Condotel units are sold turn-key, fully furnished, and can be thrown into a nightly rental program. Most owners use them as a vacation property or second home. Residential condominiums feel much less like a hotel and are often used as a primary residence. They too can be used as a second home, but most often the HOA forbids them from being rented out on a nightly or weekly basis.
Q - What happens if I visit a development’s website or sales center without an agent?
Often, you’ll sacrifice your right to representation. If you want your own buyer’s agent, you should contact them first and have them properly register you.
Q - Are there special lending requirements for Las Vegas luxury condo properties?
Sometimes, high-rise loans can be considered “non-warrantable” which can affect everything from rates to terms. One of the biggest mistakes that uninformed buyers make, besides consulting the wrong agent, is choosing a lender that has little experience funding loans in luxury condo developments.
Q - What do I need to know about high-rise condotel financing?
There can be differences between condotel and residential lending, which can affect the buyer’s loan terms. Higher rates and higher down payments are sometimes found in this type of loan product. Always consult a professional lender or mortgage banker.
Q - Can I expect positive cash-flow from my condotel by using the nightly rental program?
REALTORS® are federally forbidden from discussing occupancy percentages, room rates, past rental history, or any other type of statement regarding this matter. Condotels are not registered securities and therefore can’t be sold as such. The SEC takes this matter very serious. Make sure to consult a REALTOR® who abides by the law, and doesn’t mislead you on your investment.
Q - What’s the best way to compare amenities and features of various developments?
If you go direct to sales offices, you’re going to get their opinion of their project. The most thorough way to learn the market is to consult with a proven professional, who is unbiased to any one single project and has years of experience specializing in this niche of real estate. Always know the correct Questions to Ask a Las Vegas Real Estate Agent to guage whether they truly have experience selling high-rise condominium properties.
Q - If I purchase a residential unit, can I rent it out?
Most HOAs allow you to rent your unit. However, unlike a condotel, residential buildings are not intended for transient use. The HOA CC&Rs typically require your tenant to sign a lease agreement typically ranging between three months to a year.
Q - Who are the primary buyers of luxury condos in Las Vegas?
From second homes to vacation properties - from primary residences to pure investments: international CEOs, baby boomers, casino employees, celebrities, snow birds, singles, locals, empty nesters, families, and athletes all contribute to the diverse crowd who are grabbing part of the action.
Q - What are the hidden costs of high-rise condo ownership?
Your obligation doesn’t end when you sign the escrow papers; luxury condo ownership is an on-going responsibility. A true specialist can help you understand the issues that affect you long after your boxes are unpacked.
Q - What are “hard deposits” and how much do they typically cost?
Hard deposit (not to be confused with reservation) is a term used to describe the non-refundable deposit that a buyer puts down at a project in order to go to contract. These deposits range anywhere where from approx. 5 percent to 30 percent in Las Vegas, Nevada. Typically, developers seek 20 percent, broken into two 10% deposits.
Q - Will my contract be assignable so I can sell before close of escrow?
Everyone loves to roll the dice in Sin City, but it’s a dangerous mentality to buy property and count on assigning the contract for a profit before closing. While some projects have allowed assignment in the past, and some might in the future, the majority of projects in Las Vegas do not allow it.
Q - What kind of appreciation can I expect on my investment?
REALTORS® can never guarantee appreciation or make predictions. Someone selling promises is someone you’d be better off avoiding. An expert will educate you on the intangibles of the high-rise market and keep you up to date with the latest news and information, helping you make an informed decision.
Q - What projects feature the best views of the Las Vegas Strip?
While REALTORS® and developers are forbidden from guaranteeing views to prospective purchasers, working with a specialist will help you make your own qualified decision. Be careful with sales centers selling you on their views; what if they fail to tell you a 70-story building was just approved next door? With land in the Resort Corridor running thin, FAA approvals seem to be going higher while development becomes crowded. Balconies with Strip views are lovely, just be careful and do your research. Check out the Las Vegas Strip Condo Map.
Q - Parking spots - How do they work?
Beware; this is a tricky subject that features quite a few caveats. It’s not as simple as asking how many spots come with a unit. Many buyers have found themselves disappointed that their agent didn’t have enough experience in high-rise to protect them when it comes to several issues.
Q - Storage - How does it work?
Beware; while some projects sell additional storage space, this is yet another issue that can leave owners surprised. With many questions, the answers are probably not what you think.
Q - Will my Las Vegas Luxury Condo HOA allow pets?
Yes and No. Many residential buildings allow pets although the HOA has a right to set their own rules including (but not limited to) breed, species, weight, and total number. Condotels (due to their hotel environment), often forbid animals.
Q - What is the difference between grey-shell, vanilla-shell, and designer-ready?
Grey-shell units (often penthouses) typically come completely unfinished. This means no drywall, flooring, kitchen, or bathrooms. Vanilla-shell is a term commonly used to describe a unit that has drywall, plumbing, electrical, yet many times no kitchen cabinets etc. Designer-ready usually describes a unit with drywall, paint, finished kitchen and bathrooms, yet no flooring.
Q - What’s a great way to stay up to date with the real estate market?
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