When most people hear Nevada, they think Las Vegas and rightfully so, as the city brings in more than 42 million visitors a year and over half of the state’s population resides there. But Nevada offers visitors and residents more to do than try their luck at casinos. With a unique mix of urban cities, desert landscape, lakes and mountains, the Silver State provides outdoor adventures, world-class shopping and vibrant nightlife. In fact, Nevada is one of the country’s fastest-growing states.
Current home prices in Nevada are on the rise, according to the Reno/Sparks Association of REALTORS. The median sales price for an existing single-family home in the Reno-Sparks region was $390,000 in May, a 4% increase from April and also a 4% increase from last year. In the Sierra Nevada region, the median price for a single-family home in May was $350,000, also representing an increase in recent months. Currently, sellers in the Reno-Sparks region are receiving close to list prices — 98.8% on average.
Inventory levels have decreased steadily from January of this year in the Reno-Sparks region. Current levels represent only a 1.8 month’s supply of properties. With these conditions, buyers should plan to move quickly on their purchasing decisions. In May, properties sold in 37 days on average in the Reno-Sparks area and 49 days in the Sierra Nevada region.
Purchasing a home involves many moving parts which can vary from state to state. Here’s what you need to know about buying a home in Nevada:
Sellers in Nevada are required by law to disclose in writing all conditions in the home that negatively affect the property’s value. The Nevada Real Estate Division provides aSeller’s Real Property Disclosure Formthat covers all areas of the property, including the foundation, electrical systems, plumbing and the presence of environmental hazards. The form gives sellers room to fully explain any issues disclosed and encourages them to attach additional pages.
Sellers or their agent must provide the disclosure statement no later than 10 days before closing or buyers have the right to withdraw the offer without penalty. Additionally, sellers must reveal any defects that arise in the home after providing the statement or if a previously disclosed condition worsens.
Should you have difficulty staying current on yourmortgage, know that Nevada permits two types of foreclosure processes: judicial, which requires a lender to take you to court, and nonjudicial, which does not involve the courts.
In Nevada, which has one of the country’s highest foreclosure rates, most foreclosures are nonjudicial. Although the process does not involve the court system, it does require a series of predetermined steps before your home is foreclosed.
Nevada is one of only nine community property states in the country, which means spouses evenly own assets and debts acquired during the marriage. When couples divorce in Nevada, property and liabilities such as bank accounts, business debt, cars, household items and more are split evenly unless a marriage contract is in place. This is important to keep in mind as some government loan programs consider the debt of both spouses in a divorce situation even if only one spouse will own the home.
In Nevada, buyers are not required to hire an attorney to assist with the home closing process, as is the case in some states. Buyers work with an escrow holder to process their closing, which can be an escrow company, title company, attorney or bank.
All home sales in Nevada incur a real estate transfer tax payable to the county recorder in the county where the property is located. The amount of the tax is based on the value of the home, typically $1.95 for each $500. The rate is higher in Washoe, Churchill and Clark counties. Your lender will let you know the exact amount you will need to pay as you near your closing date.
Once you purchase your home, you will owe property taxes in Nevada. The median property tax in Nevada is $1,749 per year for a home worth the median value of $207,600,according to Tax-Rates.org.The state ranks 24th in order of average property taxes received. Tax rates also vary from county to county. For example, residents in Washoe County pay the most in the state — $1,889 on average — while Esmeralda County homeowners pay the least — $414 on average. Check with the tax assessor in your county to get an idea of what your taxes will be.
Nevada does offer relief programs to help ease the tax burden that homeowners face. Assistance includes exemptions for eligible veterans, surviving spouses and blind homeowners and tax abatements (reduction of tax liability) for eligible homeowners who reside in their home as their primary residence. Relief is granted on the county level, socheck with the tax assessorin the county where your property is located for more information.
The conforming loan limit for one-unit properties in Nevada is $484,350. This amount represents the maximum amount you’ll be able to finance with a conventional mortgage ensured byFannie Mae or Freddie Mac, the government-sponsored companies that back most conventional loans. If you are looking to borrow above the conforming loan limit, you’ll have to take out ajumbo loan, which typically has a higher interest rate and stricter lending requirements.
Multiple agencies in Nevada offer assistance to help make homeownership affordable, ranging from low-interest financing to federal tax credits. Some programs are available statewide while others are specific to location. We’ve highlighted a few programs below, but more homeownership assistance may be available to you.
The Nevada Rural Housing Authority (NRHA) offers financing combined with down payment assistance to Nevadans who live in designated rural locations.
Who qualifies
Buyers who purchase a home with one of the NRHA programs can also apply for a federal income tax credit paid annually for the life of the loan.
Who qualifies
Offered by the Nevada Housing Division, this statewide program provides first mortgage financing along with closing costs and down payment assistance.
Who qualifies
Don’t leave getting the lowest rate on your mortgage to chance. Just a small difference in interest rate can either save or cost you thousands over the life of your loan. These tips will help youget the best rate on your loan.
Contact at least 3 lenders on the same day
Since rates change from day to day, get your quotes all at once so you can make apples-to-apples comparisons. Consider reaching out to multiple types of lenders such as national banks, credit unions, community banks or online lenders to see who has the most competitive rates.
Give each lender the same information
Another way to ensure you can make accurate comparisons between the quotes you receive is to give each lender the same information upfront. Interest rate quotes are subject to change based on your situation, so it’s best to avoid a rate increase.
Add up all the lender fees to confirm the costs
The interest rate on your mortgage does not give you the complete picture of what it costs to finance your home, so look at the annual percentage rate (APR) on all quotes to see the total cost of each loan. Also, look at any costs not included in the APR, such as the appraisal fee and credit report fee.
Know when to lock in the rate
Most lenders permit you tolock in your interest rateto protect you against an increase. Find out from your lender what the procedure is and keep communication open with your loan officer to get an idea of the current direction of rates.
The information in this article is accurate as of the date of publishing.