While the COVID-19 pandemic temporarily dimmed the world-famous neon lights of Las Vegas, Sin City's luxury real estate market did not see any significant outages. In fact, it has been the exact opposite, as 816 homes sold for at least a million dollars in Southern Nevada in 2020, according to data provided by the Las Vegas Real Estate Agent.
This is an increase from only 592 luxury home sales in 2019, which is the most the market has seen in a decade. As of April 2021, about 500 homes within the same price range have also been bought. Around the same time last year, only 182 houses sold, and market experts predict that more of the same rising trend will continue.
Drivers of Luxury Home Sales in Las Vegas
There are many reasons for the favorable state of the Las Vegas luxury real estate market, the chief of which is low-interest rates. Mortgage rates all over the country had been at a historical low from December 2020 to February 2021, and buyers capitalized on it to snatch great homes off of real estate listings. Presently, mortgage rates have started to climb back up, but they are still extremely competitive, which is why buyer behavior still remains to be positive.
Additionally, Las Vegas has seen an influx of new residents from other states over the years. In 2020 alone, the Nevada Department of Motor Vehicles saw more than 69,000 out-of-state driver's licenses and ID cards surrendered, a whopping 43% of which hailed from California. A lot of them did not just buy homes in the city, but they bought some of the most expensive homes. Las Vegas prices, after all, are lower compared to home prices in the Golden State. “You can sell a 2,000 square foot home in California and buy a 5,000 square foot home here,” according to a local Real Estate Agent.
The pandemic has also encouraged people from all over the country to move to areas that are not necessarily close to work. As new normal requirements rolled in and Americans discovered that they now have the ability to work from inside their homes, many have opted to move to places like Las Vegas.
Whether you're looking to buy your first luxury home or adding another one to your list of assets, there are many advantages to investing in real estate in Las Vegas. In this section, we will go over them one by one.
Reasons to Invest in Luxury Real Estate in Las Vegas
One of the biggest reasons why Las Vegas, and Nevada in general, is great for real estate investors is that its property taxes are among the lowest in the whole country. It is at 0.69% for the whole state, and 0.70% in Clark County, where Las Vegas is located, which is way below the national average. Additionally, the state's property tax abatement law ensures that annual increases in tax bills can only go up to 3%, so homeowners are protected from sudden and steep rises in property taxes.
The state of Nevada also has no personal income tax, corporate tax, franchise tax, and inventory tax. According to Investopedia, it has an overall state-imposed tax burden of 8.39%, which measures the combination of the state's income taxes with its sales or excise taxes, as well as property taxes. This makes it the 24th best state in the country in terms of tax burdens.
Thriving Job Market
Since the 1990s, Las Vegas has seen its employment base grow radically fast as the array of possible roles in the city spans at least three industries: hospitality, entertainment, and services. Regulations that restrict employment or businesses in California also encourage entrepreneurs to move to either Oregon or Nevada. As such, industry experts predict that job growth in the city will grow to as much as 40%, which is higher than the national projection of 33 percent.
Great Policies for Landlords
If you plan to buy luxury real estate in Las Vegas and rent it out, chances are you will love the city's landlord-friendly policies. In cases of evictions, for instance, non-paying tenants can be evicted in a week, after which the case can go to court. Rulings typically favor landlords, and you also won't have to pay interests on deposits.
Finally, there’s the world-class draw of Las Vegas, which is not just limited to its blinding lights. Many of the communities that surround the Strip are considered to be some of the best areas for investment in the city, particularly in luxury neighborhoods like Summerlin which offer all sorts of views, from hills to canyons to golf courses. As a buyer, you just need to make sure that you sort through the right listings for your requirements, find the right property, and get expert real estate help.
Why You Need a Real Estate Agent When Buying Luxury Real Estate
Buying a property is an important process, and it becomes even more so if you’re shelling out millions of dollars for one. You need a luxury real estate agent to ensure the best possible results with the highest possible reward for your investment.
The following are some of the biggest reasons why you need a Real Estate Agent when buying a property in high-end communities in Las Vegas.
Access to Important Information
Real Estate Agents who have specific experience in helping sellers and buyers of properties in exclusive neighborhoods tend to be extremely detailed people, which means that they have access to information that you may not have if you opt to go through the process by yourself. This covers everything from the special characteristics of certain communities that will match your needs to construction features in a particular property.
If you have an exact set of requirements that you simply must meet, a Real Estate Agent can also help you streamline searching for ideal properties that will meet your standards. Going through available listings on your own may not exactly ensure that you will find what you're looking for, and a Real Estate Agent can help you optimize the process so that you can filter through the options to find the best one for you.
Additionally, Real Estate Agents are well versed in navigating the technicalities of the process. This will help make sure that you don't just have as stress-free a buying process as possible, it also keeps you cognizant of and compliant with the according rules and regulations that govern such a significant transaction.
Access to a Solid, Comprehensive Network
Your Real Estate Agent will also have a solid professional network to help facilitate the speed and success of the sale. As a buyer, you will need to deal with home inspectors, real estate lawyers, and appraisers. Having a professional by your side will treat you to personal recommendations for all these parties so that you can find trusted advice.
Access to Great Listings
Additionally, Real Estate Agents can show you a wide range of listings, even those that are off the market! This will help facilitate a comprehensive search so that you can pull options from several communities in Las Vegas and find the ideal property.
On top of all these, working with a real estate agent that specializes in luxury properties will allow you to enjoy personalized guidance for anything that concerns the process. Are you looking for a mansion done up in a specific architectural design and offers rolling views of the hills that surround Las Vegas? Or is your primary requirement a property in one of the city's guard-gated neighborhoods that is close to the best schools in the area? Your Real Estate Agent can work with you in addressing these requirements and more, and offer helpful tips throughout the process.
You can also save on time when you have professional assistance by your side. Gaining access to market information and other knowledge that will inform your decision-making can radically cut down the amount of time that you will have to spend studying listings, filtering them according to what you want, and deciding on a property.
Finally, you get to have an expert negotiator representing you when you hire a Real Estate Agent. This will come in particularly beneficial when you want to discuss the terms of the sale to tip them to your advantage, or rehash a couple of provisions to make the most out of your investment. Your Real Estate Agent can handle the negotiation with you or for you, and get you the results that you want.
How to Choose a Luxury Real Estate Agent in Las Vegas
Choosing just any Real Estate Agent to assist you with your luxury real estate purchase is not going to benefit you in the long run, though, so it is important that you choose the best possible Real Estate Agent that you can find. The following are some of the most important characteristics that you should look for.
Industry license and certifications. This is among the most basic requirements that your chosen Real Estate Agent should have so that you are assured of getting top advice from someone who really knows the market. To be able to practice in Las Vegas, a real estate agent must be able to complete 90 hours of prelicensing education, which covers real estate principles and real estate laws. Additionally, they must pass the state's licensing examination or a national examination within the last 12 months.
On top of these, a Real Estate Agent can pursue certifications to make them more equipped to handle the process, and ensure that they provide exceptional service. Some real estate certifications in Las Vegas include the Certified Commercial Investment Member, the Accredited Land Consultant, and the Certified Property Manager.
Specific experience in luxury real estate. Assisting sellers and buyers of properties with a price of at least a million dollars is a niche market, and it is critical that your Real Estate Agent has extensive experience in this specific market. Other real estate professionals who just dabble in it are not going to be as knowledgeable as someone who specializes in catering to higher-end clientele, particularly as there are nuances and technicalities that are unique to the market.
For instance, a regular real estate agent may not have handy information about the best gated neighborhoods in Las Vegas that correspond to your exact needs. Sure, they may know of some communities, but you cannot expect comprehensive guidance on where to look, especially during the searching process. A Real Estate Agent who specifically works with luxury listings will not only be able to direct you where you need to be searching, they can also help customize the filtering process so that you end up with your dream property.
That specific experience will also come beneficial when you're after properties from meticulous sellers, or need to edge out other buyers. If you're looking for a mansion with amazing views of the hills, for instance, you may find that you're not the only person that is willing to spend a lot to snatch that property. Your Real Estate Agent can brainstorm with you so that you can make the perfect pitch that will encourage the seller to get their listing under contract after your offer.
A reputation of delivering excellent service. Your Real Estate Agent should also have a history of providing top-tier service to clients. This is not only a marker of competence, it also signals the kind of experience that you can expect. After all, if a Real Estate Agent has only delivered more than satisfactory results, then you know that they work according to high standards and you can benefit from that.
Some of the most telling signs that a Real Estate Agent has the kind of reputation that you want out of your chosen real estate professional are:
- Positive testimonials from past clients
- Respect from industry peers and fellow real estate agents; and
- A great network of important industry connections
Local knowledge. It is not enough to find an experienced Real Estate Agent who specifically works with luxury listings—they should also have local experience in the specific area that you’re interested in. Local Real Estate Agents offer deeper market knowledge that will help you throughout the search process, especially if you have very particular requirements.
A local luxury Real Estate Agent will have access to local information about specific neighborhoods in Las Vegas, including crime statistics, surrounding schools, shopping centers, and restaurants, and market statistics. If you're looking to invest in properties with magnificent views of the hills, for instance, a Real Estate Agent who knows his way around Las Vegas will can give you the best listings for that requirement.
Finally, your rReal Estate Agent in Las Vegas should be able to offer numerous listings of available properties from several neighborhoods in the city. Las Vegas is home to a couple of exclusive and guard-gated communities, such as The Ridges, The Red Rock Country Club, The Summit Club, and the Seven Hills. You can also find premier properties in master-planned communities in Rimrock, Red Hawk, Canyon Fairways, and Eagle Hills, and your Real Estate Agent must be able to show you the available luxury homes in these areas.
Gavin Ernstone: Your Luxury Real Estate Agent in Las Vegas
As the owner of Simply Vegas, Gavin Ernstone offers more than 25 years of luxury real estate experience in the Las Vegas Valley, which is why he is among the most famous names in this niche market in the area. He specializes in connecting sellers and buyers of dream homes that cost anywhere from two million dollars to four million dollars, and he delivers the same kind of dedication and top-notch customer service for each transaction. His work ethics are founded on the belief that your home represents your values, your lifestyle, and your achievements, so he works towards finding the right property for every client, which is exactly what you deserve. With his assistance, your investment is in good hands.
Gavin provides personalized guidance to understand your specific needs and requirements, and then match homes and communities in Las Vegas to your standard of living, as well as your lifestyle. If you're looking for something that especially espouses what you want in design, location, and according amenities, he pulls from comprehensive listings to guide you toward your new Las Vegas dream home. He is not called the Dream Homes Specialist for nothing!Gavin also combines innovative marketing with his deep and unparalleled local market knowledge to help you maximize your real estate investment. As a realtor who tirelessly works to represent his clients' well-being to the best of his abilities, you can be assured that your interest will always be championed by this top-tier luxury Real Estate Agent. Finally, he makes sure that your time is optimized, so you can look forward to a hassle-free and rewarding buying process from start to finish, whether you’re looking for your next home or a custom lot. He also offers excellent solutions for home sellers, including great marketing options to promote high-end properties and find the right buyers.