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Those know-it-alls that do not use a Realtor or real estate agent to represent them for a new home or new condominium purchase in Las Vegas are taking an unnecessary financial risk that offers no rewards in return, and suffer the consequences, such as losing their Earnest Money Deposit (EMD) or being foreclosed on.

Sometimes one can’t see the error of their ways until it is explained by an example. Imagine someone make a bet with you where if he wins you have to give him $10,000-$50,000 and if you win, you get nothing. Anyone interested?

Those who buy  new condominiums or houses in Las Vegas do not gain anything by not being represented by a Realtor. New condo and home builders are prohibited by law from offering the savings from not paying the buyer’s agent’s commission, the seller gets to keep it, there is no reward for the buyer.

What about the risk? For example; Las Vegas Review Journal had an article about buyers at Cosmopolitan, which is a Las Vegas luxury high-rise condominium tower, wanting to get their deposit back from the builder due to successive delays in finishing the project.

I wonder if they would have the same concern if prices were escalating instead of tanking.

A few Cosmopolitan Las Vegas condominium buyers who have signed their contracts as long as 3 1/2 years ago want their money back after learning the project won’t be completed until mid 2010. The problem is that no closing date or completion date was given by the seller on the purchase contracts. Additionally, the agreements say the seller is “not liable for delays” and any “delays will not permit buyer to cancel, amend or diminish any of the buyer’s obligations.”

A couple of buyers who put deposit amounts of $140-$200 thousand dollars for their respective condominiums began asking for their money back a few months ago when it became apparent the project would not be completed for a couple of years. One said that “By the time they’re projecting that they’re even going to attempt to complete it, in pretty vague terms, the money will have been sitting (in escrow) for five years,” said Lackey.  ”I thought now that the developer has put into writing that the project wouldn’t be ready until 2010, he’s admitting he’s in default.”

The attorney for Cosmopolitan answered that the project “is continuing and making significant progress” and the “seller has no intention of terminating the agreement or returning deposits.” And “We … find no default by seller of any terms and conditions of the agreement,” dated July 22.

Although the buyer’s lawsuit admits no estimated closing date was given, a series of statements and brochures dating back to November 2004 are cited as saying the Cosmopolitan was “projected to … open in late 2007 and early 2008.”

A couple of points deserve a bit of reflection,

1: These buyers were responsible for reading the Cosmopolitan purchase contract before they signed it since no Realtor represented them.

2:  The clause that states the seller is “not liable for delays” and any “delays will not permit buyer to cancel, amend or diminish any of the buyer’s obligations” was in the contract, and they signed it.

3: A Realtor’s job is to go over the purchase contract with his clients and point out the pitfalls. I would have never let my customers sign this contract.

4: Had these buyers been represented by a Realtor, they could have gone after him, they do not have this option now.

5: The real reason that these buyers are now so interested in getting out of their contract is that Cosmopolitan has about $25,000,000 in earnest money deposits in escrow. Cosmopolitan has 1,825 units. So if we say that average deposit to be $100,000-$150,000 then Cosmopolitan would have between 160-250 high rise condominiums under contract.  Talk about buyer remorse.

To this day, when I visit new home or condo builder’s sales offices in Las Vegas, there are Mr. and Mrs. Buyer in the sales office without any Realtor representation, trusting the builder’s sales staff and signing contracts without reading them.

To those, you deserve all that comes your way.

History is about not repeating the same mistakes, and one should reflect upon all the vacant and foreclosed homes and condos in Las Vegas and not make the same mistakes that those buyers made. Not happening!