Las Vegas new home builders don’t always build the right home or condo
Imagine buying a Las Vegas new home for sale or a new condo which is 10%-15% smaller than what the contract specifies while paying for the bigger home or condo!
If you don’t think that it happens often, think again!
In this video, we will discuss a condo that we listed which per builder’s contract should have been a 1319 square foot unit and we measured it at 1140 square feet. This is not a simple mistake within the margin of error. We are talking about 178 square feet or about 15% of the unit. The builder had to know about this and took advantage of a single lady who unfortunately trusted the builder and bought while not being represented by a Realtor.
In this video we will discuss how much she was overcharged as well as other mistakes that builders make and if they, how we will catch them.
Did the Las Vegas new home builder build the right home?
Do Greater Las Vegas new home builders always build the right home? NO
Do the buyers always catch them? NO
And that is only one of the reasons that new home or condo buyers should be represented by a Realtor.
Sometimes Greater Las Vegas new home builders do not build what was promised to the client in the purchase contract. And if the seller is not represented by a competent Realtor, they could and do get away with it.
1319 square foot condo turned out to be 1141 square foot unit
We recently represented the seller for a very nice one owner condo in Las Vegas. She purchased the condo from the builder without being represented by a Realtor and paid a big price for it.
The purchase contract stated that the condo was 1319 square feet. At the same time, the builder recorded the condominium at 1289 square feet with the Clark County Recorder. Given the discrepancy, we measured the condo in front of the seller and surprisingly come up with 1140 square feet. Our measurements were later verified by a VA appraiser.
The square footage in a listing page in the Las Vegas MLS is auto populated by the square footage from the recorder’s office so it shows as 1286 square feet. We made it clear to the seller that we will disclose this in our listing page in the agent to agent comments and the honorable seller didn’t have any problems with it. This is how we worded it in our listing.
“ Tax star wrong. Should be 1140 SF and is priced accordingly. Buyer and agents to verify all measurements. We are very easy to work with. Thanks for showing this great condo.”
Additionally, we advised the seller to hire an attorney, however, she refused. The new condo builder got away with over charging her by about $18,000-$20,000 when she purchased the condo.
But we got her top money for the condo. While comparables sold for $125,000-to $132,000 we got her full asking price at $141,000 which after $3,000 seller contribution to buyer’s closing costs netted her $138,000.
The top listing was a 1319 square foot condo that sold for only $7,000 more than our listing. It must be said that we highly doubt that this condo was really 1319 square feet.
Las Vegas new home built wrong is not an isolated problem
If you think that this is an isolated problem, it is not. Before moving here in 2003, we visited Las Vegas from Nebraska, hired a Realtor, found a good lot and a floor plan that we really liked and signed a purchase agreement for a new home and left Las Vegas. When we came back, we saw that the builder had built the wrong floor plan. Given the real estate market back then, we accepted our new home and the builder pretty much got away with building the wrong home.
There are many other examples in the MLS, especially as it comes to the discrepancy in the number of bedrooms.
We will catch the builder if he builds the wrong home or condo
We will hire and pay for an appraiser at the close of escrow to measure our client’s new home or condo prior to close of escrow in order to make sure that it is the same square footage as in the purchase contract and advise our clients to get an inspection even though it is a brand new home.
If you want to buy, sell or invest in new homes or condos for sale in Las Vegas please call us at 800-762-4917.