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4 Red Flags to Look for Before Accepting an Offer on Your Las Vegas Home

By U.S. News & World Report

In Las Vegas real estate, the highest bidder doesn’t always get the spoils. Even an offer above list price can be undermined by a bad loan, a long list of contingencies or other complications that stall the deal. In fact, Jason Abrams, principal with the Abrams Group, says, “Often a buyer offers higher because their terms are weak.”

Before you accept an offer, some of Las Vegas’ top real estate agents, as identified by Agent Explore, a real estate technology company (and a U.S. News partner), say to look out for these red flags.

[Read: 4 Ways to Sell Your Las Vegas Home Fast.]

A Questionable Loan

There are several ways to finance a house, and when you’re selling, you should understand how the buyer plans on paying. Shane Nguyen, broker and owner of 1st Priority Realty, says, “You want to evaluate the probability of closing easily.” A cash offer is often your best chance, but you want to request a proof of funds letter to ensure the buyer actually has the cash available.

More often than not, however, a buyer will finance the house with a mortgage. While all serious buyers should have a prequalification letter (a letter indicating they qualify for a loan), a preapproval letter is better. It means the lender has evaluated the buyer’s finances and credit report in detail, while a prequalification letter only relies on information supplied by the buyer.

Even with preapproval, a mortgage can still be denied, so you should be familiar with the lender and the type of loan. An experienced agent likely has experience with a range of lenders and could offer insights.

[Read: A First-Time Homebuyer’s Guide to Las Vegas.]

Abrams explains, “You have to do some research to see if it is a valid lender. You want to ask what type of loans do they normally do if you are not familiar with them.”

In terms of the type of loan, FHA loans (mortgages insured by the Federal Housing Administration) often come with a longer list of home inspection requirements than a conventional loan. According to Abrams, the requirements can make it more difficult for a buyer to secure the final approval. “You have to call and have an open dialogue with the lender to figure out if the buyer is actually going to be able to close,” he says. Your agent should be able to find out details such as the buyer’s credit score and debt-to-income ratio.

Weak Finances

Even without talking to the lender, there are clues that might suggest the buyer can’t afford your home. Two factors to consider: the amount of earnest money the buyer offers and the percentage he or she puts down. If either is low, it could mean the buyer does not have much cash on hand, which could result in the buyer not getting approved for a loan. A weak financial position could also increase the likelihood of the buyer backing out of the deal.

A Less-Motivated Buyer

Investors who plan to rent out the property once they buy are common in Las Vegas, but because they may make offers on multiple homes, they may be less likely to close than a first-time buyer who is planning on living in the home. “First-time buyers most likely do not want to lose a house. Investors, on the other hand, are OK if they don’t get the house,” Nguyen says.

[Read: 100 Best Places to Live in the USA.]

Buyer’s Plans Clash With HOA Rules

If you live in a development with a homeowners association, you need to understand how restrictions may impact potential buyers. For example, many HOAs do not allow homes to be rented, so an offer from an investor wouldn’t be considered. Or, perhaps your HOA does not allow owners to park a car outside overnight, which would pose a problem if a buyer owns multiple cars. It’s also common for an HOA to have restrictions on pets. “When I am selling a home in an HOA community, I always ask the seller to see their resale package first,” Nguyen says.

Ultimately, experts agree that every sale is unique, and every offer should be evaluated case by case. When you’re considering agents, ask them how they present and evaluate offers because working with a diligent agent is a great way to avoid running into a red flag. Abrams says, “My job is to lay out all of the offers. Call every agent and every lender, and give advice to my client on which offer is going to be the best.”

Looking for a real estate agent in Las Vegas? U.S. News’ Find an Agent tool can match you with the person who’s most qualified for the job.

More from U.S. News

4 Under-the-Radar Neighborhoods in Las Vegas

5 Ways to Prepare to Sell Your Las Vegas House This Spring

A First-Time Homebuyer’s Guide to Las Vegas

4 Red Flags to Look for Before Accepting an Offer on Your Las Vegas Home originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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