Reality of Real Estate | David Morris Group

Home Improvement And Design Trends For 2023

December 16, 2022/in Blog, Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

As we near the end of the year, talk of home improvement projects is skyrocketing. Whether you’re a homeowner wanting to jump on 2023 home design trends or an interested buyer searching for a renovated property to invest in, there are certain home upgrades every buyer, seller, and current homeowner should consider going into the new year.

Allot A Distinct Space To The Kitchen

One of the biggest trends of the new year lies in the home’s heartiest room. In 2023, interior design experts are looking at the kitchen to become an expression of a homeowner’s personality and style. No longer are kitchens primarily focused on utilitarian functionality but instead on wellness and creative expression. Homeowners should consider warm neutral colors, earth tones, textured woods, and matte finishes as they plan their upcoming kitchen upgrades. Hosting has also become a huge trend, with attention being drawn to kitchen islands and home bars.

Relaxation And Rejuvenation In The Bathroom

Pristine, white bathrooms are staying behind in 2022 as homeowners instead look ahead to a burst of color in the new year. Nature-inspired themes have become especially popular in upcoming bathroom trends. Consider tactile stone and wood textures, leafy green hues, and a calming atmosphere to accent these themes. Spa-like bathrooms have also jumped to the forefront of design trends, with homeowners adding monochromatic metallic gradients and color light displays in showers.

A Comforting Blend Of Indoors And Outdoors

The pandemic initially ignited the trend of mixing indoor and outdoor spaces. Many homeowners itched to bring the comfort of the indoors to their outdoor areas and integrated natural outside elements into their home spaces. Homeowners can blur these lines with large-scale windows, double doors, natural light, large patios, and oversized plush patio furniture.

Consider these 2023 home design trends as you make your new year’s resolutions! And, as always, contact The David Morris Group for more homeowner tips.

winterizing your home, winter home maintenance, winter home improvement, winter home protection, winter home maintenance list, nevada weather, nevada winter, reno, reno nevada, reno sparks, reno tahoe, nevada homeowner, nevada winter home, winter in nevada,

Tips For Getting Your House Ready For Winter

October 21, 2022/in Blog, Reality of Real Estate, Reno Neighborhoods, Reno-Sparks Real Estate /by Shauna Morris

It may seem preemptive to start preparing your house for winter during the cool fall months when apple-picking, running through corn mazes, and exciting fall festivals sound much more fun. But unless you’ve adequately winterized your home, the cold Nevada weather can cause severe damage to your house. So, get a head start on your winter home maintenance list to keep your home warm and safe during the colder months that are just around the corner. Here are some tips on how to get your home ready for winter.

Proper Insulation

Unless you prefer a frigid winter inside your home, insulation is your best friend this season. Cold winter temperatures can skyrocket your energy bill and transform your cozy living room into a freezing white tundra. Before the temperature drops, ensure that your windows, doors, and entryways are insulated appropriately.

Trim Any Branches

Trimming an overgrown yard might seem like the last thing you want to do as the weather gets colder. However, all it takes is one strong winter storm to uproot one of your trees or send overhanging branches flying onto your roof. Make sure tree limbs and branches are at least three feet away from your home.

Service Your Fireplace

Ensure that your fireplaces and chimneys are thoroughly inspected and serviced before winter arrives. While this may seem like an expensive task on your winter to-do list, it is a necessity! Unkept bricks could allow water leaks, and an unserviced fireplace could pose a serious threat to your home if left unchecked.

Inspect Your Roof

Roof leaks are the bane of any homeowner’s existence, but seasoned homeowners know that a pre-winter inspection can save you thousands of dollars in the future. Whether you’re hiring a professional or doing it yourself, look out for the following:

Any loose shingles
Cracked caulk
Rusted spots
Masses of debris
Worn rubber boots around vent pipes
Clogged gutters

Stay ahead of the cold with these tips on properly winterizing your home – you’ll save on energy costs and any potential winter damage, and ensure that this upcoming Nevada winter will be a comfortable one! If you have any questions, feel free to reach out.

Things to Consider with a Cash Offer

August 22, 2022/in Blog, Reality of Real Estate /by Shauna Morris

In a competitive housing market, buyers are pulling out all the stops. You may have enough money to buy a house with cash. But is that a wise decision? As with many major financial decisions, there are pros and cons. Here are things to consider with a cash offer.

Savings & Interest Rates

Amortization is everything when considering financing over a cash purchase. Paying cash will save money on the overall cost of a new home in reference to the interest you’ll pay over the term of a loan. By the time you finish paying off a mortgage, the house will have cost you more than the initial purchase price because of the interest.

Attention of Buyers

A cash offer will likely give you an advantage in a competitive market. It can make all the difference in a multiple offer situation where everyone else is financing the purchase. Sellers will be more likely to accept a cash offer than one with a financing contingency. For example, a cash offer doesn’t require an appraisal on the property, so there is no risk of the deal going south.

Closing Cost & Time

More closing costs are involved in financing a property than paying in cash. For one, you won’t have to deal with a lender or their team of underwriters, and again, you won’t have to pay for an appraisal. The closing process typically takes around 30 days with financing, which can be shortened to as few as ten days with cash, which could be very attractive to sellers.

Long-Term Opportunity Cost

While you will save money by not paying mortgage interest, putting all your assets into a home could yield less money to invest in other endeavors. Tying up all of your liquidity on one asset could potentially cause you to miss out on a return that will be much larger over time. For example, while property typically accrues in value over time, it might not offer the same rate of return as investing in the stock market. One broker explained it best: “you could be making money with your money instead of locking it up in your home.” On the flip side, it’s a pretty great feeling to relax in a home that is 100% paid for rather than paying interest to big banks.

Emergency Funds

While owning your home outright can provide peace of mind because you’ll never have to worry about a mortgage payment, you don’t want to have all your money tied up in your house. You must have enough cash to cover maintenance expenses and emergencies. Homes aren’t always what they seem when glistening on the market. Once you begin to peel that onion, you’ll need enough liquidity to fix it up and make it yours.

Paying cash for a home instead of financing all or part of it is a big decision and should be made with the help of a trusted financial advisor. It is essential to consider all the above factors and ensure your short-term intentions align with your long-term goals.

If you are considering buying or selling your home and looking for a great REALTOR® to show you around the Reno-Sparks area, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Market Update for Reno-Sparks

July 29, 2022/in Blog, Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

Real estate is in all the news today, and the noise is deafening. We want to take just a moment to paint a quick picture of what the market looks like locally. Here is a market update for Reno-Sparks:

Last 90 Days:

Out of 988 homes sold, the average close price was $788,824 – and they spent 64 days on the market.

Out of the 405 homes currently pending, their average list price is $859,025. Pending homes have now been on the market for 84 days.

What is this telling us? The average list price is higher, and they are taking longer to sell. Our market is still great; homes just aren’t flying off the shelves, so to speak.

What Does it Mean?

When looking at the sold homes and the adjusted list prices to sold price ratios, a negotiated price of + or – 2%-3% overall spread provides a fair give and take on values. The days on the market are in line with a rebalance of values. Again, that is good news if we want to see a softer landing than many are predicting.

As of the first of July, sales in the homes that have rebalanced their expectations remain strong, and the market is doing very well. The August/September numbers will be significant as we move through the rest of this year and where we stand on unsold inventory by September and price adjustments.

From this viewpoint, we expect a market correction of asking prices, sold prices, a flattening of values, and a rise in the low single-digit levels as we end the year (assuming another 1% interest increase).

How Does this Affect the Price of My Home?

In an upwelling market, raising prices quickly to ride a wave of price increases is one thing. In an adjusting market, it’s suicide not to adjust to the market swiftly. You’ll risk chasing a market down!

Should I List My Home Now?

For sellers on the fence, selling now is an excellent opportunity. Buyers are highly focused on quality and value, and inventory remains low. With the current interest rates, buyers are making offers. The key words here are that buyers are making offers. Overbids still exist, but fewer than before. Buyers will expect the seller to negotiate.

Is Now a Good Time to Buy?

Buyers waiting for some unrealistic bottom to develop will be sorely disappointed in the results and miss a host of great opportunities in this market. Yes, we will see some fantastic deals on the fringes, and the competition for those homes will be intense. We assume that interest rates will move significantly in the next 60 days. Time will tell.

Please review and call us with any questions, and you should have questions. A lot is going on with many moving parts. Remember, regardless of the “news,” our inventory is small; demand, even reduced demand, still exceeds supply.

If you’d like to stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market or if you’re ready to list your home, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Market Update

July 5, 2022/in Blog, Reality of Real Estate /by Shauna Morris

America’s housing market has undergone some wild swings over the last two years, but it appears to be settling down a bit. According to Realtor.com®, the number of real estate listings rose by 18.7% this June compared with a year earlier. That marks the second consecutive month of growth and the fastest rise in inventory since July 2017. Of course, this new record growth has a long way to go before the nation’s housing inventory is back to its level before COVID, but it’s still a good sign.

The recent numbers correlate with the recent hikes in mortgage rates. Homes are beginning to remain on the market longer as buyers are being pushed out because they can no longer afford to buy. However, new data released by Freddie Mac on June 30th shows a pause in the mortgage rate increase. As a matter of fact, 30-year fixed rate mortgage rates have already begun dropping slightly. “The rapid rise in mortgage rates has finally paused,” Sam Khater, chief economist at Freddie Mac, said in a press release, “largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession.” This pause will help the market rebalance itself and bring homes back to a more “normal” pace of appreciation.

What does that mean for sellers? List now or forever hold your peace! If you’re on the fence about getting your home on the market, now is a great time to get it sold. If you wait, you may have to settle for price reductions and more days on the market.

What does this mean for buyers? Negotiations are back! Sellers no longer have forty showings in one weekend, and concessions are back in play. Buyers have more time to make the right decisions and more options from which to choose.

The market is excellent for buyers AND sellers right now, and we are here to help! Contact the David Morris Group if you have questions about the Reno real estate market and surrounding areas. We’re happy to guide you through the listing or buying process as the market shifts! Give us a call at (775) 828-3292.

Common Homebuyer Regrets

July 1, 2022/in Blog, Reality of Real Estate /by Shauna Morris

A home-buying experience can feel rushed and frantic. Add in rising mortgage rates, low inventory, and bidding wars, and the home-buying process is downright chaotic! For some, buyer’s remorse can creep in once they rush to buy and then begin to notice little things about their new home that they didn’t see before. According to a Zillow survey, 75% of recent homebuyers have at least one regret about their new home. Here are the most common home-buying regrets.

Missing the Bigger Picture

We are still in a seller’s market, meaning there are still more buyers than inventory. This shortage has caused buyers to feel pressured to grab the first home they can find rather than weighing their options more carefully. Fewer homes to choose from, coupled with competition from other hungry buyers, causes pressure. That pressure can cause buyers to miss the big picture. Not fully understanding a new home’s impact on daily life is the most common regret new homebuyers report. Buyers need to anticipate what life will be like in their new home one to five years down the road rather than what their lives are like at the time of purchase. Make sure the home fits the lifestyle you foresee, not the one you’re currently living.

The Importance of Location

Location is one of the most important factors when purchasing a new home. Buyers need to weigh the pros and cons of the neighborhood and community. The area needs to complement how you live, work, and play. Spending twenty minutes inside a property in the middle of the afternoon is only a fraction of the picture. Is there a time of high traffic that contradicts your work schedule? Are you near a school that will have speed limit restrictions and bumper-to-bumper car-line each day? The function and flow of the area are things to consider before signing on the dotted line.

Waiving a Home Inspection

A home inspection is an integral part of the home buying process. It lets you know what’s behind the freshly painted walls. In this competitive housing market, buyers look for ways to make their offers the most attractive, and several have waived the home inspection contingency. DO NOT do this! There could be hidden problems that lead to hidden expenses, and the only way to know that is with an inspection!

Aesthetics over Functionality

Aesthetics can sometimes distract buyers. The interior of a home on the market is cleaner than usual if not staged to look better. Buyers need to focus on the whole house and think about whether it will suit their lifestyle for years to come, not just today. If a newly renovated kitchen is still too small to meet your needs, you will regret it down the line, regardless of the new backsplash. Focus on things you cannot change, like size, location, views, and the actual bones of the home rather than a new farmhouse sink.

Maintenance Costs

Many buyers regret that they didn’t consider annual costs such as HOA fees, property taxes, and insurance fees before purchasing their home. These fees typically increase yearly, and if you’re barely scraping by in the first year, imagine five years down the line. Unexpected maintenance expenses such as plumbing, HVAC, a leaky roof, etc., are all things the home inspection report should outline, and they should be factored in as maintenance costs for the future if they don’t need to be repaired right away.

Buyers who know about these often overlooked factors understand what to look for and feel more secure about their purchase. Setting your priorities before buying will help you feel more confident about your home purchase down the line.

Decoding Deceleration

May 31, 2022/in Reality of Real Estate /by Shauna Morris

Recent news articles on Fortune.com have centered around the decline in housing prices. Economists agree that housing prices will continue to decline in particular regions over the next 12 months. However, it’s essential to distinguish between a “price correction” and “deceleration.” What we are seeing is a deceleration. Deceleration means prices are rising at a more modest rate. It does not mean home values are dropping. Everything is still on an upward trajectory, just not as fast as we have seen over the past year.

The U.S. housing market has slowed down slightly due to increased mortgage rates. Mortgage applications are showing a decline, and fewer listings are getting multiple offers as a result. These factors are causing housing inventory levels to rise, which can be considered good news in several markets.

Moody’s Analytics chief economist Mark Zandi calls this a “trajectory flip.” Meaning that demand is pulling back in the face of higher mortgage rates, but the housing market remains steady. Prices may be going down, but not at an alarming rate, which means home valuations remain healthy.

The memories of the 2008 crash are still painful. However, Zandi says this market shift’s circumstances are different from the 2008 housing crisis. While the spike in mortgage rates has priced some folks out of the market, most homeowners are financially better off than they were leading up to the 2008 debacle. This shift is at the hands of the Federal Reserve rather than banks. Meaning that if nationwide home prices do begin to plummet, the Fed has the ability to ease up on mortgage rates and correct the dive.

Deceleration is not a bad word. Our market is not going down. The market needs to cool so that inventory can stabilize. Multiple offers and bidding wars are not normal market conditions. Buyers and sellers need a team with the wisdom and experience to navigate any market under any circumstance!

We are here for you, and we know what it takes to protect you in any market. If you would like to talk more about the changing market and what it means for you, we’re happy to help. Contact the David Morris Group or call us at (775) 828-3292, and we’ll guide you every step of the way.

Industry Partner Spotlight

May 27, 2022/in Reality of Real Estate /by Shauna Morris

Several players are involved in buying or selling a home. As your REALTOR®, we will guide you through every step of the process, but we rely on our industry partners to help us get the job done. We’d like to recognize Mortgage Lenders in our Industry Partner Spotlight.

What Does a Mortgage Lender Do?

Lenders assist buyers with the application procedures to qualify for a home loan. The lender will pre-qualify the buyer for the money they are financially qualified to borrow. In today’s market, buyers need to be prepared to show their pre-qualification letter when they make an offer to purchase.

How Do I Find a Mortgage Lender?

There are several ways to find a mortgage lender, but finding the right one matters most. Buyers can go online, go through a mortgage broker, or ask their local bank or credit union for a home loan. Most REALTORS® work with preferred lenders and can provide a list for you.

Is a Mortgage Lender a Bank?

It can be a bank, but it doesn’t have to be. Credit unions, non-bank lenders, and online companies have the ability to offer mortgage loans. There are many options to compare and consider. Finding the best option that fits your financial needs is the goal.

How Many Lenders Should I Contact?

A good rule of thumb is to apply with at least three. The rule of three allows you to get a solid idea of the bigger picture and find the best option for your financial situation.

What Questions Should I Ask?

What type of loan do you qualify for? There are several types of loans. The loan you are eligible for will determine your down payment, the loan terms, financial qualifications, and more.
What is the APR?
Will rate locks be available? If so, what are the fees?
Ask about mortgage insurance.
Ask for a detailed estimate of your total expenses and additional fees over the life of the loan.

Is it Better to Go Through a Broker?

A Broker is not a lender. They collect your financial information, then shop and compare lenders on your behalf. Brokers make the selection process easier and smoother for homebuyers. They typically have a higher chance of finding the best options since they are familiar with the industry.

We’d like to recognize and thank the professionals that we work with:

Chris Finley | Bay Equity
C: 775-846-3663 | E: [email protected]
Julie Millare | Summit Funding
C: (775) 815-8480 | E: [email protected]
Brian Urbani | Movement Mortgage
C: 775-813-2136 | E: [email protected]
Patrick Winchell | New American Funding
C: 775-230-5023 | E: [email protected]

If you have questions about the Reno-Sparks real estate market, financing, buying, or listing a home, contact the David Morris Group. We’re happy to be your guide. Give us a call at (775) 828-3292.

Most Unexpected Housing Costs

May 26, 2022/in Reality of Real Estate /by Shauna Morris

It is no secret that the current market is a Seller’s Market. Bidding wars have become the norm, and homebuyers have stretched their budgets to the limit. In a recent survey conducted by Consumer Affairs, homebuyers reported spending an average of $10,334 over what they initially budgeted. Going over budget has left new homeowners unprepared for the most unexpected housing costs.

Property Taxes

This year, property taxes were the most unexpected housing costs for new home buyers. The spike in housing prices has increased property value, which has caused an increase in property taxes.

Utilities

With 26% of those surveyed saying they hadn’t budgeted enough for their utilities, this bill came second as the most unexpected housing cost for new homeowners.

Maintenance & Repairs

The recent market has not been favorable of contingencies in offers to purchase, allowing sellers to decline repair requests. New buyers have been left to fend for themselves to repair items that due diligence would have handled in a less competitive market.

HOA Fees

While HOA fees were an expense on the survey, they weren’t necessarily unexpected. Still, 7% of homeowners surveyed said they are among the most expensive costs of owning a home.

Landscaping

First-time home-buyers who have rented since leaving their childhood homes were reported to be caught off guard by the expense of landscaping and yard maintenance.

While costs are rising for homeownership, Americans still want to buy. Those surveyed said that owning a home made them feel proud, independent, and satisfied despite the financial strain.

If you need help creating a financial plan to buy a home this year, we are happy to help! Contact the David Morris Group. Or give us a call at (775) 828-3292.

David Morris Group Blog-Reno Real Estate-Sparks Real Estate-buying a home-selling a home-real estate market-real estate professional

Fixed-Rate or Adjustable-Rate Mortgage

April 26, 2022/in Reality of Real Estate /by Shauna Morris

When shopping for a home loan, the first step is determining which loan type best suits your needs: a fixed-rate or adjustable-rate mortgage.

Fixed-Rate Mortgage

A fixed-rate mortgage remains unchanged throughout the life of the loan by charging a set interest rate. The payments will be the same each month which makes budgeting easier. A buyer can choose either a 15-year term or a 30-year term. The term is the time it will take to pay off the loan. A shorter-term mortgage will have a lower interest rate at a higher monthly payment. The payment is higher because the borrower must repay the principal amount of the loan in less time. The main advantage of a fixed-rate loan is that the borrower is protected if interest rates rise over the life of the loan. The downside is that when interest rates are high, the payments are less affordable, making it more challenging to qualify for a loan. Another downside is that borrowers are locked into their interest rate if interest rates drop. The homeowner will have to refinance their existing loan to take advantage of lower interest rates, which can be a cumbersome process.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage will change over the life of the loan based on market interest rates. Initial interest on an adjustable-rate mortgage (ARM) is set below the market rate for a fixed time. The fixed period could be anywhere from one month to seven years. Once the fixed period ends, the loan will reset to a new interest rate based on current market rates. When the loan resets, the homeowner’s monthly payments could increase or decrease, and they will be locked in until the next reset.

Low initial payments could enable the borrower to qualify for a larger loan. If market rates drop, the borrower will have lower monthly payments due to lower interest. However, if market rates go up, so does the monthly payment. An adjustable-rate mortgage may be a good choice if you know you’re going to move within a short period and won’t live in the home long enough for the term to change.

Adjustable-rate mortgages are not as straightforward as fixed-rate mortgages. Before jumping in, ask the following questions:

How soon will the payment change?
How frequently will the interest rate adjust?
Is there a cap on how high the interest rate could go?
Is there a limit on how low the interest rate could go?
What direction are interest rates heading today, and will that trend continue?

When choosing a mortgage, you need to consider the economic realities of an ever-changing market. If interest rates are high and expected to fall, an adjustable mortgage will take advantage of the drop. However, if interest rates are low, run the numbers to determine the worst-case scenario. If a predictable monthly payment is important to you, a fixed-rate mortgage may be the way to go. If you are not sure which mortgage is right for you, your mortgage broker will be able to help.

If you would like some more information about buying a home, or if you’re looking for a great REALTOR® to show you around the Reno-Sparks area, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.