Reality of Real Estate | David Morris Group

The Reality of Real Estate: Nevada First-Time Homebuyer Loan Programs – What Do They Offer and Can They Help Cover Upfront Costs?

As a leading real estate broker in Northern Nevada, we’ve worked with buyers and sellers with a variety of needs, wants, and tools at their disposal. While we are not mortgage brokers and can’t give you loan information that is specific to your circumstances, we have come to learn that there are some great first-time homebuyer programs available to help you cover the costs and secure financing for your dream home.

National Programs

FHA Loans – Popular amongst buyers with low credit scores and those that can only afford a small down payment. The Federal Housing Administration allows down payments of 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500. Mortgage insurance is also required for an FHA loan.
VA Loans – Military members, veterans, and surviving spouses can qualify for loans with no minimum credit score and no down payment or mortgage insurance, but be prepared to pay a VA funding fee.
USDA Loans – Eligible rural and suburban homebuyers can receive a zero-down-payment mortgage through the USDA Rural Development Guaranteed Housing Loan Program. There are very specific limitations and guidelines you’ll have to meet to qualify.

Nevada Programs

Home Is Possible (HIP) – First-time and repeat homebuyers can receive up to 5% of the loan amount to pay the down payment, closing costs, or a combination of both. The money doesn’t have to be repaid if you keep the home as your primary residence. There are a variety of limitations that must be met, and you will need to complete a homebuyer education course.
Home Is Possible for First-Time Homebuyers – Down payment and closing cost assistance up to 4% of the loan amount that is strictly for first-time home buyers. There are limitations you will need to meet, but the money doesn’t have to be repaid if you stay in your home for 15 years.
Home Is Possible for Heroes – Active-duty military, honorably discharged veterans, members of the National Guard, and surviving spouses are eligible for below-market interest rates with a one-time fee of $755. Again, there are specific limitations you’ll need to meet, and an education course is required.

There are great programs at your fingertips to help you with the purchase of your first home. If you’re worried you can’t qualify for a great loan or won’t be able to secure financing, meet with an established mortgage lender to talk through your options. They have the tools and resources to find you the best program and can educate you on how to become a homeowner.

If you’d like some recommendations on great lenders in the area to contact for more information or you’re simply curious about the tools, resources, and knowledge we have for first-time homebuyers, contact the David Morris Group at 775-828-3292!

The Reality of Real Estate: Buying a Home Can Take Weeks or Months, So Be Prepared for a Lengthy Process

Many first time homebuyers fall for the illusion that buying a home will be as simple as picking out a dream home, signing on the dotted line, and then being handed the keys. Unfortunately, that’s not how it works. It can take anywhere from 30-60 days just to close on a home in a normal market, so let’s break down the home buying process with a realistic timeline of when you can expect to move into a new home.

Getting Pre-Approved for a Mortgage – 1-2 Weeks

After researching lenders and deciding on the best type of mortgage for you, it usually only takes about five business days to get mortgage pre-approval. Make sure to do your due diligence and shop around for the best deal and the best lender.

Creating a Wants and Needs List and Browse Listings – 5 Days

Your first list of things you need and want in a home may take you only an hour to create, but once you begin looking at the current listings, you may think of things you need, like specific neighborhoods to be in, school districts you like, and style of homes you’re drawn to.

View Houses – 1 Week-5 Months

Depending on the list of wants and needs you have for your home and the current market, you could find your perfect home quickly, or it could be a couple of months of searching. It’s not uncommon to spend 4-5 months searching before your offer is accepted on a home that meets your needs and some of your wants,

Make an Offer and Negotiate – 1-5 Days

Depending on the seller and how speedy they are to respond to your offer, this may be a quick period in the timeline or take a few days. If they reject your offer or make a counteroffer, this can also draw out the process.

Get Loan Approval – 1-2 Months

If you’ve been pre-approved for your mortgage, your real estate agent will gather the paperwork needed for your lender to approve your loan. On average, this takes about 45 days to come through, but it could be faster or slower, depending on the market.

Have Your Home Appraised – 1-2 Weeks

Your lender will hire an appraiser to evaluate the true value of your home. Once the appraiser comes out, it usually takes about three days to get the report back.

Get a Home Inspection – 1-3 Weeks

The home inspector will determine if there are any unexpected surprises and things of note that may need to be addressed before buying the home. You usually have about a 10-day period to conduct an inspection, and you’ll have the report back within 24 hours. It could take a few weeks to renegotiate the contract if any unexpected problems arise from the inspection report.

Closing – 1 Day

After all of those steps have been completed and you’re ready to close, you’ll have one long appointment to hand over your down payment and closing costs and sign a ton of paperwork. Seriously, you may leave with a hand cramp after all the signing, but you’ll officially be a homeowner!

Now, this is just a general timeline of how long it takes to buy a home, but it can certainly be sped up or more drawn out depending on what you’re looking for and what the current market has to offer. If you’re curious about what the Reno real estate market looks like currently and how we can help you buy your dream home, contact the David Morris Group at 775-828-3292!

The Reality of Real Estate: Winning Your Dream Home in a Multiple Offer Situation

October 9, 2020/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

In a real estate market with more buyers than sellers, buyers can often be more competitive and put sellers in a position to receive multiple offers. How can you make your offer stand out and help you win your dream home in a multiple offer situation? If you play your cards right, it may not come with a higher price tag either!

1. Appeal to the owner’s reasons for selling.

Something as simple as understanding why the seller has put the home on the market, can help you appeal to the problems they may be facing. Taking the initiative to understand the seller’s point of view and being empathetic to their situation will often win you points and gain you a good first impression from the seller.

2. When it comes to closing, don’t dilly dally.

A quick closing is appealing to many sellers. It’s why many will be enticed by a cash buyer or anyone that is working with a lender that can fast-track the financing. Offering little to no waiting period for closing can make any offer standout.

3. Personalize the offer.

Sellers can drown in a sea of paperwork, especially in a multiple offer situation. Add a personalized note to the seller that pulls at their heartstrings and highlights what you find so special about their home. Many homeowners are sentimental about their house and would like to sell to someone that sees its worth just as much as they do.

4. Be flexible and easy to work with.

In a high-stress situation, the seller is looking for someone that is a breath of fresh air. Be willing to work with the seller and make compromises and concessions. Don’t negotiate over superficial repairs and only sweat the big stuff.

5. More earnest money can sweeten your offer.

Showing serious interest and commitment to buying the home can come in the form of offering more earnest money. You will immediately differentiate yourself from other offers.

Think outside the box and having creative solutions at your fingertips can help you win in a multiple-offer environment. Have questions about how we can help you win your dream home in a multiple offer situation without paying the highest price? Contact the David Morris Group at 775-828-3292.

The Reality of Real Estate: What are Home Inspectors Looking for, and How Can it Save You From Making a Bad Investment?

September 24, 2020/in Reality of Real Estate /by Shauna Morris

Before closing, you’ll want to hire a professional home inspector to identify any underlying problems and the overall condition of the home. It saves you from making a bad investment, gives you an idea of the maintenance and repairs you may need to make the home, and may even give you some leverage to make negotiations on the asking price if there are things that will need to be fixed. Let’s take a look at what home inspectors are looking for.

1. Signs of mildew and mold

Inspectors will look closely at basements and crawlspaces for mildew odors. They may also use a meter to determine how much moisture is present, as moisture can deteriorate building materials and attract insects. They will also look closely at the walls and floors for patches of mildew and signs of dampness.

2. Problems with the roof and chimney

Any loose or deteriorated roof shingles will be notes in the inspector’s report, as well as if there are any moist or rotted elements beneath the shingles. They will also check that the chimney is watertight and that mortar and bricks are in good condition.

3. Plumbing functionality

Each toilet will be flushed, faucet turned on, and dishwasher ran in order to check the water pressure and see if there are any leaks. If there are any signs of water damage or concerns for the health of the septic system, it will be noted.

4. Problems with electrical systems

Inspectors will make sure that the home is up to code and that circuits are running properly. They will ensure that the electrical system isn’t being overloaded and is safe to live in.

5. Structural integrity

Over time water can cause the soil around the foundation walls to expand, and when the water goes away, the soil shrinks, and the foundation settles. This creates cracks and pathways for water to enter the structure. This is a big item that inspectors will be looking for. They want to make sure the home is structurally sound.

6. Pest infestations

Carpenter ants, beetles, termites, and rodents can be some of the most damaging pests to a home. Inspectors will look for signs that there is an infestation or if there have been previous problems with these pests.

7. Trouble with the HVAC system

As a homeowner, you’ll want to ensure that your home has proper heating, ventilation, and air conditioning. Home inspectors will check to make sure all basic functioning of the HVAC system is in working order, and they’ll note if there’s anything that could be troublesome in the future like rust around the unit, cracked ductwork, etc.

Home inspections give you a great overview of the home as well as another unbiased opinion on if the house is a good investment. Don’t skip out on getting a home inspection to save yourself a few bucks now. You could be putting yourself in a tough financial position in the long run.

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

The Reality of Real Estate: Are Home Warranties Worth it or an Unnecessary Cost?

September 11, 2020/in Reality of Real Estate /by Shauna Morris

As a new homeowner, you have a lot on your plate to figure out. From mortgages to insurance and property taxes, there’s a lot of money being taken out of your account, legal jargon being spewed at you, and paperwork to sign. Now you have a new term being thrown at you — home warranty. What is it, and do you need it? Let’s take a look.

What is a home warranty?

Put simply, a home warranty is a one-year service contract that covers the repair of home system components and appliances.

How is a home warranty different than home insurance?

Home warranties cover the repair of home systems like kitchen appliances, A/C, and plumbing from normal wear-and-tear damage. Home warranties are also optional, while home insurance is usually required to secure financing for your mortgage. Home insurance generally covers damages caused by fires, theft, storms, and natural disasters.

Does having a home warranty ensure I will not have to pay for repairs?

NO! Many homeowners believe that a home warranty is a flat fee for unlimited repairs and no out of pocket costs, but that’s not the case. Every time you make a claim with your warranty provider and a technician is sent out, you will be charged a deductible that usually costs anywhere from $50 – $125. You will be charged that deductible for every appliance that needs to be repaired.

Also, home warranties often include escape clauses to deny coverage. For example, some repairs will not be covered if they can be chalked up to a “pre-existing condition” or if the cost of repairs is more than the set amount laid out in your contract. Many warranties give the issuer the right to deny the customer repairs if they can’t show proof that they’ve maintained the appliance or system on a regular basis. Be sure to read the fine print!

What if I have a manufacturer’s warranty?

Items that are covered under a manufacturer’s warranty are usually not covered under a home warranty. If you’re buying a new construction home or new appliances, you’ll likely have a manufacturer’s warranty, so if you purchase a home warranty, you’ll be doubling up on coverage and spending money you may not need to.

If you’re considering getting a home warranty, be sure to read the terms and conditions closely and ask questions. Compare rates and coverage and make the right decision for you. If you decide not to purchase a home warranty, we recommend setting aside a few hundred dollars a month for any unexpected costs and repairs that spring up.

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

The Reality of Real Estate: Homes Need Continuous Maintenance – The Ultimate Seasonal and Monthly Improvement Checklist

August 20, 2020/in Reality of Real Estate /by Shauna Morris

It’s no secret that homes need continuous maintenance, but you may be surprised to learn about some of the improvements that should be included on your running to-do list. As a homeowner or even a potential homeowner, it’s important to know about what the maintenance looks like. Use our checklists as a great foundation.

Monthly Maintenance Checklist:

Clean the furnace filter and A/C filter.
Check the water softener and replenish salt if necessary.
Clean faucet aerators and showerheads to remove mineral deposits.
Inspect tub and sink drains for debris; unclog if necessary.
Test smoke alarms, carbon monoxide detectors, fire extinguishers, and all ground-fault circuit interrupters.
Inspect electrical cords for wear.
Vacuum heat registers and heat vents.
Check that indoor and outdoor air vents are not blocked.
Flush out hot water from the water heater to remove accumulated sediment.
Clean the garbage disposal.
Inspect roofing for missing, loose, or damaged shingles and leaks.

Fall Maintenance Checklist:

Rake leaves and aerate the lawn.
Check fireplace for damage or hazards, and clean fireplace flues. Have your fireplace professionally inspected.
Seal cracks and gaps in windows and doors with caulk or weather stripping; replace if necessary.
Touch up exterior siding.
Power-wash windows and siding.
Clean gutters and downspouts.
Mend cracks and gaps in the driveway and walkway.
Drain and winterize exterior plumbing.
Drain and store hoses, and drain in-ground sprinkler systems.
Wrap insulation around outdoor faucets and pipes in unheated garages.
Check water heater for leaks.

Winter Maintenance Checklist:

Cover your A/C unit.
Check basement for leaks during thaws.
Vacuum bathroom exhaust fan grill.
Vacuum refrigerator and freezer coils and empty and clean drip trays.

Spring Maintenance Checklist:

Clean window and door screens.
Polish wood furniture, and dust light fixtures.
Refinish the deck.
Power-wash windows and siding.
Remove leaves and debris from gutters and downspouts.
Inspect sink, shower, and bath caulking for deterioration.
Vacuum lint from the dryer vent.
Repair or replace caulking and weather stripping around windows, doors, and mechanicals.
Remove insulation from outdoor faucets and check sprinkler heads.
Have A/C system serviced.
Fertilize your lawn.

Summer Maintenance Checklist:

Oil garage-door opener and chain, garage door, and all door hinges.
Remove lint from inside and outside washer hoses and dryer vents.
Clean kitchen exhaust fan filter.
Clean refrigerator and freezer coils and empty and clean drip trays.
Check dishwasher for leaks.
Check around kitchen and bathroom cabinets and around toilets for leaks.
Replace interior and exterior faucet and showerhead washers if needed.
Seal tile grout.
Prune trees and shrubs.

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

The Reality of Real Estate: Crucial Tips for New Homeowners

August 17, 2020/in Reality of Real Estate /by Shauna Morris

You’ve found your dream home, made an offer, gone through inspections and negotiations, and are finally being handed the keys, but what’s next? You’ve just made one of the largest financial decisions of your life, and while there’s a lot of excitement and relief to have the keys in your hand, your job is just beginning. Below are some crucial tips for new homeowners to take care of.

Before you move in:

Change the locks – Before you move in, you’ll want to change all of the locks and reset the passcodes to any and all points of entry. You never know who the previous owners have given keys to or passcodes to, so to make sure you keep your new home secure, it’s best to switch out the locks.
Paint the house – Trying to paint rooms while you’re living in the home and have furniture and items in your home to avoid is an inconvenience to put it lightly. Take care of painting projects before bringing in your home items.
Deep clean the home – It’s likely that in the midst of showings and moving out, the previous owner had little time to hire a professional cleaner. Consider hiring a team to make sure you’re starting off your time in your home on the right foot.

After you move in:

Find a handyman – At some point, you’ll need something repaired or a project to tackle, and it’s always nice to have someone you can rely on for those things. Find a trustworthy handyman you can rely on to help you with a variety of home service needs.
Get to know your neighbors – You never know when you’ll need to ask them to water your lawn or grab the mail for you, so establish a good relationship with your neighbors from the start. It will also help to know who your neighbors are when it comes time to work on things together like trimming trees, replacing fences, etc.
Put important paperwork together – As a homeowner, you’ll inherit manuals, warranties, and a variety of other paperwork. It’s important to keep these things together and organize them in a folder for when you need them. Be sure to add to that folder as you make updates to your home – they will come in handy when you sell your home!

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

The Reality of Real Estate: An Inside Look at the Costs of a Home Mortgage

July 28, 2020/in Reality of Real Estate /by Shauna Morris

There’s no substitute for talking with an experienced lender to give you all of the important details about your home mortgage and the rates they can give you, but that doesn’t mean we can’t give you the inside scoop on the costs and general factors associated with a home mortgage. Check out some of the important contributions you’ll have to understand and contend with as a homeowner.

Principal – The amount of money you borrowed to finance your home. If you’re looking to purchase a $300,000 home and made a $60,000 down payment, your principal would be $240,000.
Interest – The fee that lenders charge in exchange for the loans they give to homeowners. Mortgage interest rates fluctuate wildly and also depend on your debt-to-income ratio. The better your credit, the better you will look like a sound financial investment to lenders, and the better your interest rates.
Property tax – The taxes your local government levies on your property in order to pay for community amenities like snow plowing, street sweeping, funding public schools and fire departments, etc. Many lenders will have you build an escrow account that saves money for the property tax payment by charging a little extra for your mortgage payment each month and setting aside those extra funds into a separate account. When it’s time to pay your property taxes, your lender will take care of it from the funds you’ve set aside. Property taxes are a percentage of your home’s value.

There may be other costs associated with your home mortgage that your lender will outline for you. Before choosing a lender, be sure to ask questions about if they set aside an escrow account to help you pay for your property taxes and home insurance, along with the interest rates you qualify for.

Remember that you not only want the best deal, but a lender that communicates with you and is ready and willing to answer any and all questions and concerns you have as they arise. Who you partner with can have a meaningful impact on how you feel about purchasing and owning a home.

As a first-time homebuyer, it’s crucial to understand the responsibility and costs associated with owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

The Reality of Real Estate: Defining “Pride of Ownership” and How it Plays Into Maintaining Your Home

July 24, 2020/in Reality of Real Estate /by Shauna Morris

If you’ve casually perused home search sites or been on home tours, you’ve likely heard or seen the phrase “pride of ownership.” That sounds like a nice phrase, but a quick Google search shows that some people have a negative connotation associated with it.

As a reliable real estate team who has seen our fair share of homes and homeowners over the years, we use “pride of ownership” to mean that a homeowner has taken great care in maintaining their home. We use it to show that this property stands out to us over some of the others in the area.

What do we look for in a home to label it a property that has “pride of ownership”?

Transformed spaces that are eyesores into useful and beautiful spaces – Think of this as a finished basement, attic, shed, garage, etc. They can often be dark spaces that are used for extra storage, but they are rarely places you want to spend your time. If a homeowner has gone above and beyond to turn it into a functional space for their family, you know that they’ve made the home a personal oasis and took extra care of it.
Unique features that set the home apart from others in the neighborhood – If a home is a custom build home or has things like unique light switches, remote-controlled fireplace, top of the line security system, etc., it shows that the homeowner wanted the home to show their personality and be functional to their lifestyle.
Appliances have been replaced – If the homeowner has recently replaced the roof, fence, A/C, it shows that they wanted to keep the home in great condition for themselves and the next owner. If the owner has also replaced things like the refrigerator, sinks, etc., it shows that the owner wanted the home to reflect their personal style or be more in line with what’s popular in today’s home designs.

If you’re a first-time homebuyer, you may just see that there are pretty finishes or lots of square footage, but looking past that can give you a better idea of how the home has been maintained over the years. It also gives you a better idea of the responsibilities you’ll have as the owner.

If the home has a beautiful garden, a finished basement, and a “she shed,” you’ll have more to maintain. You’ll have to make sure the garden isn’t taken over by critters who like to feast on plants, the basement remains sealed from elements so it doesn’t make your home more costly to heat and cool, and ensure the shed is cleaned and used as often as your home to keep it from turning it into a spider shed!

As a first-time homebuyer, it’s crucial to see a home clearly and understand the commitment and responsibility associated with owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

The Reality of Real Estate: The Smaller Details of Home Ownership That Can Have Major Costs

June 23, 2020/in Reality of Real Estate /by Shauna Morris

If you’re thinking about purchasing a home, you’ve likely had your friends, family, and even your lenders talk to you about how much you can afford. You may have budgeted for mortgage payments, home insurance, and even property taxes, but what about pest control, lawn care, and add-ons?

Check out some of the most frequent home costs that people rarely plan for or understand before jumping in:

Cable, phone, and internet costs – Larger homes are notorious for needing wifi extenders or more expensive internet packages to ensure there’s a strong internet connection throughout the home. There can also be added costs if there’s a problem with the wiring, and an electrician has to come out to rewire or repair the lines.
DIY fails, renovations, and add-ons – HGTV has made many people feel empowered to tackle those home improvement projects that they’ve seen on TV or have been dreaming about since they bought the house. Unfortunately, no matter how many hours of Property Brother or Fixer Upper we’ve watched, it likely hasn’t made us contractors, plumbers, or counter installers. Trying to take on large projects may cost you more in the long run if you mess up, ruin materials, and have to call in an expert to fix your mistakes and do the job you originally wanted done.
1. Bonus tip: Add-ons and renovations can cost more than just the parts and labor to get the project finished. They can also increase your property taxes each year. Before starting any major add-on, contact David Morris Group to discuss your plans and how it affects home value.
Pest control – Instead of calling your landlord to spray for bugs or calling an exterminator to take care of any vermin like you did when you were a renter, now it’s your responsibility to pay what can be hefty bills to take care of pest problems. It’s recommended to spend a few hundred dollars to get your home inspected and sprayed every few months to be proactive rather than the thousands it can cost with a full infestation.
Lawn care and cleaning – Many find the added square footage and added outdoor space of a single-family home, while nice, is also hard to maintain by themselves. If you decide to enlist some help to keep your home clean and your lawn from growing too wild, you’ll be looking at a couple of hundred dollars of added expenses each month.

As a first-time homebuyer, it’s crucial to understand all of the costs that you will face as a homeowner and start budgeting for them early. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

National Programs

Nevada Programs

Getting Pre-Approved for a Mortgage – 1-2 Weeks

Creating a Wants and Needs List and Browse Listings – 5 Days

View Houses – 1 Week-5 Months

Make an Offer and Negotiate – 1-5 Days

Get Loan Approval – 1-2 Months

Have Your Home Appraised – 1-2 Weeks

Get a Home Inspection – 1-3 Weeks

Closing – 1 Day

1. Appeal to the owner’s reasons for selling.

2. When it comes to closing, don’t dilly dally.

3. Personalize the offer.

4. Be flexible and easy to work with.

5. More earnest money can sweeten your offer.

1. Signs of mildew and mold

2. Problems with the roof and chimney

3. Plumbing functionality

4. Problems with electrical systems

5. Structural integrity

6. Pest infestations

7. Trouble with the HVAC system

What is a home warranty?

How is a home warranty different than home insurance?

Does having a home warranty ensure I will not have to pay for repairs?

What if I have a manufacturer’s warranty?

Monthly Maintenance Checklist:

Fall Maintenance Checklist:

Winter Maintenance Checklist:

Spring Maintenance Checklist:

Summer Maintenance Checklist:

Before you move in:

After you move in:

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