first time home buyer tips | David Morris Group

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.

The Reality of Real Estate – The Hidden Costs of Owning and Maintaining a Home

June 12, 2020/in Reality of Real Estate /by Shauna Morris

Buying a house comes with upfront costs as well as recurring monthly costs, but that’s not all. Your home will also have unexpected issues that arise and will take dollars out of your pocket to fix. You have to be ready to make your payments on your residence as well as have a fund set aside to take care of maintaining your property and an emergency fund should any major problems arise.

In fact, these hidden costs of owning and maintaining a home may mean you want to search for a place that costs a little bit less than what the lenders have pre-approved you for. The extra money you save can go towards the new saving accounts you’ll have to open – one for home maintenance and one for emergencies.

How much should you budget for?

There are differing opinions on how much money you should be allocating to your maintenance fund each month. According to Freddie Mac, homebuyers should budget up to 4% of the property’s value in annual maintenance costs. On the other hand, The Balance suggests budgeting to spend at least $1 per square foot of your home in maintenance costs each year. As real estate experts, we advise erring on the side of safety and budget by whichever value is more.

Basic expenses you’ll face as a homeowner.

Your mortgage payment is only the start of the costs you’ll have to pay. Other expenses could include:

Annual property taxes
Landscaping
Hazard insurances
Heating and electricity
Water
Sewer
Internet service/Cable
Property management fees
Private mortgage insurance
Homeowner’s association fees
Replacing appliances

Big-ticket items will eventually need replacing.

It’s likely that at one point or another, your home will need to have appliances and larger housing components replaced. Below are the average life spans of some of the items in your home. (Bonus tip: always find out how long it’s been since items in the home were replaced – it will help you estimate the higher upfront costs you could be facing if something needs to be replaced within months of moving in.)

Roof – 20 to 30 years
Carpet – 8 to 10 years
Linoleum floors – 25 years
Vinyl floors – up to 50 years
Wood, marble, slate, and granite – 100 years
Decks – 20 years if well-maintained
Oil furnace – 20 years
Gas furnace – 18 years
Electric furnace – 15 years
Central air conditioner – 15 years
Gas range – 15 years
Electric range – 13 years
Refrigerator – 13 years
Dryer – 13 years
Freezer – 11 years
Washing machine – 10 years
Dishwasher – 9 years

Tips for keeping your home costs down.

If you’ve found some of this information a little overwhelming, there are things you can do now to help you lower your costs, like:

Get a thorough inspection in advance and take action on the issues that the inspector finds.
Be proactive about fixing items early. Small issues can turn into big issues if not dealt with.
Consider a home warranty plan.
Switch to energy-efficient appliances and improvements whenever you have to replace something.

As a first-time homebuyer, it’s crucial to understand the hidden 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.

The Reality of Real Estate: Decoding the True State of a Home While Conducting a Virtual House Hunt?

May 26, 2020/in Reality of Real Estate /by Shauna Morris

With spring and summer being some of the busiest homebuying periods of the year, now may be the time that you begin looking at homes on the market, weighing the pros and cons of neighborhoods, and meeting with lenders. In the current market, you’ll likely be doing a lot of the Reno home searching online but when you’re not able to visit the house in person, it’s important to know how to uncover the true condition. Check out the things we’ve learned about conducting a virtual house hunt.

Decode the Online Listings

Some real estate agents will be using words and photos to hide the true state of the home. You’ll want to look for things that could prove to be misleading, like:

Are there only photos of the interior or the exterior? This could show that maybe the inside or the outside of the home needs work.
Do the photos look stretched in any way? Some agents or sellers may be trying to make the spaces look larger than they are by stretching the photos of certain rooms in the home.
Does the listing include references to a spacious backyard, extra bedrooms/bathrooms, or a dedicated home office that isn’t pictured? If not pictured, they may not be in great condition or could be small and show that the layout of the home isn’t functional.
What kind of adjectives are used to describe the home/do they match the photos? For example, the term “cozy” could be used to mean small, or it could just mean that the space is a great family gathering area of the home.

Reach Out to Your REALTOR® About Virtual Tours

Many listings will include property videos or a virtual tour of some kind, but in order to make them useful, ask your REALTOR® if they can find you more footage of the home or walk you through the home via a video call. This way you can look at any blind spots that may not show up in the original video as well as see the little details that may be overlooked in a hype video but will matter when you’re living in the home.

Get a Better Picture of the Home

If the home has piqued your interest by the photos, description, and virtual tour, reach out about the seller’s disclosure. It gives a great outline of any problems the home may have, any improvements the home has had, and when the improvements/features were made. This can be a great way to help you decide to take the next step and make an offer on the home or rule it out.

Having a team on your side to show you the ins and outs of virtual househunting, especially as a first-time homebuyer, is crucial in these uncertain times. We’re more than happy to help, so give the David Morris Group a call at 775-828-3292.

The Reality of Real Estate: Most Agents Won’t Say This, But Home Buying Can Wait. Here’s How You Can Prepare During COVID-19 Restrictions.

May 15, 2020/in Reality of Real Estate /by Shauna Morris

Being a first-time homebuyer can be a daunting journey during normal times, but faced with new challenges and changes amidst a pandemic may have you deciding to wait until some of the restrictions are lifted. As experienced agents, we know that buying and selling a home has to be done in line with you or your family’s needs. If you decide buying a home can wait, there are still steps you can take to be prepared for when the time comes.

Narrow down the neighborhoods or the areas that you would like to live in.

There are many great neighborhoods to choose from, especially in Reno and Sparks. Begin narrowing down the neighborhoods or the mile radius of the area you’d like to look in. Here are some questions to ask and answer when narrowing down where you’d like to live:

How far are you willing to travel for work? Will you need to travel often for your job/is being close to the airport important?
Which schools/districts would you like your kids to be a part of? Look at programs, graduation rates, and afterschool activities offered. What about higher education?
Are community amenities like pools, picnic tables, and basketball courts important to you?
Do you need to be near parks, trails, grocery stores, restaurants, stores, entertainment options, etc.?
Are there community groups/publications that will help you and your family acquaint yourself with the new neighborhood should you move there?

Once you’ve come up with neighborhoods or areas you like, you’ll want to confer with your REALTOR® and ask a few questions, like:

How have property values changed in the neighborhoods over the years?
Are there projected developments coming to the area? Is land in the area zoned for residential or commercial projects?
Is there an HOA or community association, and if so, are there stipulations on what you can and can’t do with your home/property?

Save, save, save.

Currently, lenders are tightening their restrictions on who they offer funding to. To make yourself look like a smart investment for lenders, you’ll want to have enough money saved to cover the downpayment, closing costs, and several months of mortgage payments in the scenario that you are laid off.

Create a list of needs and wants you’re looking for in a home.

Most first-time homebuyers aren’t really sure what kind of home they’re looking for or aren’t thinking about the future and how their needs will change. You want a home that fits your current lifestyle but will continue to grow with you. You may have to compromise on a few items on your wishlist, but you should have a general idea of the kind of home you’re looking for. You may have to have tough conversations like:

How many children do you want to have?
Will you or your partner’s parents live with you in the future?
Do you plan to work from home/homeschool your children?

Questions like this help you decide the number of bedrooms and bathrooms you’ll need, if a second master suite is necessary, and if you should seek out homes with a dedicated home office.

If you are looking for a dedicated team that can help you begin the process of searching for your future home, give the David Morris Group a call at 775-828-3292. We’re more than happy to help you from start to finish!

The Reality of Real Estate: Reno’s Current Real Estate Market – The Answers You’ve Been Looking For

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

Questions are looming in everyone’s minds, and conversations continue to focus on how the economy will bounce back, how to keep families safe and healthy, and if it’s ok to buy or sell a home in the current market. We’re here to give you the answers you’ve been looking for.

Can You Sell Your Home Today? YES!

COVID-19 has changed our lives in more ways than we even know today, and now, new questions are cropping up like: has it changed your home’s value? Are there buyers interested in your home? Can you even sell your home today? The answer is, yes!

Did you know that inventory is expected to significantly increase by mid-June? Right now, the market is starved for good homes to buy, and prices are holding very well.

Since you have been living in your home under a stay-at-home order, is this where you want to live when the next one is announced? If not, what are you looking for in your next home? We never thought the question of, “would you want to be quarantined here,” would ever be a consideration, but now it’s a necessity — how times have changed.

What is inventory like? LOW!

We are currently flooded with motivated buyers looking for their next home. The rates are outstanding, buyers are focused, and these buyers want to be settled into their homes as soon as possible. Inventory is very, very low, so buyers are hungry for new homes to be listed.

What is the market like for homes valued under $600,000? HOT!

As of this week for homes under $600,000 — 141 homes are pending sale out of 179 that are available in all of Reno/Sparks*. Close to 80% of homes are selling in less than 30 days!

We’re experts at understanding the Reno real estate market and how it changes, and we’re here to help our community in these uncertain times. It’s more important than ever to work with a team that can predict changes, give you honest answers, and navigate the market for buyers and sellers. If you have any questions, please don’t hesitate to give the David Morris Group a call at 775-828-3292. We’re wishing you all good health.

*Data provided is for homes listed since March 15th, 2020, the start of the stay-at-home order. Inventory changes daily as well as values, interest rates, and absorption rates.*

The Reality of Real Estate: Buying a Home In an Uncertain Market – The TRUTH from Experienced Agents

April 16, 2020/in Reality of Real Estate /by Shauna Morris

First-time homebuyers often have many steps to take before owning a home. You’ll have conversations with family and friends who have been through the Reno real estate process and meet with Reno lenders and real estate agents that will help you find and pay for your home. If that wasn’t enough to have on your plate, experiencing a pandemic can add extra stress, but rest assured that your dream of owning your own home can still happen, but you may have to be flexible about how things work. Here are things that we’ve learned about buying in the current climate.

The market will rebound but it’s ultimately your situation that matters most.

The Reno market is strong and will always bounce back but ultimately, it’s your situation that matters the most when deciding to buy or sell. If you’re hesitant to jump into the market, we can assure you that real estate will always be essential. If this is a convenient time for you to buy a home, you’ve found some homes that you really like, you have job stability, and you can get financing at low rates, take advantage of this time and find your right home!

You may need more documentation for your lender.

There’s a lot of uncertainty about how the current times will affect the economy and the day-to-day lives of many people. Lenders may require more documents like verification from your employer that your job will be safe for the next year or proof that you have 12 months of mortgage payments in savings.

Everything is going virtual and being done over video.

Technology has evolved, and industries are evolving as well. Appraisals, document signings, and lawyer consultations are all being done virtually. Real estate professionals are also doing virtual walkthroughs of homes and video conferencing to talk about the buying process.

Schedule EVERYTHING far in advance.

If you were planning on donating your old couch to invest in a new sectional, you might have trouble finding places that will pick up your donations or even allow you to drop them off right now. Start planning for that now and try scheduling for drop off or pick up further in advance than you normally would.

Many service providers are very backed up, so you may experience lags in response times from painters, cleaners, and any other services you need to move into your new home and out of your old place. You’ll have to be flexible and communicate with many service providers about scheduling a date for them to work on your home. Fair warning: it may change, and it may be a later date than what you originally budgeted for.

Now, more than ever before, it’s important to have a trusted REALTOR® on your side to help you navigate the changing market, help you find trusted professionals to work with, and ensure that 2020 is your year to become a homeowner. Contact the David Morris Group at (775) 828-3292 to work with a team that knows the ins and outs of the Reno real estate market and has a trusted network of professionals to guide you through every step of the process.

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The Reality of Real Estate: How to Find the Beauty in Your Current Home Instead of Selling

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

It’s easy to get caught up in the wow factors you see while viewing a property, but when you’ve closed on the deal, unpacked your items, and lived in the house for a few years, you’ll notice things that don’t quite work for your family or items that you have begun to hate about your home. When you find yourself focusing on the things that you’d like to change, we have some tips to help you find the beauty and fall in love with your space once again.

1. Add a feel-good factor.

If you have a favorite color that lifts your mood, a piece of artwork that you’ve always adored and would like to see hanging, or photos that always bring a smile to your face, then make them the focus of an area of your home you feel needs a little extra love. A bright focus wall in your living room, a gorgeous painting in the dining room, and a photo collage wall in your bedroom will draw the eye and immediately be the new talking point of the room.

2. Make donations.

You may be surprised how getting rid of unnecessary objects, clothes, and books can make you and your home feel lighter. It clears up space and can give you new ideas for how to use the space. Gather up the items that don’t add joy to the house and donate them to a local organization.

3. Tackle one project that could add a little wow factor.

There are all kinds of DIY projects for every budget and skill level. From making a chalkboard table to dressing up your house number sign, we recommend you get your hands dirty and try one of those projects that you’ve loved seeing on your favorite HGTV shows.

4. Look at the space in a new way.

Sometimes how the furniture is arranged can impact how you look at each room, so try to rearrange where you place things in order to give your home a new look and feel.

5. Draw attention to your home’s best features.

No matter how many things you don’t like, there are three more features you do like that can be highlighted to draw your attention. If you love the natural light that your windows bring in, add curtains or shades that will draw the eye when you have the sunlight streaming in. If you love the French doors, add a little pop of color to the doors themselves or the wall they’re located on to draw people’s eyes to them.

In this day and age, negative news makes more headlines than the positive, and it can skew how we look at the world and how we look at our own homes, but we guarantee there are always more things to love. Try these tips to help you find the beauty in your home before reaching out to the David Morris Group at (775) 828-3292 to help you sell your home and find a new one.

The Reality of Real Estate: How to Love Your Home’s Imperfections

March 12, 2020/in Reality of Real Estate /by Shauna Morris

It’s likely that when you purchase a home, you’ll notice things that you’d like to change. From the interior and exterior paint to the layout and function of your home, there’s bound to be some projects that you’d like to tackle to make your home customized to your style and needs. We’re here to help you realize that those imperfections are worth loving and that each home is unique.

Look for the positives in your home

It can be easy to focus on the negatives of your home, but there are surely many reasons why you decided to purchase your home – focus on them! Even some of the items that you may not love about your home may have some positive attributes that you appreciate.

If the carpet in your living room may not have been your first choice, but if it’s soft and feels wonderful to squish your toes into after a long day at work, focus on that. If the countertops in your kitchen aren’t your usual style but are easy to clean, focus on that. If you wish your fireplace had a more distinct fireplace, but your favorite memories involve sitting by the fire in the winter with your family, focus on that.

Don’t compare your home

When you visit your friends and family, it’s easy to feel envy creeping up at aspects of their home that you’d like to see in yours. Remember that everyone has a home to-do list on items that they’d like to change, so don’t let your home feel inferior to someone else’s.

Ignore the doubters and negative Nancies

We all have those people in our lives that we love unconditionally, but have the habit of pointing out flaws and giving constructive feedback that we haven’t asked for. The worst is when they point out things that we had yet to notice and after they leave, feeling the overwhelming need to start working on projects. Take a deep breath, and remind yourself of why you decided to purchase your home in the first place. Thank them for their tips and steer the conversation in a new direction.

Make a to-do list and consistently check off improvement tasks

If there are serious home improvement projects you’d like to tackle in order to make you fall in love with your home a little more, make a list of them, and make a gameplan of when and how you will take care of them. You don’t need to overwhelm yourself by doing it all at one time.

If you need a team that will give you the advice other agents won’t, reach out to the David Morris Group. We’re happy to help you find a home you love to call home, so give us a shout at (775) 828-3292 anytime.

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