reality of real estate | David Morris Group

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.

The Reality of Real Estate: Understanding the Home Appraisal Process and Why It’s an Important Step in Purchasing Your First Home

Buying a home is a lengthy process with several steps to complete before being handed the keys to your new adventure. One of the key components of the transaction is the home appraisal. Let’s take a leap towards understanding the home appraisal process and why it’s an important step in purchasing your first home.

What is a home appraisal?

An appraisal is a professional and unbiased assessment of what your home is worth. As a buyer, you want the appraiser to find that the contract price you and the seller have agreed upon is appropriate. The lender wants to know if you’re asking to borrow more money than what the home is worth.

What is factored into the appraisal value?

The appraiser will look into several factors to determine the value of the home. Some of the factors include:

Recent sales of similar properties
Current market trends
Amenities of the home
Number of bedrooms and bathrooms
Functionality of floor plan
Square footage

The appraiser will also have to fill out a report that includes things like:

A street map with the appraised value and the other home sales data used
Sketch/photos of the home’s exterior
Square footage calculation and explanation
Photos of the front of homes used to compare sales price data

Who orders and pays for the appraisal?

Because the appraisal is meant to protect the lender in the case that the borrower cannot pay back the loan and the home would be sold to get the lender their money back, the lender usually initiates ordering the appraisal. The appraisal cost can vary but is usually a couple of hundred dollars and is a fee that the buyer must bear.

Where does the home appraisal fall in the home buying process?

The home appraisal is usually one of the first steps in the closing process and is done when you’ve entered the under contract stage of the home buying process. If the appraisal comes in at or below the agreed-upon contract price, you can move on to the next step in the process, but if the appraisal is below the price you agreed upon, there may be further steps you need to take.

The appraisal process is an important step, and it can even be a great negotiation tool if the appraiser values the home at a lower price than the agreed-upon contract price, but it can also be a factor that makes a deal fall through. Be prepared for what the appraisal will find, and let your REALTOR® help guide you through the process. If you have questions about what else you should expect when purchasing your first home, contact the David Morris Group at 775-828-3292. We’re happy to share our knowledge and skills to help you become a homeowner.

The Reality of Real Estate: Common Home Repairs Homeowners Face and the Essential Tools to Have on Hand

January 12, 2021/in Reality of Real Estate /by Shauna Morris

One of the biggest differences between being a homeowner and being a renter is that homeowners are responsible for taking care of any maintenance issues that may come up themselves. As a first-time homebuyer, it’s important to know the common home repairs homeowners face and the essential tools to have on hand to fix them.

Common Home Repairs

In your time as a homeowner, it’s likely that you’ll deal with:

Leaky faucets – Leaky faucets are very common, yet usually an easy fix. If leaky faucets are left, they can have some big impacts on your water bill.
Window and door drafts – Every other season, you’ll want to locate any drafts and properly seal them. Taking care of drafts will keep utility bills low.
Loose screws – Doorknobs and furniture get a lot of use, allowing screws to loosen.
Squeaky doors – As moisture and debris add wear and tear to door hinges, you may notice some squeaking. A lubricant spray can keep those hinges quiet.
Indoor air filter changes – Air filters typically last about three months before they need to be changed. Changing the air filter regularly keeps the air in your home rid of dust, dander, and odor.
Leaky pipes – If you think you may have a leak in a pipe, run a test. You may find that it’s in an area you can access easily and a simple fix, but treat it quickly, because it can cause bigger problems and repairs in your home.
Garbage disposal trouble – Know what you should and should not throw down the garbage disposal to increase the life expectancy of the disposal in your home. If you do run into trouble, it’s relatively easy to replace your garbage disposal.
Running toilet – Toilet repairs are often thought to be complicated, but they are usually pretty easy to fix.
Nail pops – As your home shifts, the drywall nails may start to protrude, causing the paint to “pop” out or bubble slightly.
Cracking caulk or grout – Multiple uses in the bathroom and kitchen can cause caulking and tile grout to fade and crack. Adding new caulk and grout is an easy fix.

Many of these home repairs can be fixed without calling a professional, but you need to make sure your toolkit is stocked with what you’ll need should a repair spring up.

Essential Tools to Have On Hand

Tape measure
Plunger
Hammer
Level
Pliers
Wrenches and hex keys
Multi-bit screwdriver
Nails
Screws
Caulking gun and caulk
Electrical tape, duct tape, and painter’s tape
Lubricant spray

If you’re equipped with a great toolbox and have access to how-to videos, home repairs can be a cinch to take care of. Now that you know the common home repairs homeowners face and the essential tools to have on hand, you’re more prepared to be a homeowner. If you’re interested in the tools we have in our toolbelt to help first-time homebuyers purchase the right home, contact the David Morris Group at 775-828-3292. We’re happy to share our knowledge and skills to help you become a homeowner.

The Reality of Real Estate – You Have to Compromise

February 7, 2020/in Reality of Real Estate /by Shauna Morris

Just like in friendships and relationships, the key to coming out of the home buying experience on top is to compromise. We’re not saying that you should compromise on everything, but holding out for a home that meets your budget, is in your ideal neighborhood, and has all of the bells and whistles you’d dreamt of is about as likely as hitting the lottery. It does happen, but not often enough to make it the rule.

So that leads to the question, what should you compromise on and what are factors that will heavily weigh in on deciding that a property isn’t right for you? We’ve been around long enough to know what compromises will help you find a home that you’ll spend many happy years growing and thriving in. Take a look at our list of where to begin making compromises:

1. Items that need to be repaired in a home

Unless you’re buying a home that’s been recently built, there’s likely to be items that need to be repaired. You’ll need some leniency when it comes to plumbing and electrical repairs. Your REALTOR® will be able to help you understand the severity of the repairs, but we warn you that if you’re looking at an older home with a roof that’s getting closer to the end of its life or items that aren’t up to the current code, it’s not reasonable to request the seller make those repairs before purchasing the home.

2. Pricing

Staying rigid on the price you’re willing to pay when you enter negotiations with a seller can have a huge hindrance on the process. If you’re not willing to work with the seller and come to a compromise, it’s likely to make them less willing to work with you. In a competitive market where the seller is receiving multiple offers, you want to be flexible. Keep your budget at the top of your mind and make sure your REALTOR® knows the real number you cannot exceed, but don’t put yourself in a situation that has the seller feeling boxed in and walking away from the transaction.

3. Look at the bigger picture

As you’re going through the process, focusing on your ultimate goal is crucial to your long-term happiness. It’s easy to get caught up in the nuances of negotiations but if the pesky details won’t matter in the long run, then don’t spend extra energy worrying about them. If things aren’t running quite how you expected, take a deep breath, remind yourself of what is important, and talk with your team about how you can compromise to make a deal both you and the seller can agree on.

The “dream home” may be a myth, but the “dream team” isn’t. If you’re looking to work with real estate professionals who will give you the real answers, insights, and advice about what it takes to buy or sell a home in Reno’s current market, the David Morris Group is who you should rely on. Never hesitate to give us a call at (775) 828-3292.

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The Reality of Real Estate – The Triumph Stories Other Agents Won’t Tell You

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

If you are someone who has bought and sold a home before, you know that you’re experiencing a cluster of emotions: excitement, nerves, stress, relief, sadness, and sometimes frustration. As real estate professionals, we focus on the victories and don’t often share the real, behind-the-scenes stories of triumph. David Morris Group is an industry-leading name in the Reno, Sparks area (we don’t mind bragging, we’ve worked hard to get here) and has helped many individuals, families, and investors navigate the sometimes rough waters of real estate. We want to share the reality of real estate and what triumph really means when buying and selling a home in Reno or Sparks!

Spoiler alert: this one ends well for our clients. David Morris Group helped these sellers move into their forever home and guided them through their first traditional purchase in Reno. Selling their home was another matter. What other agents won’t tell you is that multiple offers, while very exciting, can be complex and confusing, and this home had several offers. Each offer had many different variables the sellers had to consider, which made choosing one difficult as well as setting a high expectation for exceedingly strong negotiations. The very first offer on the table became over-negotiated and fell apart before it even had a chance. The twist is that this first offer won the day. After allowing our clients to take a step back and reassess their goals, the buyer submitted a second offer that proved right for both parties. The sellers were able to say goodbye to their first home on a very high note!

The strength of a REALTOR® lies in guiding clients through a journey, not telling them how to make very personal decisions. Through the twist and turns of back-to-back transactions, David Morris Group acted in our truest, most honest and caring form by guiding the sellers through the process, explaining every step, discussing every decision, and ultimately empowering them to make the right decisions for themselves. We appreciate the opportunity to serve our real estate clients throughout Reno and Sparks!

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