reno real estate blog | David Morris Group

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.

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!

Posts

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:

How much should you budget for?

Basic expenses you’ll face as a homeowner.

Big-ticket items will eventually need replacing.

Tips for keeping your home costs down.

Decode the Online Listings

Reach Out to Your REALTOR® About Virtual Tours

Get a Better Picture of the Home

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

Save, save, save.

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

Receive More Information

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