Even though median home prices in Reno just surpassed $600,000 and interest rates keep going up, to their highest levels in over 20 years, a local mortgage advisor with All Western Mortgage, Taylor Leathers, 32, and Caitlyn Evans, a realtor with Solid Source Realty, 24, say, despite appearances, it’s a good time to buy.
The cousins, both grads of McQueen High, say thinking of different locations, and looking at condos to start out could be good ideas.
“Typically I see a lot of buyers wanting some land,” Evans said. “And I think that's where it gets tricky because most scenarios getting land and a house, you're going to be out in Sun Valley or Golden Valley because that’s where the big plots are. I've sold a couple homes in Sun Valley and it's just the cheapest place you can get a good chunk of land if you're looking for a quarter of an acre, it's probably your best bet as far as price.”
Evans is also seeing plenty of activity in the Cold Springs area. “They have started building houses out there that are on somewhat of a slope. So when you're in your backyard you really can't see into your neighbor’s house. So I think the builders are getting more sophisticated as far as, you know, having everybody have a great view and not on top of each other. It's nice to see the new development.”
Although out of reach homes are often what’s talked about (such as above in video) downplaying initial expectations, sometimes distorted by social media, can be a smart move, Leathers says.
“I think that it is getting harder and the expectation of what you get for your first home is kind of blown out of proportion with social media because you see people post these houses that have horse land and you know, RV space and all of that, but you don't know what their circumstance is,” Leathers said. “Did they have a co-signer? Did they get a gift of funds? If you're doing this by yourself, you do need to really realize that this is a stepping stone. This is getting your foot in the door … and you're going to upgrade as you go. So it's more of changing your mindset on exactly what the big picture goal is rather than the small ‘Oh, I like the way this looks and how it sounds.’”
The two also explained there is a misconception about the amount needed for down payments.
“Some people have this misconception that you need 20% down and that's just so far from the truth. I mean, we're seeing … even down to 3%,” Evans explained.
“This area has USDA loans in certain parts where you can even put 0% down,” Leathers said. “But really the first step is talk about money. Don't be afraid of it. And if you have even the slightest idea about it, talk to someone who does it for a living and get the right steps to get there. It’s okay to be vulnerable and talk about it,” she said.
Leathers says information can be confusing, and that she is always ready to explain in simple terms what her clients may benefit from.
The market being less busy now is actually good for nervous buyers, Evans said. “People are scared of the interest rates,” she said. “But, you have to kind of think of it as if the interest rates are high, then you're going to get the house you want. You're not going to be competing with multiple offers. When the interest rates are low, it's just a rat race when everybody is trying to buy at the same time. And a lot of people don't know we have incentives for the sellers and the sellers can actually give you points and closing costs for your side. So if you're a buyer, you'd get a lot of money, straight from the seller because they're desperate to sell.”
When interest rates are high, it’s a good time for locals to buy as there’s also much less activity from investors and flippers, Evans said.
Leathers says there have also been efforts to cut down on such activity. “When interest rates were low as an investor, money was virtually free. You could buy cash, turn around and get a loan after you bought it with cash and replenish your money. Now there's even more rules against that. Investors care about the numbers and that's why people get frustrated with flips because maybe they're not held to a higher construction quality either. But right now the numbers aren't making sense to them. We're not seeing as many investors. So when you buy a house right now, you will have a higher payment, but you are getting the house that you want because there aren't so many offers on the table. And when rates come down, you can apply to do a refinance and potentially lower your rate.”
Evans has her own website at https://www.caitlyn775homes.com/
Leathers says in Northern Nevada there is still a massive supply and demand imbalance, meaning if you can try to buy a house now you should, as she doesn’t see a pricing bubble pop anytime soon or enough construction going on.
“Even though we have slowed because buyers are worried about the affordability and comfortability of the payment with the higher interest rates, it doesn't change the fact that we don't have enough homes being built for the amount of household formations we have,” she said. “So this morning the data I pulled and it shows that we have 7,400 household formations right now and we are only building just over 5,000 homes.”
Leathers recommends young adults try to become homeowners as soon as they are comfortable with a monthly payment.
“I am never someone that will rent shame, because if that works for your lifestyle right now and what your goals are, then that's great,” she said. “But if you want to dip your foot in and learn how to build wealth, the wealthiest people are in real estate. So the sooner you can start and learn how to build those blocks up the better.”
Both started in their careers young and feel they are ideally positioned to help first-time buyers.
“I got into real estate about three years ago,” Evans said, who added she realizes now there are no stupid questions. “I think I'm pretty good at running them through the process as crazy it is, it's just one day at a time. There's a lot of information to be learned and I think I'm pretty [good] at explaining it in detail and, and just kind of taking it slow. But I'm always ready to pick up the phone and get you the help you need at any time. I really enjoy this job and I think that's what it takes to be successful in this industry is you have to be on top of things.”
She sees her follow up abilities and commitment as an important trait. “A lot of realtors will contact you and never speak to you again or, they'll contact you in the next month or two. But it comes down to caring.”
She also has a sweet spot for working with veterans.
Leathers concurs on her cousin’s follow up abilities. “She is constantly keeping you informed and touching base with you because there are times where there isn't really much going on because we're waiting for inspections or underwriting and things like that,” she said. “She's really good about checking in with you, making sure there aren't any lingering questions and she has that open line of communication, which is, I can't stress enough how important it is.”
Meanwhile, Evans said her cousin’s combined youth and experience is an obvious strength when helping first-time buyers. “I think a lot of the lenders out there are kind of past due on retiring and it's good to have a fresh face … for young adults to resonate with.”
Leathers has been in mortgage about six years, and in finance over 10 years. “I started in the banking world and moved my way up through finance and really saw a gap in the understanding of money and how to budget and really the shame around it,” she said. “People don't like to talk about money and I got into mortgage because that's really where a lot of people are vulnerable for the first time. And I noticed there was a gap of people who would take care of you and show you what to do rather than just be like, ‘Nope, you can't qualify.’ So I pride myself in my business to really educate and get you your long-term goals by taking the small steps now.”
Working as a close tandem can lead to advantages for their clients as well. “A lot of times when you're not working with local people who have a good relationship together, there is a gap and you may not be able to get ahold of your lender or your agent if you're working with an online agent. You know, it's just better to have a team that has your back and knows your goals because you're going to get what you want when you have that,” Leathers concluded.