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To Sell or Rent? How To Choose the Best Path for Your House.

Agent Value, For Sellers, Price It Right/Overpricing, Real Estate, Selling Tips, , , , ,

To Sell or Rent? How To Choose the Best Path for Your House. Simplifying The Market

Selling your house is a big step, and you want it to go smoothly. And with houses taking a little longer to sell these days, renting it out might start to sound like a nice backup plan.

But the reality is, while renting can work well for some people, it’s also a big commitment. So before you decide, it helps to see the whole picture first.

Why Some Sellers Are Deciding To Rent Instead

Lately, some sellers are choosing to hang on to their houses and rent them out instead. According to Parcl, around 9% of homes for rent right now were previously up for sale. 

Here’s why. 

Some homeowners put their houses on the market expecting a faster process than they got or a certain price buyers didn’t respond to. And when things didn’t go exactly as planned, they decided to rent instead. As Kara Ng, Senior Economist at Zillow, explains:

“Bargaining power is tilting toward buyers and homes are taking longer to sell, making renting out a property one way to buy time rather than compete aggressively on price.”

But here’s the important distinction. Just because some sellers are choosing to rent doesn’t mean selling isn’t working. In many cases, the difference comes down to how well a house is priced, prepared, and marketed for today’s buyers. 

Parcl data shows where these “accidental landlords” – owners who planned to sell but decided to rent instead – are most common (see graph below):

a blue and yellow graph with white text

They make up around 17% of homes for rent in places like Sherman and Houston, TX, but less than 4% in markets like Des Moines, IA and Bloomington, IN. 

That’s a pretty big difference. And it shows why you have to know what’s happening in your neighborhood. Your market, your asking price, and your strategy all play a role in how your sale goes.

A local agent can show you how houses like yours are selling, what strategies work best, and help you weigh your options – not to push you to sell, but so you at least have the full picture based on today’s market. And part of making an informed decision is understanding what renting your house would actually take.

What Being a Landlord Actually Looks Like

While renting might sound like easy passive income on paper, in practice, it’s a hands-on job with rules to follow. As Invest West Management puts it:

“Even if you never intended to become a landlord, the law still sees you as one — and you must meet all legal obligations that come with that role. This often includes registering the tenancy, providing tenants with certain disclosures, and ensuring the property meets safety standards.”

You’d also be the one chasing missed rent payments, fixing damage between tenants, and covering unexpected repairs. Not to mention fielding weekend calls about leaky dishwashers or broken AC units. 

There are expenses beyond regular maintenance and repairs, too. According to Bankrate, these are a few of the biggest: 

  • Insurance premiums (landlord insurance typically costs about 25% more than a standard homeowners policy)

  • Management fees (if you hire a property manager, they usually charge around 10% of the rent) 

  • Gaps between tenants, when you pay the mortgage without rental income

How To Give Your House a Strong Start

If you want to be a landlord and you’re prepared for the responsibility, renting may be a great fit. But if you’d really rather sell, don’t let today’s market convince you that you can’t. 

A great agent can make it happen. The key is having an open conversation up front with your agent about pricing and how to market your house. Nailing those details from day 1 helps your house make a great first impression, so renting doesn’t have to be your fallback.

Bottom Line

Renting can be a good fit for the right person with the right house, but it isn’t the only option. A smart sales strategy can help your house stand out to buyers from day one.

So, if you’re on the fence, a local real estate agent can help you compare what selling and renting would each look like for you.

Confused by Home Price Headlines? Here’s Why.

Agent Value, For Buyers, For Sellers, Home Prices, Real Estate, , , , ,

Confused by Home Price Headlines? Here’s Why. Simplifying The Market

Whether you own a house already or you’re looking to buy one, you probably care about home prices. But it’s not always easy to figure out what’s really happening right now, especially if you look at the headlines.

One says home prices are falling. The next says they’re still climbing.

So, which one’s right? It comes down to where you live.

What’s Really Going on with Asking Prices

Part of the confusion out there may be based on what’s happening to asking prices and how the media is talking about it. They’re calling attention to how asking prices are falling, but don’t give the full context or say that seasonality is at play. So here it is.

Right now, there are more homes on the market than at any other time since November 2019. And with mortgage rates rising since the spring, those homes are taking a little longer to sell. One way to help a home sell quickly in that environment is to have a lower asking price.

According to HousingWire Data, the median asking price is down from $449k in early August to $435k just 2 months later (see graph below):

a graph with green line

That’s a dip of about 3%, and a lot of it is normal for this time of year.

Asking prices cool off every fall once the busy summer season wraps up. With fewer buyers this time of year, sellers price a bit more competitively. Today’s rates play a role too, since sellers are pricing to match what buyers can afford right now. And that’s a good thing. Smart pricing helps homes sell.

Just keep in mind, that’s a national list price. It doesn’t show what homes near you are actually selling for. So before you react to a headline, ask a local agent what’s really happening in your area.

Where You Live Changes Everything

Realtor.com explains:

“While national headlines might suggest a buyer’s market is taking hold, the reality on the ground depends heavily on where and what you’re trying to buy. Local trends can diverge sharply from national averages, especially when you factor in price range, property type, and post-pandemic market dynamics.”

The latest numbers from S&P Cotality Case-Shiller Index show how true that is. Over the past year, sales prices in Chicago rose almost 7%. In Seattle, they dipped about 1.6%. That’s a gap of nearly 9 percentage points between two major cities (see graph below):

a graph of a price

That gap changes your game plan. Selling in New York, where prices are up almost 6%? You may not need to cut your price. Buying in Denver or Las Vegas? You may have more room to negotiate.

Why You Don’t Need To Worry About a Crash

Just in case you’re seeing those slight declines in some markets and worried it means a bigger crash is coming, here’s what you need to remember. Even in the major metros where prices are down, the declines are 2% or less. That’s a long way from a crash like 2008. And if you look back at the graph above, there are more cities in the green than in the red.

And over time, home values have a strong track record. The Federal Housing Finance Agency (FHFA) says national prices have grown year-over-year every quarter since 2012. Go back further, and a $100k home bought in 1991 would be worth about $436k today, even with the 2008 crash factored in (see graph below):

a graph with a line going up

So, this short-term dip probably won’t stick around. The small declines we’re seeing now are in markets that overheated during the pandemic. As a whole, the market is headed back to normal – and normal means prices should rise over time.

Bottom Line

National headlines can’t tell you what your home is worth or how much room you have to negotiate. Local data can. If you’re thinking about buying or selling, connect with a local real estate agent to look at how prices are moving in your area, so you can set your price or make your offer with confidence.

Myth vs. Reality: Does the Fed Control Mortgage Rates?

Affordability, Agent Value, Buying Tips, Economy, For Buyers, For Sellers, Mortgage Rates, Real Estate, Selling Tips, , , , ,

Myth vs. Reality: Does the Fed Control Mortgage Rates? Simplifying The Market

You’ve probably heard the Federal Reserve (the Fed) is raising rates again. And if you’re planning to buy or sell a house, you may be wondering what that means for you.

With all the headlines, it’s easy to think the Fed sets mortgage rates. That’s actually a common myth. But the Fed’s decisions can still have an impact on them.

So, where does that leave you? The next few months could get a little bumpy. But the Fed is playing the long game. And with the right plan, you can still make a move that works. Let’s break it down.

Why the Fed Is Raising Rates

It all comes back to inflation. With prices rising fast, everything is getting more expensive – and that leaves buyers with less spending power and makes homes cost more to build.

So, the Fed raises its key short-term rate (the Federal Funds Rate) to slow down inflation. And that’s where a lot of people get tripped up.

  • MYTH: The Fed controls mortgage rates.

  • REALITY: The Fed has an impact on mortgage rates, but it’s only one piece of the puzzle.

As NerdWallet explains:

“The Federal Reserve influences mortgage rates, but doesn’t set them. . . Mortgage rates are influenced by many elements, including the inflation rate, the pace of job creation, and whether the economy is growing or shrinking. The Federal Reserve’s monetary policy is a factor, too . . .”

Here’s the simplest way to explain how it all fits together. Mortgage rates tend to follow something called the 10-year treasury yield. That’s the return investors get for lending money to the government for 10 years. And that yield moves up and down based on what investors expect from inflation and the economy.

Right now, one of the biggest things moving that yield is the conflict in Iran. It’s pushed oil prices higher, which has investors worried about inflation. That’s why any news about the conflict can move mortgage rates. If there’s resolution in Iran, that could take some pressure off inflation and mortgage rates. But the timing is hard to predict.

What the Fed does can move that yield, too. When they hike the Federal Funds Rate to fight inflation, investors pay attention. That can push the 10-year yield up, and mortgage rates usually follow. But once inflation cools, the yield has room to come back down, and mortgage rates can, too. That gives buyers some of their purchasing power back (see graphic below):

a diagram of a federal funds rate

Think of it as a little pain today to set up some relief down the road. But how long could that short-term pain last? A lot depends on what the Fed does next.

There’s a Strong Possibility the Fed Will Hike Again This Year

According to CME FedWatch, there’s over an 80% chance the Fed hikes their federal funds rate at least once more before the end of 2026 (see graph below):

a graph of hikers with blue squares

Remember, the Fed doesn’t set mortgage rates. But another hike will likely keep upward pressure on them in the short term. So, should you wait it out? Sam Williamson, Senior Economist at First American, says this:

“Over time, firmer Fed action could help steady the bond market and open the door to lower mortgage rates, but only if investors become more confident that inflation is coming under control.“

And there are some early signs that’s starting to happen. Inflation cooled faster than experts expected in August:

  • PCE inflation dropped to 3.4%, down from 3.7% in July.

  • Core PCE (the Fed’s preferred measure which leaves out food and energy prices) fell to 3%, down from 3.3%.

That’s a step in the right direction, and it’s part of why the odds of a hike at the Fed’s October meeting have come down recently. But inflation’s still above the Fed’s 2% target, and it’s been that way for about 5 years. So, lower rates could still take a while. Your best bet is a plan that works at today’s rates.

How To Make Your Move Work Right Now

While this rate hike cycle isn’t the headline you want to see, it doesn’t mean you have to wait. There are still ways to move, even now.

  • If you’re buying: Get pre-approved so you know your real budget. Ask your lender about your options to get the best rate possible. And once you’re under contract, lock your rate so a jump before closing doesn’t raise your payment.

  • If you’re selling: Decide what matters most to you – a quick sale or top dollar. Each one can call for a different plan. Price for today’s buyers, whose budgets are smaller with higher rates. And think about offering a rate buydown or other concession. They can do more for a buyer’s budget than a price cut.

Bottom Line

The Fed doesn’t set mortgage rates, but its hikes can keep them higher for a while. The goal is to bring inflation, and eventually rates, down over time. With more hikes likely this year, waiting may not pay off. So, connect with a local real estate agent to map out a plan that works at today’s rates.

Why So Many Sellers Are Cutting Their Price Right Now

Affordability, Agent Value, Buying Tips, For Buyers, For Sellers, Home Prices, Price It Right/Overpricing, Real Estate, Selling Tips, , , , ,

Why So Many Sellers Are Cutting Their Price Right Now Simplifying The Market

Price cuts are turning up everywhere right now, and they read very differently depending on which side of the deal you’re on.

Sellers tend to worry a cut means walking away with less than they hoped. Sometimes that’s true, but more often it just means the market moved faster than the listing did.

Buyers, for their part, often assume a cut means something’s wrong with the house. Most of the time, that’s not it.

This is what’s actually driving all those price cuts, and why it matters no matter which side of the deal you’re on.

42% of Homes for Sale Are Now Carrying a Price Cut

According to HousingWire Data, the share of sellers cutting their asking price has climbed every month for 7 straight months (see chart below):

a graph showing the growth of a straight month 

Today, more than 4 in 10 active listings have had at least 1 price cut, and the typical seller is cutting about $17,560 off their original number. 

Here’s why that’s happening. With rates still elevated and more homes to choose from, buyers can afford to wait for the right number. So, sellers who don’t start there often end up adjusting anyway.

What does that mean for you?

  • If you’re selling, this isn’t a red flag. But it is a sign that pricing it right from day 1 is your best bet. Just know that the market’s been shifting fast enough this year that sometimes even a well-priced house can fall behind within a matter of weeks. If that happens to you, dropping your price to catch up to where pricing actually stands today tends to bring in more buyers and helps you sell closer to true market value.

  • If you’re buying, it’s easy to assume a price cut means something’s wrong with the house. But with cuts happening on more than 4 in 10 homes right now, the reality is sellers are just catching up to where the market already is. And with affordability still tight, that’s exactly the kind of opening you need to get a better deal.

Why Sellers Are Adjusting Faster than Before

HousingWire Data also shows list prices are trending down nationally. That’s often a sign sellers are pricing more realistically from the start instead of listing high and getting stuck cutting later. List prices have fallen about $26,000 from last year’s peak.

Some of that decline is seasonal, since list prices typically soften each winter before rebounding in the spring. So, expect asking prices to keep drifting a little lower before turning back around (see chart below):

a graph of a number of people 

Jake Krimmel, Senior Economist at Realtor.com, explains: 

“That is good news for buyers, who are seeing lower asking prices and more room to negotiate, but it is also good news for sellers: Pricing to today’s demand is helping homes move and keeping more transactions alive in a high-rate environment.”

Translation – with rates still elevated, buyers can only stretch so far. Sellers who meet them where they are instead of holding out for unrealistic prices are the ones actually getting to closing. And doing that up front is always better than chasing the market later.

Buyers, You’ve Got Room To Negotiate Again

At the same time, Redfin data shows sellers now outnumber buyers by about 58%, the widest gap on record (see chart below):

a graph of sales 

That changes the power dynamics of the market – and impacts how homeowners should price their house. Nationally, about 7 in 10 markets now favor buyers or are trending that way.

  • For sellers, that means standing out matters as much as pricing. With more homes to choose from, buyers are comparing you directly against the competition. So, a little flexibility, like covering closing costs or being open on timing, can be what gets your house picked over another.

  • For buyers, it means more room to ask for a lower price, help with closing costs, repairs after inspection, or some combination of all 3. That’s especially true for homes that have already sat for weeks, where sellers are often the most willing to talk.

Bottom Line

Price cuts are a normal part of today’s housing market, and both buyers and sellers can use them to their advantage. Connect with a local real estate agent to look at what’s actually happening with prices in your neighborhood, so you know exactly where you stand before you list or make an offer.

There Are 4 Types of Housing Markets Right Now. Which 1 Are You In?

Agent Value, Buying Tips, For Buyers, For Sellers, Mortgage Rates, New Construction, Real Estate, Selling Tips, , , , ,

There Are 4 Types of Housing Markets Right Now. Which 1 Are You In? Simplifying The Market

Today’s housing market splits into four distinct types. You’ve got cash buyers, buyers financing a purchase, owners who feel locked into a low rate, and builders with homes to sell. Which type you’re in changes how you should buy or sell. Ryan Serhant, CEO of SERHANT agrees:

“There is no longer a housing market . . . There are four Americas.”

Here’s what each looks like, and what it means for you.

Cash Buyers: 1 in 4 Buyers Are Paying with Cash

If you already own a home, you may be able to buy your next place in cash thanks to your equity. In fact, 26% of existing home sales this summer were all-cash, according to the National Association of Realtors (NAR). That’s roughly 1 in 4 buyers skipping a home loan entirely.

Data from Realtor.com shows most are at the very top and very bottom of the market by price point (see graph below):

a graph of green bars

For Buyers: If you’re able to buy in cash too, having no financing contingency means your offer is going to look really appealing to sellers. You may get a faster close and more room to negotiate.

For Sellers: A cash offer can mean less risk of the deal falling through, but that certainty sometimes comes with a lower number attached. Compare the whole picture before deciding it’s automatically your best offer.

Buyers Using Financing: They’re Not Getting Help from Rates, But They Are from Sellers

If you’re looking to take out a mortgage, you should know mortgage rates aren’t likely to come down anytime soon. Data from Fannie Mae shows nearly half of experts actually raised their long-term rate forecast this year (see graphs below):

a graph of growth and growth

That’s tough for homebuyers relying on a mortgage, especially first-time buyers. But it’s not all bad news.

While buyers may not be getting the lower rates they want, at least there’s help to be had if you ask sellers for what you really need. Redfin data shows almost half of May sales included a concession like a rate buydown or closing-cost credit from the homeowner.

For Buyers: Stop waiting on rates to drop. Negotiate the concession instead. If the payment works today, that’s your signal.

For Sellers: Expect to negotiate. Build a concession into your pricing strategy from the start could be the thing that gets a deal done.

Rate-Locked Homeowners: Most Are Sitting on a Rate Below 5%

If you own a home already, you might not want to move and take on a higher rate than the one you’ve got. That’s the case for a lot of people. About 2 in 3 homeowners have a mortgage rate under 5%, according to Federal Housing Finance Agency (FHFA) data (see graph below).

When a homeowner has a rate that low, it’s harder for them to want to move and leave behind that ultra-low rate. Because, they’d likely have to take on a higher one on their next home. Hence “rate locked” – they feel locked in.

a graph of a graph with text

And, according to Fannie Mae data, most experts think that lock-in will stick around another 3-5 years. That means this will continue to be a factor in how many homes come up for sale.

For Buyers: Fewer homeowners are listing, but the ones who do usually have a real reason to move. They’re often more flexible, motivated sellers.

For Sellers: Run the math on what your equity actually buys before ruling out a move. Got an FHA or VA loan? Ask about making it assumable. It’s rare, but it’s a real selling point.

Homebuilders: They’re Negotiating More Than You Think

If you’re looking at new construction, this might be your moment. According to the latest Census data, builders have more unsold new homes sitting around than usual, enough that it would take nearly 10 months to sell them all at the current pace (well above the normal 4-6 months pace). That’s pushing builders toward price cuts and rate buydowns.

For Buyers: That’s where the deals are right now. Just be sure to use your own agent and compare the whole incentive package, not only the price tag.

For Sellers: Lead with what a builder can’t offer – mature landscaping, an established neighborhood, and a house that’s ready today, not in 8 months. That can help your house seem like a better optiona

Bottom Line

Four different housing markets are running at once: cash buyers, financed buyers, locked-in owners, and builders. Each one plays by its own rules, and the right move for one is exactly the wrong move for another.

Connect with a local real estate agent to figure out which one you’re actually in and build your next move from there.

Selling This Fall? You Haven’t Missed Your Window

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Selling This Fall? You Haven't Missed Your Window Simplifying The Market

Summer’s winding down, and if you’ve been thinking about selling, you might be wondering if you missed your chance. Better to wait until next year or even next spring, right?

Not so fast. About one in three of all home sales happen in the last four months of the year.

Fall Is Busier than You Think

Data from the National Association of Realtors (NAR) shows around a third of existing home sales happen in the final four months of the year. And that share has grown every year since 2023 (see graph below):

a graph of sales

Here’s What That Means for You

According to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), NAR, and Wells Fargo, there will be about 4.16 million existing home sales this year. Based on how many sales have happened so far, that means roughly 1.4 million sales are expected between now and December.

That’s about 11,800 houses selling every single day this fall.

So, the market isn’t frozen and you don’t need to put your plans on ice either. Yes, higher rates are keeping some buyers on the sidelines. But hold out for next spring, and you’ll sit out months when other serious buyers are ready to move before the new year.

How do you get in front of those buyers who are still out there looking right now? Getting your house sold this season comes down to how well it’s priced and presented,  and that’s where a local agent shines.

A good agent knows what buyers in your area want right now, prices your house to match this fall’s market, and positions it to stand out to the serious buyers shopping before year-end. From the first photo to the final offer, they handle the details that turn your house on the market into one of the 11,800 selling every day.

Bottom Line

Listing this fall doesn’t mean your house will sit on the market until spring. Buyers are out there right now, ready to make a move before the new year – and your window is still open.

To make yours one of the homes that sells this season, connect with a local real estate agent.

The Housing Market Split in 2. Which Side Is Your House On?

Agent Value, For Sellers, Home Prices, Luxury / Vacation, Real Estate, Selling Tips, , , , ,

The Housing Market Split in 2. Which Side Is Your House On? Simplifying The Market

Ask a couple people how the housing market is doing and you’ll probably get a couple different answers. That’s because right now, the market runs on 2 very different tracks, split by price point.

Knowing which track your house is on changes everything about your sale, from your asking price to how long you can expect to wait before an offer comes in. Here’s what you need to know.

Home Sales Are Picking Up Speed at the Top of the Market

Rates and buyer competition are shaping this market differently depending on price point. Look at recent sales data from the National Association of Realtors (NAR) and the pattern jumps right out. 

Homes priced under $250,000 saw sales drop 2-3% compared to last year, while homes priced above $750,000 saw sales climb by double digits (see graph below):

a graph of salesWhat’s behind the divide? Due to higher rates and the last few years of home price appreciation, fewer buyers can comfortably afford homes at the entry-level price point right now – especially first-time buyers. So, demand in that segment has slowed down. 

On the flip side, buyers looking for higher-priced homes have less sensitivity to high-rate environments and more room in their budgets, thanks in part to a strong stock market and their equity in their current home. 

That’s the real differentiator. Lower-priced homes are still selling, just not as quickly since today’s rates have shrunk the pool of buyers who can afford to buy their first place right now.

This is exactly why pricing strategy and presentation carry more weight than they used to, especially if you’re selling in that range. Price it right from the start instead of testing a high number, make sure it shows well online and in person, and lean on an agent who can get your listing in front of every buyer shopping in your range. That’s the best way to make sure you catch the attention of one of the buyers who are still looking – and it’s how you prove your home is worth it’s price.

Why Some Homes Sit While Others Get Snapped Up

How fast a home sells is shifting by price point too, and the split is just as sharp. For years, luxury homes sat on the market a lot longer than starter homes. That gap has nearly closed, according to Redfin (see chart below):

a graph of salesBuyers with deep pockets are moving fast when a well-priced home in their range comes up. As Zillow puts it:

“The U.S. housing market is splitting in two. Luxury homes are selling at a faster pace than a year ago, with shrinking supply and growing bidding wars.”

If you’re in that range, your house may sell faster than you’d expect. You may even get multiple offers. That kind of competition changes how a listing should be marketed and priced from day 1. 

And no matter which side you’re on, that’s information you’re going to want up front if you want to have the smoothest sale possible.

What This Means for Your Sale

If you’re thinking about selling an entry-level home, don’t panic. Homes at your price point are still selling, just at a slower pace than last year. That slower pace means pricing and presentation matter even more right now. 

If you’re selling a move-up or luxury house, you’re in a good spot right now. Buyers looking in your price point usually aren’t as affected by today’s rates, so they’re more active, and good listings are drawing real competition.

Either way, your price point is the biggest factor in how fast your house sells and what it sells for.

Bottom Line

Your home’s price point is the real story right now, more than anything you’re hearing in national headlines. Connect with a local real estate agent to map out exactly where your house fits in this split market and build a pricing strategy that gets you the speed and price you’re after.

Remote Work Could Be Your Affordability Answer

Affordability, Agent Value, Buying Tips, First-Time Buyers, For Buyers, Real Estate, , , , ,

Remote Work Could Be Your Affordability Answer Simplifying The Market

For most first-time buyers, the hardest part of buying a home is making the numbers work. You budget, you save, and the finish line still feels far away. 

But your salary is only half the equation. Where you live shapes what you can afford just as much. And if you can work remotely, you have an advantage a lot of buyers don’t. 

You’re not tied to living where the jobs are, so you can look where your money goes further.

Where You Work Doesn’t Have To Dictate Where You Live

Remote job openings are on the rise. According to FlexJobs, remote job postings climbed 22% from the quarter before. That’s the second quarter in a row of double-digit growth. 

More remote roles mean more people can choose a home base around the life they want to build. As Forbes puts it: 

“Remote employees, freelancers, consultants, entrepreneurs, and business owners have the flexibility to choose a home base based on the life they want to build, whether that means more space, a lower cost of living, better access to nature, or simply somewhere new.”

And you can use that freedom to look somewhere more affordable.

Your Paycheck Goes Much Further in Some States

Your cost of living – what you spend on housing, groceries, utilities, and the rest of daily life – varies a lot from one state to the next. In some, according to data from Extra Space, it runs far enough below the national average to change what you can afford (see map below):

a map of the united statesTake Mississippi, for example, where the cost of living sits about 17% below average, or West Virginia at roughly 15% below. When day-to-day life costs less, you can put more of your income toward your goals, homeownership included. Relocate Right describes it this way: 

“Remote work has fundamentally changed the calculus of where to live. When your employer is in San Francisco, but you can work from anywhere, the question is no longer ‘where are the jobs’ but ‘where does my salary go furthest and what kind of life can I build.'”

For a first-time buyer, working remotely could be a chance to put down roots and finally buy. Because with that kind of flexibility, you get to choose where to live and which places work best for your life and goals. 

What To Weigh Before You Go

A lower cost of living is a great start. But it’s also important to consider the things a budget spreadsheet won’t show you, because a place can look like a great fit on paper and still not feel like home. 

  • Is the internet fast and steady enough to do your job without interruptions? 

  • Will it be easy to make friends and settle into a routine once you arrive?

  • Does it have the amenities you want, like public transportation or decent takeout?

This is where a local real estate agent comes in. They can help you weigh a big move against a nearby one, because every state has more affordable pockets. Sometimes they’re closer than you think.

An agent will know which neighborhoods fit your budget and have the features you’re after, whether that’s walkability, good restaurants, parks, or a nearby farmer’s market. 

Bottom Line

With remote work, where you live can be your decision instead of your employer’s. And that puts more affordable places within reach.

Want to explore where that could take you? Connect with a local real estate agent to see what’s possible.

Think New Homes Cost More? Not Right Now.

Affordability, Agent Value, Buying Tips, For Buyers, Home Prices, New Construction, Real Estate, , , , ,

Think New Homes Cost More? Not Right Now. Simplifying The Market

Most people think a newly built home costs more than an existing one. But right now, that’s actually backwards. Newly built homes are more affordable than existing ones in a lot of markets. And that’s because builders are cutting prices and stacking on incentives to try to keep their inventory moving.

Here’s why that’s really important for any would-be homebuyer to know.

Newly Built Homes Are the Better Deal Right Now

According to the latest data from the Census and the National Association of Realtors (NAR), a newly built home now typically costs about $40,000 less than an existing one (see graph below):

a graph of a house costBuilders aren’t like homeowners who can wait for the right offer. Unsold homes cost them money as long as they sit empty. So, builders cut prices and add incentives to keep them moving. That trend has carried into August. NAHB’s latest numbers:

  • 35% of builders cut prices, with an average reduction of 6%. 

  • 63% offered incentives like covering closing costs or buying down your mortgage rate. 

And those incentives can make a real dent in what you pay upfront and every month after. Plus, since everything is new and many builders offer warranties, you could save on home maintenance costs too. And with affordability where it is, every dollar counts.

So, don’t cross new builds off your list just yet. Yes, you may think they cost more, but that’s not always the case. 

If you can get brand-new everything for less than buying an existing home, isn’t that at least worth looking into? 

Don’t Let the Builder Pick Your Teammate

But before you tour a single model home, there’s one thing worth figuring out first – who’s actually working for you once you walk through that door.

That friendly rep in the builder’s sales office works for the builder, not you. Their job is to protect the builder’s bottom line, not yours. Your own agent flips that. 

They know the local market, so they can tell you if the builder’s price and upgrades stack up against other options nearby. They’ll negotiate on your behalf, whether that’s a lower price, free upgrades, or a rate buydown. 

A good agent will also push for a home inspection. Builders won’t always bring it up, but it’s a step you shouldn’t skip, even on a new build. And your agent will be in your corner, so you know what you’re buying and get the best deal possible. 

Bottom Line

New homes may actually cost less than an existing home right now. And that’s opening up a window for you to get brand-new for less.

If you want a list of new home communities near you that are currently offering incentives or doing price cuts, reach out to a local agent. When you have your own agent, you’ll have someone in your corner helping you get the best deal possible.  

Most Home Sales Close – Here’s How To Keep Yours on Track

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Most Home Sales Close – Here’s How To Keep Yours on Track Simplifying The Market

Few things are as rattling as the thought of your home sale falling through at the last minute, right before closing. All that waiting, all that progress, out the window.

But if you’re getting ready to sell, here’s what you should know. Even in today’s market, it rarely comes to that. Buyers who are moving at today’s rates and prices are generally moving because of some big life change. That means they’re motivated, and eager to get all the way to the closing table.

According to the latest data from Redfin, only about 1 in 7 pending sales are falling through. Meaning the vast majority make it all the way to closing.

And the single biggest thing that puts a deal at risk is the one you have the most power to prevent. It just takes a little smart planning before your house hits the market.

Why Some Deals Fall Apart Before Closing

A Redfin survey sheds light on the most common things that trip up a sale (see visual below):

a blue and orange chart with text

Here’s a bit more information on each one.

  • Inspection or repair issues. This is the big one. When a buyer’s inspector finds a problem, whether with the roof, the plumbing, the foundation, or elsewhere, the buyer can push back, ask you to make repairs, request a credit so they can do it themselves, or see if you’ll lower your price. If they don’t get what they want, they may walk away from the deal altogether.

  • The buyer’s financing fell through. Their mortgage loan has to be fully approved in time for closing day. If the loan doesn’t come together, the sale can’t move forward. 

  • The buyer’s current house didn’t sell. Some buyers need to sell their own home before they can close on yours. If that takes longer than expected, you may run into some issues with your timeline or even see them give up on their move.

  • There was a change in buyer’s financial situation. A new job, a big purchase, or new debt can change what a buyer qualifies for on their mortgage loan, even after they were pre-approved.

Where Your Agent Makes the Difference

Some of those reasons are outside your control, like whether a buyer’s loan clears or whether they sell their own home in time. But according to Zillow, there are a few proactive things you can do to help make sure your sale goes as smoothly as possible:

  • Save yourself the headache and get a pre-listing inspection. That’s when you get your own inspection before a buyer gets theirs. It lets you find the big issues before a buyer’s inspector does, so you can fix them or disclose them on your terms, instead of scrambling once you’re under contract. In this situation, your agent will help you decide what’s worth addressing and what to just disclose. Handle it now, and the biggest risk to your sale is behind you before a buyer ever brings it up.

  • Look at more than just the offer price. Your agent will help you weigh the whole offer, including the buyer’s timeline and any contingencies attached. When a buyer’s offer depends on selling their own home first, the success of your sale rides on a second deal you can’t see. Sometimes, a slightly lower offer with fewer strings is the safer one. Your agent will help you weigh your options and make a plan that works well for you. 

One of those is something you can’t do until you have offers in hand, but the other is something you can get ahead of right now. The pre-listing inspection.

That relatively small cost upfront can save you the much bigger hassle of a deal falling apart later. And while getting your own inspection before listing may not make sense in every market, your agent can tell you whether it’s worth it based on your market, your house, and what buyers are prioritizing in your area.

Sometimes the smartest move is staying one step ahead.

Bottom Line

Most home sales still close, and the biggest thing that could get in the way of yours is the one thing you can actually do something about.

With the right prep, your sale has every reason to make it to the finish, and a good local agent can help you get there.