Signs You Are Buying a Home in Good Condition

 

Buying a home can be exciting and overwhelming, especially for first-time buyers. While location, price, and layout often dominate the decision-making process, understanding the physical condition of the property is equally important.

A home in poor condition can lead to costly repairs and unexpected challenges, turning what should be a dream purchase into a financial burden. Although a professional home inspection is a vital step in the process, learning the signs you are buying a house in good condition will also save time and provide added peace of mind.

A Well-Maintained Exterior

A home’s exterior can reveal much about how well its owners have maintained the property. Look for clean siding or well-kept brickwork, properly functioning gutters, and a roof that appears intact without missing or damaged shingles. Pay attention to the foundation as well; large cracks, uneven spots, or water pooling around the base could be red flags for structural issues.

Properly Functioning Doors and Windows

Doors and windows are critical to a home’s functionality and energy efficiency. Check that doors close smoothly and latch properly without squeaking or sticking. Ensure windows open and shut without resistance and that their seals appear intact. Drafts near doors or windows can indicate poor insulation or needed upgrades, increasing future costs for heating and cooling. High-quality, functional windows and doors improve the home’s energy efficiency and indicate attention to detail in maintenance.

A Garage in Good Condition

If the home has a garage, it is important to assess its condition, as this space often reflects the overall care given to the property. Look for cracks in the garage floor or signs of water damage. Pay close attention to the garage door, ensuring it opens and closes smoothly and doesn’t exhibit unusual noises or resistance. Garage door warning signs for homebuyers might include sagging sections, rusty parts, or a motor that struggles to operate.

Updated Plumbing and Electrical Systems

Check faucets for steady water flow and ensure the water pressure is consistent throughout the home. Look for any signs of leaks under sinks or around water heaters, which could lead to long-term damage. Test light switches and electrical outlets to ensure everything is functioning correctly. An up-to-date circuit breaker panel and properly labeled circuits indicate that the home’s electrical systems are in order.

Clean and Safe Flooring

Inspect the flooring throughout the home to ensure it is in good condition. Hardwood floors should not have large gaps or noticeable warping, while carpets should be free of stains and smells. Tiles should be firmly in place without cracks or chips, and grout lines should appear clean. Damaged flooring can be costly, so identifying issues early on can help you consider whether the home is worth the investment.

By learning to identify the signs you are buying a home in good condition, you will feel more confident in your decision. While no house is perfect, spotting these positive indicators allows you to weigh the pros and cons effectively.

Smaller Homes, Bigger Opportunities: The Homebuilder Trend Buyers Love

 

Smaller Homes, Bigger Opportunities: The Homebuilder Trend Buyers Love

It’s no secret that affordability is tough with where mortgage rates and home prices are right now. And that may have you worried about how you’ll be able to buy a home. But, if you don’t need a ton of space, you may find you have more cost-effective options in an unexpected place: new home communities.

Builders Are Building Smaller Homes 

Since smaller homes typically come with smaller price tags, buyers have turned their attention to homes with less square footage — and builders have shifted their focus to capitalize on that demand. As U.S. News notes:

“The combination of higher home prices and mortgage rates has strained a lot of people’s budgets. And that’s something builders recognize. To this end, they may be leaning toward smaller spaces . . .That, in turn, can lead to savings for buyers.”

Data from the Census shows the overall builder trend toward smaller, single-family homes has been over the last couple of years (see graph below):

As the graph shows, the average size of a brand-new home has dropped from 2,309 square feet in Q3 2022 to 2,171 square feet in Q3 2024. That’s a difference of 138 square feet.

At the end of the day, builders want to build what they know will sell. And the number one thing homebuyers are looking for right now is less expensive options to help offset today’s affordability challenges. As Multi-Housing News notes:

“The growing trend toward smaller homes is evident. These homes are less expensive to build and more attainable for many middle-income families, meeting both housing needs and modern lifestyle preferences.”

The Benefits of These Brand-New Homes

So, if you’re having trouble finding a home in your budget, it might be worth exploring newly built homes with a smaller footprint.

Not to mention, since newly built homes come with brand new everything, they have fewer maintenance needs and some of the latest features available, like energy-efficient appliances and HVAC. That’ll help you save on repair costs and your monthly utility bills. Sounds like an all-around win.

Bottom Line

Today’s builders are focusing their efforts on smaller homes at lower price points. That could give you more opportunity to find something that fits your budget. If you’re planning to buy soon, let’s connect to explore what’s on the market in your area and get your homeownership goals over the finish line.

If Your House’s Price Is Not Compelling, It’s Not Selling

 

If Your House’s Price Is Not Compelling, It’s Not Selling

There’s one big mistake you need to avoid when you sell your house this year: setting your price too high. It might seem like overpricing gives you room to negotiate or could really boost your profit, but the reality is, it usually backfires.

In fact, Realtor.com says almost 20% of sellers — that’s one in five — have to reduce their price to get their house sold. And you don’t want to be one of them. Here’s why starting too high can lead to trouble, and how to avoid it.

Overpricing Pushes Buyers Away

With mortgage rates and home prices where they are right now, buyers are already stretching their budgets to make a move. So, when they see a house that’s priced too high, they’re not thinking, “I can negotiate.” They’re more likely to think, “next” and skip over your house entirely. An article from the National Association of Realtors (NAR) explains:

“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”

And if they skip over your listing, you’ll miss out on the chance to get them through the door. That’s the last thing you want because fewer showings mean fewer chances to receive an offer.

The Longer Your House Sits, the More Skeptical Buyers Will Get

Here’s the other issue. An overpriced house tends to sit on the market longer. And the longer a house lingers, the more buyers start to wonder what’s wrong with it. Is there a problem with the house itself? Are you difficult to work with? Even if the only issue is the price, that extra time creates doubt. As U.S. News says:

“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”

At that point, you’ll have no choice but to lower your price to drum up interest. But that price reduction comes with its own downside: buyers may see it as another red flag, that there’s an issue with the house.

The Key To Finding the Right Price for Your House

So, what’s the secret to avoiding all these headaches? It’s simple. Work with a local real estate agent who knows the market inside and out, and who’s going to be honest with you about how you should price your house.

You don’t want to partner with someone who just agrees to whatever number you throw out there. That’s not an expert who’s going to get you the best results.

You want an agent who recommends a price based on their expertise. The right agent will use real-time data from your local market to help you land on a price that makes sense — one that grabs attention, attracts buyers, and still helps you walk away with a great return. Someone who has been there and done that – and done it well. That’s the agent you want to work with.

Bottom Line

Remember, if the price isn’t compelling, it’s not selling. Instead of shooting too high and scaring off buyers, work with a local agent who knows how to price it right.

Let’s team up and make sure your house hits the market with the right price, gets noticed, and gets sold.

Hello, World!

Your home may be your biggest financial asset and investment, but once you decide to sell, everyone will agree that it’s also more of an emotional journey. After all, you’re not just leaving a home that you loved—you’re ending a “love affair” with a place you’ve had for a long time and have lots of memories tied to it. It’s where you’ve raised your family; held countless Thanksgiving (or friendsgiving) dinners and parties, so it’s completely normal to be sad about moving.

If you are not able to deal with the emotional stress of selling your property, it can hinder you and your realtor from achieving your goals and creating your ideal financial result. This is why it’s also worthwhile to take into account the emotional attachment you have with your home. Here are some tips to get you through what can be a taxing sales process, especially if you fail to deal with it early.

 

If you’re having apprehensions about selling your property, try to reframe your mindset and start thinking that you’re no longer a “homeowner” but a “home seller.” This will help you adopt a more objective attitude towards the process, and gradually accept that your home is now a product that you have to sell and that others will hopefully want to buy.

Changing your perspective might take some time, so don’t be afraid to give yourself a few weeks or months to separate your emotions and set your expectations right, especially if you have the luxury of time to do so. It might be helpful to do some research, such as talking to friends who have sold their homes or reading about other people’s home-selling journey, so you’ll have a clearer idea of what you are getting into. Hopefully, doing your due diligence will also help make the transition easier.

 

When preparing to list your home for sale, one of the crucial things to do is to make it less personal. This means removing framed family portraits, mementos, travel souvenirs, diplomas — anything else that is personalized and screams that you own the home. The main goal of this process is to make it easier for potential buyers to envision themselves in the house, especially during showings. 

However, packing up your photos and mementos earlier rather than later will also help you as a seller to let go. Likewise, try to change the little parts of the home that you’ve come to love so much, such as your favorite wall color in the bedroom or dining room.

Once you’re used to not seeing them, it will make it easier for you to detach yourself and see the home as merchandise waiting to be sold. Hopefully, it will also help you realize that the house isn’t the one that carries precious memories, but you and your family. Take the time to reflect on how the house has served its purpose for however long you lived there, and that you’re letting it go to move on to your next.

 

Don’t forget the old adage “home is where the heart is” to help you think of home in terms of the people you love rather than in terms of a place. May it be your spouse, children, parents, or even friends whom you treat as family members, remember that your real home is wherever the people you love are. Take photos of the property, revisit old memories with them, and reminisce about how you all loved living there. The process will hopefully aid in accepting your emotions throughout the home sale.

 

It’s natural to be anxious and stressed about moving. It’s even natural to grieve when thinking about the old memories you’ve had at your home. After all, you won’t just be letting go of the house per se, but you’ll also be leaving a community you’ve grown with. 

But no matter how hard it seems, remember the reason why you’re selling in the first place and what you’ll gain afterwards. List these things out, then look at that list whenever you’re feeling down about relocating. If you’re selling so you can downsize, think about the extra money you’ll be able to save. Same thing if you need money from the home sale to pay off other debts. Whatever reason you have—whether it’s to downsize, upsize, for retirement, or just be closer to an adult child or to other family members—try to focus on that instead of entertaining the feelings of losing your beloved home. 

It might be difficult to do at first, but once you think positively about these changes, you’ll look forward to moving on to a new home like it’s another adventure that’s bound to happen. 

 

When you figure out your “why” and establish your goals for selling, it’s crucial to find and choose a partner who will be your guide as you go through one of the most important decisions you’ll make. 

Hiring a top realtor to help you sell your home is beneficial to your emotional and financial well-being. You will share your goals with them, and then work together to create a game plan to achieve those goals as much as possible. Your agent will be responsible for marketing your home for sale, negotiating your deals, helping you review purchase offers, guarding your interests, and guiding you in making informed decisions by providing adequate knowledge. 

Your agent will help you navigate the complex home selling process while being compassionate about your feelings. This is why it’s imperative to partner up with an expert realtor who has worked with many sellers in the past who have gone through the same things. Your agent will be the one to maintain an emotional detachment and treat the sale solely as a business transaction. If you trust your realtor and their strategy, you can focus your emotional energy on finding your next home, making the entire process less stressful and hopefully more enjoyable.

The decision on whether or not to sell your beloved home is already a difficult thing to process. But knowing and understanding when to sell — it’s another critical point that can affect your decision and would-be profit, especially when the housing market feels unpredictable. 

Aside from the housing market having a significant impact on the sale of your home, it’s also important to evaluate your situation and reasons for selling. To provide you with some guidance, we’ve laid out six factors that you should consider before putting your house on the market.

 

In general, the spring home-buying season (April to June) is considered the best time to sell a house. Homes sold in May, in particular, net a 12.8 percent seller premium (the amount above the home’s market value), based on ATTOM’s 2023 analysis of single-family home and condo sales over the past 10 years. 

However, that’s not always the case. The reality is that every market has a peak selling season—the time of year when most buyers are looking for houses. This depends on many factors, including buyer demographics, weather, local events, etc. 

Summer typically brings out families who are looking to move while their kids are out of school. But in areas near ski resorts, for example, the winter season tends to bring out a bigger pool of buyers than during warmer weather. The same can be said in warmer areas, where the fall is often a hotter market for buyers. Winter, on the other hand, is also a popular time for people relocating for jobs, typically during January and February.

When you list in spring and summer, you have to be ready to compete with several other homes. Pricing your home aggressively and marketing your home properly during these times is critical to attract buyers. On the contrary, selling during the slower seasons where there’s less inventory means there’s less competition on the market.

 

In addition to seasonality, the strength of the U.S. housing market as a whole also plays a role in home prices. A home’s value generally increases when the economy is strong. Your best bet for gathering adequate information and getting a thorough understanding of the national housing market is to talk to a knowledgeable real estate professional. They’re a valuable resource if you want to get a sense of how the local market is faring overall, and whether selling your home can be more profitable in current market conditions.

 

Interest rates are another critical factor to consider when deciding when to sell your home. Historically, people are more inclined to buy homes when mortgage rates are lower since they can afford a larger mortgage than they would with higher interest rates. The lower the interest rate, the more purchasing power buyers have.

If you’re a prospective seller this year, it might be wise to monitor the mortgage market as today’s higher rates will likely play a role in your decision. However, depending on your location, this may or may not be a deal-breaker for you.

 

Your home’s equity is the difference between the value of your home and what you owe on it in liens, such as a mortgage. This is the number that tells you if you’ll be able to make a profit, so it’s important to know this before listing your house for sale. If you’ve earned a significant amount of home equity, you can cash out on this and sell. But if you owe more than you can get for the house, consider staying put and paying down your mortgage a little more before selling.

 

Ensuring a great first impression is vital to selling quickly and for top dollar, especially if you’re putting your home on the market during peak selling season. Aside from maintaining a stellar curb appeal, you must also take the time to make repairs and take care of things such as leaks and/or water damage, mold problems, pest infestations, roofing problems, and any structural issues that could pose safety hazards, among others. 

Consulting with a knowledgeable real estate agent will also help you figure out which improvement projects may benefit your home and bring a decent return on your investment. If you’re in a hurry to sell and don’t have time to make improvements, you always have the option to sell your home “as-is”. Just keep in mind that this option comes hand-in-hand with a price reduction.

 

Last but not least, your situation and objectives should be taken into account. What’s your main motivation behind wanting to sell your home? Some homeowners want to get their houses sold as quickly as possible, while others prioritize getting the best sale price possible out of their biggest investment. Here are some circumstances where it might make more sense to sell than to wait:

• You need to downsize – This may be a necessity, especially for older homeowners and empty nesters, either for financial or health and mobility reasons. If the maintenance and upkeep of your home are already becoming difficult, selling may be for the best.

• You need to upsize – Your family is growing, or maybe an elderly relative is coming to live with you for an indefinite time. Your need to have a bigger home can play a role in your decision to sell as soon as possible.

• You need to relocate because of a new job – If this is your reason, it may not be worth waiting until your area’s peak selling season or until your home is in perfect shape.

• You’ve inherited a property – Getting rid of a second home might be easier since you’re also not trying to buy.

 

Bottom line

So, are you ready to move on? Although it’s advisable to live in your home for at least ten years, at the end of the day, there’s no better time to sell your home than whenever it makes the most sense for you. Connect with a trusted real estate agent who will be your partner in this journey, help you get through the emotional process and treat it as a business transaction, and will net you a higher profit for your most valuable investment.

If you’re starting this year house-hunting for your ideal property, you might have heard about the “location, location, location” mantra that’s prominent in real estate. Here we’ve listed five locations that might make you think twice before living near them. 

And if you ever find a house you love that’s located near or next to these landmarks, it’s critical to know which could be a deal-breaker for you, and which could suit your needs and lifestyle so you can enjoy your dream home with no regrets.

 

Airport and flight path

Biggest pro: Ease of travel

Probably the biggest advantage and appeal of buying a house near an airport is ease of travel, especially if you’re a frequent flier or traveler. No more frantic racing against the clock since you can reach your terminal within minutes, saving you time and money. 

Biggest con: Noise

The occasional booming sound of planes landing and taking off can be a huge nuisance, especially if the home is located directly under a flight path. However, many airports near residential neighborhoods have noise and flight time restrictions in place that make living near them more manageable.

Pro tip: Do your research when it comes to the neighborhoods where planes fly over most. You may also be able to look up maps showing general flight paths surrounding the nearest airport. During your house hunt, spend some time on the street near your potential property to see if noise would be a bother to you. Also, don’t forget to inquire about specific noise reduction features that are integrated into the home.

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Busy street or main road

Biggest pro: Accessibility

You have easy access to mass transit, such as buses and trains, and even freeways. Living next to a main road also means you’re within walking distance to grocery stores, restaurants, retail outlets, and shopping centers, so getting what you need will be a breeze. You may also be closer to fire and police stations, which could be critical in an emergency.

Biggest con: Safety risks

Aside from the noise from honking cars and chatting passersby, busy roads can bring all kinds of hazards, especially speeding cars. If you’re a buyer with kids and/or pets, their safety is a big priority, which means homes in these areas might be a no-go.

Pro tip: If you’ve fallen in love with a property that’s on or near a busy road and you want to live in proximity to stores and conveniences, the best thing to do is to visit at different times of the day to get a realistic feel for the noise situation.

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Park or any public open space

Biggest pro: Improved physical and emotional well-being

Living on a property next to or very close to a public park or any open space makes it easy for you to start or maintain an active and healthy lifestyle. Whether you like to go biking, running, or just taking your dog for a walk, spending time outside is more convenient since you don’t have to travel far. And even if you’re not an outdoorsy person, just living next to green spaces can be good for your mental well-being and happiness.

Biggest con: Noise and increased traffic

As with any neighborhood feature, a park may not be for everyone. You may have to deal with the noise, whether from children playing games or people chatting and catching up. Some parks are also used to hold concerts, festivals, or other social events, so it will certainly be noisy and busy. The streets may also see increased traffic and cars parked from both sides of the road.

Pro tip: If you’re allured by the prospect of living next to a park, make sure you know what the park is like at different times of the week and during the day or night. If you have the chance, chat up a potential future neighbor or two and ask what it’s like to live in the area.

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Casino

Biggest pro: Plenty of entertainment offerings

Casinos aren’t all about gambling. These modern resorts often include everything, from spas, restaurants, sports bars, concert halls — even family attractions such as arcades and bowling alleys. If you’re considering buying a home into a smaller area without a lot to do, these local entertainment choices right at your doorstep can be a huge win for you. 

Biggest con: Think crowds, traffic, and

bright lights 24/7

Since casinos are open 24 hours a day, seven days a week, this means you will have to deal with constant traffic and crowds probably all the time. Also, many casinos are brilliantly lit up. If the house you’ve been eyeing for directly faces the casino, you’ll have to take preventive measures to keep the lights out.

Pro tip: Should you gamble on a property near a casino? It depends on why you are buying the property and whether or not it suits your lifestyle. Experts suggest staying at a nearby Airbnb or at the casino hotel for a period of time, especially during a convention, any major event, or tourist season. Additionally, walk around the neighborhood and take note of the noise levels at different times of the day.

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Power line

Biggest pro: Fewer and shorter power disruptions

Living near electrical infrastructure makes it easier for repair crews to respond promptly when outages occur. Their fast response also helps restore power sooner, limiting disruptions. This is especially crucial if the power loss is due to extreme weather conditions and if you work from home.

Biggest con: Potential health and safety risks

One of the biggest concerns home buyers have when purchasing property near power lines is its potential health implications. Power lines produce electromagnetic fields (EMFs), a form of radiation that some have suspected could increase cancer risk with significant exposure over time. Moreover, extreme weather like high winds and thunderstorms can compromise lines, creating fire and electrocution hazards.

Pro tip: Worried about the health concerns surrounding EMF and power lines? Start with your own research and see if the property under consideration is within safe exposure levels.

 

Bottom line

Like everything else in life—or like every location in this matter—there will always be advantages and a flip side. Aside from doing tons of research, leverage local expertise by contacting a real estate agent. With their help, you can easily balance out the pros and cons and make the right call on whether or not it will be worth it to purchase a property in any of these particular locations.

A new year always inspires us to have a fresh start. Maybe you’re a homeowner who just wants to take advantage of that burst of energy and motivation to tackle clutter around your home. If your goal is to reset your space so you’re only surrounded by things that make you happy, decluttering is a powerful and transformative resolution that’s worth keeping.

Or maybe you’re planning to list your home for sale this year. You can have a good headstart in this new journey by purging through your belongings so you’ll know what to keep and what to let go when you move.

Whether you’re the former or the latter, remember that decluttering not only resets your physical space but can also profoundly impact your mental and emotional well-being. Here are five time-tested tips to keep in mind and to help guide you on your organizing journey.

 

Creating more space in your home will be close to impossible if you don’t resist the urge to buy new things. So before and while decluttering, it’s a good idea to hold off on shopping for new items until you’re done with your purge and everything you own has a dedicated space. Avoid impulse purchases, and stop falling for social media marketing. No, you probably don’t need every product that your favorite influencers get paid to promote, so breathe and think twice before adding a potential clutter. 

 

Imagine this: you were so proud of yourself for clearing your clutter, only to find them still sitting in those boxes a week later because you haven’t thought about where they’ll go. So plan this before you start—where would all your clutter go? Deciding an exit strategy for your unwanted stuff is as important as the purging itself.

For instance, you might need to check with your local government to see where you can recycle or dispose of old and non-functional devices. Or, you love books but find yourself with more selections than you can ever read in your lifetime. See if your local library accepts donations or if there’s a little book club in your neighborhood where you can give your paperbacks. If you’re looking to sell pre-loved items such as clothing, make sure to schedule a time to take photos and list the items online so that they don’t just sit there for months. Check for charities or even animal shelters in your town that accept old linens or towels. The satisfaction you get from decluttering your home may become twofold when you think that your things may still be of use to others, especially those in need.

 

There is no one-size-fits-all way to start decluttering, so assess yourself and do what’s best for you. Have tons of New Year energy? Devote an entire weekend to declutter your closets or a specific room. Feeling completely overwhelmed as another year starts? Start small and tackle any area that’s relatively easy for you, say, your spice cabinet, junk drawer, or even your freezer. There’s no need to start with a bang if it only elevates your stress levels. When you’ve finished, you’ll feel the confidence (and the adrenaline) you need to finally organize bigger spaces in your home.

 

Aside from the fact that decluttering all in one go is just not realistic, it can be frustrating as well. Professional organizers see decluttering as a mindfulness practice, which means you don’t want to bite off more than you can chew. Instead of saying you’ve got to “clear it all out” in one sitting, rephrase and say you’ll devote at least a few hours to sort it out, and you’ll feel the difference. Besides, you won’t even be able to see all of your clutter on the first pass. After letting go of the obvious unwanted stuff on your first round, there will be a round two for things you haven’t seen before or you haven’t decided yet. 

 

Learn to free yourself of guilt brought on by the things you’re keeping. Whether it’s a strange gift that you feel guilty giving away because the person who gave it is special, or that arts and crafts project made by a great aunt. If you’re keeping things because you feel bad disposing of them rather than they mean something, maybe it’s time to get over it. Let those things go, guilt-free. It doesn’t mean you didn’t appreciate the gesture or that the gift hasn’t been taken to heart.

Here’s a sweet analogy- think of a home for sale like your favorite bread or pastry. Most, if not all, are best consumed when they’re freshly baked, much like a home that has been fresh on the market. But bread gets stale as days pass by, which makes it less and less appealing. The same can be applied to a listing. As a home’s days on the market creep higher, it gets “stale” and prospective buyers start to be curious. This can be a huge factor in real estate transactions.

Knowing a home’s days on market is critical in many ways. Read to know more!

Days on market, often abbreviated DOM, is defined by the National Association of Realtors as the number of days from the date on which the property is listed for sale on the local brokers’ multiple listing services (MLS) to the date when the seller has signed a contract for the sale of the property.

DOM can also be referred to as “time on market”, and is basically a measure of how long a house takes to sell. It is also used as a key metric by buyers and real estate agents to see which homes are fresh to the real estate market.

 

• DOM as a search filter 

Buyers and their real estate agents can use DOM as a search filter to identify homes that have been listed for a long time. 

• The DOM is an indication of how hot the market is.

The average number of days on the market is often used to describe how hot the market is in a particular area. For instance, in a seller’s market where there are more buyers than the number of homes listed for sale, the days on market are fewer because of the high demand.

• Higher DOM = “Is there something wrong with the house?”

When a home is listed for sale on the market, the usual expectation is that the property will sell quickly. This is because homes generate the most interest when they’re new. If the number of days between the listing and sale is few, it might indicate two things: either there is a high demand or the property was underpriced but of good value. 

The more days on the market there are, the more likely it is for everyone to wonder if there’s something wrong with the house. It might be a beautiful home, but could be overpriced, need help with staging, or isn’t desirable to most buyers. It can also lead buyers to think that the seller is unmotivated, stubborn, or always unavailable to show the home.  

• Higher DOM = a potential bargain

The good news on a house with a high DOM? It can also indicate a potential bargain, especially from sellers who haven’t received offers and who may be open to a lower offer. In an area that has a large number of houses listed for sale, and the home has been on the market longer than the other properties, the days on market can become a negotiating tool for the buyer. Work with your agent to learn more about why the property has sat so long on the market, and about the seller’s urgency to sell. 

 

Yes, especially in certain markets. If a listing is taken down off the market for a few weeks or months, and then gets relisted with a new, possibly lower price, the DOM counter might restart. This gives buyers the impression that the home just came on the market. The same generally happens if a new agent takes over the listing. 

However, most local MLS associations keep track of the Cumulative Days on Market (or CDOM), which is the total market time accumulated on a property, as well as the DOM. In such cases, you need to work closely with your agent to do a deep dive on a listing’s full history so you will know exactly how long the home has been for sale.

If you’re a first-time buyer who’s only just started your house-hunting journey, you might have heard the expression, house poor. Many of us are familiar with the term and understand it carries negative connotations, yet we do not know what it means. 

Read more to find out what it means to be house poor and avoid getting into that situation. So you can live your homeownership life without regrets and become proud and happy with your investment.

While there’s no official definition of the term house poor, it describes the situation in which a homeowner spends a large portion of their monthly income on housing expenses. Aside from mortgage payments, this also includes other costs such as homeowners insurance, property taxes, utilities, and even maintenance.

Even if they’re building equity with their home, their budget is stretched thin, with a little left over for other important expenses. Being house poor makes it difficult or impossible for them to achieve their other financial or personal goals, such as building a retirement fund, paying off debt, or enjoying life in general.

In a recent survey by ConsumerAffairs, 69 percent of homeowners consider themselves house poor. The survey defines house poor homeowners as having little savings left after paying their mortgages and associated monthly expenses. Moreover, 54 percent reported that house-related expenses were their largest financial burden.

 

You may end up being house poor for many reasons. For instance, many first-time homebuyers fail to understand and consider the costs associated with buying and owning a home. They get caught up in the idea of owning their dream home without taking into account other expenses beyond the down payment and mortgage payment.

Maybe you and your spouse decided that one of you will quit your job to become a stay-at-home parent. This setup could significantly change your financial situation since you’re dependent on one income source.

Likewise, a major change in your circumstances, such as a loss of a job or an unexpected illness, may stretch your budget to the max and make it even more difficult to pay your housing expenses.

 

Regardless of your median household income, you can be house poor if you’re spending too much on your home. Here are some indicators that this is you:

• You spend a significant part of your income on housing costs.

• You regularly worry about whether you’ll be able to afford your monthly mortgage payment.

• You keep tapping into your savings to cover your mortgage payments.

• It’s becoming difficult for you to cover other expenses, such as groceries and transportation.

• You don’t have an emergency fund and can’t afford to start one because there’s no space in your budget.

• You feel that the cost of homeownership prevents you from pursuing your other wants and goals, such as traveling to new places or even engaging in a new hobby.

 

1. Know how much house you can comfortably afford.

Before shopping for a home, it’s important to figure out how much house you can comfortably afford, which may be a different number from the maximum mortgage you can get approved for depending on factors such as your credit score and debt-to-income ratio. Even if you can qualify for a higher mortgage loan, this doesn’t mean you have to accept the full amount. Experts advise buying less house than you can afford but still meets your needs. Likewise, remember to never go beyond your price range and stick to your home buying budget.

 

2. Do your homework before buying.

Before plunging into homeownership, educate yourself about the various expenses associated with owning a house. Aside from calculating the down payment, closing costs, and your expected monthly mortgage payment, don’t forget to also consider these costs:

• Utilities (water, gas, electric, trash, etc.)

• HOA dues

• Property taxes

• Maintenance, including gardening, pool service, snow removal, house cleaning, tree removal service, etc.

• Any potential repairs, like a leaky roof or water damage after a storm

Especially if you will be transitioning from being a renter to a homeowner, remember that there won’t be a landlord who will cover many of these costs. 

 

3. Plan for repairs and maintenance.

Even if you purchase a house in very good condition, it will inevitably need big-ticket repairs over the years. A home warranty may be helpful to cover any unexpected breakdowns, but you probably can only rely on it during the first year or two. Moreso, if you’ve got your eyes on a fixer-upper. You’d need to get estimates and bids to plan ahead, plus prepare an extra budget for unforeseen expenses. 

This is another reason to never skip a home inspection. Some buyers in crazy markets have been waiving property inspections to be able to sweeten their offer and shorten their closing date. However, a home inspection is highly recommended since it will help you discover all the current problems and potential issues before you sign on the dotted line. The seller might get the issues fixed before closing, or you will receive a price reduction to cover those repairs yourself. But if not, at least you have an estimate for repair expenses and can determine whether they fit comfortably in to your budget. For example, you can figure out if the roof is nearing its lifespan, or maybe the cracks in the foundation are early signs of structural damage.

 

4. Make a larger down payment if you can.

Although many loans and homebuyer assistance programs allow you to make smaller down payments, waiting a bit and saving more before buying a house can also help avoid becoming house poor. By making a larger down payment, you’ll be reducing the amount you need to borrow, therefore lowering your monthly payment. This also makes you considered a less risky loan, which results in a lower interest rate.

Moreover, there’s no need to pay for private mortgage insurance, which lenders use to protect themselves in the event you default on the loan if you can put 20 percent down. This can save you thousands of dollars over the life of the loan. You just need to make sure that this option doesn’t deplete your savings.

 

5. Build a housing emergency fund.

Aside from your savings, it’s a good idea to put aside money every month strictly for housing expenses. Your housing emergency fund will provide you with a cushion to cover unexpected circumstances; for instance, if you lose your job or if something breaks, that leaves you with a hefty home repair bill that warranties or insurance won’t cover.

 

Bottom line

Despite the difficulties, 53 percent of correspondents from the ConsumerAffairs survey said that homeownership is difficult but better than other options, including renting. This shows that even though buying and maintaining a home can be costly, for many, homeownership is still the right decision over the long term, and is still worth it in the long run. Remember to do your research before stepping into the frenzied real estate market. By understanding the pros and cons of homeownership by hiring a local and experienced real estate agent to help you get the best deal, you can enjoy the long-term benefits of owning a home and be proud to call yourself a homeowner.

When you decide to put your home on the market, you want to put your best foot forward in preparing it to look its best for prospective buyers. Besides, the better your home shows, the more offers you’ll likely get, right? Next, you make a to-do list of what things to fix and update around your home, only to realize that the list could go on forever. That’s when you realize: Do I have to do everything?

For starters, all those projects could cost money. Unfortunately, not everything is going to pay off at the closing table. Knowing what to fix – and what not to do when selling a home – can be tricky. Fixes are critical for any issues or defects that affect the intended significant function of a house system. To break it down, you should take care of any leaks, cracks in the foundation, minor electrical or plumbing issues, pest infestations, and other safety issues that could hurt your home’s value and pose imminent risks. But beyond those, especially when it comes to cosmetic repairs, it’s actually up to you. 

The last thing you want is to get carried away and pour money, time, and effort into any project that won’t get a return on your investment. So here are some of those fixes or updates you can skip without too many repercussions.

 

Having state-of-the-art appliances such as a refrigerator, dishwasher, or oven can be appealing and is a nice bonus. But not having them is seldom a deal breaker. Especially in hot seller’s markets, old but working appliances may not need replacing or upgrading. All that you need is to give the appliances a good cleaning.

If your older model appliances are worn, broken, or missing some parts, that’s the time to think about replacing them. However, brand-new appliances can cost a fortune and are not worth buying only to get your home sold. So instead of splurging on top-of-the-line models (that you won’t be able to use much, anyway), consider buying used or floor models that can still add a lot of value to your home without draining your bank account. 

 

Should you renovate the kitchen and bathrooms? That’s probably one of the biggest questions sellers have when they decide to sell. 

It’s important to note that a kitchen or bathroom remodeling project can be costly and time-consuming. A kitchen remodel (midrange) will only recoup about 56 percent of the value, while remodeling a bathroom will only recoup about 59 percent, according to the 2022 Cost vs Value Report by Remodeling Magazine. First, you should consider several factors, especially time and budget, before spending thousands of dollars on these projects.

Likewise, your vision of a perfect kitchen or bath may differ from those of a potential buyer. And given all the home decor styles to choose from, trying to second-guess what they want and giving it to them when they visit your home is just plain unrealistic. It’s a risk when renovating these areas because they’re some of the things buyers look forward to when they can finally call it home.

If your kitchen or bathroom looks dated but functional, you only need to ensure it’s clean and clutter-free. Present it as a space with potential that is easily customizable to the buyer’s preferences. 

 

If your home already has hardwood floors, there’s no need to tear out the existing flooring and replace it for the market. What’s important is to have your floors shined and polished before the staging or showing. The next homeowner may rip it out anyway and replace it with their choice of flooring, which could be wood, laminate, vinyl, or even carpet. If you have older carpets, you only need to spend a few bucks and hire a professional cleaning company rather than investing money into replacing them. The only time to consider ripping it all out is if there is a terrible odor from pets or if there are impossible stains that would deter a buyer from submitting an offer.

 

While improving your home’s curb appeal is crucial in enticing buyers to knock on your door, your home’s exterior needs not be perfect. Do not worry about fixing every small, minor, or insignificant crack in driveways and walkways that do not present any safety risks. They are common, and re-doing the paving of the entire section will cost more than it is worth. Only spend the money on fixing them if the cracks are hazardous for driving or walking.

 

Trends come and go, even for home colors and fixtures. What looks “cool” now can become dated in a heartbeat, or what may be trendy for a specific slice of the population may be off-putting for others. When you decide to sell, your goal is for a wider pool of potential buyers to come to your showings. By providing them with a blank slate, it’ll be easier for them to envision themselves in your home.

If you’re repainting a room, door, trim, or cabinetry to provide a quick face-lift, pick neutral colors, such as whites, beiges, and light grays. Should you choose to fix any broken or damaged things like light fixtures, faucets, and cabinet hardware, never replace them with something too obnoxious or trendy. Always choose common fixture styles that can appeal to almost all buyers. They’d be happy to do their renovations once the house belongs to them!

 

Show off your home’s potential

Don’t get overwhelmed by the idea that you need to fix everything you think is wrong with your house to get more offers. You’ll only waste valuable time and money on unnecessary upgrades that you could use to cover closing costs. You aren’t going to get a return on your investment if your house becomes “too much for the neighborhood” and yours is the only one that stands out. Aim to show your home’s potential instead of trying to achieve perfection. And if you’re still in doubt about what kind of repairs to make before listing your home, consult with your real estate agent so you’re guaranteed to make the most out of your home sale.