Home, where our hearts find solace and warmth. It is a sanctuary for both oneself and our loved ones.  In a sometimes cold and lonely world, the embrace of a snug abode, adorned with thoughtful decor, can offer us reassurance and comfort.  Yet, our desire to find a better home or better place to live often makes it easy to overlook the many reasons to be grateful for our current one... 

Cultivating gratitude for our homes can elevate our perspective and enrich our lives.  Here are 10 reasons to be thankful for your home:

1. Shelter During Difficult Times: In times of adversity, a home becomes a refuge, providing solace during personal crises. The comfort of having a place to retreat to in times of emotional upheaval is a source of reassurance.

2. Celebration of Happiness: Your home is a witness to life's challenges, providing a secure space to build memories and celebrate happiness. It shelters not just from the elements but also stands as a testimony to personal growth.

3. Memory-Making Space: Homes serve as the backdrop for cherished memories, from holidays to family gatherings. They provide a canvas for traditions and lasting moments, offering a reservoir of joy during challenging times.

4. Family Building: Homes are where families are built, laughter is shared, sunrises are witnessed, and moments of relaxation are savored. Each nook and cranny deserves to be revered as a sacred space.

5. Personal Support System: The home stands as a personal support system, offering protection and comfort. Returning to it daily reinforces a sense of safety and support, making it an integral part of one's life.

6. Source of Stability: Homes bestow both physical and mental strength, serving as havens during challenging times. Whether seeking respite from work-related stress or finding comfort in times of illness or loss, a familiar and comfortable home is invaluable.

7. Thankful for the Good:  Even if you believe your home is just in "mediocre condition", focus on the features which currently require no immediate renovation or repair.  Things can happen at anytime which require lots of money and stress to repair.  Acknowledge if your are in a fortunate period and appreciate the stability and absence of unexpected stress.

8. Expression of Personality: Your home is a canvas for the expression of your personality, a realm free from judgment. Unlike the scrutiny that may accompany unconventional personal style choices, your home allows you to design with unabashed authenticity. Homes afford the liberty to reflect personal tastes, values, and routines without external judgment. 

9. Stress-Free Zone: Beyond the stresses of daily life, your home provides a refuge where you can cast off the burdens of the day upon crossing the threshold.

10. Safe Sanctuary: A home is a safe retreat where one can reset, find solace, and embrace peace amid life's challenges. Whether navigating difficulties or reveling in positive phases, your home is a personal sanctuary that welcomes you at the end of each day.
    
    
    

Expressing gratitude to your home is essential.  While your home is not a living being which has feelings, you are.  When you take time to reflect on the good things which your home provides, you will find calmness and peace in your life.  Greet it daily, show appreciation, and consider these practices:

1. Journaling: Express gratitude through journaling, describing what your home means to you. Share anecdotes and display pictures of meaningful moments.

2. Appreciate Everyday Items: Challenge yourself to appreciate the value of everyday items by imagining their absence. Reflect on the impact on your life and the relief upon realizing their presence.

3. Practice Awareness: Take daily moments to notice and appreciate aspects of your home, from furniture arrangements to the aroma of cooking. Acknowledge the unique haven you've created for yourself.

4. Reflect on Memories: Reflect on the journey that led you to your home, recalling the circumstances and people involved. Documenting these memories allows you to appreciate your progress and unexpected outcomes.

5. Upgrade Your Home: Invest time in upgrading your home, whether through new furniture, fresh paint, or landscaping. The act of enhancing your living space fosters a deeper sense of gratitude.

Selling your home is a big event. It can be great for your pocketbook if you take your time and manage your expectations. Before you decide to list your home for sale, here are a few tips that we think will help you get a great offer.

Pre-Appraisal

I know what you're thinking. Doesn't the bank require an appraisal from the buyer before they issue the loan? Typically, yes. The lender usually requires an appraisal through the buyer before they will issue the loan. We still think the seller should have their home appraised by a professional before they list their home. 

As the owner, getting an appraisal will give you a realistic idea of the value of your home. Pricing your home too high could discourage potential buyers from even touring your home. This could delay the selling process. You don't want to leave your home on the market for longer than necessary because as long as it's not sold, you're still making payments. 

Getting a pre-appraisal will give your buyer confidence that your home is listed at the right price. This could shorten the negotiation process and turn a possible lead into real interest. 

Get an inspection

This is another detail that the buyer will want to have done as well. Mortgage lenders want an inspection to protect their best interests. However, getting your home inspected before posting it for sale could be beneficial to the seller as well. An inspection can show you what areas of your house might bring down the value. For example, if your A/C unit is not working correctly, or there are some new safety features that you haven't updated, the inspection will identify these problems. 

Getting the results from an inspection could save you money in the long run. If the inspector finds minor problems, you can fix them before anyone tours the house. Typically, you can fix something by hiring a repair person or even fixing it yourself. Fixing it before you sell the place will cost you money up-front, but save you from having to lower the price at negotiations.

In other words, the house will be inspected by the buyer, regardless. They will find these problems and either reduce their offer or ask for a credit to get it fixed. Having it fixed before a buyer tours your house can save you the time and money after the buyer's inspection.

Find a selling agent

They can offer advice on what areas of the house might bring down the value. Selling agents are familiar with the current market and can tell you what types of houses are selling. This gives you an advantage because you can rearrange and update your home to reflect what has impressed recent buyers. Also, they can help you with any necessary paperwork and negotiate the details of the contract. Having someone in your corner to advocate for your best interest is the best way to ensure you're getting the best deal for your home. If nothing else, it will give you the peace of mind that you sold your house at the best possible price. 

Updates and repairs

Once you complete the pre-appraisal, inspection, and talk to an agent, you'll know exactly what you need to do to get your home ready for tours. Maybe the inspection found a problem with the A/C unit, and you need to replace a part. Or, your selling agent said your carpet is outdated. These are common things that could bring down the value of your house.  

The good news is you don't have to take that decrease in value if you fix it before selling. It's time to get to work! Some quick and easy updates include painting walls or changing cabinet and drawer handles. If you're feeling ambitious, you can replace that outdated carpet in the guest room. Whatever the case, you'll have time to get your home ready for sale and reach its full potential on the market. Taking these steps before you list the home will save you money and make your home stand out. 

Deciding whether to buy a home or build a new one is becoming a popular question as housing inventory remains low. US Department of Housing and Urban Development (HUD) reported 1,682,000 building permits for new residential constructions in February alone. This is a 17 percent increase from February 2020. Whether this increase stems from low inventory or a shift in society's preferences, building new residential homes is becoming more popular to new homeowners. 

Many of our buyers are struggling to find a home that meets their requirements, or they're afraid to overpay for a home because prices continue to rise. Still, buying a home is part of the American Dream, and everyone is looking for a way to make that dream come true.

If you're trying to decide if you want to buy an existing home or build a custom home, here are some facts that should help aid your decision. 

Key takeaways: 

• Benefits of customizing a home
• Benefits of buying an existing home
• Cost of building materials and labor
• Time is money 

There are pros and cons to each. Ultimately, it's up to you to weigh your options and decide which one is best in your situation. In general, people who aren't moving very far and have lots of time to invest in the process will have a better experience building a new home. Also, if you have a very specific taste that you're not going to find in an existing home, you might have to go the custom build route to get what you want. If you need to move quickly, you might not have enough time to start a new build. Customizing your home is a dream that many buyers only.

Benefits of Customizing a Home

Have you ever made a list of everything you'd like to have in a home? We have, too! A lot of those dreams can come true if you decide to build a custom home. You can have that man cave you've always wanted or space for all of your artwork. Want an inground pool dug in your back yard with an industrial-size kitchen? The possibilities are endless if you can find the right designer and architects. 

You are involved in nearly every step of the way and can control the design process to ensure you get everything you want. Building a new home can be a great way to see the quality of materials being used. In buying an existing home, your best guess at the home's status is through an inspection. The home might meet the requirements at the time, but it's hard to predict how long different parts of the home will last. Being involved in the building process, you get to observe and essentially manage the quality of materials and can better predict how long each material should last. 

Benefits of Buying an Existing Home

The assumption with an existing home is that it is already built. Naturally, it's easier and faster to move into a residence that is already standing. Even during the time it might take to tour, make an offer, and close the deal, it's still significantly faster to buy an existing home than to wait for a new structure to be built. 

If you need to move quickly or don't have time to wait on a new build, you can move into an existing home as soon as the owners allow. Even better, if the home is move-in ready, you won't have to do any extra work. Existing homes are convenient, fast, and predictable. 

Costs of Building Materials and Labor

The size of your home and how expensive it will be to build relies heavily on how much it will cost to build. The cost of imports and tariffs on wood, steel, and other materials fluctuate according to the global market. Getting approved for a $250,000 mortgage could go a long way when the cost of materials is down, but it might not cover everything you'd like if materials are expensive. You also have to consider the amount of labor the contractors will use to build the home. If you want a massive home, you might have to pay for a few more workers than a smaller home would require. 

Time is Money

If you've ever talked with someone who waited for new construction, then you've probably heard horror stories about how long it took for them to build the house. It's pretty common for new home construction to get delayed or knocked off schedule in some way. The longer it takes to build the home, you're probably losing money somehow. Whether you're paying the architect during this time or paying rent while you wait, it's expensive and takes a significant amount of time to build a home. Keep that in mind when making your decision.

Real estate agents have found that staging your home is a valuable asset to quickly gain interest in your home. Many homebuyers are looking for a home that they can see themselves moving into quickly. A house that needs updates is definitely a turnoff, but it goes further than that. Buyers visualize how they would use the space in each room. What works for you might not be appealing to them. So, arranging furniture in a way that shows off the room is the best way for someone to see themself using that space. 

What is home staging? 

• Setting up your house in a way that is attractive to buyers. 

Why should I hire a professional stager/interior designer?

• Staging your home could help you sell your home faster and increase the perceived value of your home.

How much does it cost to stage my home? 

• It varies depending on the size of your home and how much you're willing to spend. The cost may include hiring a staging professional and renting furniture and/or decorations. You can expect to pay anywhere from $2,000 to $5,000, but the return on investment is worth it. 

You decorate your home based on what you like. You also have it set up for functionality rather than attractiveness. You have to live in your home every day, so you arrange your furniture and decorations based on what works best for you. One common misconception when selling a home is that homebuyers will "look past" your furniture and decorations to see the home's true bones. I mean, they're not buying your furniture, right? 

What is Home Staging? 

In short, home staging is setting up your house in a way that is attractive to buyers. There are many different ways to stage a home, and it varies depending on the size and style of the house. There really isn't a perfect science for home staging, which is why it might be a good idea to hire a staging professional who knows what is appealing to buyers.

One option for home staging ideas is asking your real estate agent what similar houses in your area have done to prepare their homes. Sometimes, it may be good enough to rearrange your furniture and take down your more personal decorations. In other areas, it may be the case where they'll recommend renting furniture and decorations to give your home a new look. Whatever the case, there are usually some adjustments you can make to give your home a look that will be appealing to most buyers. 

Why Should I Hire a Professional Stager/Interior Designer?

In a competitive market, having an attractive interior could be the difference between a fast close and a long wait. If there are many options on the market, buyers are more likely to flock to homes that have an interior that "wows" them and stands out. A professional stager can give your home the facelift it needs to stand out from the crowd and get tons of potential buyers in the house for a tour. 

An agent can give recommendations and provide valuable insight into what other sellers have been doing to stage their homes. They might also know what is selling quickly and what has taken a long time to sell. Once they communicate this information, you'll have a better idea of what areas to emphasize and what parts you should rearrange. Ultimately, a home stager can work with your realtor to determine what will look best.  

Many buyers use online listing platforms to find homes they want to tour. Nowadays, sellers rely on a great first impression to get buyers into their homes. A great marketing campaign can help, but part of a great marketing campaign includes attractive pictures of your interior. Curb appeal is important, but once they swipe right on the pictures, they're looking inside your whole home. The better your interior pictures look, the more likely they are to request a tour. A professional stager will give you a better shot at catching the buyers' eyes and securing that home tour. 

Finally, staging your home can increase the perceived value of your home. If someone can see themself living in your home, they'll be willing to pay more for it. If the market is competitive, you could have multiple buyers get into a bidding war over your home. A staged home is one that will stand out over non-staged homes. As we said earlier, a home that stands out will get more interest, which gives it a higher value. Also, the faster you sell the house, the less time you have to pay for the usual expenses of owning the home. 

How Much Should I Spend on Staging? 

On average, a seller can expect to spend $2,000 to $5,000 if they commit to staging. Most realtors will agree that this is a wise investment because you can get a great return on investment. It varies depending on the size of your home and how much you're willing to spend. The cost may include hiring a staging professional and renting furniture and/or decorations. The goal of staging is to declutter, organize, and modernize your home to be more appealing. Some homes will require more resources than others. At a minimum, real estate professionals suggest staging at least the living room and one or two bedrooms. You can leave the rest of the rooms to the buyer's imagination. 

The more work you put into updating and staging your home, the more the buyer will appreciate your home. The degree of staging may depend on your area as well. If you live in a high-end neighborhood, you may need to invest in some luxury items and refurbish your home. Interior designers can offer recommendations on cozy yet fashionable furniture that can take your home to the next level. On the other hand, if you live in a rural or suburban area, you may look for a more modern or rustic style than luxury. Luxury items are likely to be more expensive, but they might be necessary if you want to sell your home for its full value. 

It's okay if you're still on the fence about hiring a staging professional to prepare your home to sell. Speak with your realtor about how much work they think you need to do on your home. The return on investment for staging a home is becoming more attractive because buyers search for photos online and desire a move-in ready home. If you do the staging right, you may get a great return on investment. 

5/13/2021

Having a realtor that will create a marketing strategy for your home is a great resource. However, you may want to use your personal social media account to share the house as much as possible. In this case, you'll need to know the requirements to ensure your online description is accurate. 

For example, you'll likely want to share how many bedrooms and bathrooms your home has, which can influence the house's perceived value. Buyers will pay more money for homes with more beds/baths. Find out if you can say your home has more or fewer bedrooms, bathrooms, and what you should call it if it doesn't meet those requirements. 

Bedroom Requirements

Some states vary in their requirements, so be sure to double-check with your realtor. The one thing that is consistent among all states is that you can't just turn any extra space into a bedroom. 

Most states have minimum size requirements for the length and width of the room. Also, there is likely a minimum height requirement. Most states require a space to be at least 70 square feet and 7-feet high to consider it a bedroom. Also, the bedroom must have two modes of entry/exit for safety reasons. That's why your attic space with only one door and no window does not qualify. 

Sometimes, homeowners will turn an attic area into a bedroom for younger children because the ceiling is too low for an adult. Even though it worked as a bedroom for your case, it wouldn't qualify as a bedroom to the buyer. Bedrooms also need to have a heating and cooling element, and a space heater doesn't count. There has to be some way to warm up the room and cool it down. In some cases, the window can, or a fan can qualify as a cooling element. 

A common misconception is that a bedroom must have a closet. Most states do not require closet space, either with or without a door. Although it may be a requirement for most buyers, a bedroom doesn't legally need a closet to qualify. 

Bathroom Requirements

Bathrooms also have a few requirements, which are slightly more straight-forward than bedrooms. For instance, you may have heard of a half-bath or full-bath. The terminology comes from the method real estate professionals use to distinguish between the functionality of the bathroom. 

Bathrooms are categorized into four quarters: sink, toilet, shower, and bathtub. The two most commonly used categories are half- and full-bathrooms. The most reasonable explanation is that most bathrooms that have a shower also include a tub. For half baths, there's always a sink with the toilet. You may also see a 3/4 bath with a toilet, sink, and shower, but no tub. It would be incorrect to list this as a full bath because the shower doesn't include a tub. Rooms with only a sink are usually considered utility rooms or have other appliances like the kitchen. 

Alternative Options

If you have a room that you'd like to advertise but can't call it a bedroom or bathroom, you've come to the right place. Extra storage space is highly sought after, so you can call it a storage closet or simply an additional room. If it has certain elements or good natural light, you can call it a home office. Home offices are extremely popular during the pandemic as buyers are looking for ways to separate their home and work-life. 

Another option is to call it a bonus room. Homebuyers love extra space that they can make their own. A room without a label may not be all that bad, considering homebuyers might have another use for that room. Extra rooms that can serve multiple purposes are great for buyers who need an art-studio, gaming room, extra storage, or a nursery. The options are endless for an extra room, so don't be too discouraged if you have a room that doesn't meet the requirements. 

Two vs. Three-Car Garage

Another popular discussion is the requirements for labeling how many cars can fit into a garage. Some will argue that a garage must have a door for each car that can fit into the garage. In other words, the garage must have three doors to be considered a two-car garage. This is not the case, as some garages may have a large door that can fit two cars. 

It comes down to square footage. Three cars must be able to fit comfortably to call it a three-car garage. Typically, the width you need is about 10 feet per car at a minimum. A good rule of thumb for width is to add a few feet onto the dimensions to ensure the driver can swing open their doors without damaging the paint. So, a 12 foot by 12-foot area is plenty of space for one car. Therefore, 24 foot by 24 foot would be a two-car garage, and so on. 

One final aspect to consider is storage space. Some people like to store their bikes, tools, recreational equipment, etc., in their garage. So if you have a 24x24 garage with two cars, you may need additional space to store your belongings. In all, a bigger garage is always better. If you only have two vehicles, but it's a three-car garage, you'll still use that extra space. 

Demand for housing continues to increase despite state and local restrictions for COVID-19. What has changed that has made people more likely to buy a home than before this virus came along? A combination of the following has created more opportunities to buy a home, contributing to a substantial new wave of potential home buyers. 

• Record-low mortgage interest rates
• Remote work opportunities
• Increased interest in a second home

Low-interest rates

The national average for both 30-year and 15-year fixed-rate mortgages has plummeted below 3%. Over the past few years, average rates have stayed around 3-5%. The rates continue to trend downward and reach record lows each month. 

A lower interest rate means more affordable mortgage payments. Affordable mortgage payments open the door for new homebuyers who couldn't afford the previous rates. As interest rates continue to drop, rental prices increase, encouraging more home buyers to search for an affordable starter home. Not only are individuals more likely to buy a larger home with low-interest rates, but it also creates a whole new market of potential homebuyers. 

Remote Work 

Many employers were forced to transition to remote work when the COVID-19 pandemic struck. Many states placed strict regulations on gathering unless your work was deemed "essential." Therefore, the new "work from home" trend, which was once seen as an inconvenience, has become popular among businesses across many different industries. They have noticed the financial benefits of working from home and acknowledged how many of their employees prefer the convenience of telecommuting. But what does this have to do with real estate? 

No commute

Telecommuting has its own benefits and challenges, different from commuting to work every day. The main advantage: no commute! The ability to work from home saves time and money. The obvious benefit is that you don't have to pay for gas or public transportation to get from home to work. Fewer travel expenses mean more money to spend on a house! If you're renting, you can repurpose that money for a bigger place. If you already own a home, maybe it's time for a better office? Regardless, buyers have decided that working from home is a great reason to buy a better home. 

Need more space and an office

Also, telecommuters no longer have to spend close to two hours a day driving or riding to and from the workplace. Spending more time at home has made homeowners realize that they want more space and more functional office space. Many workers have chosen to work from their kitchen table or their laptop on the couch while waiting out the pandemic. Since employers are starting to have their employees work from home permanently, homeowners are looking for homes with more space to separate their living areas from their office space. Homes with functional office spaces and separate living areas are at a premium and highly sought after. 

Priced-out renters

Thousands of people rent temporary apartments and condos because of the inflated housing prices in their area. For example, houses in California can get too pricey, especially if you work near some of the popular tech companies. As previously mentioned, rental prices are continuing to increase with cost-of-living. In turn, mortgage rates are decreasing, making it more feasible for renters to look for a permanent residence. 

However, in some places, it's still not reasonable for low-to-middle income families to buy a home. The new remote work trend allows individuals to move into more affordable areas and purchase a home, rather than renting a place close to their employer. Essentially, if you can telecommute, you don't have to live near your workplace. Experts predict that renters in high-end areas will move out of the major cities to buy a starter-home if given the opportunity to work from home long-term. 

More Interest in a second home

There's currently an exciting trend of homeowners buying a second home. This may be a result of low-interest rates. However, the work from home trend may contribute as well. Some homeowners work from home, and others have to stay home with their kids for online learning. Either way, they're spending 24/7 at home and want a break from everyday life. This has resulted in an increased desire for a second home. Most homeowners prefer their second home to be within a few hours' drive from their current residence. Some homeowners use the second home as a vacation home, while others just need a weekend getaway.

It's never too early to think about selling or buying a home. Whether you're looking to sell your current property or searching for a place to call home, now might be the right time to prepare for a rush of homebuyers.

With COVID-19 at our heals, buyers are definitely ready for a new wave of properties to hit the market.  A low inventory of houses combined with extremely appealing mortgage rates, this spring could result in an additional explosion of potential homebuyers.  

Selling a home

If you're a homeowner looking to sell your property soon, now is a great time to begin preparing your home for tours and maximizing the potential for a quick sale. Whether this means renovating that bathroom you've been putting off for so long or updating your landscaping, now is a great time to get those things done, so you're prepared for the potential rush of buyers. 

If you're a homeowner looking to move into a larger home, a tight real estate market could be the ideal time to sell. With low inventory throughout the market, there will often be many qualified buyers looking to compete for the best properties. While it might be tempting to try to go at it alone and save some fees, working with a qualified real estate agent can save you valuable time and help you secure a higher sale price. Real estate agents understand the local market and pricing strategy, can help create a winning listing and have extensive market exposure.

On the other hand, you may be more focused on looking for a home to buy. If that's the case, it's not too soon to prepare for a brand-new inventory of houses coming on the market. While others are renovating and updating their houses, you can be getting your finances in order, so you are ready when the perfect home comes along.  

Buying a home 

Make sure you don’t rush through your research when buying a home. Now and through the winter are great times to research the type of house you want and get your finances in order. Whether that means improving your credit score or reducing your debt to income ratio (DTI), it may take some time to get in an excellent financial position to buy a house. Make sure you plan ahead to be ready for the new spring inventory. 

If you're looking to buy a second home, one important consideration is taxes. For your first home, you can usually get a tax credit for the interest on your mortgage. You may not get a tax credit for the interest on your second mortgage. Make sure to consult a tax professional to understand what to expect if you purchase a second home.

We always encourage working with a real estate agent when looking to buy a home. They will have extensive knowledge and can guide you toward the right home that works for you. A real estate agent will often have access to homes not yet listed on the market, which can be crucial to securing a sale in a tight real estate market. They can also offer recommendations based on your personal situation. Having someone in your corner when looking to buy a home is always a good idea.

Refinancing 

Refinancing your mortgage could be beneficial, depending on your circumstances. If you have been making monthly mortgage payments for a while and have a good amount of equity in your home, you might benefit from refinancing. You can request a change in the amount you pay per month, or how long you make the payments. This is known as a "rate and term" refinancing option, which allows you to negotiate with a mortgage professional about the rate and term of your mortgage. This could reduce the amount you pay for your monthly mortgage, or shorten the length of payments on your mortgage. They usually go hand in hand, so it is important to know what works for your circumstances. 

There are also options to borrow some of the equity you have gained from paying off your mortgage. This is called a home equity line of credit (HELOC) or a home equity loan. It can turn the equity you've generated from mortgage payments into cash you can use in other ways. If you're in a pinch for cash, you can refinance your home loan and claim the equity as cash or consolidate the bills to cut down high-interest rates on other payments. Always consult with a professional before you make a decision about refinancing. They can help you find the right option that fits your situation. 

Pre-approval can make the difference 

Did you know that you can get pre-approved at any time during your home search? We believe that being pre-approved to buy a home is one of the best advantages you can give yourself. Getting all of the paperwork out of the way and gaining pre-approval when you go to tour a home you like can speed up the buying process exponentially. 

Some mortgage lenders are shifting to digital mortgage and approval forms. This should make the process more convenient for the buyer as you don't have to print out a ton of paperwork and drive to the office to get approved. It may also speed up the process for approval or pre-approval. They should receive your information faster and contact you as soon as they have finished the process. For most people, a digital pre-approval process takes around 20 minutes to complete. Having a pre-approval in hand will make your offer stand out and could give you an advantage if other people are interested in the property that aren't pre-approved. 

Buying a home is more expensive than you might think. The largest cost you hear about is the down payment, but there are several other expenses that add up to quite a bit more. From taxes to insurance and fees, here are some of the prepaid costs you can expect to owe at or before closing day. 

Pre-Paid Costs for Buying a Home

Homeowner's Insurance

A mortgage originator will typically require a year's worth of mortgage insurance paid at closing. The premium is determined at a yearly rate, but most lenders will allow you to incorporate that payment into your monthly mortgage bill. 

Mortgage Interest

The creditor adds on the interest between the closing date and the amount due at your first payment at the end of the first full month. For example, if you close on the 15th of the month, you pre-pay the interest through the 30th (or 31st) at closing. Then, your next payment will include an entire month's worth of interest. Most people try to close at the end of the month to reduce the amount spent on interest at closing. However, there are some benefits to closing near the beginning of a month. Most lenders are busy at the end of the month, so if you close in the beginning and something goes wrong, the lenders might have more time and resources to solve the issue. 

Property Taxes

The buyer typically pays the remainder of the property taxes due that year at closing. So, a purchase earlier in the year may have to front more cash to cover the gap. Vice versa for a late-year purchase. However, this portion is negotiable depending on how the market is responding. Some sellers will offer to cover a percentage of the taxes to attract a potential buyer. 

Earnest Money

Someone will need to collect money when you make an offer on the house to prove you're serious about buying the home. Some real estate brokerages collect the earnest money shortly after you make the offer. Sometimes, they'll have you send it directly to the title company to hold in escrow. Regardless, your real estate agent should know where to take the money and how much you'll need send. 

The amount of earnest money typically depends on the size of the purchase. Most contracts require 1%-3% of the total value. For example, if you make an offer for $200,000, you can expect the earnest money due to be around $2,000. This check will be contributed to your down payment at closing, but it's helpful to know that you'll need to have this money accounted for when you make an offer. 

Down Payment

The biggest expense when buying a house is the down payment. Most lenders require at least 3.5% of the total loan up-front. This would be the case for an FHA mortgage. A conventional mortgage usually requires close to 5% with a good credit score. Some speciality loans, such as VA or USDA loans, might have 0% down options, but you typically have to pay a small percentage of the mortgage at closing. 

There are down payment assistance programs available to most home buyers who make less than the median income in their area. If you think you might struggle to save enough money for the required down payment, talk to your trusted lender to see what programs they offer. 

Mortgage Fees and Closing Costs

Mortgage Origination Fees

The mortgage originator charges a fee for processing the loan. All of the work they put into collecting paperwork and setting up the mortgage goes into the total costs due at closing. 

Title Fees and Insurance

The title company is responsible for providing information on the property and making sure there aren't any legal issues before the transaction occurs. Most title companies require the buyer to purchase title insurance to protect the buyer and the title company from legal action if an issue is discovered after the deal closes.

Sales Taxes and Fees

Federal, state, and local governments play a role in such a large exchange of property. As a result, there are sales taxes involved because the transaction is taking place between two parties. For example, most states charge between 2-5% at the state level, and local governments can add to that if desired. There may also be a local ordinance that a city or county employee inspects the property prior to change in ownership.

More Expenses

Appraisal

Most mortgage companies will require an appraisal for the property for a few reasons. First, they want to make sure the amount of the loan would be protected and they could resell the property for a similar price if the loan is defaulted. Also, it provides valuable information about the property for the buyer, so they have a full understanding of the property they're purchasing. 

The average appraisal costs around $500. Depending on the area and demand for appraisals, it can range from $300 to $800 in the very expensive areas. The buyer is responsible for purchasing the appraisal, and the results will be available for review before the closing date. 

Inspection

Another expense that is meant to protect the buyer is a buyer's inspection. Private inspection companies will send out a professional to examine the property and look for any obvious or potential issues. The price of an inspection depends on the size of the property since the inspector is responsible for examining every inch. A standard inspection will cost $300-$400, and there are add-ons based on the situation. Most inspectors will recommend having a sewer professional examine the plumbing, which will cost a bit more. You can also request special inspections/treatments for termites, mold, and radon. Any of these additional services will cost more, and your inspector will tell you if they think it is necessary. 

Survey

Most real estate agents will recommend the buyer have a survey done on the property after making an offer. Surveys mark off the property lines and tell you if there are any potential encroachments or easements on the property. For example, most utility companies have an easement to enter your property to "read the meter" or perform routine maintenance.

A survey will also map out any unusual or unique attributes on the property. For example, some people own the road in front of their property and are responsible for maintenance. It could also reveal improvements done on the property over time and give dimension of different structures. A survey can cost anywhere from $150 for a basic drawing, or closer to $500 for a full-fledged service where they mark the boundaries and examine the structures. Talk to your real estate agent about what they think is necessary for your circumstances. 

Pre-Purchase repairs**

In rare circumstances, your lender might require repairs on the property before they fund the loan. If there are structural issues or hazardous conditions such as mold or radon, they can withhold the mortgage until the problems are resolved. Any repairs will fall on the responsibility of the buyer unless they can negotiate it into the contract with the seller. Beware of possible warning signs and ask your inspector to emphasize any structural or hazardous problems when they're examining the home. 

There are many stages involved in a home sale. Between the offer and closing day, the buyer probably doesn't have access to the home. The final walkthrough allows the buyer one last opportunity to confirm any necessary changes and evaluate the house before the final transaction. 

Why do you need a final walkthrough? 

After an inspection, most buyers will request something to be fixed or updated before the closing date. Most sellers are trustworthy and will complete the tasks before closing. For the buyer's protection, they can evaluate the home one last time before signing the papers. 

The final walkthrough allows you to inspect a home for any problems that have occurred between the time of the tour and the closing date. The process of selling a home can take weeks or even months to complete. A lot can happen between the inspection and the closing date. Some sellers choose to live in the house until the day before closing. Merely living in a home increases the chances of something being broken or misplaced than if they moved out early. 

Even if they've moved out of the home well in advance of the closing date, there are still some problems that could occur. For example, an abandoned house is more vulnerable to break-ins or vandalism. It's a reality that home buyers should be aware of and look for during the walkthrough. Also, empty homes might attract various critters or pests. The point is, even if they're not living in the house, that doesn't mean you shouldn't meticulously evaluate the property during the walkthrough. 

What to Look for in a Walkthrough

It's important to be observant during the final walkthrough and anticipate what you're looking for before entering the house. The buyer and their agent will walk through it together, so be sure to ask if you have any questions or need recommendations on what to look out for. You'll want to study every part of the home to ensure nothing has changed. Take a look at everything from the outside of the home, locks, keypads, passcodes, and of course, every room inside the house. 

Outside and Around the Home

It's easy to overlook the outside of the home, but you should consider being thorough if you're going to make such a large purchase. Take a lap around the exterior and make sure there isn't any damage that wasn't there when you made the offer. This includes the roof, siding, landscaping, garage, and any other exterior structures that come with the property. If the sellers agreed to leave outdoor furniture, then make sure it's still there. Otherwise, make sure they've removed anything you didn't agree to keep with the house. 

Take a good look at the windows and screens from the outside. If there has been poor weather, the screens could have fallen out, or the window might have cracks. You can also take a look at the mailbox to make sure it is still standing and hasn't been damaged. Everything is supposed to be in the same condition or better than you last saw it, so don't be afraid to look with a critical eye. 

Inside the Home

Once you've done the exterior check, it's time to head inside. Be sure to be very observant when looking for potential issues. The first thing you want to check is anything that you've agreed upon from the inspection. The seller is responsible for updating or fixing any problems they find during the inspections. It may be hard to confirm that they fixed some things, so be sure to ask for receipts or proof that the project is complete.

Next, you'll want to look for anything that could potentially be a deal-breaker. Anything that might cost you a chunk of change once you move in because you'll be responsible for fixing anything after you sign the papers. That list should include the HVAC system and thermostat, light fixtures, outlets, garbage disposal, or any damage that would require a professional to fix. 

You'll also want to check any plumbing such as sinks, toilets, and showers. Make sure the water is running, drains well, and the pipes don't leak when used. Any appliances that would be expensive to replace should be working correctly and should have been cleaned. 

Another thing you should check is that all doors close, latch, and lock properly. Doors that are propped open might be a sign that the door doesn't stay open on its own or doesn't shut properly. Windows should open, stay open, close, and latch like they did when you came through the first time. If anything is off, be sure to mention it to your agent. 

Keys, remotes, passcodes, and security systems

If the home has a security system or anything digital like a thermostat, don't forget to check that they're working well and that you know how to use them. If not, be sure to ask the owners to show you how to use it before you sign the papers. 

Most homes have remotes for their automatic garage doors, so be sure to test those. Also, digital padlocks for exterior doors are becoming more common, so make sure you get the code and test it as well. You should get multiple keys, so test the keys and make sure each key works and goes to the door they said it does. Feel free to check any other remotes that are being left with the house as well. It's best to ask the owner to fix it if it doesn't work rather than figuring it out yourself. 

What to do if you find an issue at the walkthrough

If you find something that you think needs to be fixed or replaced, there's still time to work it out with the owners. It might delay the closing or change the terms of the deal, but it's better than having the responsibility of fixing it yourself. If it's a bad enough problem or it breaks the terms of the contract, the buyer can still back out before they sign the papers. However, the best-case scenario is that the buyer and seller can work out a new deal. Most sellers either won't notice the problem until you bring it to their attention, or they already know about it and are expecting the buyer to ask about it. Either way, the seller should be willing to compromise and move on with the sale. 

Buyers are out in full force, so what gives? Why is housing inventory so low despite the high demand? It usually takes a few external factors to change the housing market as it has in recent months. Here are some possible explanations for why fewer people are listing their homes despite the promising upward trend of eager homebuyers:

1. Uncertainty - Homeowners are uncertain about their financial future and afraid to take the risk. 
2. Low Rates - Owners are enjoying low mortgage rates that they fear will go away after the pandemic. Also, they may have recently refinanced due to the low rates. 
3. Baby Boomers are Homebodies - Older generations (Baby Boomers especially) are settled in and content in their current residence. 

1. Uncertainty Surrounding Finances and Employment

Finances and employment are two key considerations when buying or selling a home. Although plenty of people are lining up to buy a home, it's the current homeowners who are content to stay where they are right now. Uncertainty has made current homeowners settle in, and they're prepared to ride out the pandemic in their current homes. 

Also, the idea of selling their home is tied to finding a new place to live. If the inventory is already low, they'll need to know where they're going to move before selling their current home. If they can't afford any of the houses on the market or can't find any they like, they'll probably wait until they can.

Unemployment

COVID-19 has thrown a wrench in many homeowners' financial plans. Whether it has impacted you directly or not, everyone has been holding onto their wallet a little tighter since the pandemic hit. You may hear stories about record-high unemployment rates, or you've been impacted yourself. Either way, most people don't want to make a big financial decision during a time of severe uncertainty. 

Financial Stability

Even the fear of potential unemployment can cause homeowners to rethink selling their homes. They know that what they're doing right now is working, and as long as they can keep on the same course, they can survive. Financial security is the first step to buying or selling your home. During COVID-19, it may be the case that many homeowners don't feel financially stable enough to sell their homes. It's relatively expensive to prepare your home for sale if you're going to do it right. Therefore, homeowners must be in a stable financial position, which is less common during a pandemic, leaving so many unemployed. 

Health Concerns

Concern for health and safety is an easy explanation during a pandemic. Simply put, some people fear the uncertainty that comes with an invisible virus to which there is no known cure. Some people choose to put a hold on listing their home because they don't want other people touring their house. It's an unfortunate reality that has caused many homeowners to hold off on selling their homes. 

Loan Forbearance

Homeowners who have experienced financial hardship due to COVID-19 have been able to reduce or even delay their monthly mortgage payments due to the CARES Act. Mortgage companies have agreed to work with homeowners who might be having trouble making their payments. Instead of selling their homes to get a smaller monthly payment, homeowners can delay their payments for an amount of time that is agreed upon between the mortgage companies and their clients. So, many people may be taking advantage of this forbearance and staying in their current homes.

2. Owners are Enjoying Low Mortgage and Refinance Rates

Mortgage interest rates have been trending downward for the past several years. Homeowners have enjoyed record-low interest rates, which might explain why so many new people are interested in buying who have previously rented. Also, there are tons of advertisements saying, "It's a great time to refinance your home!" While that may be subjective, many homeowners have opted to take advantage of the low refinance rates, which may be why they're not selling. 

When you've been living in your home for a few years, you may qualify for a lower rate through refinancing. Homeowners might have decided to refinance for a lower rate or even cash in on their built-up equity. Either way, it wouldn't be financially wise to move soon after refinancing, so homeowners are holding off on any dreams of moving into a bigger home to save some money. Homeowners know that mortgage and refinance rates are at all-time lows, so they're saving money instead of moving on to their next home.  

3. Older Generations are Settled In

Millennials are moving out of the city and are ready to start their lives in a single-family, suburban home. So, why is it so hard for them to find a home right now? One possible explanation is that Baby Boomers are happy with their current homes and have no interest in moving. Baby boomers still own most single-family homes, and they're not putting them up for sale. Millennials are the largest population and are trending toward becoming the largest group of homeowners. 

Until recently, tons of millennials have chosen to rent rather than buy. They are coming upon the age where they have more money, and they've started families. The demand has steadily increased as Millennials are taking over the homebuying industry. The supply hasn't been able to keep up with demand because Baby Boomers still own a majority of the single-family homes and are content to stay right where they are. 

Millennials are having to find other options like renting or building new homes. Unfortunately, it takes more time and money to build a new home than to buy an existing one. Millennials who can't afford to build a new home may be stuck with renting until the Baby Boomers start selling their homes again. 

Sometimes finding the right home can be challenging. There are so many variables to consider, and the fast-paced cycle of touring homes can be demanding. We want you to savor the experience and hopefully make buying a home more enjoyable. Besides, finding a home that makes you happy should be an exciting time! 

So, instead of making a checklist of strict requirements, maybe it's time to get out there and start touring houses. You never know what you might find. Especially during a time of low inventory and extreme buyer's demand, if you're thinking about buying a home, now is the time to get out there and get in some houses. 

You'll Never Know Until You Tour

You might have a baseline idea of what you desire from a new home. Many new home buyers are looking for ample office space due to the recent work-from-home trend. Other homebuyers are touring every home they think they might like. Sometimes you have to get inside a house to know whether it's the right fit. 

Pictures Don't Tell The Whole Story

What you see online is just a snapshot of the bigger picture that you can only know if you step foot inside the home. An image might make a room look smaller or larger than in reality. Lighting and shadows can play tricks on photos, and you get a more accurate feeling of the size of the home once you're inside. 

You Might Find Something New

Realtors are human. They might forget to mention something important about the home. Besides, the online description can only say so many details about the home. Once you enter the home and are in front of the realtor, you can ask as many questions as you'd like and spend more time evaluating every inch of the home.

Also, you could find something that you didn't know you'd like. You may have never thought about buying a house with a large back yard until you find a home with an incredible back yard and fall in love. Wood flooring may have never been your style until you walk into a home with brand new wood flooring. You may never consider these details unless you get inside the home and see it for yourself.

Prices Are Negotiable

The selling agent might not mention that the listing price is rarely what the house is sold for. If a home seems out of your price range, there's usually some wiggle room. If it's close to your max budget, give it a try and take the tour. You might fall in love and decide the extra money is worth the investment. It's hard to put a price on happiness. You may also find an aspect of the house that allows you to negotiate the price down to a more reasonable number. It may be listed too high, and you're missing out on a wonderful opportunity. You never know until you tour the home and get in front of the seller. 

How Will I Know If The Home Is Right? 

Once you get inside the home, you might have a thousand questions. Once you've toured several homes, there are likely many unanswered questions floating around that will help you make your decision on which home is right for you. To help unravel some of these questions, here are some suggestions on important variables that should go into deciding on buying a home that you'll love. 

It Feels Right

Trust your gut. Nothing can replace the feeling of pure joy and comfort you feel when you walk into a home that you love. If you can see yourself living comfortably in that home, that's a great sign. If it feels like home from the moment you walk in, then maybe you've found the right place. 

On the other hand, if you feel uncomfortable or unsure about the home, take note of that too. If you don't absolutely love it when you walk in the door, chances are there's a reason for that. It's like shopping for clothes. If you don't love it in the store, you'll probably never wear it. If you don't love the home's first impression, you may never like it. 

You Start Making Plans

Another great sign you're in the right home is if you can start making plans before you buy it. For example, if you walk into a room and say, "I could see us hosting guests in this room," or "my furniture would fit great right there," those are both great indicators that you would be comfortable in that home.

You might even start making plans for other people in your life. Having thoughts like "my kids would love this room" or "this reminds me of my parents," mean you're comparing the house to your current home. Nostalgia is an instant positive. It's easy to enjoy a home that reminds you of your family. 

It Meets Your Requirements

Of course, the house has to check all of your basic requirements. Getting an emotional connection to the home is a great sign, but it still has to fit your must-haves list. If you need three bedrooms for your family and the house only has two, it might not be plausible, even if you get an excellent first impression. You can always make adjustments to your must-haves, but don't sell yourself short.  

Your Finances Are Safe

As we said earlier, you can't put a price on happiness, but don't do anything that will put you in a bad spot. There is a difficult balance between finding a great home and making sure you can afford it. Before you commit, make sure you can afford the monthly payments using an online mortgage calculator or speaking to one of our mortgage professionals. Sometimes a seller will work with you if you really like the home. Regardless, don't take on more than your finances can handle. The stress of making a larger payment than necessary will overwhelm you and take away from the joy of living in your home. 

It Surpasses Your Expectations

This is the home! It covers all of your "deal-breakers," is under your budget requirements, and it even has a walk-in closet! You finally found the home surpasses all of your expectations. If you know the home is right, don't wait. If you know that everything is right, there's no reason to sleep on it or wait until you see other homes. If the home is perfect for you, take advantage of the opportunity to buy it! The market is extremely competitive right now, and waiting any long might be the difference in whether they accept your offer or someone else steals the house. 

Talk With Your Agent

If there is any question in your mind about whether the house is right for you, feel free to run your thoughts by your agent. That's why they're here; to help you find the right home and answer any questions you might have. They have probably seen several similar houses to the one you're looking to buy. They can tell you whether it's listed at a fair price or if they think it is a good fit for what you want. Don't be afraid to get a second opinion if you're unsure about a particular house. 

Fall has officially arrived in most parts of the country. The apple orchards are busy, pumpkin patches are thriving, and Halloween costumes fly off the shelves. If the same old pumpkin carving and apple picking routine leaves you bored and looking for new ideas, check out this list of creative decorations to spice up your fall interior. 

Start with Your Front Porch

There's no better time than the present to start a pumpkin-picking tradition every year. My family tries to go to an apple orchard or pumpkin patch every year. It gets you in the mood for fall, and fall colors are beautiful. As the leaves begin to change, start looking for an excuse to go out and pick your own pumpkin.

Pumpkins serve two purposes. First, you can decorate your house with fall colors. Then, you can carve them and set them on your front porch when Halloween comes. A pumpkin will last about one and a half to two weeks after opening it up and removing the seeds. They last much longer before you cut them, so buy some in early October and use them as decoration for the whole month!

Pumpkins are a Must

There's no better time than now to start a pumpkin-picking tradition every year. My family tries to go to an apple orchard or pumpkin patch every year. It gets you in the mood for fall, and fall colors are beautiful. As the leaves begin to change, start looking for an excuse to go out and pick your own pumpkin.

Pumpkins serve two purposes. First, you can decorate your house with fall colors. Then, when Halloween comes, you can carve them and set them on your front porch. A pumpkin will last about one and a half to two weeks maximum after opening it up and removing the seeds. They last much longer before you cut them, so buy some in early October and use them as decoration for the whole month!

Decorate a Fall Wreath

Wreaths aren't just for Christmas! If you're stuck inside because it's cold and windy, have a fun decorating session with your family. Making your own decorations is rewarding; you can enjoy them for an entire season!

You have so many options when creating your own wreath. Fall colors are so vibrant and exciting that you can use nearly any fall item and make a beautiful wreath. Start with a base color like brown from corn stalks, then add pops of color from different flowers or fall vegetables. Consider buying some fake flowers and fall vegetables from your local craft store so you can reuse your wreath every year.

If you're feeling adventurous, search for a tutorial on how to make an apple wreath. Plan a fun weekend activity with the family by picking your apples and creating a wreath from other fall decorations.

Make a Nice Centerpiece

Nothing says fall like Thanksgiving. Making a classic cornucopia could be a fun craft activity. Otherwise, you get a cornucopia with fake fruits and vegetables from various craft stores.

Find some pinecones, leaves, and fall flowers if you're tired of the usual cornucopia. There are endless ways to arrange these items in the center of your table to make a beautiful fall bundle. Grab a mason jar or a clear vase and make a great focal point. Then surround that with extra pinecones and leaves for an envious DIY centerpiece.

Get Creative with Corn Husks

Corn husks are an incredibly versatile decorative piece. You can use them as a base for nearly every decoration, and you won't be disappointed. They can stand independently as a bundle of husks or serve as a vessel for a wreath or centerpiece before adding the "pop" of color.

Some people like to use corn husks as stuffing for different decorations. Think scarecrows or dolls with plaid or flannel clothing. Feel free to get creative with corn husks because they are abundant and helpful if you're struggling with finding ideas for fall decorations.
Go Crazy with Gourds

Gourds can fit in every corner of your home. If you want to deck out your home with fall decorations, buy a bunch of gourds and start replacing your summer decorations. Gourds are so colorful, and they'll last a while in cool weather. You can use them to decorate your front porch or add a nice touch to your fall centerpiece. Either way, when people think of fall decorations, they think of yellow, orange, brown, and white gourds.

Squash is a close cousin to gourds. If you're in a bind and can't find any gourds to decorate your counter, you can replace them with a similar-sized squash. The main difference between squash and gourds is that squash is made for consumption, but you don't want to eat a gourd.
Smell the Pumpkin Spice (DIY candles)

Is it really fall without the smell of pumpkin spice and warm apple cider? Growing up, my mom always had candles burning. The scent would depend on the season. Warm pumpkin spice candles and freshly baked cookies were a few familiar smells.

Decorating a candle is a cheap and easy way to turn a normal, old jar into another great fall decoration. Get some strings, tie a leaf around the jar, or tie a corn husk around the neck. If you're feeling ambitious, you can find a recipe online to make your own candle wax for your decorative jar.

Buying a home is considered one of the most stressful events that can happen in your lifetime. In several polls, it ranked just below “death of a family member” and “getting married”.

But why?! Why is it that buying a home is such an anxiety inducing event for most people? And how can we reduce that stress and stay on point so we can function?

Well let’s start with why buying a home, especially your first home, is akin to watching a horror movie.

Buying a Home Is A Series of Stressful Events

Buying a home is no one single event. It's a long series of events spread out over weeks, often months! Each event presents an opportunity to get an unexpected setback or to simply wait for an answer to some unknown.

These include:

• Checking your credit report and score

• Figuring out how much you can afford

• Finding a real estate agent

• Getting pre-approved by a lender

• Repeatedly looking for homes

• Making an offer and waiting to hear back

• The inspection and waiting for results

• Getting insured and setting up utilities

• Signing the mountain of closing day paperwork

• Actually moving in

Each of these events could yield an outcome that is less than desirable. And if just one goes off the rails, it could prime stress triggers to all the others. Making the whole ordeal one nail biting moment after another. 

Here are some of the most common stress triggers new home buyers experience during the process.

• Asking price is too high

• Down payment is too high

• Seller is argumentative or unreasonable

• Lender rejects your loan application

• Home inspection reveals major defects in the home

• Agent has poor communication and negotiation skills

10 Tips to Reduce Stress

Sometimes stress is unavoidable. Many psychology experts even say it's unreasonable to expect to avoid it in these kinds of situations. This is when good research and being prepared is so important to not wanting to hide under your bed pulling your hair out.

So here are ten things to remember when buying a new home and you feel your stress levels start to spike.

1. Manage Your Expectations

Managing expectations doesn’t mean lowering your standards or disregarding the things that are most important to you. If you must have a backyard for gardening, kids, pets or hosting garden parties because it makes you happier, then stand by that. It’s about managing your expectations around communication, timelines and exactly what that yard may look like. 

Not everyone you interact with while buying a home will share your communication style. So be sure to remind yourself that things take time, things change rapidly and not to judge yourself or others too harshly. 

It will make a world of difference in maintaining sanity.

2. Know What You Want: Must Haves and Deal Breakers

Like we mentioned earlier about the backyard, everyone has things they want in a new home that are “Must Haves” and things that would instantly end the pursuit; “Deal Breakers”. 

It is worth the time to sit down and write these things down. Must Have and Deal Breakers should be short, simple and not too specific. For instance, you feel you must have a yard because you have a dog and not having a park within walking distance is a deal breaker. 

There should be no bend or break in these. So if you list them out and find yourself willing to deviate from them then you know they are not really must haves and deal breakers. Make sure you are confident and clear about these to reduce stress. No second thoughts when it comes to these important items. 

3. Know Your Financial Situation Before Emotionally Investing

Getting your personal finances in order before you start looking for a home can side step so much of the heartache that comes with buying your first home. 

Getting these affairs in order will help you avoid the let down of knowing the 20 or so houses you’ve already looked at dreamily are completely out of your price range and qualifications.

How much can you afford and what type of lending can you expect? Start doing your research and write down some very specific numbers that act as a compass for what you’ll be looking at. Even if your credit is less than stellar and your savings below desired you can still find an accurate appraisal of what you can afford. It will set the tone for your search.

4. Avoid A Bidding War

Bidding on a home is not something you can always avoid. If you love a property/home, there’s a great chance several other parties do. So you may have to compete to earn the right to buy it. 

Knowing your budget can keep things black and white. What’s your walk away price? What monthly payment will break the bank and make your life stressful for years to come? 

Set a hard line that, if breached, will end the pursuit of any giving property you’re lusting after. No second thoughts. Sticking to your budgetary guns is incredibly empowering and you’ll never regret it.

5. Remind Yourself to Be Flexible

This one is the other side of must haves and deal breakers and should be added to your list as “flexible on”.  What are the things you can take or leave? Is 2 bathrooms a nice to have or a must have? 

Maybe a backyard is a must have but you are completely flexible about how large and whether or not it's fenced in. Have these internal conversations with yourself ahead of time so you don’t feel on the spot.

This is why we encourage you to keep your deal breakers and must haves as non-specific as possible. Too specific a vision of your new home may stress you out because you may not be able to find it. And if you do actually find it, it may be out of your price range or the target of a bidding war.

So as much as you put into knowing your must haves and deal breakers, take the time to say aloud or on paper what you know you’ll be flexible on.

6. Anticipate A Long Process: Think In Months

Setting a specific date of when you’ll be living in a new home before you’ve started the process is a great way to turn into a stressed out mess. Sometimes factors outside of our control make this impossible to avoid, like, having to sell the home you currently live in or an apartment lease’s end date. 

We suggest thinking about action plans and budgeting for a longer timeline. The old saying is, “hope for the best and plan for the worst.”

Maybe you need to be prepared to store furniture for a month or two. Maybe you may have to stay with friends and relatives in the interim. Maybe you work out a month to month rent with your landlord. 

Start having these conversations before you start looking. You don’t want to be caught off guard and having to make arrangements on the fly because you thought everything would be “bam, bam”.

7. It's Okay to Say No!

One of the biggest stressors is feeling like you're on rails without a break.  There are many times throughout the search, purchasing and closing when you can pump the breaks and walk away. 

These opportunities can get a little more expensive as you progress through the process but knowing where and when you can say, “no, thank you”  is critical to feeling safe and confident. 

Maybe external factors will pressure you to keep moving forward. Check in with your deal breakers, must haves, flexibles and budget. If something doesn’t feel right, hit the pause button and sit with it. You may not know immediately why you are feeling cautious, but the answer may occur within a day after just considering it.

The bottom line is that you should never feel rushed or coerced to move forward. Listen to your intuition and only move lightning fast when you are at your peak confidence. 

8. Recruit Great Listeners for Moral Support

Everyone needs support sometimes. Having someone in your life that can listen when you are stressed or give you learned advice can provide a lot of stress relief. 

These sources of support may not be the same person and they don’t always have to be experts in the home buying process. You have a trusted friend who is a great listener and knows just the right things to say to you. You may have another source of support who may be an expert at the process but not the greatest listener.

Know what you can expect from your support sources and try to call on them for the specific things they are great at. 

If you are just stressed and your anxiety is spiking, call the great listener so you can unload. (Be sure to ask their permission before you vomit your feelings all over them. Engaging with someone who can’t can lead to some devastating let downs that only compound the stress.)

If you are feeling a little lost or under informed about how mortgages and other technicalities work, call the expert, have all your questions prepared and set your brain to listening mode. 

Having the resources to tap into will keep your stress in check.

9. Take Breaks

Searching for and buying a home can feel like a never ending gauntlet of tasks and decisions. It’s completely okay take some days off. 

Designate one day a week to not think about it. Maybe your Fridays or Sundays are the days to shut off your phone and let your real estate agent know you’ll be offline. Let them manage the communication so you can have a period of recharge. 

These moments of rest and relaxation, doing the things that you love or doing nothing at all are vital to maintaining your sanity. So take them with some regularity.

Being well rested can help you make better decisions and stay calmer when things get tense.

10. Let It Go

Finally, and probably most importantly, be prepared to have a short memory. You most probably won’t buy your first, second or third choice. 

We have the tendency as normal humans to lament the opportunities we missed or the perfect homes we were outbid on. Do your best to let go of those instances because there’s a great chance it will repeatedly happen. If you dwell on they may make you feel like you have rotten luck or that fate hates you. 

That can be a recipe for stress to mount quickly on you. There are things we can manifest into existence and we can feel great when it does, but when it doesn’t, let it go and move forward. Say it to yourself aloud if you have to. 

Everyone Feels Stress When Buying Their First Home

You can’t avoid stress in your life in general, nor should expect to. Buying your first home is full of events you’ve never experienced so it's completely normal to feel anxiety.

They key to not letting that anxiety and stress overwhelm you into making bad decisions for yourself and perhaps your family. So be prepared and do your research, set up some support channels and have back up plans for living arrangements and storage.

Doing these things will arm you with the tools to make any stress that comes manageable. 

Some people like to choose their homes based on gut instinct. Knowing exactly what you want is either a skill or a blessing that I don't have. For those of us who need to write everything down to rationalize our decision, we have created a 5-step plan for finding a home that fits your wants and needs. 

1. Establish solid boundaries.
2. Decide what you want to change.
3. Distinguish deal-breakers from luxuries.
4. Find a functional layout.
5. Carefully consider the location.

1. Establish solid boundaries.

Before you create a wish list, it would be helpful to know your limits. Taking a look at your budget to see how much you can afford is a great start. Once you evaluate your household income and decide what you're willing to pay, you can use an online mortgage calculator to determine what kind and size of houses are on the market within your price range. 

As long as you're still in the planning stages, you can improve your credit score as needed. Having a higher credit score will increase your chances of achieving a low-interest rate on your mortgage. While you're planning out the details, this is an excellent opportunity to get rid of some debt, improve your credit score, and save money on your loan. 

You've probably decided on the general location where you want to purchase a home. The planning stages are a great time to narrow down your search to a more specific area. Common factors most homebuyers consider are proximity to grocery stores, entertainment, work, schools, and public transportation. Setting a physical boundary to where you want to search for homes may be helpful in making your decision. Casting a wide net is a good idea at first, but keep the location in the back of your mind. 

2. Decide what you want to change.

An excellent way to find a new home that you'll enjoy is to compare it with your current home. There are likely certain aspects of your home that you enjoy and maybe even are fearful that other houses might not be the same. Take this as an opportunity to make a pros and cons list of your current home. 

The pros section should include all of the positive aspects of your current home that you don't want to give up in your next home. For me, I love that my kitchen has plenty of counter space and storage because I love to cook and need a lot of room. However, I wouldn't say I like how the laundry room is on a different level from my bedroom. With these two ideas in mind, I would want to find a new home with adequate counter space and a laundry hookup on the same level as my bedroom. Making a list of all the pros and cons can give you a clearer picture of what you will want in your new home. 

3. Distinguish deal-breakers from luxuries.

When making your list of pros and cons, it's essential to keep in mind which aspects may be a luxury and which ones are crucial to you buying the home. For example, let's say my family needs two bathrooms because we have three people who get ready at the same time every morning. So, we need to have at least two showers available each morning. This is a deal-breaker because if a home has less than two showers, it won't work for my lifestyle. 

We also love to bake tons of cookies and share them with friends and family. Having a double oven will make our lives easier because we could bake all of the cookies simultaneously. However, if the home fits all of the other criteria perfectly, we could live without the double oven. The oven in this scenario would be a luxury. Figuring out which details you can live without will take some pressure off your decision. Some people even expand their pros vs. cons list from the previous home and turn that into a deal-breakers vs. luxuries list. 

4. Find a functional layout.

Having enough bedrooms, bathrooms, and storage space are important. This falls under the deal-breakers category. To take it a step further, you can consider what you would expect for the layout of the home. 

Another way to describe the layout is the floor concept or blueprint. A few details to think about under layout are the number of levels, open or closed concept, and the arrangement of the rooms. 

Some people can't deal with stairs every day, so having a home with your bathroom on a separate level might become a problem. Or, you might prefer an open-concept home because you like to host a lot of company at once. Finally, you might need to have two bedrooms close together, so you're close to your children. All of these are examples of a decision made based on the layout of the home. Having an arrangement that works for your lifestyle is a crucial aspect to consider. 

5. Location, Location, Location

If you're considering moving, you've likely already given some consideration as to where you want to buy a home. Where you live can have a considerable impact on the price of the house and the quality of living. 

When considering the location, research what nearby amenities that area offers. Search for restaurants, grocery stores, parks, recreational areas, and entertainment near the home. If you have kids, look at the scores from the local school or research nearby daycares. Establish what is important to you and where you'll need to travel the most and find a place near that area. Having a long commute to school or driving 30 minutes to your favorite grocery store might become burdensome and impact your quality of life. 

Another factor of location is the community. Finding neighbors with similar interests will make for a charming neighborhood. The location you choose will dictate what kind of neighbors you get. For someone who wants to be around families with children, you might consider a suburban area to a condo in the city. On the other hand, if you like the hustle and bustle, a home in the mountains might not be for you. The location of the house will dictate what kind of community you join.

You might be a recent college graduate, starting a career in a new city and wanting to meet other young professionals doing the same. You might be newly married and wanting to start a family in an area with other young couples. 

Whatever your situation, location is one of the most important factors when looking for a home, and it's nice to move to an area where you can meet people on a similar life path. To help figure out what area is best for you, let's dive into the most trendy, up-and-coming neighborhoods for young adults in St. Louis and Kansas City. 

St. Louis

Kings Oak/McRee Town

These neighborhoods are next to St. Louis University, so it's a very student-centered living area. It's in the center of nightlife adjacent to downtown and close to the beautiful Forest Park. The Grove is the highlight of nightlife in the area with a whole strip of bars, breweries, clubs, and a brand new tiki bar. These neighborhoods are within walking distance or a short Uber ride away from all of the restaurants and nightlife there. It's also close to downtown if you find yourself needing to travel there for work.

Shaw/South City St. Louis

These neighborhoods give similar vibes to Kings Oak/McRee Town, but there are fewer college students living there, so more removed from the university. There is Tower Grove Park that has a great farmer's market and an amazing holiday light display during December. It's also home to the original, famous Ted Drewes frozen custard. 

Kirkwood/Webster Groves

These two neighborhoods are more family-friendly, and about 20 min from downtown. Both have great school districts and Webster is even set up where most kids can walk to school. They are still great for young professionals as well because they are close to great food, breweries, and shops. Downtown Kirkwood is home to a farmer's market, Kaldi's coffee, great restaurants, and a St. Louis favorite, Strange Donuts. 

Kansas City

Midtown/Plaza

This neighborhood is an area within downtown KC. It's definitely the most centrally located to all restaurants and nightlife. The most popular is the Power and Light District which includes upscale restaurants, bars, clubs, and shopping. There are a couple of universities in the area, including the University of Missouri-Kansas City, so the average age is college/young professional age. The Plaza is also a popular area to shop with boutique stores and restaurants.

Mission

This neighborhood is a suburb of Kansas City (on the Kansas side) and has a good urban/suburban mix feel. There are plenty of places to rent as well as buy, so many young professionals decide to live in this area. This area is more family-friendly with good school districts, but there's still access to fun entertainment and nightlife. 

Lee's Summit

This area is another suburb of Kansas City but on the Missouri side. This is a much quieter area with a cute downtown, much like the downtown in Kirkwood. It has shops, restaurants, bars, and an Amtrak train station. It's 30 minutes from downtown, so still close enough to go for a night out but not in the middle of the hustle and bustle. 

If you're a young professional looking to move, both St. Louis and Kansas City are great cities with a mix of the hustle & bustle of city life and the family-friendly suburban life. Feel free to check out some of our other blogs that give helpful advice (especially for first-time homebuyers) about the home-buying process.

It might come as a surprise that curb appeal truly does impact the value of your home. For sellers, it can be the difference between someone requesting a tour of your home or driving right past it on their way to the store. Sometimes, buyers will consider the condition of the lawn in the category of "move-in ready." In other words, you may have a beautiful house on the inside, but if the yard isn't maintained, it could be a turnoff. 

Springtime is an exciting season for those that like to spend their time gardening and general lawn upkeep. Even if you're not a huge outdoorsman, there are still three simple steps that you can take to really upgrade your lawn and have the neighbors trying to keep up with your green grass. 

3-Step Process for Keeping a Beautiful Lawn

• Recover: remove any unwanted remnants of leaves, twigs, and moss that could hinder your lawn's growth.  
• Prepare: feed your lawn to help it come back better than ever
• Maintain: keep up with anything that might impact the health of your lawn throughout the spring, so it's prepared for the hot summer days. 

This may seem like a ton of work, but you can complete two of the three steps on the same day. Raking leaves, picking up sticks, and trimming bushes is something you do on a Saturday afternoon, and your lawn will reap the benefits for the rest of the season. Maintenance will be much easier after you've done this, so maintaining curb appeal should be a breeze. 

Recover

Step 1 for having the best lawn in town is cleaning up after the long fall and winter days that have covered your green grass with leaves, moss, and other debris. Even if you cleaned up your lawn before the first snow, there's still a good chance that leaves from other houses have blown into your yard and sat there for weeks. 

Once the snow comes around, it compacts all of the dead grass and leaves into the soil and clogs up the pores. If you don't treat this, the rest of your work will be for nothing because your grass won't get the right amount of water, nutrients, and sunlight to become happy and healthy. 

One way to deal with compacted soil is to rake the entire lawn with a high-quality rake to break up the loose, dead debris. Even if there aren't any leaves, raking the grass will loosen up the dead debris and allow your grass to breathe better. 

Another option is to use an aerator or pitchfork to create holes for the nutrients to absorb into the soil. This may take more time, but it is very effective at breaking up dead grass and other problems that might cause your grass to die. 

Trimming dead limbs on trees and bushes is another good wait to give your landscaping a facelift. Dead or dying limbs take unnecessary nutrients from the healthier parts of the plant. By removing these, the healthy parts of the plant can shine through. For example, a plant that is about to bloom might bloom twice as much if you remove the dead limbs, which will make it more vibrant and attractive. 

Prepare

Step 2 comes after you've cleaned up the lawn and removed any debris that could get in the way during the preparation phase. Preparation primarily refers to the hot summer that will kill your grass if it's not healthy and maintained. This phase can look like a few different things. Most landscapers like to fertilize and water the lawn to give it extra nutrients. The best way to get a healthy lawn is to feed it regularly. Most fertilizers recommend applying it spaced out every few weeks to avoid over-feeding or burning up the grass. 

Another option would be to repair unhealthy patches in the grass rather than fertilizing the whole lawn. If you find any dead spots or areas that you would like to improve the grass, place some sod down to encourage growth in that area. You might consider watering it a few times after first putting it down, so the roots have enough fuel to grow down into the soil. 

Weeds can create a problem when the March and April showers start to roll around. Weeds steal nutrients from the grass and can grow pretty quickly if you don't keep an eye on them. An easy way to prevent or stunt weed growth is to lay a fertilizer that includes weed prevention/weed killer. Beware not to use a weed killer like roundup that will also kill your grass. The bag will clearly state that it only kills weeds and is safe for grass and other plants. If you would rather save money and avoid the fertilizer, you can always do it the old-fashioned way and pull them by hand. Fertilizer will save you tons of time and energy but might cost a little bit upfront. 

Maintain

Along with keeping up with the weeds and fertilizing a couple of times, the third step consists of usual lawn maintenance once a week or so.  Mowing your lawn and scrounging for weeds will keep your grass strong and encourage continuous growth. If your grass gets too long in the early stages, it might use up all the nutrients too quickly and will stunt the growth later in the season. Of course, don't mow the grass too soon after you spread fertilizer or water the lawn. If it's wet, you might pull some grass out of the ground or create divots. 

Maintenance also includes keeping it full and robust throughout the summer. You never know when a buyer might be ready to take a tour. Keeping your lawn clean and strong will keep you prepared for any opportunity. 

An open house can be an excellent opportunity to host many potential buyers at once while increasing the overall awareness of your home. Especially during peak buying seasons, some realtors will host open houses every week. While this shouldn't be the only reason you choose a particular realtor, it is one consideration we recommend you make, among others. Here are some of the good outcomes that an open house can produce:

More Prospective Buyers

The main goal of an open house is to increase public awareness that your home is for sale. An open house can encourage more prospective buyers in a few ways. First, many realtors have elaborate marketing campaigns to broadcast the open house over many media platforms. When you host an open house, the goal is to get as much exposure as possible. Some realtors will encourage any buyer to tour the home, regardless of if the home fits their preferences. Getting a lot of traffic in a house is a strategic decision to promote buyer interest. 

Also, buyers might feel inclined to attend an open house because they feel less pressure. Naturally, when other prospective buyers are around, they can tour the home at their leisure without interacting with the realtor. Some people think that an agent will try to give a sales pitch to secure the commission, and they don't like aggressive salespeople. Whether that's true or not, some people are more comfortable in a croup. Plus, they didn't ask for an individual tour, therefore expressing their interest. Instead, they can say they're "just here to look" and will walk out with a clear conscience. 

Sparks Buyer Competition

Especially during peak selling months like June, July, and August, you might get a lot of traffic at one open house. When homes sell fast, or there are few homes on the market, an open house could be the perfect formula to encourage a bidding war. If a buyer notices that a few other people are interested in the home, they could place an offer soon after the open house. 

A bidding war means a few offers competing against each other to place the highest bid for your home. This would be a fantastic outcome because you are making extra money than if you chose to go with the first offer. Increasing attention on your home could mean you make more money on your home. If selling your home quickly and at a great price is the goal, an open house is one route that could get you there. However, you should keep in mind the possible adverse outcomes as well. 

Possible Cons For An Open House

While it's not guaranteed that these negatives will occur, you should still prepare for the possibility of any number of these outcomes from an open house. In real estate, it's tough to predict what will happen. Some realtors host too many open houses to reduce the number of times they have to show a home. You have to decide whether the potential reward is worth the risk of encountering any of these negatives: 

Less Individual Attention

You might get a ton of potential buyers to attend your open house. While it is great to get as much exposure as possible, having too many prospective buyers could be overwhelming for your realtor. If only a few people show up, your realtor can really give a detailed explanation and answer all of the buyers' questions. However, if you get a great turnout, the realtor might have their hands full and might not be able to address everyone's concerns within the scope of the open house. 

If your realtor cannot give each individual the necessary time and attention, it may leave some buyers feeling under-appreciated. While being overwhelmed with potential buyers might not be anyone's fault, you may lose a prospective buyer. One way to mitigate this dilemma is to offer your realtor's contact information at the door. If the agent cannot address everyone's questions individually, the prospective buyer can reach out individually at another time if they're still interested. Besides, the primary purpose of an open house is to increase exposure. Getting people inside your home and building interest is a step in the right direction. 

Attracts Unmotivated Buyers

One of the pros mentioned earlier is that an open house should increase interest in your home. With all of the extra marketing efforts (i.e., fliers, emails, social media posts), the goal is to increase exposure. However, this may include some interest from people who aren't really in the market for your home. Whether their income is too high or too low, or your house doesn't match their "must-haves," you're likely to encounter a visit from buyers who likely won't purchase your home. 

The seller should decide whether it is worth opening your home to uninterested buyers for the chance that a real buyer actually shows up. Some people enjoy touring houses with no real intention of purchasing a home. Most selling agents can differentiate between a motivated and casual client. However, realtors don't do screenings on every person for an open house. This leaves the door open (literally and figuratively) for any person interested in touring a home. 

Unlikely, but possible, you may have a neighbor or family friend show up because they have nothing better to do. Preparing your home for an open house is a ton of work. You should be sure that there is a healthy amount of interest before you decide to have one. The last thing you want is to prepare your home, have your realtor show up, and nobody comes. This is a real possibility that happens from time to time. Be sure to weigh the risk vs. reward before committing to hosting an open house. 

When the snow starts to cover the ground around the holiday season, the real estate market takes on a different form. In the summer, buyers are active, and you may see interest from many different types of buyers. In the winter, the remaining buyers have a different perspective. Once the summer rush slows down and cold weather sets in, the people left searching for a house are serious. Buyers that are willing to stick it out through the cold, wet, snowy days are ready to buy a home ASAP. Sellers must be prepared and ready to move quickly if they plan to sell their homes in the winter. Below are some helpful hints to make your home stand out to buyers during the winter season. 

Mix-Up Your Marketing

The winter weeds out the less motivated buyers, so people who show interest in the winter are serious about buying a home. This means that your marketing strategy should cater more toward those who still remain. 

Refresh Your Posts with New Photos

If your home was listed in the summer or fall, you might need to freshen up some of your photos. If there's snow on the ground when the buyer does their research, but your images show a picture in the heat of the summer, they may wonder why your home has been on the market for so long. Adjusting your marketing with more recent photos may avoid any unwanted questions. You can still keep your old summer photos up as well. They will give the buyer an idea of what your property looks like in the summer. Just be sure to occasionally update the post so it doesn't show that your home has been listed for a long time. 

Increase Your Social Media Presence

Another strategy may be to up your social media presence to draw more attention to your home. People are less likely to drive around town to look at for-sale homes in the winter. Besides, there are typically fewer people searching for homes in the winter anyway. There are still plenty of buyers surfing the web for new listings, and they could reach out to you at any point. Continually updating your listing to be at the top of buyers' feeds is the best way to draw attention to your home when it's cold outside.

Keep Your Driveway and Sidewalk Clear

Curb appeal is a little different in the winter. In the summer, you can have a pristine yard with wonderful landscaping. As soon as it gets cold, all of your beautiful plants get covered in frost and snow. Keeping up with snow removal is an excellent alternative to the typical curb appeal you hear about when it's warmer. 

Buyers probably don't want to hike through snow and ice to tour a home. If you can keep your driveway and sidewalk clear of any snow or debris, that will leave a great first impression. It may sound weird because buyers shouldn't care about snow in the driveway. It's about the home, right? Well, studies have shown that there's a lot more you can do to sell your home besides keeping the inside neat and tidy. Putting in the extra work outside might increase traffic to your home and create a more inviting atmosphere. 

You could always hire a snow removal company to clean up your driveway after every snow. That would save you some time and give your back a break. If you choose to do it yourself, be sure to clear more than enough space for other cars and have a clean walkway to your front door. The more comfortable you make it to get into your home, the more likely you are to have increased buyer interest. 

Make Your Home Warm and Cozy

Once you get buyers in the door, there are several ways you can make them feel more at home. Realtors agree that buyers are looking for a home that makes them feel warm and cozy, especially when it's cold outside. Make comfortability your number one priority when staging your home and inviting buyers over for tours. Here are a few tips for conducting a tour in the winter:

Keep the Heat Up

If you're like me, you like to conserve your heat and save some money on utilities. In the winter, as long as your home is above 65 degrees, that's good enough, right? When you're inviting people over to your place for a tour, you might consider cranking the heat up to a temperature that will be more comfortable for your guests. A cold home might raise some questions about the insulation or how well the heater is working. 

Eliminating any cold air drafts is a good way to conserve energy, but you probably don't want buyers to see all of your draft stoppers. Draft stoppers can be another turnoff, so try not to cut any corners. Keep the heat running and get rid of anything that might indicate a cold home. A comfy cozy house is what most buyers are looking for in the winter.  

Take Advantage of the Fireplace

Fireplaces are a major attraction in the winter. You can add to the ambiance and contribute to the cozy theme by throwing a log on the fire. Even if you don't have a fire burning for every tour, definitely consider making the fireplace a focal point of that room. Fireplaces are trendy and make everyone feel cozy when they're around one. An added bonus is you can utilize the fireplace to cut back on heating costs. 

Offer Baked Cookies and Hot Coffee/Chocolate

Sellers typically provide a snack for buyers during an open house. You can take that a step further and offer snacks that go along with the cozy theme. There's nothing better than a cup of hot cocoa on a chilly afternoon. Have them sit by the fireplace on a comfy sofa with a warm mug of cocoa, and they can invasion themself in the home already. The added sensation of brewing coffee or baking cookies is the wonderful aroma that will fill the air when your guests arrive. Setting the entire scene and making them feel cozy through all of their senses is the goal here. 

Use Pops of Color to Brighten the Mood

Winter days can be dark, dull, and dreary. Lighting up the room as much as you can make buyers feel merry and bright rather than dark and gloomy. Turning on all the lights and even turning on a lamp or two can lighten up a room and make the buyer feel more welcome. Utilize as much natural light as you can, too. Any attempt to make the buyer feel excited and energized rather than gloomy can give them a better feeling about the home. 

Look out for Possible Issues 

Unfortunately, winter also brings out some problems that you might not notice in warm weather. Pipes may leak when they get frozen and melt, or you might discover that your heater doesn't work as well as you'd like. Keep an eye out for a potential issue that an inspection might find so you can fix it before the buyer makes an offer. Buyers in the winter are serious and like to move quickly, so be sure to stay on top of any issues that might result from the cold weather. 

When searching for a home, you may stumble upon some terms that you've never seen before. This could complicate the process and make it more difficult to find a home you can tour. 

• Active
• Active Under Contract
• Pending
• Closed
• Hold
• Withdrawn
• Expired

Why would someone list a home that is already under contract? Can we still tour a house if it's pending or active under contract? When will the realtor stop marketing a property? These are great questions that our checklist of standard listing terms can answer. 

Homes you CAN tour:

This first section is terms that you might see on a listing website or hear your realtor mention that mean you can tour the home. Keep in mind, if you can tour the house that doesn't guarantee that you can make an offer. 

Active

If a house is listed as active, you have the green light. The home is hot and ready to sell. Other categories have stipulations or red tape that restricts touring, but if a home is active, ask the agent for a tour ASAP. 

The key difference between active and active under contract is that you can be sure they have not accepted an agreement yet. This means the door is wide open for you to make the first offer. This is great news!

Active Under Contract

Active under contract means they have accepted an offer from a buyer, but they have chosen to continue to market their home in case a better offer comes through before closing. If you go to tour a home that's active under contract and like it, you can still make an offer. 

Make sure you have your realtor clarify which listing category the home is in before you commit to touring. There's nothing wrong with touring a home that's active under contract. Just because a home is under a contract does not mean they have closed the deal. There are still many hoops to jump through that could jeopardize the status. 

It's important to know if there is already an offer on the table to manage your expectations. It would be disappointing if you really like a home and find out that it's already under contract. Make sure you clarify whether there is already an offer on the table, so you know what to expect. 

Homes NOT currently open to tour:

Some houses may be listed even if they're not currently available for tours. Beneath is a list of terms you may see on a listing site, but you still can't tour them. 

Pending

A listing that is pending means the seller has accepted a contract and asked their realtor to stop marketing their home. The property is between the active and closed stages. This means there are still many hoops to jump through. In other words, the contract can be withdrawn during many different stages of the process and begin marketing again. 

Keep an eye on properties that are pending to see if something happens during the buying process that causes the buyer or seller to withdraw from their part of the contract. You may be able to tour the home later if this happens. 

As long as a home is listed as pending, there will be no new tours. However, it has not been closed, and a lot can happen. 

Closed

The property has been sold/leased, and the legal transaction is complete. If a home is listed as closed, this means all of the stipulations of the contract have been fulfilled, and the seller has transferred ownership to the buyer. For obvious reasons, a home listed as closed is no longer available to tour.  

Hold

A house listed under "hold" means the agent has paused marketing this house for various reasons. If you come across a home that is under "hold," you can still ask the realtor about why the home is being held and go from there.

This may be a case where the seller needs to get work done on the home based on a previous inspection and will resume touring once the work is complete. Any combination of events could lead to a house being put on hold, so keep a close eye on the property and check-in regularly if you're interested. 

Withdrawn

A withdrawn property has been removed from the listing by the realtor for some reason and has not yet expired. Typically, a broker will keep a property that has been withdrawn listed until it reaches the expired status, which is explained in the next section.

Why would a broker want to keep a withdrawn property listed if it's no longer for sale? Different brokers have their own philosophy, but one reason could be to make their inventory look more robust or attract interest. If it's a nice home, it could attract interest to that brokerage, and they can show you a different home that is actually for sale. 

Expired

As the name suggests, an expired home has exceeded the term agreed-upon to market that home. In other words, it has surpassed the listing term that the realtor can advertise the home. 

Make sure to take a close look at the listing status before reaching out to the selling agent for a tour. There are a few stages where you can actually tour a home and several that have restrictions. Remember, just because a home is posted to the listing site does not mean it is open for tours. 

Preparing your home to sell can be challenging. Cleaning out your home so others can tour every inch and evaluate whether they like it or not can be stressful. Thankfully, we've developed some common themes over the years that have set sellers up for success. There's a delicate balance between decorating your home just enough before you've done too much. Here are some helpful tips to give you the best shot at decorating your home in a way that buyers will appreciate. 

Do's for Decorating Your Home to Sell

Here are some pointers to think about when setting your home up for tours. 

Do Strive for Minimalism

Staging your home can be fun and exciting. If you think about HGTV and all of the creative ways professional designers can transform a room, that might give you some inspiration for preparing your home to sell. Try to keep the extra decorating and staging as minimal as possible. 

Buyers will want to be able to imagine how they would use that space. Filling the room with too much furniture and decorations can distract them and keep their imagination from running free. Also, an area with too much furniture can make the buyer feel crammed or make the room seem too small. Realtors agree that the best selling point is a spacious room. Keeping the furniture and other decorations to a minimum is the best way to make the room feel spacious. 

Do Go with Seasonal Decor (Within Reason)

It's perfectly acceptable to spice up your decorations with seasonal tones and holiday decorations. During the holiday season, buyers might like to see how they can utilize their space for decorations. For example, a thoughtful touch of traditional Christmas decorations is great around the holiday season. Getting buyers in a joyful mood could be a successful advantage. 

Keep in mind, you should probably stick with generic decorations that nobody will be offended. We expand on what types of decorations to avoid in the "Don'ts" section. Be sure to use seasonal decorations wisely, as they can turn off the buyer if you take it too far. However, the good news is that you can still keep up some seasonal decorations around the holidays; you just might have to reign it in if you plan to invite buyers over for tours. 

Do Stage Your Home

What a buyer might imagine from your home might be different than how you have it set up to live in. In other words, staging might not be the most "functional" setup, but it's definitely the most appealing to buyers. Whether you want to hire a professional interior designer or stage the home yourself, it's crucial to arrange your furniture and decorations in a thoughtful way that will be appealing to buyers. 

Some buyers even purchase rental furniture and place their used furniture in storage. This is a great idea if you've already moved out and the place is empty. You don't have to stage every room if you've already moved out, but staging up the living room and one bedroom can give the buyer something to imagine. 

Stagers can also help with decorations that fit the style of the home. Some people have excellent design sense and can make their home look perfect. If you're like me, you probably don't have a good understanding of style, and you'll need to hire a professional. Either way, staging your home can be complicated, but it could pay off in a quick sale or a high offer. 

Do Remove Any Personal Items

This serves two purposes. First, there's an element of safety. You might not want everyone who comes into your home to see your kids' pictures that might tell them more than they need to know. Try to take down all your family portraits or any other decorations that might be considered personal to you. 

Also, we want buyers to feel comfortable when touring the home and imagine settling down with their family. When they see your family, it might make it harder to imagine themselves living there. Instead, seeing all of your personal items might make them feel like a guest rather than seeing themself living there. At the end of the day, you're selling the home, so you want others to feel like they can be comfortable buying the house for their family. 

Do Have Pleasant Scents

You want to make the buyers feel like they've already moved in and they're relaxing while the cookies are baking in the oven. If you're not into baking, you can light a candle that gives off a warm and cozy feeling. Some sellers don't realize that you want to make the place feel like home in as many ways as possible. Filling the air with wonderful smells could be a great way to put them in the right mood and really enjoy touring the home. Just don't take the candles overboard because some people are sensitive to strong perfumy smells. 

Do Shoot for a Warm and Cozy Feel

The best thing you can do to prepare your home is to make it feel as comfortable as possible. The number one factor a buyer is looking for when buying a home is, "could I see myself living here?" The emphasis on living includes relaxing, hanging out, hosting guests and family members, or just going through everyday life. Some select buyers might be looking for a luxury home with fancy furniture they'll probably never sit in, but most buyers want to know that they can feel safe and comfortable in their home. 

Don'ts for Decorating Your Home to Sell

We've found a few key factors that turn off buyers the most when they're touring a home. Consider these "don'ts" when setting up your home to sell. 

Don't Leave Up Controversial Decorations

This goes along with the emphasis on comfy and cozy homes. Try to avoid decorations that will make the buyer feel uncomfortable. This could range anywhere from religious or personal decorations to political, sports teams, or otherwise. It's okay to stand up for what you believe, but if you want a better shot at selling your home, avoid controversial decorations. Instead of making the buyer feel welcome and comfortable, divisive decorations could make them feel like an outcast, which is the last thing they would want for their own home. They will associate your home with negative thoughts and will probably move on to tour a different house. 

Don't Go Crazy with Holiday Decor

We mentioned that it is okay to have fun with decorating your home according to the season. However, you definitely can take it too far if you're planning on hosting tours. A common question we get is, "Can I still put up my Christmas decorations?" The answer is a complicated yes and no. Certain decorations will add a great pop of color and set up a cozy theme for the buyers. Others may distract from the home rather than compliment the space. 

Try to stick with traditional decorations like door wreaths or a Christmas centerpiece. Something that will replace standard decorations you probably always use. Avoid adding any garland or bright lights that can be distracting. Also, anything you'll have to continually monitor and keep clean, like a Christmas tree or poinsettias, could be too much work when you're already busy keeping the place spotless. Finally, any Santa, Frosty, or religious-themed decorations could be distracting as well. It's best to stick with generic decor that no one is likely to notice.

Don't Leave Out Expensive/Valuable Decorations

Remember to stow away any items that are important to you or that you wouldn't want a strange to know you have. When selling, your agent is inviting tons of people to tour your home, and it might be hard to keep track of everyone, especially if multiple people come on the tour. It's vital to remove any valuable items if you're going to host an open house because the realtor definitely can't keep track of everyone. We recommend finding a trusted friend or family member to keep your items safe while you're showing the home or take it with you when you leave the house. Buyers typically don't want the seller there because they might get intimidated, so you won't be there to protect your antiques and valuables. 

Don't Ignore the Cluttered Areas

Clutter can make some people anxious. This point ties back to minimalism and the idea that less is more. You may be used to the stack of papers on the counter, but it may catch some unwanted attention by the buyers. Even a bookshelf with stacks of books could be a bit too much if they're not arranged flawlessly. Most people like an empty space, and as long as you have a few essentials in the room, you've got a great start. Remember to declutter any spaces even if that cluttered space is typical to your day-to-day life. 

Don't Fill Up Closets and Storage Space

Full closets make it seem like you're using every inch of that space. A full closet may make the buyer feel claustrophobic or worry if there's enough storage space. Cleaning out the closet and leaving plenty of extra space will show the buyer that there is more than enough storage for their odds and ends. Even if you use every inch of the storage, you can make it seem like you have plenty of space and put the buyer's mind at ease. Buyers will want to look at every inch of your home, so be sure to organize all the rooms, even if it'll take some time to clear out.

A contract contingency is anything that makes your home purchase conditional. In other words, a contract contingency means that your purchase will be valid as long as the home meets the conditions (contingencies) listed in the contract.

Contingencies provide a safety net for you to back out of a sale without losing your deposit if something goes wrong. They protect the home buyer from any unforeseen issues that they're not professionally trained to detect. Here are a few examples of common contract contingencies. 

Home Inspection

You can buy a home with the contingency that it passes a formal inspection. The cost can vary, but it may cost a home buyer $300–500 for a home inspection. That may sound steep, but paying a few hundred dollars is worth it to avoid a costly surprise down the road!

Whether or not your new home gets a passing grade is up to you—not the home inspector—they will report to you, and you can make the decision. This provides the homebuyer with the flexibility to back out if the inspection reveals any significant problems.  Here are five issues that may cause you to reconsider:

1. Outdated Electrical Wiring.  With today's families using more gadgets than ever, it's vital to ensure your home's electrical system isn't past its prime. An upgrade may be due if your home inspector finds overloaded outlets or a panel that's wired with too many circuits. Pay close attention to aluminum wiring if it shows up on your home inspection report. It was used between 1965 and the mid-1970s in place of copper. Aluminum poses a dangerous fire hazard due to the potential of overheating at connections.
2. Foundation Damage.  Do you remember the parable about the wise man who built his home upon the rock? If there's one lesson we learned from that story, it's that your foundation counts! Every home experiences some degree of settling. A qualified home inspector can tell you when a seemingly minor crack spells major trouble. Watch out for bulging or bowing foundation walls, which is a sign of structural weakness that can be expensive to repair.
3. Septic Tank Failure. If your new home comes with a septic tank, make sure trouble isn't bubbling below the surface. A septic tank that fails can cost thousands of dollars to replace. That's a stinky way to start life in your new home! Foul odors, slow or gurgling drains, and standing water are common symptoms of a septic tank that needs TLC.
4. Water Intrusion. Water is often called the source of life, but it can wreak havoc when it creeps into places it shouldn't. Your home inspector should investigate any water stains to determine if there's an active leak and to check for the presence of mold. A brown spot on the ceiling, for instance, may indicate a faulty roof, while stains on basement walls can clue you into drainage issues—and neither is a cheap fix.
5. Mold. A home plagued by mold isn't just gross—it can affect your health. You can typically clean up areas of mold that cover less than 10 square feet on your own without breaking the bank. But extensive growth requires professional help. The cost of removing mold from crawl spaces, walls, and ducts can easily be thousands of dollars, depending on the scope of the damage.

You can also consider getting other professional evaluations like a termite inspection or radon test, depending on the advice of your real estate agent and the age and condition of the home you're purchasing.  Just because your home inspector uncovers an issue doesn't guarantee the seller will fix it.

Appraisal

An appraisal is a formal evaluation of the true value of the property. An appraisal protects you from paying more than the home's real value.  The assessment will determine the market value of the property, and the inspection will verify that the property meets the lender's standards.

Here are the five most common issues - mostly associated with (FHA) Federal Housing Administration loans - and how they can be fixed before loan approval to keep your dreams of homeownership alive:

1. Paint. Due to lead paint concerns, the home cannot have any evidence of peeling or chipping paint. Commonly found in: Homes built before 1978. Resolution: Repainting or removal of all existing paint is required.
2. Utilities. All outlets, lights, plumbing, appliances, and heating and cooling systems must be operable and turned on at the primary power source before the inspection. Commonly found in: Vacant properties, real estate-owned properties, short sales, pre-foreclosures. Resolution: Faulty utility fixtures and systems must be repaired or replaced.
3. Windows. The U.S. Department of Housing and Urban Development (HUD) and some conventional investors require that barred bedroom windows without exterior access must have security release latches. Commonly found in: Garden units and street-level properties in urban areas. Resolution: Windows without security release latches must be modified.
4. Handrails. All steps and stairways must have handrails to comply with HUD property safety standards. Commonly found in: Properties with more than one floor or elevated/lower-level entrances. Resolution: Handrails must be installed near steps and stairways that don't have them.
5. Well, Water Supply & Septic Systems.  The well or septic tank and leach lines must be equipped, identifiable, and an acceptable distance from property lines and sources of pollution. Commonly found in: Older properties, rural properties. Resolution: These systems must be updated or replaced if they fail a water well test.

Any issues that fall outside of FHA's minimum standards will need to be squared away before closing.  The good news is that in most cases, property issues uncovered during an FHA appraisal can be resolved quickly.

Final Mortgage Approval

If you do get a mortgage, you'll have a final step before you can close on your home: getting final Approval. Final Approval is what you will need to close on your home. This does not happen until everything an underwriter requested is approved, and a Clear to Close (CTC) is issued.

Whatever you do, don't open a credit card, take on more debt, or change jobs once you're under contract. Plus, any changes in your financial situation can jeopardize your loan process. Don't make these common mistakes which can mess up your final Approval:

• Making large purchases on credit. The higher your debts become, the less likely it is you can keep your pre-approval. A large purchase affects your debt ratio, as well as your credit score.
• Opening new credit lines. New credit means more debt. This can bring your credit score down.
• Significantly changing your credit history. Paying your debts down could bring your credit score down. The algorithm used to come up with a credit score is complicated. If you drudge up an old debt by paying it off now, your credit score could drop despite your effort at making things right.
• Making unusual deposits. The bank verifies your assets several times during the loan process. Large or inconsistent deposits could raise a red flag. You have to prove where the money came from. You may have to prove you did not incur new debts to obtain the money as well. 

An experienced real estate agent can help you navigate the contingency findings and set priorities for moving forward. If the inspection reveals significant problems with the home, you can ask the seller to fix the problem, reduce the price, or cancel the contract.  Ultimately, you decide whether to walk away or negotiate with the seller, and a lot of that depends on your budget and willingness to take on a major home improvement project.  If the appraisal comes in lower than your offer price, your real estate agent will provide the best guide for what to do next.  

Once you navigate through the contract contingencies, you are finally ready to close on the purchase of your new home!

Move-in day is approaching... How do you feel? Whether you're nervous, excited, anxious, or surprisingly content, there's still a lot of work to be done. Through all the emotions, it's easy to overlook some crucial details that could make the move-in day a little less stressful.

The first decision you have to make is whether you're going to hire a moving company or DIY and ask your friends and family for help.

Hire a moving company

If you have the opportunity to hire a moving company, it can save you a lot of time and hard work. If you're moving for work-reasons, ask your employer how they can contribute financially to your move. Some companies will partially or sometimes fully cover your moving expenses!

Ask around

There will be several moving companies that you can contact about helping you move. If you know anyone who has used any local moving companies, ask them who they suggest you use. Word-of-mouth is a great way to get honest feedback and find out who does the best job. Before you decide who to use, make sure you ask around for advice and get some reliable feedback about that moving company. 

Research each company in the area

In addition to word-of-mouth, it's a good idea to do your own research. What works for others might not fit your needs, so you should also make sure you know all of your options. You can even contact each company and ask about their availability, prices, and policies to make sure they're a good fit. You can also find some online reviews that are brutally honest about each company and see about experiences that other customers have had. 

Ask for estimates

Feel free to have different moving companies into your home to give you an estimate of how much they'll charge to move your belongings. This will give you an idea of who is the most reasonable option, and you'll get to speak to someone in person about their process. Make sure to get the estimates in writing, and see what extra charges they might impose for particular items. Get each person's name, so you have someone to contact if you decide to choose their company. 

Compare the estimates

Now that you've seen every option and talked to each potential business, you have the tough decision about who you want to choose. The price estimates might make it an easy decision. If one company charges much less than the others, as long as you're comfortable with their policies, it's a no-brainer. However, if the estimates are close, you should take a closer look at their extra fees and moving guidelines to help make your decision. 

Will you need movers insurance? 

Remember, you're entrusting your belongings to strangers. Talk to your home insurance provider to see how much of your items are covered during a move. Depending on their answer, you might need to purchase additional insurance for your valuable items. It's better to be safe than sorry. 

Another option is giving your most valuable items to a close friend or family member to maintain while you're moving. Then, you can meet up with them to get it back once you've settled into your new place. Either way, make sure you keep track of your valuable items through the chaos of moving day. 

DIY moving

First off, take a minute to notice how blessed you are for having wonderful friends and family that are willing to spend their weekend helping you move. That has to be a good feeling!

Now you can take a deep breath and start the planning. Here are some key steps you can take to get everything in order before the big day. 

Organizing and packing

It's not uncommon to allow 6-8 weeks to organize and pack your items. The more time you take to prepare, the smoother moving and unpacking will be once you get to your destination. Be sure to organize and label all of your boxes to help with unpacking. You can start with clothes that aren't in season or those fine china plates you probably won't use. Happy packing!

We also suggest transferring child records well in advance of your move so your kids can start school as soon as you get there. About a month in advance, think about transferring medical and pharmacy records, so you're good to go when you arrive.

Get a game plan

As moving day approaches, consider making travel arrangements. Think about how many cars you're going to need, which route you're going to take, and how you're going to get all of your items from point A to point B. If you have a long trip, think about where you're going to stop for lunch or even lodging for an overnight trip. Getting all of this planned ahead of time will help reduce stress when hit the road. 

Also, you're probably going to need trucks and trailers to move some of your more oversized items. Phone a friend with a truck and offer to buy them beer or pizza in exchange for their help. It's a lot easier with support, so don't be afraid to ask friends and family to help you move. For those who cannot help physically, see if they'd be willing to watch your kids while you are busy unpacking and moving items. 

Will you need to downsize? 

It's important to know if the square footage at your new place is less than your current. If so, you may need to think about what items you can leave behind. If the buyer doesn't want your furniture, you can sell it on an online marketplace. The extra cash can help offset some of your travel expenses or help replace it with smaller furniture for your new place. 

Sometimes it's helpful to request an extra trash can from your garbage service for the week of moving. You might find some things that you don't need to take and can't sell on a marketplace. Contact your waste management service to see what they charge to take extra trash or get an extra trash bin for the week. 

Give yourself plenty of time.

Make sure you allow for more than enough time to pack and move your belongings. If everything goes as planned, that's fantastic! In reality, you might get delayed somehow, and you don't want to miss work the next day or miss an appointment because you weren't there on time. In a perfect world, give yourself an extra day or two for the whole moving process so you can settle in before life begins. 

Some projects are worth the work. We've all heard about painting the walls to look fresh or organizing your space to look clean and tidy. Let's take it to the next level and talk about more ambitious DIY projects that may take some time, but you'll be glad you did it in the end. 

Here are five home improvement projects that will impress all the neighbors and make them want to renovate their house to keep up. 

• Install Floating Shelves
• Update Your Staircase and Railings
• Paint the Tile and Backsplash (even the floor tiles!)
• Do Some Landscaping
• Improve Your Outdoor Lighting

Install Floating Shelves

Did you know you don't need a massive cabinet to store your belongings? Designers have turned the idea of cleanliness into part of your home's decor. Rather than hanging a cabinet or throwing everything in a closet, you can hang some floating shelves to organize your belongings that you wouldn't mind your guests seeing. Put some floating shelves in your kitchen to show off some of that new set of pots and pans. You could also hang some in the bathroom for your towels. Floating shelves take up much less space than a standing cabinet, so you'll have more room to maneuver in a tight space. 

You can also use floating shelves for other decorations or pictures. Rather than nailing all of your photos to the wall, give the wall some texture and character by placing stand-up picture frames on the shelf just like you would on top of a cabinet or nightstand. If you like greenery, you can set some plants or succulents on the shelf to add that pop of color everyone is trying to find. Floating shelves are versatile; you can arrange them however you'd like. 

Update Your Staircase and Railings

Some people overlook how much their staircase can add to the home's design. Think about all the square footage a staircase takes up. Now consider that space a blank canvas for whatever theme or style you hope to apply to your home. Let your creativity run wild, and think of your staircase as any other floor in the house. It may take some extra time and effort, but the results won't disappoint.

Add a Runner

A quick and easy way to spice up the staircase steps is to add a carpet runner down the middle. Whether you want to add a touch of color or a vibrant design, you can turn your beige staircase carpet into a burst of color by adding a runner. You can either have it done professionally for a couple of hundred bucks or take the project head-on by adding the carpeting yourself. Either way, runners for your staircase are becoming a popular design trend.

Paint the Steps/Railing

If your staircase is hardwood, you can paint the steps any color you want. A popular style is to paint the stairs one color and paint the gap between each step another color. This style adds some contrast and makes your staircase more interesting. Once you finish the steps, you can paint any wooden railings connected to the stairs. Painting your steps and railing is often overlooked, but it's just like replacing the flooring in your living room or hallways. 

Paint the Tile or Backsplash

Tile flooring is common everywhere in bathrooms, kitchens, mudrooms, and laundry rooms. Still, many homeowners don't think of their flooring as part of the house's design. You should utilize every corner of your home to make it yours in every way. Want to paint your tile? Go for it! 

Many interior designers map out ways to tastefully add some flare to your bathroom floor. One example is laying stencils or painter's tape to add a pattern or design to a blank tile. Another option is to paint a row or two of tile an accent color to give it some dimensions and character. However, if you decide to paint the tile, make sure you have fun with it. Like your walls, your floors are a blank canvas for whatever your heart desires. 

Do Some Landscaping

You can give your front yard a facelift if the weather is right. Whether you want to hire a professional landscaper or do it yourself, updating your lawn is a great way to gain some attention from the outside. Some common landscaping projects include trimming bushes or trees, planting flowers or other plants, and laying mulch or pebbles to accent your plants. 

More ambitious homeowners can take on bigger projects like laying stones, building a patio, or adding an archway or pergola over their existing landscaping. Whether you plan on going all-in or simply cleaning up your front yard, landscaping can go a long way to make your home look great and increase the property's value if you plan to sell in the future. 

Improve Your Outdoor Lighting

Once you finish the landscaping (or before), you can add some lighting so people can enjoy your landscaping after it gets dark. Bright outdoor lighting is a good investment if you like to host barbecues that go into the evening hours. Rather than packing up and heading inside, you can enjoy the outdoors well into the night with good lighting. Also, it adds an element of safety, as people are less likely to mess with your property if it is well-lit.

If you want to show off your beautiful home, add some uplighting to the outside. Tasteful outdoor lighting can make a lovely home into an awe-inspiring home from the outside. Many nice homes like to use outdoor lighting to accent their homes or highlight certain parts of their exterior or landscaping. Investing in some outdoor lighting is a great way to make your neighbors notice the work you're putting into your beautiful home.

Many sellers see real estate agents as a necessary evil. Some would even say they are crude salespeople who are only looking for a quick buck. On the contrary, most realtors are there to help you make a sale and are willing to work with you to get it done. Many realtors are willing to negotiate their terms to make it work for both parties. They may have a base contract which they give to every client, but almost every realtor will adjust those terms to fit your preferences better.

If you find a realtor that won't negotiate their terms, that's okay. Some agents get enough clients with their base terms that they don't need to compromise. One way to avoid this is to look for less-experienced agents. Newer agents will be more eager to help and more likely to take a lower commission to secure your business. If an agent seems to be a tough negotiator, that might be a good thing. If you have a hard time negotiating terms with a realtor, that likely means they will be tough during negotiations with a buyer (which means a better deal for you when they're representing you). I would definitely want someone like that on my team on closing day. 

Hopefully this makes you feel better about working with an agent. Less than half of all sellers actually discuss the contract or negotiate the terms before signing. They may not know that nearly every aspect is negotiable, especially the commission. The initial commission rate is typically the standard in your region. You can choose to go with the standard or negotiate based on what you think is appropriate. Not every home sale is created equal, so the commission rate doesn't need to be either. 

Here's What You Should Know About Commission

The seller and realtor agree on a commission rate when they sign the contract.

As the seller, you will sign a contract with the realtor when you agree to work together. For the most part, this contract is to ensure that you sell your home through that agency. What the seller may not know is that the contract lays out an agreement that lasts until the home is sold. Even if you haven't discussed a listing price, you've agreed to a commission rate once you sign the contract. Make sure you plan out how much you're willing to spend on commission before you agree to the terms. 

The commission rate will vary by region or even by the real estate agency.

What may be expected in one area might seem too high or low in another. Some agents can do very well at a 4-6% commission, while others will suggest 7-9%. It's important to know what is typical in your area and whether that realtor has a history of negotiating the commission rate. Plus, if they know you've done your research, they're less likely to try to take advantage of you. 

There is no official "standard rate," although the realtor may have a typical rate that they use. 

Your realtor might say that somewhere between 7-9% is "standard" to get you to agree to the terms. It may be a standard because people agree to those rates, but there is no legal or professional standard for commission rates. Some agents will agree to rates as low as 4% if the seller plays their cards right. If you keep in mind that the realtor wants your business and that you have other options, you're on the road to breaking the "standard" that they're trying to convince you to subscribe to. 

The commission is split between the selling and buying agents (terms agreed upon in the contract).

Another vital part of the contract is the buyer's side commission. The terms of a home sale contract will include the total percentage the seller agrees to and breaks down the commission split between the buying and selling agent. Whenever you ask for a lower commission, that means you're asking the selling agent to lower their cut of the profit. This is an important detail to remember when negotiating, as some agents may see it as an insult. If you're confident enough and make a good case for why you want a lower commission, they will understand. 

Your agent might find a buyer and represent them too (dual agency).

Sometimes the selling agent will try to bring in one of their own clients to buy the home. In this case, they will get both the buying and selling sides of the commission. Another term for this scenario is dual agency. Representing the buyer and seller is a conflict of interest and can get tricky. It may be unethical or even illegal in some states. Try to avoid this situation if possible.

Helpful Hints for a Successful Negotiation

Prepare Your Home Before Contacting the Agent

There are many things you can do to your home before going into contract with an agent. Pre-Listing activities are becoming more popular because they can save the seller thousands of dollars in commission. Anything from having an inspection to staging your home will mean less work for the realtor and gives you a better case for a lower commission.

Refer a Friend to that Agent

If you have a friend or family member that may be buying or selling their home soon, share their contact information with the realtor. Giving them more business opportunities may make them more likely to negotiate and give you a better deal. Think about it: 4% commission from two clients is more money than 6% from one. This is a great way to save yourself and your friend some money while helping out your agent. It's a win-win!

Make it Easier on Your Realtor

Similar to going through the pre-listing process, you'll want to show the realtor that you're giving them all the tools for a successful sale if you want to negotiate a lower commission. Ideally, you can stage your home or at least clean and organize everything before the tours. Another benefit will be if you're already moved out of the house and offer them full access through a lockbox or giving them a key to the home. Either way, allowing them to tour the home at any time is an advantage because they can get as many people in the house as possible. Anything you can do to make their life easier will give you a better shot at a lower commission. 

Avoid Requesting Lower Buyer's Side Commission

Typically, you'll want to avoid decreasing the buying side commission. Buyers' agents won't want to show their clients the home if they know it has a lower commission than other similar homes. This means you're essentially asking the selling agent to take a smaller cut. Be very sensitive to this because you don't want to offend anyone or make them feel like they're not worth a higher commission. 

HomeTraq joins nationally recognized fintech and insurtech accelerator program, RevTech Labs, for their Fall Cohort. They are joined by seven other startups from around the world.

The eight startups making up the class represent a range of solutions across both the financial and insurance industries. The RevTech Labs team connected with close to 4,000 companies from around the world, narrowing the numbers down to 61 through an internal screening process and selecting only eight final companies after hosting a Selection Week with program partners and sponsors. 

The accelerator program provides each startup founder with intensive mentorship from leading bank executives, business development professionals, attorneys and venture capitalists. 

For the fall, RevTech Labs is offering a hybrid program to provide both value and flexibility to startup Founders. “All our advisory board, task force meetings and curriculum sessions will continue to be hosted virtually through Zoom,” says Jasmine Boyce, RevTech Labs Program Manager. “We intend on facilitating an in-person roadshow to New York for Fintech Week and other in-person opportunities to engage our Founders. With the recent spike in COVID, we will continue to monitor the CDC guidelines in order to make the safest and most strategic decision for our upcoming cohort.”

HomeTraq is excited, and honored, to be a part of this cohort to continue serving consumers and growing socially responsible real estate.